Franchise sales agent (franchise)

A buyer may meet this person first, as the one who sends the package and answers questions. The role matters because Ontario’s Act names agents and brokers, and British Columbia’s names brokers. See what a franchisor must disclose before you sign.

Ontario

Ontario’s s. 1 defines a prospective franchisee by reference to an interest shown to a franchisor, or its associate, agent or broker. Section 7(1) gives a franchisee who suffers a loss from a misrepresentation in the disclosure document, or from non-compliance with s. 5, a right of action for damages against the franchisor, its agent, its broker, its associate and every person who signed, subject to the defences in s. 7(4) and (5). O. Reg. 581/00, s. 0.1, defines the franchisor’s agent as a sales agent of the franchisor who is engaged by the franchisor’s broker and directly involved in granting a franchise. The franchisor’s broker is a person other than the franchisor, its associate, its agent or a franchisee who grants, markets or otherwise offers to grant a franchise, or arranges for the grant.

British Columbia

British Columbia’s s. 1 defines the franchisor’s broker in similar words, and s. 7(1) lists the franchisor, the franchisor’s broker, its associate and every person who signed, subject to the defences in s. 8. Compare the franchisor’s associate. Ask who the person acts for, and whether what they said about results appears in the disclosure document.