B.C. Franchises Act Coming Into Force February 1, 2017

By Andrew Brunton
Categories: Blog, Franchising

The Franchises Act will come into force on February 1, 2017, making British Columbia the sixth Province to enact such legislation (joining Alberta, Manitoba, Ontario, New Brunswick and Prince Edward Island).

The main consequence of the Franchises Act is that franchisors must provide disclosure to franchisees at least 14 days before entering into a franchise agreement. The Franchise Disclosure Document provided by franchisors must disclose all material facts pertaining to the franchise, including but not limited to:

  • financial statements of the franchisor,
  • business information about the franchisor and its directors;
  • lists of franchisees and former franchisees; and
  • a summary of the franchisee’s costs and obligations.

A Franchise Disclosure Document is also required when renewing an existing franchise agreement on or after February 1, 2017.

Failure to provide a Franchise Disclosure Document may grant franchisees a right to rescind the franchise agreement within 60 days after receiving a Franchise Disclosure Document or within two years if the franchisor never provides a Franchise Disclosure Document.

We are happy to help franchisors prepare their Franchise Disclosure Document. Please contact Andrew or another member of our Franchising Law Team.

Andrew Brunton is a business and real estate lawyer at Pushor Mitchell LLP who acts for both franchisors and franchisees. You can reach Andrew at 250-869-1135 or brunton@pushormitchell.com. For more information on our Franchising Law Team, please visit http://www.pushormitchell.com/service/franchising