New Franchise Legislation Coming To Provinces

Jan, 2013
Wednesday - 01:47

Canada - October 2012 - More than half of the 10 Canadian provinces have implemented franchise legislation. A project is underway recommending a New Franchise Act.‚ÄčThe British Columbia Law Institute (BCLI) began a project on bringing forth recommendations for a Franchise Act for British Columbia. So far, five of the 10 provinces in Canada have franchise legislation. Provinces that have enacted franchise legislation are: Alberta, Ontario, New Brunswick, Prince Edward Island, and most recently, Manitoba. This leaves British Columbia as the most populated province in Canada that has yet to put franchise legislation in place. BCLI has stated that it will be publishing a consultation paper with tentative recommendations in the near future. After public consultation, BCLI will be producing a report with final recommendations and draft legislation. Len Polsky of our Vancouver office has been consulted by BCLI in connection with the potential British Columbia franchise legislation.

According to the Canadian Bar Association's "An Agenda for Justice" issued on February 5, 2013, a Franchise Act for British Columbia would fairly balance the interests of both franchisors and franchisees and would provide protection to small business franchises. According to the report, the quick implementation of a Franchise Act for British Columbia would be a low-cost or no-cost legislative reform that could provide certainty for businesses.

In a press release issued by the British Columbia Branch of the Canadian Bar Association (CBABC) on February 5, 2013, President Kerry Simmons called on all candidates in the next provincial election to support the platform document stating, "Everyone who seeks public office should be asked what they and their party will do to protect the ability of families, communities and businesses to prevent and resolve legal issues in a fair, timely and effective way."

If British Columbia enacts a Franchise Act, it will be the sixth province in Canada to do so.

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