Franchise laws Ontario bound

Although the franchise industry has many success stories, its image has been tarnished by horror stories of inexperienced entrepreneurs getting fleeced.

The Toronto Sun
December 4, 1998

Franchise laws Ontario bound
Maryanna Lewckyj

Ontario is poised to become only the second province in Canada to enact franchise legislation.

Yesterday, Consumer Minister David Tsubouchi introduced a new bill which will require mandatory disclosure in franchise deals.

Although the franchise industry has many success stories, its image has been tarnished by horror stories of inexperienced entrepreneurs getting fleeced.

The proposed legislation is expected to include regulations requiring franchisors to show financial statements, disclose any lawsuits, state the business background of the directors of the franchisor, and provide a list of current and former franchisees.

It’s estimated there are about 500 franchisors and 40,000 franchisees in Ontario, generating about $40-$50 billion in annual revenues.

“This legislation shows the government is listening and responding to the needs of business,” said Tsubouchi. “While we may never please everyone, the proposed legislative framework reflects, in a balanced way, the interests of franchisors and franchisees.”

Alberta is the only province that currently has franchise laws.


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Risks: Ministry of Consumer and Commerical Services, Ministry of Consumer and Business Services, Ministry of Government and Consumer Services, Ministry of Government Services, Ontario, Public perception of sleaze and greed, Investor confidence crushed, no trust or buying, Necessary illusions, Attempts to rehabilitate image, Success rate, we don’t know, Canada, 19981204 Franchise laws

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