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A significant development for franchisors has just been announced: The Cabinet of the Government of Saskatchewan has set June 30, 2026, as the coming into force date of The Franchise Disclosure Act, SS 2024, c 13, as well as approved related amendments to its Regulations by Order in Council. As of the effective date, franchisors will be required to comply with the new statutory disclosure regime – a notable change, as Saskatchewan previously had no legislation governing franchise disclosure obligations.
What This Means in Practice
Commencing June 30, 2026, franchisors who offer franchises in Saskatchewan will be required to provide prospective franchisees with a franchise disclosure document that sets out specified information about the franchisor, the franchise system, and the forms of agreement to be signed. The Regulations that prescribe the detailed content and mechanics for that disclosure have been approved and published.
The disclosure package is intended to ensure prospective franchisees receive key facts (franchisor financial statements, details of ongoing fees and operating costs, litigation history, lists of current/former franchisees, territorial/proximity policies, among other prescribed content) with sufficient time to consider those facts prior to signing. The Regulations mirror the disclosure framework used in other Canadian provinces while adding Saskatchewan-specific requirements.
Practical Steps for Franchisors
- Review existing franchise disclosure documents and franchise agreements for gaps against the new Saskatchewan legislation and regulations;
- Prepare or update certified financial statements, risk warnings and lists of current/former franchisees;
- Implement processes to deliver the disclosure document within the timing rules set out in the Act and Regulations; and
- Consider appointing an attorney for service in Saskatchewan if your registered corporate office is outside Saskatchewan.
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.
