On Wednesday this week three members of the Ontario legislature representing all three of the parties in the legislature introduced a Bill to amend Ontario’s Arthur Wishart Act (Franchise Disclosure), 2000 to add a requirement to deliver an “Educational Document” as well as the traditional Franchise Disclosure Document of FDD.

Back in August, 2008 I reported on the decision of the Ontario Superior Court of Justice in 4287975 Canada Inc v Imvescor Restaurants. The franchisee paid $15,000.00 to the franchisor before receiving a disclosure document for an upscale restaurant chain.

Company Officers Must Sign a Certificate on Canadian Disclosure Documents 

In Canada, unlike in the U.S., franchise disclosure documents must include a certificate signed by at least two persons who are officers or directors (Ontario Reg. 581/00 Section 7). 

In the Alberta case of Hi Hotel LP v. Holiday Hospitality Franchising Inc., 2007 ABQB 686 released December 21, 2007 the U.S. based franchisor delivered a disclosure document, but did not deliver the signed certificate.

When a dispute arose between the franchisor and the franchisee within the two year limitation period the franchisee delivered a rescission notice.