Arthur Wishart Act

The Act defines a grant to include the sale or disposition of a franchise, so a buyer meets it whether the deal is a new franchise from the franchisor or a resale from another franchisee. Beyond disclosure, it gives franchisees a right to associate (s. 4), a right to rescind for late or deficient disclosure (s. 6) and a right of action for damages for misrepresentation (s. 7). Resales raise their own questions, covered in how the Act applies to a franchise resale.

Where it applies, and where it does not

Under s. 2(1), the Act reaches a franchise agreement where the business is to be operated partly or wholly in Ontario. The Canadian Franchise Association notes that franchise disclosure is regulated provincially, not through one national law. It lists British Columbia, Alberta, Manitoba, New Brunswick and Prince Edward Island, each with a Franchises Act, and Saskatchewan’s Franchise Disclosure Act. Each statute has its own text.

What to ask

• Which province’s Act covers the location being bought
• Whether the grant falls under one of the franchise disclosure exemptions or needs a disclosure document
• Whether a disclosure document was delivered, and when
• Whether a statement of material change has followed