Ontario Legislation on Horizon

…“reputable” franchisors agree that if legislation is inevitable, it should center around disclosure, not relationship issues.

Continental Franchise Review
April 17, 1998

Ontario Legislation on Horizon

ONTARIO, Canada - - Legislation that supports franchise disclosure is expected to be introduced this fall in Ontario.

The Ministry of Consumer and Corporate Relations is spearheading legislation that appears to be similar to what Alberta already has in place, said Richard Cunningham, president of the Canadian Franchise Association. The only other element that may be included is a form of registration of franchisees and franchisors. This tends to worry people, Cunningham said, because they fear that it will be similar to the U.S., where franchisors have to register disclosure documents. That’s not the case here, he said. Registration would be merely a means of collecting basic business information for statistical purposes. Currently, there is little statistical information on franchising in Canada available, and registration may be one way to begin to gather it, he explained.

The process of putting some form of regulation into place in Ontario has been going on for two years, said Frank Zaid of Osler, Hoskin & Harcourt, and most “reputable” franchisors agree that if legislation is inevitable, it should center around disclosure, not relationship issues.


Risks: Alpha Male attorney, Ministry of Consumer and Commerical Services, Ministry of Consumer and Business Services, Ministry of Government and Consumer Services, Ministry of Government Services, Ontario, Canadian Franchise Association, CFA, Register franchisees and franchisors, General counsel, CFA, Franchisors want the minimum regulation they can get away with, Disclosure laws: 10 per cent solution, Only one side presented, Canada, 19980417 Ontario legislation

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