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British Columbia Joins Others in Regulating Franchises with Uniform Franchise Legislation

In an effort to protect franchisees in Canada and establish a fair playing ground, many provinces have set up franchise regulations to create uniformity in the process of franchising. So far, Ontario, Alberta, New Brunswick, Manitoba, and Prince Edward Island have initiated legislation for franchises. Recently, British Columbia became the sixth province to introduce a bill to regulate franchising.
Canadian Law
Canadian Law
matt_benoit/Getty Images/iStockphoto

Bill 38-2015,

Franchises Act for the Province of British Columbia , which will go into effect in 2016 or 2017, aims to “strike a balance between protecting vulnerable franchisees and upholding franchisors’ rights to freely contract to allow for the success of the franchise chain.”

The Franchises Act uses similar legislation upheld in the five other Canadian provinces that have franchise legislation. Highlights include:

  • Compliance standards for disclosure documents
  • Fully refundable deposit for prospective franchisees (assuming deposit doesn’t exceed a prescribed amount)
  • No mandatory mediation
  • Franchisors are able to use existing disclosure documents if they comply with BC legislation
  • No need for franchisors to go through disclosure with investors if potential franchisee invests a prescribed amount
  • Electronic disclosure option

The bill recently passed its third reading and now awaits Royal Assent. Once that occurs, the government in British Columbia will establish regulations and details of compliance, and begin enforcement of the regulations. Experts expect this to happen quickly.
This move toward consistent legislation across the provinces bodes well for the future of franchising in Canada. With the law on their side and faster, more streamlined processes, potential franchisees can be assured that they will be protected in the franchising process.


Susan Payton is the President of Egg Marketing & Communications, a marketing firm specializing in content writing and social media management. She’s written three business books, including How to Get More Customers With Press Releases, and frequently blogs about small business and marketing on sites including Forbes, AllBusiness, The Marketing Eggspert Blog, and Tweak Your Biz. Follow her on Twitter @eggmarketing.

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