For prospective franchisees in Canada, 2026 is shaping up to be a landmark year for regulatory certainty and franchisee protection. A key moment for franchisees in 2026 will be when The Franchise Disclosure Act in Saskatchewan (SK) goes into effect.
This highly significant regulatory event that underscores the nationwide trend toward strengthening franchise relationships. Whether you plan to open your first unit in Saskatchewan or in another province, this change will impact you by compelling franchisors to tighten their operational and legal standards nationwide.
Regulated Provinces in Canada for Franchises - On June 30, 2026, Canada will officially have seven "Regulated Provinces" for franchises when The Franchise Disclosure Act in Saskatchewan goes into effect. - Regulated Provinces have formal, codified franchise disclosure requirements for franchises. - The seven Regulated Provinces are Alberta, British Columbia, Ontario, Manitoba, New Brunswick, Prince Edward Island, and Saskatchewan. - In Regulated Provinces, there are core legal elements present for the protection of franchisees, including a mandatory, 14-day review period before any agreement is signed or fees paid; the duty of fair dealing; the right to associate; and recission rights. - While Saskatchewan’s law largely mirrors the other provinces, it includes key requirements that may require franchisors to refine their Canadian Franchise Agreement template, such as specified risk warning language, explicit proximity disclosures, a narrower definition of "franchise," and certain acceptable financial audit standards. |
The New National Standard: Seven Regulated Provinces
On June 30, 2026, Saskatchewan officially joins Alberta, British Columbia, Ontario, Manitoba, New Brunswick, and Prince Edward Island (PEI) as a fully "Regulated Province". This means that seven out of Canada's ten provinces will have formal, codified franchise disclosure requirements. This legislation, enacted in most provinces, establishes a clear, consistent standard of protection and disclosure that nearly every national franchisor must now meet.
Franchises updating their Franchise Agreements to comply with Saskatchewan’s specific requirements has a ripple effect that benefits franchisees. While Saskatchewan’s law largely mirrors other Regulated Provinces, it includes key nuances that may require franchisors to refine their Canadian Franchise Agreement template:
- Risk-Warning Language: SK requires specific risk-warning language to be included.
- Proximity Disclosure: Franchisors must explicitly disclose their policies and practices regarding proximity between franchises to protect you from internal competition and market saturation.
- Narrower Definition of "Franchise": The SK Act adopts a narrower definition of "franchise" than Ontario's, requiring the actual exercise of control or assistance (rather than merely the right to exercise it). This clarifies which relationships fall under the Act's protection.
- Financial Statement Requirements: SK has confirmed the financial audit standards acceptable for a franchisor's financial statements.
By requiring franchisors to address these specific points, the SK legislation serves as a legal check, resulting in a more robust and transparent national FDD template for all Canadian investors.
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Franchisee Rights Nationwide
The new law reinforces the core protective elements that apply across all Regulated Provinces. As a prospective franchisee, you gain confidence knowing these rights are enshrined in law:
- The Right to a Full Disclosure Document: Franchisors must provide a comprehensive Franchise Agreement at least 14 days before you sign any agreement or pay any fees related to the franchise. This mandatory 14-day review period gives you critical time to conduct due diligence.
- The Duty of Fair Dealing: This duty requires both the franchisor and franchisee to act in good faith and adhere to reasonable commercial standards.
- The Right to Associate: Franchisees have the explicit right to form or join an association to share information or negotiate collectively without penalty.
- Rescission Rights: If the franchisor fails to comply with the agreement requirements, you have the right to rescind the franchise agreement.
Beyond Saskatchewan: A Trend of Increased Protection for Franchisees
While Saskatchewan is the headline development for 2026, the trend of increased franchisee protection is clear throughout Canada. Franchisors must remain vigilant in ensuring their financial statement preparation meets auditing standards, and general court decisions continue to refine and clarify how provincial disclosure principles are applied.
As you prepare to invest, remember that the best franchisors not only comply with these laws but also use them as a benchmark for excellence and transparency. Look for a brand that embraces these regulatory mandates as an opportunity to build trust, not just a compliance hurdle.
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Kimberly Crossland is a copywriter, content strategist, and creator. Her goal is to inspire meaningful change through a strategic and thoughtful approach to life and business. In her free time, you can find her homeschooling her kids or on the road looking for a new adventure together with her boys.