A franchise disclosure document is the single document a franchisor must give a prospective franchisee before selling a franchise in a province with a franchise law. Seven provinces have one: Ontario, Alberta, British Columbia, Manitoba, New Brunswick, Prince Edward Island and, since 30 June 2026, Saskatchewan. In each, the prospective franchisee must receive the document at least 14 days before signing any agreement relating to the franchise or paying money for it. Québec has no disclosure statute, and its Civil Code and language law set their own rules.
This page summarises the statutes for franchisors preparing to sell. A franchise lawyer in the province drafts the actual document; our part is the business content that goes into it.
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The rules province by province
| Province | Statute | 14-day rule | Rescission if disclosure is late or deficient | Rescission if no disclosure |
|---|---|---|---|---|
| Ontario | Arthur Wishart Act (Franchise Disclosure), 2000, s. 5–6; O. Reg. 581/00 | Yes | Within 60 days after receiving the document | Within 2 years after entering the agreement |
| Alberta | Franchises Act, RSA 2000, c F-23, s. 4, 13 | Yes | 60 days after receiving the document or 2 years after the grant, whichever comes first | Same rule |
| British Columbia | Franchises Act, SBC 2015, c 35, s. 5–6 | Yes | Within 60 days after receiving the document | Within 2 years after entering the agreement |
| Manitoba | The Franchises Act, C.C.S.M. c. F156, s. 5–6 | Yes | Within 60 days after receiving the document | Within 2 years after entering the agreement |
| New Brunswick | Franchises Act, SNB 2014, c 111, s. 5–6 | Yes | Within 60 days after receiving the document | Within 2 years after entering the agreement |
| Prince Edward Island | Franchises Act, RSPEI 1988, c F-14.1, s. 5–6 | Yes | Within 60 days after receiving the document | Within 2 years after entering the agreement |
| Saskatchewan | The Franchise Disclosure Act, SS 2024, c 13, in force 30 June 2026 | Yes | Within 60 days after receiving the document | Within 2 years after entering the agreement |
| Québec | No disclosure statute | — | Civil Code: abusive or unannounced external clauses in contracts of adhesion can be annulled | French version required first (Charter, s. 55) |
Each province also has its own regulation on contents, delivery methods and exemptions, so a document prepared for Ontario usually needs a lawyer's review before use in Alberta or BC. The Saskatchewan government describes ongoing disclosure obligations as well as the initial document.
What the Ontario disclosure document must contain
Ontario's regulation gives a detailed list and works well as a reference. Section 5(4) of the Arthur Wishart Act requires all material facts, prescribed financial statements, copies of all proposed agreements and prescribed statements. O. Reg. 581/00 spells these out:
| Section of O. Reg. 581/00 | Content |
|---|---|
| s. 2 | Business background of the franchisor and of each director, general partner and officer; convictions for fraud or business-law violations over 10 years; administrative orders and civil findings of misrepresentation or unfair practices, and pending matters; bankruptcy or insolvency over 6 years |
| s. 3 | Audited financial statement, or one meeting review engagement standards, for the last fiscal year; opening balance sheet for a new franchisor; or a declaration of exemption |
| s. 4 | Four statements at the beginning of the document: credit reports, independent legal and financial advice, contacting current and former franchisees, cost of goods may exceed the lowest market price |
| s. 5 | Description of any mediation process and the prescribed mediation statement |
| s. 6 | In one part: all start-up costs with assumptions; basis for any operating cost estimate or earnings projection; financing; training; advertising fund; purchase restrictions; rebates; trademark rights; licences required; owner participation; territory and proximity policy; franchisees who left in the last fiscal year; reasons for closures over 3 years; list of Ontario locations; termination, renewal and transfer conditions |
| s. 7 | Certificate that the document contains no untrue information and includes every required item, signed and dated by the franchisor (two officers or directors if there are more than one) |
The financial statement exemption in s. 11 of the regulation is narrow. Among other criteria, the franchisor needs a consolidated net worth of at least $5,000,000 (or $1,000,000 if controlled by a corporation with $5,000,000), 25 franchisees in business at all times in Canada (or in one other jurisdiction) over the past five years, and five years in the line of business. Most new franchisors will provide audited or review engagement statements.
Delivery: one document, at one time
Ontario's Act requires the disclosure document to be one document, delivered as one document at one time. It can be delivered personally, by registered mail, by courier at the franchisor's expense, or electronically. Electronic delivery has conditions: a format the recipient can view, store and print, no links to external content, an index for each file, and a written acknowledgment of receipt. The 14 days start when the prospective franchisee receives the document.
