What is the Arthur Wishart Act? – Joseph Adler, Franchise Lawyer, Hoffer Adler LLP – Franchise Video

April 14, 2016 Facebook Twitter LinkedIn Google+ Videos

Michael: I’m Michael Hyam with the Business Exchange. Today we’re at the International Franchise Association Annual Convention in Las Vegas. I have Mr. Joseph Alder with us today. Thanks for coming out Joseph. Joseph is a partner at the Hoffer Adler Law firm and he is a Toronto based lawyer and general counsel for the Canadian Franchise Association. Joseph I have a quick question for you, if you could tell me what is the Arthur Wishart Act?
Joseph: It’s a very strange name for a statute but it’s the name of Franchise Disclosure Statute for the Province of Ontario. There are in fact five jurisdictions in Canada; Ontario, Alberta, PEI, New Brunswick and Manitoba that have similar legislation but the Arthur Wishart Act as an example is a disclosure based statute which imposes an obligation on a Franchisor to provide a disclosure document to a perspective Franchisee at least 14 days before signing any agreement or paying the Franchisor any money. That’s the essence of the statute and it’s principal concern is disclosure. In addition it also
imposes obligations on both the Franchisor and the Franchisee in terms of imposing a good duty of good faith and fair dealing. It also requires the Franchisor to provide Franchisees the right to associate with other Franchisees in the system. That in essence is what the statute is about. Included in the disclosure document are all material facts pertaining to the franchise, including the franchise agreement, financial statements and all other facts that may have an impact on the value or price of the
franchise being purchased or the decision of the Franchisee to purchase that Franchise. It’s got to contain all of that information so that the perspective franchisee can make a reasoned decision in the company of it’s own professional advisors before it makes that decision to purchase and go ahead with the Franchise. Of course if it doesn’t, if the Franchisor doesn’t meet those obligations, there are severe consequences for a Franchisor and the Franchisee has certain rights of rescission and claim for damages as well in certain circumstances from misrepresentation, so those are very important remedies that a Franchisee has against the Franchisor if the Franchisor doesn’t meet it’s obligations.

What is the Arthur Wishart Act? - Joseph Adler, Franchise Lawyer, Hoffer Adler LLP