The Canadian Franchise Association (CFA) has proposed changes to
modernize Ontario's Arthur Wishart Act (Franchise
Disclosure), 2000 (Act) by allowing franchise disclosure
documents (FDD) to be delivered electronically. Such changes would
make Ontario law regarding FDD delivery consistent with the laws of
several other provinces.
Under the Act, franchisors are required to furnish
prospective franchisees with an FDD, which sets out all material
information necessary for prospective franchisees to make an
informed investment decision. The Act requires franchisors
to provide an FDD to prospective franchisees at least 14 days
before the earlier of either the signing of a franchise agreement
or the payment of any consideration. The FDD must be one document
delivered at one time either personally, by registered mail, or by
any other method prescribed. No other delivery methods are
currently permitted in Ontario.
The CFA has written to the Minister of Government and Consumer
Services asking the Minister to consider amending the Act
to allow for disclosure by way of electronic means, in addition to
those methods currently prescribed. In its letter, the CFA has
noted that Ontario is the only province with franchise disclosure
legislation that does not allow for disclosure via electronic
delivery or courier. It states that the changes would represent a
practical update that would keep the Act at pace with advancements
that have occurred in other jurisdictions since 2000.
The CFA has reported that its conversations with the policy advisor
of the Minister, an advisor from the Premier's office, and the
Assistant Deputy Minister of the Ministry of Government and
Consumer Services have been positive. It goes on to say that it
does not anticipate any contentious reactions from other
stakeholders with regard to the proposed changes. Stay tuned!
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