Application of franchise statute by location

Parties to a cross-province franchise deal meet this term when they ask which province’s disclosure rules govern. Ontario’s Arthur Wishart Act, s. 2(1), applies to a franchise agreement, and to its renewals and extensions, if the business is to be operated partly or wholly in Ontario.

How each Act words it

British Columbia’s Franchises Act, s. 2(1), applies to a franchise agreement, and to a renewal or extension, if the business operated or to be operated by a franchisee is wholly or partly in British Columbia. Manitoba’s Act, s. 2(1), applies to a franchise agreement if the franchised business is operated, or is to be operated, partly or wholly in Manitoba. Each of these subsections covers agreements entered into on or after it came into force; s. 2(2) applies only some sections to earlier agreements. Each Act also lists, in s. 2(3), relationships it does not apply to.

What to check

• Where each location, including a planned one, is or will be operated
• Whether any exception in the Act of that province covers the deal
• Whether the agreement’s governing law and forum clause points elsewhere

This entry covers Ontario, British Columbia and Manitoba only; check the rules where you are. Which provinces have franchise disclosure laws lists the regimes.