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Ontario Government Amends Franchise Regulations

By Lawrence Weinberg

Certain defects in the regulations under the Arthur Wishart Act (Franchise Disclosure), 2000 (the “Wishart Act”) have been apparent to many in Canada's franchise community since the Wishart Act came into full effect on Jan. 31, 2001. Now, the Ontario government, through the Ministry of Consumer and Business Services, has released amendments to the regulations under the Wishart Act effective March 22, 2004.

The amendments are intended to clarify matters in the regulations that were either unclear or were unintentionally omitted from the original regulations. However, and perhaps unfortunately, at least one of the changes may lead to new complications for certain foreign-based franchisors.

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