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Franchises Act

Last updated on January 21, 2026

The Franchises Act governs franchised businesses in British Columbia. Learn how it protects franchisees and promotes fair dealing between franchisors and franchisees.

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About the Franchises Act

The Franchises Act governs franchised businesses in British Columbia. The Act came into effect in 2017 to protect franchisees and promote fair dealing between franchisors and franchisees.

The Act was introduced to provide transparency, fairness and legal remedies in franchise relationships.

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Franchise

A franchise is a business that can sell goods or services under a franchisor's business system or trade name. In return, the franchisor may receive fees and royalties from the franchisee.

 

Franchisor

The franchisor provides the franchisee with the operating system, brand name and support. To be consistent, the franchisee operates the business in the way the franchisor wants.

Franchises Act protections

The Franchises Act provides important legal protection for B.C. based franchisees that they did not previously have.

These protections include:

  • Requiring that contracts include pre-sale disclosure requirements
  • Providing legal rights and protections resolve disputes
  • Requiring disputes be heard in B.C.
  • Providing franchisees with the ability to sue for damages when the franchise agreement is not honoured or they were not given the required disclosure information
  • Allowing franchisees to cancel the franchise agreement and request their money back if the disclosure document was not provided to them as required
  •  Ensuring that lawsuits can only be commenced in B.C.

Legal protection for franchises

Franchise legislation is not a replacement for legal advice or for doing the due diligence necessary when starting a franchised business.

A franchisee should always seek legal advice to review the documents and ensure they understand the full agreement before signing it.  

It may also be useful to speak with other franchisees that are operating in the same franchise.

The Province is providing this resource solely for purposes of general guidance with respect to the subject matter involved. As such, this resource is not intended as a substitute for professional advice. 

You should consult with a qualified professional to validate the accuracy and relevancy to your business before making any decisions based on this resource.