July 8, 2024 By: Avneet Nehel

Currently, six Canadian provinces boast of franchise disclosure legislation. Bill No. 149, The Franchise Disclosure Act (“Act”) was introduced in November 2023, and will add Saskatchewan to this list.

The Act received Royal Assent on May 8, 2024 and is waiting proclamation to be law in Saskatchewan.

The Act imposes obligations on franchisors, including a requirement to provide prospective franchisees with disclosure documents, including financial statements and copies of the franchise agreement prior to signing the agreement or providing payment to the franchisor. The Act also imposes a duty of good faith and fair dealing, already in effect in the other regulated provinces, on both parties and provides the franchisee the right to association.

Franchisees and franchisors are currently forced to look at other provincial legislation while drafting their franchise agreements in Saskatchewan. The Franchise Disclosure Act will provide direction to both parties and relieve uncertainty in their business dealings. Local legislation will help avoid negotiation disputes to help balance the rights of both parties.

We will keep you posted when the Act is published to be enforced in Saskatchewan. In the meantime, please contact Avneet Nehel or any of our other lawyers for help with your franchising issues.

Disclaimer:

This publication is provided as an information service and may include items reported from other sources. We do not warrant its accuracy. This information is not meant as legal opinion or advice. Contact Procido LLP (www.procido.com) if you require legal advice on the topics discussed in this article.