New Regulation for Disclosure of Documents

June 17, 2016 | Richard D. Leblanc

The Province of Ontario has amended the regulation under the Arthur Wishart Act (Franchise Disclosure), 2000, S.O. 2000, c.3 to permit a disclosure document to be delivered to a prospective franchisee electronically or by courier.  The new regulation goes into effect on July 1, 2016.

Prior to this change, a disclosure document could only be delivered personally or by registered mail.

The new section of the regulation reads:

Part IV
DELIVERY OF DOCUMENTS

12. (1) For the purposes of subsection 5 (2) of the Act, a franchisor may deliver a disclosure document to a prospective franchisee by electronic transmission if,

(a) the document is delivered in a form that enables the recipient to view, store, retrieve and print it;
(b) the document contains no links to external documents or content;
(c) the document contains an index for each separate electronic file, if any, of which the document consists, where each index sets out,

(i) the file name, and

(ii) if the file name is not sufficiently descriptive of the subject matter dealt with in the file, a statement of that subject matter; and

(d) the franchisor receives a written acknowledgment of receipt from the prospective franchisee.

(2) A franchisor may deliver a disclosure document to a prospective franchisee by courier if the franchisor pays the costs of the delivery.

The regulation also added a section regarding the delivery of a Notice of Rescission by a franchisee.  The regulation now permits delivery of a Notice of Rescission by courier.  Prior to this change, a Notice of Rescission could only be delivered personally, by registered mail or by fax at the franchisor’s address for service or to any other person designated for that purpose in the franchise agreement.

The new section of the regulation reads:

13. (1) For the purposes of subsection 6 (3) of the Act, a franchisee may deliver a notice of rescission by prepaid courier to the franchisor’s address for service in the franchise agreement.
(2) A notice of rescission delivered in accordance with subsection (1) shall be deemed to be delivered to the franchisor on the second day after the day of delivery by courier.

The entire disclosure regulation, as amended, are available on the Government of Ontario’s website.

Disclaimer

This publication is provided as an information service and may include items reported from other sources. We do not warrant its accuracy. This information is not meant as legal opinion or advice.

Miller Thomson LLP uses your contact information to send you information electronically on legal topics, seminars, and firm events that may be of interest to you. If you have any questions about our information practices or obligations under Canada's anti-spam laws, please contact us at privacy@millerthomson.com.

© 2020 Miller Thomson LLP. This publication may be reproduced and distributed in its entirety provided no alterations are made to the form or content. Any other form of reproduction or distribution requires the prior written consent of Miller Thomson LLP which may be requested by contacting newsletters@millerthomson.com.