Right to associate (franchisee)
The franchisee’s right to associate is a statutory right to associate with other franchisees and to form or join an organization of franchisees. In Ontario and British Columbia, a franchisor may not interfere with, prohibit or restrict it by contract or otherwise.
A buyer meets this term when reading a franchise agreement or disclosure package for clauses about contact with other franchisees. Several provincial Acts protect that freedom in similar terms.
How the Acts protect it
Ontario’s Arthur Wishart Act also says a franchisor must not directly or indirectly penalize, attempt to penalize or threaten to penalize a franchisee for exercising a right under that section, and gives a right of action for damages if it does. Section 11 says a purported waiver or release by a franchisee of a right under the Act is void.
British Columbia’s Franchises Act says a provision in a franchise agreement or related agreement that purports to interfere with, prohibit or restrict that right is void. Manitoba’s Act has matching wording in section 4, and Alberta’s Act covers it in section 8. New Brunswick’s and Prince Edward Island’s Franchises Acts and Saskatchewan’s Franchise Disclosure Act also state the right. The provisions differ in detail.
Where Quebec stands
The Canadian Franchise Association says Quebec has no specific franchise legislation. See the answer on which provinces have franchise disclosure laws and franchisee associations.
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Government of OntarioGovernmentArthur Wishart Act (Franchise Disclosure), 2000, S.O. 2000, c. 3
- 02Government of British ColumbiaGovernmentFranchises Act, S.B.C. 2015, c. 35
- 03Government of ManitobaGovernmentThe Franchises Act, C.C.S.M. c. F156
- 04Government of AlbertaGovernmentFranchises Act, R.S.A. 2000, c. F-23
- 05Government of New BrunswickGovernment2014, c.111 - Franchises Act
- 06Government of Prince Edward IslandGovernmentFranchises Act, R.S.P.E.I. 1988, c. F-14.1
- 07Office of the King's Printer, SaskatchewanGovernmentFranchise Disclosure Act, SS 2024, c 13
- 08Association canadienne de la franchiseIndustryQ: What does any potential Quebec franchisee need to know before getting involved in a franchise business venture?
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