O. Reg. 581/00 (Ontario franchise disclosure regulation)
O. Reg. 581/00 is the Ontario regulation under the Arthur Wishart Act (Franchise Disclosure), 2000 that sets what a disclosure document must contain, how it may be delivered and the criteria for certain exemptions. The Act sets the duty to disclose; the regulation supplies the detail.
A buyer meets this regulation when handed a disclosure document. Section 5(4) of the Act says the document shall contain, among other things, all material facts, including those prescribed, and financial statements as prescribed, and the regulation prescribes them. The answer on what a franchisor must disclose walks through the document.
What the regulation covers
- Business background and legal history of the franchisor and its directors, general partners and officers (s. 2)
- Financial statements (s. 3) and the statements near the start of the document (s. 4)
- Costs, fees, training, territory, termination, renewal and transfer terms (s. 6) and the certificate (s. 7)
- Prescribed amounts and criteria for exemptions (ss. 8 to 11) and delivery of disclosure documents and notices of rescission (ss. 12 and 13)
Where it stops
The regulation is made under Ontario’s Act and has been amended since it was made, so read the current text on e-Laws. This entry covers Ontario only; check the rules where you are. See also the Arthur Wishart Act.
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Government of OntarioGovernmentO. Reg. 581/00: GENERAL
- 02Government of OntarioGovernmentArthur Wishart Act (Franchise Disclosure), 2000, S.O. 2000, c. 3
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