Canada: Franchising

Foreign franchisors expanding into Canada often possess financial statements prepared under various accounting frameworks. Understanding whether existing audited, reviewed, or compiled statements satisfy Canadian franchise disclosure requirements is essential to avoid costly delays and legal exposure. This analysis examines the critical distinction between accounting standards and assurance standards...

Foreign franchisors expanding into Canada face critical decisions about accepting deposits before providing franchise disclosure. Understanding when a refundable deposit crosses legal boundaries can determine whether your franchise relationship begins on solid ground or creates statutory rescission risks that emerge after substantial investment.

Canada's Competition Bureau has released draft Cartel Enforcement Guidelines that consolidate and update guidance on criminal cartel provisions, introducing significant new positions on bid-rigging, foreign-based conspiracies, facilitating practices like MFN clauses, franchise systems, and employer agreements. These proposed guidelines expand the Bureau's enforcement approach beyond established case law and warrant careful attention from Canadian businesses operating in competitive markets.

On June 30, 2026, Saskatchewan’s first franchise legislation – The Franchise Disclosure Act (the Act) and The Franchise Disclosure Regulations – will come...

When franchise relationships end badly, the real battle often begins after termination—when former franchisees rebrand and continue operating from the same location.

Most established franchisors already have disclosure documents, franchise agreements, operating manuals, brand standards, training materials, and a developed understanding of how their system is sold in their home...

Foreign franchisors evaluating international expansion frequently look first to Canada. The reasons are obvious. Canada is geographically close to the United States...

Canada is one of the most attractive international markets for franchise expansion. The country has a mature franchise sector across retail, hospitality, service, and fitness industries, and many foreign franchisors view...

The American Franchise Act ("AFA"), a bipartisan bill currently moving through U.S. Congress, could help bring clarity to franchising as a business model, with implications for Canadian operators.