Disclosure document effective date

A buyer checks this date to see how current the picture is. Several items in Ontario’s O. Reg. 581/00 are measured back from the date of the disclosure document, such as bankruptcy or insolvency proceedings in the six years before it and franchise closures in the three fiscal years before it. See what a franchisor must disclose before you sign.

How Alberta fixes the date

Alberta’s Franchises Regulation, s. 2(5), says the date of a disclosure document is the date set out in the certificate required by s. 2(3), which must be dated and signed by the persons s. 2(3) lists. Ontario’s s. 7(2) also requires the certificate to be signed and dated. See the certificate of the franchisor.

Not the delivery clock

The waiting period runs from receipt, not from the document’s date. Ontario’s Act, s. 5(1), requires the prospective franchisee to receive the document not less than 14 days before the earlier of signing and payment, subject to the exceptions in s. 5; Alberta’s s. 4(2) requires receipt at least 14 days before the earlier of signing any agreement relating to the franchise or paying consideration, subject to s. 4(6) and (7) and the exemptions in s. 5. See the 14-day disclosure period. Ask for the certificate date, the date the package arrived, and any statement of material change since.