Which provinces have franchise disclosure laws?
Six: Ontario, Alberta, Manitoba, New Brunswick, Prince Edward Island and British Columbia. Each requires a franchisor to hand over a disclosure document at least 14 days before you sign anything or pay anything. In the remaining provinces and territories there is no franchise statute at all, so what you receive depends entirely on what the franchise agreement itself promises.
Canada has no national franchise law. Disclosure is provincial, six provinces have legislated it, and the practical consequence catches buyers out: the same franchisor selling the same system owes you a formal disclosure document in Toronto and owes you nothing equivalent in Regina or Halifax.
The six provinces with a Franchises Act
Ontario legislated first in 2000, through the Arthur Wishart Act (Franchise Disclosure). Alberta has had its own Franchises Act since 2000. Manitoba followed, then New Brunswick, and Prince Edward Island. British Columbia was last, its Franchises Act coming into force on 1 February 2017. The statutes are closely modelled on each other, which is deliberate — they were drafted toward a uniform template so a franchisor operating nationally is not meeting six different standards.
What the legislation actually requires
The core obligation is the same in each: a disclosure document, delivered at least 14 days before you sign the franchise agreement or pay any money, containing the franchisor’s financial statements, its litigation and bankruptcy history, the fees you will pay, and the obligations each side takes on. The 14 days are a floor, not a target — they exist so that a buyer has time to take the document to a lawyer and an accountant before committing.
Saskatchewan, Quebec and the territories have no franchise statute
This surprises people, Saskatchewan especially, given its neighbours on both sides have legislated. Buying a franchise there is governed by ordinary contract law and whatever the agreement says. That does not leave a buyer without recourse — misrepresentation and good-faith doctrines still apply — but it does mean there is no statutory right to a disclosure document and no statutory remedy for not receiving one.
Which province’s law applies to your deal
Generally the province where the franchised business will operate, not where the franchisor is headquartered. A franchisor in Ontario selling a location in Nova Scotia is not automatically bringing Ontario disclosure obligations with it. Franchise agreements frequently specify a governing law, and whether that choice can override a provincial disclosure statute is exactly the kind of question to put to a lawyer before signing rather than after.
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Government of OntarioGovernmentArthur Wishart Act (Franchise Disclosure), 2000, S.O. 2000, c. 3
- 02Government of AlbertaGovernmentFranchises Act, R.S.A. 2000, c. F-23
- 03Government of ManitobaGovernmentThe Franchises Act, C.C.S.M. c. F156
- 04Government of New BrunswickGovernment2014, c.111 - Franchises Act
- 05Government of Prince Edward IslandGovernmentFranchises Act, R.S.P.E.I. 1988, c. F-14.1
- 06Government of British ColumbiaGovernmentFranchises Act, S.B.C. 2015, c. 35
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