Franchises Act

This consultation closed January 15, 2016.

The Government of British Columbia has introduced franchise legislation that is consistent with legislation used in five other provinces. The Franchises Act passed Third Reading on October 20, 2015. It aims to help level the playing field for small business owners and provide certainty for investors.  The act will come into force when the regulations are complete and approved, and when the franchise and legal communities have had time to learn the new law.

Government is now seeking input on a proposed Franchises Act (Disclosure) Regulation.  The regulation will be based on the Uniform Law Conference of Canada’s Disclosure Documents Regulation, and the recommendations of the British Columbia Law Institute in its draft Franchise Act (Disclosure) Regulation as set out in its “Report on a Franchise Act for British Columbia” at page 133.

Government recognizes that franchise purchasers make a significant capital investment yet they are often at a disadvantage when relying on the information provided by the company offering the franchise due to a lack of knowledge and experience, and access to expert advice. Franchise legislation will help to rectify this imbalance and support the expansion of franchises by standardizing regulatory requirements, while at the same time encouraging investment in B.C.

The proposed regulation will set out the information that is required in a disclosure document and methods of delivery.

Following the consultation, ministry staff will review feedback and begin developing recommendations for a proposed Franchises Act (Disclosure) Regulation.