Foreign Franchisor Disclosure Document and Ontario Law

Section 5(4) of the Arthur Wishart Act (Franchise Disclosure), 2000 (the “Act”) provides that a disclosure document is required to contain all material facts, including those prescribed by regulation, copies of all proposed agreements relating to the franchise, statements as prescribed by regulation to assist the prospective franchisee in making an informed investment decision, and other information and copies of documents as prescribed by regulation. All such information must be set-out accurately, clearly and concisely.

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Franchise Law in Ontario – Importance of the Disclosure Document

What the law says about registering a franchise in Ontario

While there is no requirement to register your franchise in Ontario, franchises operating in Ontario must comply with applicable legislation and regulations. The applicable act is the Arthur Wishart Act (Franchise Disclosure) 2000. The Act and its regulations govern how franchisors must present their franchised business to prospective franchisees and the information that must be provided to them at the outset as well as the time line for providing this information. The key document is the Disclosure Document.

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