New Brunswick Franchise Law Kicks In

New Brunswick’s Franchises Act and the associated Disclosure Regulation and Mediation Regulation came into effect on February 1, 2011 and the province is now the fourth province with in-force franchise legislation.

Similar to existing laws in Ontario, Alberta and Prince Edward Island, the legislation requires franchisors to prepare and deliver a disclosure document to prospective franchisees 14 days before the execution of a franchise agreement or payment of any consideration. In New Brunswick, this document can be in the form of either a wrap-around to an existing disclosure document prepared for use in another jurisdiction, or a stand-alone New Brunswick disclosure document. New Brunswick’s Franchises Act, Disclosure Regulation and Mediation Regulation are posted on the government’s official website.

See our July 6, 2010 Osler Update for an overview of the legislation.

Across the country in Manitoba, there has been no progress on the province’s Franchises Act since it received royal assent on June 17, 2010. Regulations to the Act are still expected to be published sometime within the year. See our May 2010 Franchise Review for an overview of the legislation.

About the author: Dominic is a partner at Ontario-based law firm Osler, Hoskin & Harcourt LLP. He provides practical and business-friendly advice to both established and emerging franchisors with respect to all facets of franchising in Canada.