BC Introduces Franchises Act
BC is set to become the 6th province to regulate the franchise industry. The Franchises Act was introduced in the legislature on October 5. Once adopted, franchisors will be required to provide franchisees with a Franchise Disclosure Document (FDD) at least 14 days before a franchise agreement is signed. BC’s legislation appears to be more business-friendly than in some other provinces. For example, franchisors can require franchisees to sign confidentiality agreements and provide refundable deposits when they receive the FDD. Franchisors who operate in any of the existing regulated provinces will find it easy to comply with the BC Act. BC franchisees will benefit from improved access to information and remedies.