Franchise Disclosure Laws in Canada: 7 Provinces Compared, and How They Differ from a US FDD

Seven Canadian provinces have a franchise disclosure statute: Alberta, British Columbia, Manitoba, New Brunswick, Ontario, Prince Edward Island and, since 30 June 2026, Saskatchewan. All seven require the franchisor to deliver a disclosure document at least 14 days before the buyer signs an agreement relating to the franchise or pays anything for it, and all seven let the buyer rescind when disclosure fails. Six give 60 days from receiving a late or deficient document, or 2 years when none was given; Alberta's right covers late delivery and runs 60 days or 2 years, whichever comes first. Quebec, Nova Scotia and Newfoundland and Labrador are outside that list, so a buyer there gets no statutory disclosure document and no statutory rescission right.

The Canadian Franchise Association recorded the newest addition on 2 July 2026: Saskatchewan became "the seventh Canadian province to enact franchise legislation, joining British Columbia, Alberta, Manitoba, Ontario, New Brunswick, and Prince Edward Island." The Franchise Disclosure Act, SS 2024, c 13, carries the effective date of 30 June 2026 in the Publications Saskatchewan consolidation. New Brunswick's Act also carries a newer citation: the Franchises Act, RSNB 2014, c 111, in force since 9 February 2015, whose sections carry over the 2007 Act (SNB 2007, c F-23.5).

The Canadian Acts define the disclosure document by what it must contain. Ontario's Act requires "all material facts", financial statements and "copies of all proposed franchise agreements" (s. 5(4)); British Columbia adds that the document "must include all material facts" beyond the listed items (s. 5(5)), as does New Brunswick (s. 5(5)); Manitoba (s. 5(5)), Prince Edward Island (s. 5(4)) and Saskatchewan (s. 6(5)) use the same three-part formula; Alberta requires the document to follow the regulations and to contain the proposed agreements and the financial statements (s. 4(3)). Each province's regulation then lists the specific items, such as fees, set-up costs, territory, training and former franchisees, and the regulations differ in detail; our guide to the Arthur Wishart Act walks through Ontario's list item by item.

The 14-day clock is the same everywhere, and the trigger is the earlier of signing or paying in every Act: Ontario s. 5(1), Alberta s. 4(2), British Columbia s. 5(1), Manitoba s. 5(2), New Brunswick s. 5(1), Prince Edward Island s. 5(1) and Saskatchewan s. 6(2). How the document arrives differs. Ontario (s. 5(3)), British Columbia (s. 5(3)), New Brunswick (s. 5(3)) and Prince Edward Island (s. 5(3)) require one document delivered at one time, and Saskatchewan requires the same "subject to the regulations" (s. 6(4)). Manitoba accepts delivery in parts, and then the 14 days do not start "until the date of the delivery of the last document" (s. 5(3)). British Columbia puts email delivery into the Act itself: "personally, by email or by any other prescribed method" (s. 5(2)).

Deposits are the second difference. Five Acts let a franchisor take a deposit before the 14 days run out, if it stays under a cap set by regulation, is refundable without deductions and does not bind the buyer to sign: Ontario s. 5(1)(b), Alberta s. 4(6) and (8), British Columbia s. 5(13), Manitoba s. 5(14) and Saskatchewan s. 6(11). The New Brunswick and Prince Edward Island Acts contain no deposit exception, so their 14-day rule covers any payment, a deposit included. Before handing over a cheque anywhere, ask in writing whether it is refundable in full and what agreement it sits under.

Rescission follows one pattern in six of the Acts. In Ontario (s. 6), British Columbia (s. 6), Manitoba (s. 6), New Brunswick (s. 6), Prince Edward Island (s. 6) and Saskatchewan (s. 7), a buyer who received a late or deficient document may rescind within 60 days of receiving it, and a buyer who never received one may rescind within 2 years of signing. The franchisor then has 60 days to refund the money paid, buy back inventory, supplies and equipment at the buyer's cost, and compensate the buyer's losses (Ontario s. 6(6), British Columbia s. 6(5), Manitoba s. 6(5), New Brunswick s. 6(6), Prince Edward Island s. 6(6), Saskatchewan s. 7(5)).

Alberta's Franchises Act works differently on three points. It applies only when the business is in Alberta and the buyer "is an Alberta resident or has a permanent establishment in Alberta" (s. 3(1)). Its rescission right arises when the franchisor fails to give the document by the 14-day deadline, and runs to "60 days after receiving the disclosure document" or "2 years after the franchisee is granted the franchise, whichever occurs first" (s. 13). And the franchisor must compensate net losses "within 30 days after receiving a notice of cancellation" (s. 14(2)), half the period the other Acts allow.

Dispute resolution is the third difference. New Brunswick is the only province with a statutory process: either party may deliver a notice of dispute setting out "the nature of the dispute" and "the desired outcome"; the parties then have 15 days to try to resolve it, after which, within 30 days of the notice, a party may deliver a notice to mediate to all parties (s. 8). Manitoba requires a franchisor whose agreement refers disputes to mediation or arbitration to disclose how a mediator or arbitrator is chosen, the rules, any confidentiality duties and the costs (s. 5(6)). British Columbia (s. 12(2)) and Saskatchewan (s. 13(2)) make void a clause sending disputes to arbitration outside the province, and Ontario voids any clause restricting "jurisdiction or venue to a forum outside Ontario" for claims under its Act (s. 10), as Alberta does for a forum outside Alberta (s. 17).

