Franchise laws in Canada: how disclosure works, province by province
Start with the structure. Franchise law in Canada is provincial, not federal. There is no single national franchise statute, and the rules that apply to an agreement depend on where the business is and what the agreement says.
Several provinces have franchise-specific disclosure legislation. Quebec does not. This page explains the shape of the framework and links statutes you can read yourself — it does not tell you which applies to your situation, because that is a question for a lawyer.
What a disclosure statute does
Where one applies, franchise legislation generally works the same way in outline. It requires the franchisor to give a prospective franchisee a disclosure document before money changes hands or an agreement is signed, prescribes a period that must elapse first, sets out what the document has to contain, attaches consequences where it is not delivered or is materially deficient, and imposes a duty of fair dealing on the parties.
The details differ between provinces — the periods, the contents, the remedies and the exemptions are not identical — and that is exactly why you should not assume one province’s rule tells you the answer in another.
Read one, to understand the shape
The fastest way to understand what a serious disclosure package looks like is to read an actual statute rather than a summary. These are the primary sources, linked directly:
- Ontario — Arthur Wishart Act (Franchise Disclosure), 2000, the most frequently cited of the Canadian statutes.
- British Columbia — Franchises Act.
- Alberta — Franchises Act.
- New Brunswick — Franchises Act.
Other provinces also legislate in this area, and legislation changes. Treat the list above as a set of readable examples rather than as an exhaustive map, and confirm the position for your province with counsel.
Quebec is the important exception
Quebec has no franchise-specific disclosure statute. General contract law and the duty of good faith apply, but there is no statutory disclosure document, no prescribed waiting period, and no statutory rescission remedy of the kind found in the provinces above.
The practical consequence is not that franchising in Quebec is unsafe. It is that the diligence a statute would have compelled falls to you. That means asking, in writing, for the things a disclosure document would have contained, and retaining a lawyer who practises franchise law to review what you are given. The absence of a required document is not the absence of a need for one — which is why the question list in what a franchise costs exists.
Which province’s law applies?
This sounds like a simple question and is not. It can turn on where the franchised business operates, where the parties are, what the agreement says about governing law, and whether such a clause is effective in the circumstances.
Do not resolve this yourself from a website, and be cautious of a franchisor who resolves it for you in a sentence. If someone tells you a statute does not apply, the useful response is to ask them to put the reason in writing and to have your own lawyer read it.
What to do regardless of province
These do not depend on which statute applies, or on whether one does:
- Get everything material in writing, including recurring fees for the full term, territory definition, renewal and transfer terms.
- Give yourself time. Whether or not a waiting period is imposed on the franchisor, impose one on yourself.
- Have a franchise lawyer review the agreement before signing anything, including a deposit receipt or a letter of intent.
- Speak to current and former franchisees, chosen by you rather than supplied as a list.
- Keep every document you are given, dated, along with a note of when it arrived.
That last one is quietly the most useful. If a dispute ever turns on what you were told and when, your own dated file is the record that exists.
Warning signs around disclosure
- Pressure to sign or pay quickly, particularly before a lawyer has read the agreement.
- A summary offered instead of the document. A brochure is not disclosure.
- Documents delivered piecemeal, so that no single moment counts as delivery.
- Being told a statute does not apply, without a reason you can give to your own lawyer.
- Reluctance to put recurring obligations in writing for the full term — see how franchises work.
If you are the franchisor
The obligations run the other way too. A franchisor granting rights in a province with a disclosure statute takes on duties that do not disappear because the head office is elsewhere, and the consequences of getting delivery or contents wrong can be significant.
Anyone building a network across provinces needs franchise counsel before the first grant, not after the first dispute. That applies to us as much as to anyone else, and it is the reason this page links statutes rather than paraphrasing them.
For the commercial side of the same decision, see what a med spa franchise costs and open your own clinic, or buy a franchise?. The Canadian Franchise Association is a reasonable orientation point, though membership of any association is not a substitute for legal advice on a specific agreement.
Frequently asked
Is there a federal franchise law in Canada?
No. Franchise law is provincial. There is no single national statute, and which rules apply to an agreement depends on where the business is and what the agreement says about governing law.
Does Quebec require a franchise disclosure document?
No. Quebec has no franchise-specific disclosure statute. General contract law and the duty of good faith apply, but there is no statutory document, waiting period or statutory rescission remedy of the kind found in several other provinces.
What does a disclosure statute generally require?
In outline: a disclosure document delivered before money changes hands or an agreement is signed, a period that must elapse first, prescribed contents, consequences where delivery is missing or the document is materially deficient, and a duty of fair dealing. The details differ by province.
How do I know which province's law applies to me?
It can turn on where the business operates, where the parties are, what the agreement says about governing law and whether that clause is effective. It is a question for a lawyer, and you should be cautious of a franchisor who answers it for you in one sentence.
What should I do if I am told the statute does not apply?
Ask for the reason in writing and have your own lawyer read it. That is a reasonable request, and the response to it tells you something either way.
Next in this series
Sources
- Government of Ontario, Arthur Wishart Act (Franchise Disclosure), 2000. Checked 30 August 2026.
- Province of British Columbia, Franchises Act. Checked 30 August 2026.
- Province of Alberta, Franchises Act. Checked 30 August 2026.
- Province of New Brunswick, Franchises Act. Checked 30 August 2026.
- Canadian Franchise Association. Checked 30 August 2026.
General information about how franchise disclosure legislation is structured in Canada. It is not legal advice, it is not a statement of the law applying to any particular agreement, and it is not a complete survey of Canadian franchise legislation. Statutes are amended, provinces differ, and which law governs a given agreement is itself a legal question. Read the primary sources and retain a lawyer who practises franchise law before signing anything. Nothing here is a representation of the financial performance of any New Age Spa location or franchise, and it is not an offer to sell a franchise; where the law requires one, an offer is made only by disclosure document.
