Report on a Franchise Act for British Columbia

Abstract

Several Canadian provinces have franchise legislation in place. This report examines whether there is a need for franchise legislation in British Columbia. Part One describes the nature of a franchise and the dynamics of the franchisor-franchisee relationship, analyzes and compares the franchise legislation in force in five Canadian provinces, and evaluates the Uniform Law Conference of Canada’s Uniform Franchise Act as a potential model for British Columbia to follow. Several foreign models for the regulation of franchising are also briefly reviewed. The report recommends that British Columbia enact a slightly modified version of the Uniform Franchise Act that would harmonize with the franchise statutes in effect in the other Canadian provinces, contributing to the emergence of a consistent national standard. Part Two contains a draft statute and regulation based on the report’s recommendations.

Keywords: franchise, franchisor, franchisee, disclosure, fair dealing, rescission, misrepresentation, damages, Uniform Franchise Act