Delivery of disclosure document (franchise)

A franchise buyer meets this term when the franchisor says the disclosure document has been sent and a later dispute turns on how it arrived. Under Ontario’s Arthur Wishart Act, s. 5(2), a disclosure document may be delivered personally, by registered mail or by any other prescribed method. Section 5(3) adds that it must be one document, delivered as one document at one time. Section 5(7) lists cases to which s. 5 does not apply.

Electronic and courier delivery

Ontario’s O. Reg. 581/00, s. 12, allows delivery by electronic transmission if four conditions are met: the recipient can view, store, retrieve and print the document; it contains no links to external documents or content; it carries an index for each separate electronic file; and the franchisor receives a written acknowledgment of receipt. Courier delivery is allowed if the franchisor pays the costs. Separately, Ontario’s Electronic Commerce Act, 2000, s. 10(1), treats electronic information as not provided if it is merely made available for access, for example on a website, for the purposes of its ss. 6 to 8.

What to ask

• Which delivery method was used, and whether it is one the Act or regulation names
• Whether the written acknowledgment of receipt was signed and is on file
• Whether every part arrived together as one document

This entry covers Ontario only; check the rules where the business is. See what a franchisor must disclose and receipt of disclosure.