Special Representation for Service of Process

Company Formation in Canada > Special Representation for Service of Process

Ontario

Arthur Wishart Act (Franchise Disclosure)
A franchisor is required to disclose to a potential franchisee all "material facts," as defined in section 1, relevant to the decision to purchase the franchise, including those matters specifically required by the regulations. A disclosure document is required to be given to a prospective franchisee 14 days before the prospect signs any binding agreements or pays any money in respect of the franchise. The relationship provisions provide that franchisees in Ontario are protected from retribution if they attempt to organize a franchisee association and, like Alberta, the Ontario Act imposes a duty of fair dealing on each party to a franchise agreement.

The term "franchise agreement" is defined in the Act as meaning any agreement that relates to a franchise between a franchisor or the franchisor's associate, and the franchisee. Accordingly, a "franchise agreement" means not only the actual franchise agreement, but includes typical ancillary documents like application or deposit agreements, confidentiality agreements, subleases, trade-mark licenses, software licenses, internet or intranet access agreements, equipment or sign leases, reservation systems agreements, security documents, guarantees and assignments are all subject to the disclosure document delivery requirements.