House Debates, Members' Statement, Legislative Assembly of Ontario, Canada

I find it unbelievable that today in Ontario a franchisor is under no obligation to provide appropriate notice or compensation when ending an agreement with a franchisee.

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The Legislative Assembly of Ontario
October 24, 2001

Member Statement

The Legislative Assembly of Ontario
The Committee of the Whole
2nd session, 37th Parliament
Toronto, Ontario, Canada

House Debates

Wednesday 24 October 2001
Toronto, Ontario

MEMBER’S STATEMENTS

FRANCHISE BUSINESSES

Mrs Marie Bountrogianni (Hamilton Mountain): Currently in Ontario, nearly 40,000 franchise owners are vulnerable to the arbitrary termination of their franchise agreements.

Franchise owners are people like my constituent Janice Snyder, an entrepreneur who invested her savings and for the last eight years has successfully operated two franchise stores for Grand and Toy. She also employs 30 people.

I find it unbelievable that today in Ontario a franchisor is under no obligation to provide appropriate notice or compensation when ending an agreement with a franchisee.

This is exactly the situation my constituent and 26 other franchise owners in Ontario find themselves in. It is not news to this government that the majority of problems in franchising occur after signing the contract.

Expert after expert advised that the Arthur Wishart Act should include an alternative dispute resolution mechanism outside the court system. More importantly, they advised that the act include an outline of fair commercial standards when it comes to the performance, transfer, renewal and termination of franchise agreements.

I want to make it clear that this government was aware that franchise agreements are one-sided, lengthy, non-negotiable contracts drafted by the franchisor.

The franchise owners of Ontario deserve better from their government. Ontario entrepreneurs are the engine that moves our economy. They are women and men who are willing to take risks and work hard. All they ask for is a level playing field guided by a principle of fair commercial practices.

This document is a verbatim copy of Hansard, the official record of the Legislative Assembly of Ontario. To review the original transcript:
http://www.ontla.on.ca/hansard/house_debates/37_parl/Session2/L056A.htm#P74_2886

Copyright (c) 2001
Office of the Legislative Assembly of Ontario
Toronto, Ontario, Canada


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Risks: Arthur Wishart Act (Franchise Disclosure), 2000, Canada, Expropriation without compensation, Political champion, Refusal to renew contract, Arbitration, transparent, Canada, 20011024 Member Statement

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