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Canada Update: New Brunswick Passes Franchises Act; Is Manitoba Soon to Follow?

By Markus Cohen, Q.C.
July 31, 2007

On June 26, 2007, the long-awaited New Brunswick Franchises Act (Bill 32) received Royal Assent in the legislature. This law is now on the books, but it is not yet in force. That will happen when the Act is 'proclaimed.' Proclamation is expected following the promulgation and finalization of disclosure regulations, and is commonly done in stages: An example is Ontario's law, proclaimed in force on July 1, 2000, with the exception of the disclosure provisions, which came into force on Jan. 1, 2001.

New Brunswick now joins Alberta (Franchises Act. R.S.A. 2000. c. F-23), Ontario (Arthur Wishart Act [Franchise Disclosure], 2000 c.3), and Prince Edward Island ('PEI') (Franchises Act, S.P.E.I. 2005, c.36) in the growing number of Canada's provinces that have chosen legislative measures as a means to protect franchisees, primarily in the presale process, but also with a few relationship provisions inserted along the way.

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