14-day disclosure period

In Ontario, s. 5(1) of the Arthur Wishart Act says the prospective franchisee must receive the disclosure document not less than 14 days before the earlier of two events: signing the franchise agreement or any other agreement relating to the franchise (other than certain confidentiality and site-designation agreements described in s. 5(1.1)), and paying consideration to the franchisor or its associate relating to the franchise. The Act excludes certain refundable deposits from the second event, on stated conditions, and s. 5(7) lists grants, such as some resales by a franchisee, that the section does not apply to.

Receipt, not sending

Ontario’s wording is that the franchisee “shall receive” the document, and British Columbia’s s. 5(1) says the franchisee must have received it at least 14 days before the earlier of signing and payment, subject to the exemptions in its s. 5(8). Alberta’s s. 4(2) and Manitoba’s s. 5(2) likewise speak of receipt. The clock therefore runs from the date the package arrived, which is why delivery as one document matters.

What to ask

• The date the complete package was received, and how it can be shown
• Whether any payment or signature came earlier than 14 days after that date
• Whether a deposit meets the Act’s conditions for being left out
• Which province’s Act governs, and how that Act words the period

The disclosure contents answer covers what the package must hold.