Did you know that there are only two provinces in Canada with legislation specifically intended to govern parts of franchising? Ontario and in Prince Edward Island. In Ontario, it is the Arthur Wishart Act (Franchise Disclosure), administered by the Ontario Ministry of Consumer and Business Services, which legally define business “franchise.” This means, that many franchise agreements between distributors and dealers are protected by the Act’s requirements.
The Act is intended to provide a franchise agreement, fair dealings and honest business practices between the parties involved. Specifically, this regards the Disclosure Document that franchisors are required to provide to potential franchisees. The Disclosure Document must be accompanied with the proposed franchise agreement in order for the agreement to be valid, including financial statements, and all other material facts. The Disclosure Document must also contain a certificate that states that the Disclosure Document does not contain any misrepresentation.
As a potential franchisee considering the terms of a new franchise agreement, it could get too complicated for you to handle on your own. Getting a franchise lawyer who can help you understand exactly what you’re getting into and will protect your best interest is very important for protecting such a big investment. Your attorney can explain what your rights and obligations under the agreement would be, negotiate on your behalf, and help you draft a revised agreement if needed.
If you’re considering buying a franchise in Vaughan or the Greater Toronto Area, contact the experienced franchise lawyers at Law Works. Where you are connected with a team of franchise support professionals to guide you on your path to owning your own successful franchise.