The Government of Saskatchewan has introduced The Franchise Disclosure Act, effective June 30, 2026, aimed at enhancing transparency and fairness in franchise agreements within the province.
Disclosure Requirements
Under the new Act, franchisors will be required to provide prospective franchisees with a comprehensive disclosure document. This document must be presented at least 14 days before any agreement is signed or payments are made. The disclosure document is mandated to include crucial information, such as financial statements and other relevant agreements related to the franchise.
Franchisee Protections
The legislation establishes specific rights for franchisees, including the right to associate with other franchisees and the right to a fair and impartial dispute resolution process. It also introduces a right of rescission, allowing franchisees to cancel an agreement within a specified period if proper disclosure was not made or if material misrepresentations occurred.
Enforcement and Penalties
The Act outlines provisions for enforcement, granting the Superintendent of Franchises the authority to investigate complaints and issue compliance orders. Non-compliance with the Act's provisions may result in financial penalties and other enforcement actions, ensuring adherence to the new standards.
Economic Impact
According to the Government of Saskatchewan, this legislation is expected to create a more equitable and predictable environment for both franchisors and franchisees. It aims to reduce potential disputes and foster greater confidence in the province's franchise sector, contributing to economic stability and growth by ensuring informed decision-making for those investing in franchises.
Source: Saskatchewan Immigrant Nominee Program (https://www.saskatchewan.ca/government/news-and-media/2026/june/30/saskatchewan-introduces-franchise-disclosure-legislation-to-strengthen-transparency-and-fairness)