The government of British Columbia today announced that the Franchises Act will come into force on February 1, 2017.
The Franchises Regulation to the Franchises Act was publically released today, and adopted as an Order in Council on October 3, 2016. Click here to view the new Franchises Regulation, under the heading "Franchises Regulation" on the British Columbia government's "Starting a Franchise in B.C."
The Franchises Act and Franchises Regulation were modelled on the Uniform Law Conference Model Franchises Act and Regulation and adopt best practices based upon the experience of the 5 other provinces in Canada with franchise legislation.
With the adoption of the Franchises Regulation, the Franchises Act is now proclaimed to be coming into force as of February 1, 2017. The Franchises Regulation includes the following provisions:
- Risk Warnings in the same format as New Brunswick, Manitoba, and PEI
- Financial Statements (audit or review engagement) prepared in accordance with International Auditing and Assurance Standards Board are acceptable.
- Electronic Delivery, courier, and personal delivery are all acceptable methods of delivery for the Franchise Disclosure Document and Statements of Material Changes.
- If a franchisee is making an investment of at least $5 million in the franchise, the Franchisor is exempt from providing franchise disclosure to the franchisee.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.