Grange Report Summary

The Grange Report is a comprehensive inquiry into the franchise industry in the province of Ontario, Canada.

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Department of Financial and Commercial Affairs
June 1, 1971

The Grange Report, Summary
Franchises Only
S. G. M. Grange, Q.C.

SUMMARY OF RECOMMENDATIONS

Franchises
1. Legislation to apply to all industries and to all franchises within each industry

2. Prohibition against dealing in franchises except as provided

3. Franchisor to file prospectus setting forth detailed information on scheme

4. Franchisee to have compulsory 48-hour cooling-off period before execution of agreement

5. Franchisee to have right to apply to Tribunal or Court to determine,
(a) whether contract is fair; and
(b) whether conduct of franchisor is fair in circumstances

6. Tribunal or Court to discourage following:
(a) arbitrary termination
(b) arbitrary refusal of assignment or renewals
(c) arbitrary forfeiture of deposits
(d) forced purchases and secret profits
(e) competitive and discriminating practices by franchisors

General
1. The formation of a separate branch or division with its own Registrar to administer multi-level and franchise matters

2. Control of advertising

3. Regular renewal of permission to operate to be required

4. Suspension and cancellation of permission to operate

5. Regular inspection of records

6. Provision for escrow of investments or fees to protect investors an franchisees

7. Application of legislation to leases as well as sales

CAFO NOTE: This report was presented to the Department of Financial and Commercial Affairs (the forerunner of the MCCR) on June 1, 1971. These were the last Public Hearings into the franchise industry.

An abridged version of The Grange Report (dealing with the Franchise industry section of the report) is found here.

The full Grange Report may be ordered from the Archives of Ontario (quote RG49-19 1971/82 (28th Parliament, 4th Session) – Session Papers T.B. 2-142, No 82 Sessional Papers)


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