The common core is wide. Every one of the seven Acts imposes a duty of fair dealing on both parties, protects the franchisee's right to associate with other franchisees, and makes any waiver of the buyer's rights under the Act void, with British Columbia (s. 13(2)) and Saskatchewan (s. 14(2)) excepting a waiver given in settling a dispute. None of the seven sets up a registration or filing step with a government office: the document goes from the franchisor to the buyer, and the remedies are the buyer's own, rescission and damages, enforced in court. Prince Edward Island adds one public role, a Minister's order exempting a franchisor from the financial-statement requirement, granted "upon application by a franchisor, and upon payment of the prescribed fee" (s. 8(1)).

The US Franchise Disclosure Document follows a federal rule, 16 CFR Part 436, which covers franchises "to be located in the United States of America or its territories" (436.2). The US rule makes it an unfair or deceptive practice to fail to furnish the document "at least 14 calendar-days before the prospective franchisee signs a binding agreement with, or makes any payment to" the franchisor (436.2(a)), the same 14 days. It prescribes 23 numbered items in a mandatory table of contents (436.4), from "The Franchisor and any Parents, Predecessors, and Affiliates" to "Receipts", requires them "in a single document using plain English" (436.6(b)), and requires financial statements prepared under United States generally accepted accounting principles and audited by an independent certified public accountant, with a phase-in for start-up franchisors (Item 21, 436.5(u)). Earnings information is allowed in Item 19 "if there is a reasonable basis for the information, and if the information is included in the disclosure document" (436.5(s)). The FTC enforces the rule under the FTC Act (436.6(a)); the Canadian Acts hand the enforcement to the franchisee through rescission and damages.

For a buyer this means a US-format FDD handed over for a Canadian unit has to meet the provincial Act where the unit will operate, and the 23 US items are a starting point for that. Ask the franchisor whether the document was prepared for your province, whether it includes the province's own required statements, and which financial statements it contains. The US cover page itself tells American buyers "There may also be laws on franchising in your state"; the Canadian equivalent is the provincial Act.

Location decides which law applies, and in the Ottawa area that matters. Ontario's Act reaches a business "to be operated partly or wholly in Ontario" (s. 2(1)), so a catering franchise whose territory runs from Ottawa across the river into Gatineau falls under the Ontario Act, since part of the business is in Ontario. A unit operated entirely in Quebec sits outside that wording, and Quebec has no franchise disclosure statute of its own. For catering territories that cross provincial lines, check which Act applies before you count the 14 days.

The practical steps are the same in every province. Write down the date you received the full document and count 14 days from it. Keep any deposit refundable and in writing. Read the franchisee lists and call people who left the system. Have a franchise lawyer licensed in your province read the agreement and the disclosure document, and an accountant test the numbers; both are paid services and both belong before the 14 days end. Our guide to catering franchises in Canada covers costs and named brands.

OH! Catering is a family business in Ottawa, and it is preparing a partner programme. No terms are published, and any offer will come with a disclosure document under Ontario's Act before anything is signed or paid. Interest can be registered on our catering franchise page.

Franchise disclosure laws in Canada by province, October 2026

Canadian provincial disclosure document and the US FDD, side by side

Franchise Disclosure Laws in Canada — the short version

• Seven provinces have franchise statutes: AB, BC, MB, NB, ON, PEI and, since 30 June 2026, SK.
• All seven: disclosure document at least 14 days before the buyer signs or pays, whichever is earlier.
• Rescission: 60 days after a late or deficient document, 2 years if none; in Alberta, whichever comes first.
• Refunds after rescission: 60 days in six provinces, 30 days for net losses in Alberta.
• The New Brunswick and PEI Acts have no deposit exception; the other five allow a capped, refundable deposit.
• Only New Brunswick has a statutory notice-of-dispute and mediation process.
• The US FDD has 23 fixed items and FTC enforcement; Canadian Acts rely on the buyer's own remedies.

Sources: Ontario e-Laws — Arthur Wishart Act (Franchise Disclosure), 2000, S.O. 2000, c. 3; Alberta King's Printer — Franchises Act, RSA 2000, c F-23; BC Laws — Franchises Act, SBC 2015, c 35; Manitoba Laws — The Franchises Act, C.C.S.M. c. F156; New Brunswick Acts and Regulations — Franchises Act, RSNB 2014, c 111; Prince Edward Island — Franchises Act, RSPEI 1988, c F-14.1 (office consolidation); Publications Saskatchewan — The Franchise Disclosure Act, SS 2024, c 13; eCFR — 16 CFR Part 436, Disclosure Requirements and Prohibitions Concerning Franchising (FTC Franchise Rule); Canadian Franchise Association — Saskatchewan enacts franchise disclosure legislation effective June 30, 2026.

OH! Catering is preparing a franchise for styled share tables and Ukrainian dishes. Read about The OH! Catering franchise.