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Subfranchisor (subfranchise agreement)

A subfranchisor is a person who grants a subfranchise. Alberta’s Franchises Act includes a person to whom a master franchise is granted, and Ontario’s Arthur Wishart Act treats a subfranchisor as the franchisor toward its subfranchisee and as a franchisee toward the franchisor.

The term describes a person in a chain: a franchisor above it, subfranchisees below it. A subfranchise agreement is the agreement by which it grants rights to a local operator. The rights it holds come from a master franchise, and area development agreements are covered separately.

Two roles at once

Ontario’s s. 1 defines “franchisor” to include a subfranchisor with regard to its relationship with a subfranchisee, and “franchisee” to include a subfranchisor with regard to its relationship with a franchisor. British Columbia’s Franchises Act defines both terms the same way. Alberta’s s. 1(1)(w) defines a subfranchisor as one or more persons who grant a subfranchise, including a person to whom a master franchise is granted.

What to check or ask

  • Which entity granted your agreement and under what master agreement
  • Whether that entity received a disclosure document from the franchisor above it
  • Whether the rights it can grant extend to your territory
  • Who the franchisor is for the purposes of the provincial Act that applies

Sources

This definition is checked against primary sources. Links were last confirmed on the dates shown.

  1. 01
    Government of OntarioGovernment
    Arthur Wishart Act (Franchise Disclosure), 2000, S.O. 2000, c. 3
    ontario.ca·Checked Aug 16, 2026
  2. 02
    Government of AlbertaGovernment
    Franchises Act, R.S.A. 2000, c. F-23
    kings-printer.alberta.ca·Checked Aug 16, 2026
  3. 03
    Government of British ColumbiaGovernment
    Franchises Act, S.B.C. 2015, c. 35
    bclaws.gov.bc.ca·Checked Sep 30, 2026

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