New Franchise Legislation Proposed by Saskatchewan

Saskatchewan is poised to become the next province to adopt franchise legislation, a significant step towards fostering uniformity in franchise law across Canada. The recently introduced Bill 149, The Franchise Disclosure Act (“the Act”) is a result of public consultation on the need for franchise legislation within the province. The framework of the consultation was based on the Uniform Law Conference of Canada’s Uniform Franchise Act (“UFA”).

Having undergone its first reading on November 9, 2023, and with a second reading on November 14, 2023, the Act is anticipated to be enacted in early 2024. This development would position Saskatchewan as the seventh province in Canada to have franchise legislation. 

The enactment of the Act in Saskatchewan aligns with the broader objectives already achieved by provincial franchise acts in Alberta, Ontario, Prince Edward Island, New Brunswick, Manitoba, and British Columbia. The legislation in these six provinces mirrors the core protections of the UFA.

The UFA comprehensively addresses six key protections:

1. Franchisors obligation to provide disclosure to the franchisee before entering into an agreement. 
2. The duty of fair dealing among all parties involved.
3. The ability to rescind the agreement if the disclosure is found to be deficient. 
4. The right to rescind and obtain damages for misrepresentation in disclosure.
5. Franchisee’s right to associate and form associations.
6. No waiver of rights under the legislation. 

The harmonization of provincial legislation, coupled with the addition of the Act with these six protections in Saskatchewan, contributes to the creation of a cohesive legal landscape that encourages franchisees to seek business opportunities confidently, benefitting from consistent and robust protections. This move marks a positive stride toward the establishment of consistent regulatory framework across the soon-to be seven provinces with enacted franchise legislation.