The B.C. Ministry of Small Business and Red Tape Reduction announced today that the new Franchises Act and the Franchises Regulation will come into effect on February 1, 2017. The Franchises Act is intended to "provide important legal protections for British Columbia-based franchisees who operate a franchise". The Act largely mirrors legislation already in force in Ontario, Alberta, Manitoba, New Brunswick and Prince Edward Island, though there are distinguishing features across jurisdictions.
One of the important elements of the Franchises Act is the obligation imposed on franchisors to provide broad disclosure to the prospective franchisee. The Franchises Regulation, approved and released October 3, 2016, outlines the disclosure requirements for franchisors doing business in BC. The full text of the Franchises Regulation can be found here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
