Ontario
Arthur Wishart Act (Franchise Disclosure)
A franchisor is required to disclose to a potential franchisee
all "material facts," as defined in section 1, relevant
to the decision to purchase the franchise, including those
matters specifically required by the regulations. A disclosure
document is required to be given to a prospective franchisee
14 days before the prospect signs any binding agreements or
pays any money in respect of the franchise. The relationship
provisions provide that franchisees in Ontario are protected
from retribution if they attempt to organize a franchisee
association and, like Alberta, the Ontario Act imposes a duty
of fair dealing on each party to a franchise agreement.
The term "franchise agreement" is defined in the
Act as meaning any agreement that relates to a franchise between
a franchisor or the franchisor's associate, and the franchisee.
Accordingly, a "franchise agreement" means not only
the actual franchise agreement, but includes typical ancillary
documents like application or deposit agreements, confidentiality
agreements, subleases, trade-mark licenses, software licenses,
internet or intranet access agreements, equipment or sign
leases, reservation systems agreements, security documents,
guarantees and assignments are all subject to the disclosure
document delivery requirements.
| An agent for service of process purposes is required.
We can provide this service for $175 annually. Please
call us and we will be happy to serve as your registered
agent in Ontario. |
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