Franchise rules in Canada: the provincial disclosure acts

This page reports what the official source says. It is not legal advice: ask the office named here. The sources are the franchise statutes of five Canadian provinces, read on the provincial legislation sites on October 9, 2026. They apply to any business sold as a franchise and say nothing particular about tree work. For the United States, see the FTC Franchise Rule. This page does not cover Quebec, Prince Edward Island or the other provinces, and it does not cover the regulations made under each act, which hold the contents of the disclosure document.

The five acts side by side

Province	Act	Date line on the page read
Ontario	Arthur Wishart Act (Franchise Disclosure), 2000, S.O. 2000, c. 3	Consolidation period September 1, 2020 to the e-Laws currency date of October 7, 2026
British Columbia	Franchises Act, SBC 2015, c. 35, assented to November 17, 2015	Page dated October 6, 2026
Manitoba	The Franchises Act, C.C.S.M. c. F156, in force October 1, 2012	In force from October 1, 2012; text dated October 7, 2026; the page says it has not been amended
New Brunswick	Franchises Act, 2014, c. 111 (the section notes cite chapter F-23.5 of 2007; the page says the Act was proclaimed and came into force on February 9, 2015)	The page read is dated January 1, 2024; the Financial and Consumer Services Commission administers it
Alberta	Franchises Act, RSA 2000, c. F-23	The King's Printer copy read is dated January 1, 2002

What counts as a franchise

The Ontario, British Columbia and New Brunswick acts define a franchise in nearly the same words. It is a right to engage in a business where the franchisee must make a payment or continuing payments, or commit to them, to the franchisor or the franchisor's associate, in the course of operating the business or as a condition of acquiring the franchise or starting operations, plus one of two further tests. In the first, the franchisor grants the right to sell goods or services substantially associated with a trade-mark, trade name or logo, and exercises significant control over, or offers significant assistance in, the franchisee's method of operation. In the second, the franchisor grants representational or distribution rights for goods or services it or a designated supplier supplies, and provides location assistance. Alberta words its definition differently: a right to engage in a business in which goods or services are sold under a marketing or business plan prescribed in substantial part by the franchisor or its associate.

Each of the Ontario, British Columbia, Manitoba and New Brunswick acts says it does not apply to an employer-employee relationship. Ontario, British Columbia and New Brunswick say it does not apply to a partnership. Manitoba words this as the relationship between partners under a partnership agreement where the partnership operates a franchised business. Ontario, British Columbia and New Brunswick also list oral agreements with no writing that evidences a material term, and an arrangement where one licensor licenses a trade-mark to a single licensee, as outside the act.

The disclosure document and the 14 days

Ontario, British Columbia, Manitoba and New Brunswick all say the prospective franchisee must receive the disclosure document at least 14 days before the earlier of two events: signing the franchise agreement or any other agreement relating to the franchise, and the payment of any consideration relating to the franchise to the franchisor or its associate. Alberta's section 4 uses the same 14 days and the same two events.

Ontario, British Columbia and New Brunswick each say the document must be one document delivered at one time. Ontario and New Brunswick name personal delivery and registered mail as methods; British Columbia names personal delivery and email. All three, and Manitoba, also require a written statement of any material change before the same two events. Ontario and British Columbia let a refundable deposit that does not bind the buyer, up to an amount set by regulation, fall outside the payment trigger.

Rescission

Ontario, British Columbia, Manitoba and New Brunswick give a franchisee two rescission rights, without penalty or obligation. The first runs to 60 days after receiving the disclosure document, when the franchisor failed to give it or a material change statement in time or when its contents did not meet the act. The second runs to two years after entering the agreement, when the franchisor never gave a disclosure document. After rescission the franchisor has 60 days to refund money received other than for inventory, supplies or equipment, buy back inventory, supplies and equipment at the price paid, and compensate losses in acquiring, setting up and operating the franchise.

Alberta's section 13 applies where a franchisor fails to give the disclosure document by the time section 4 sets. It words the cancellation right as the earlier of two dates: no later than 60 days after receiving the disclosure document, or no later than 2 years after the franchise is granted.

Other duties in the acts

Ontario section 3, British Columbia section 3 and Alberta section 7 say every franchise agreement imposes a duty of fair dealing. Ontario and British Columbia define it as acting in good faith and in accordance with reasonable commercial standards.
Ontario and British Columbia section 4 give franchisees a right to associate and say a franchisor must not interfere with or penalize it.
Ontario section 11 and British Columbia section 13 say a waiver of a right under the act is void. Ontario section 10 says a clause moving jurisdiction or venue outside Ontario is void for a claim enforceable under the act.
Ontario section 12 and British Columbia section 14 put the burden of proving an exemption on the person claiming it.

Where the acts print an exemption for a large investment or a small one, the amount sits in the regulation, not the act. The regulations are not covered here.