A material change before signing requires a written statement of material change, also certified. Signing a confidentiality agreement, or an agreement that only designates a location or territory, does not start the clock under s. 5(1.1).
Exemptions worth checking
The statutes exempt certain grants from disclosure. In Ontario these include the grant of an additional franchise to an existing franchisee for the same franchise with no material change, renewals without a material change, a total initial investment of no more than $15,000 or more than $3,000,000, and a few others listed in s. 5(7). The person claiming an exemption carries the burden of proving it (s. 12). Exemptions differ by province, which is a question for your lawyer.
Québec: no disclosure law, other obligations
Québec has no franchise disclosure statute. Two sets of rules still shape a franchise offer there. Under the Civil Code of Québec, a franchise agreement whose essential terms the franchisor imposes is a contract of adhesion (art. 1379); in such a contract an external clause is null if it was not brought to the adhering party's attention (art. 1435), an incomprehensible clause can be null (art. 1436), and an abusive clause is null or reducible (art. 1437). Under section 55 of the Charter of the French language, the French version of a contract of adhesion must be given to the adhering party first; the parties may then choose to be bound by another language.
What we prepare for your lawyer
We build the business content of the document as a structured file, so the lawyer drafts from consistent numbers:
- the system description, unit format and territory policy;
- the start-up cost table with the assumptions behind each line, from the franchise financial model;
- fee and advertising fund rules, from franchise fees and royalties;
- the training programme and support description, matched to the manual;
- supplier and purchase rules;
- any earnings or operating cost information with its basis and the location where supporting data can be inspected.
The same file feeds the sales materials, which is how we keep the website and the presentation in line with the document. More in franchise sales and marketing and in our detailed article on the Arthur Wishart Act.
Next step
The full package is on the franchise development in Canada page, and the order of work in how to franchise a business in Canada. Book a paid 30-minute consultation (100 €), or send your current documents for a written review of the business content of your disclosure (from 200 €).
Franchise development FAQ
What is a franchise disclosure document in Canada?
It is the single document a franchisor must give a prospective franchisee before the sale in provinces with franchise laws. It sets out material facts about the franchisor and the system, financial statements, copies of every agreement the franchisee will sign, and prescribed statements. In Ontario, Alberta, BC, Manitoba, New Brunswick, PEI and Saskatchewan it must be received at least 14 days before the franchisee signs any agreement relating to the franchise or pays money for it.
What happens if the franchisor does not give a disclosure document?
In Ontario, BC, Manitoba, New Brunswick and PEI the franchisee may rescind the agreement without penalty within 60 days after receiving a late or deficient document, or within two years of signing if no document was ever given. In Alberta the limit is 60 days after receiving the document or two years after the grant, whichever comes first. On rescission in Ontario the franchisor must, within 60 days, refund money paid, buy back inventory, supplies and equipment at cost, and compensate other losses.
Does Québec require a franchise disclosure document?
Québec has no franchise disclosure statute. Franchise agreements there are governed by the Civil Code of Québec, which annuls abusive clauses in contracts of adhesion and external clauses not brought to the adhering party's attention, and by the Charter of the French language, which requires the French version of a contract of adhesion to be given first.
Can a disclosure document be sent by email?
In Ontario, yes, under O. Reg. 581/00 s. 12: the document must be in a form the recipient can view, store, retrieve and print, contain no links to external documents, include an index for each separate file, and the franchisor must receive a written acknowledgment of receipt. It may also be delivered personally, by registered mail or by courier paid by the franchisor.
Who must sign the disclosure document in Ontario?
The document carries a certificate that it contains no untrue information and includes every required fact and statement. For an incorporated franchisor with more than one officer or director, at least two of them sign and date it; with one director or officer, that person signs; an unincorporated franchisor signs personally.
Is Saskatchewan's franchise law in force?
Yes. The Government of Saskatchewan announced that The Franchise Disclosure Act came into force on 30 June 2026. Franchisors must deliver the disclosure document at least 14 days before any franchise agreement is signed and any payment is made, and a franchisee may rescind within 60 days after receiving a late or deficient document, or within 2 years after entering the agreement if no document was ever provided (ss. 6–7 of the Act).
Laws and sources we cite
- Arthur Wishart Act (Franchise Disclosure), 2000, ss. 5, 6, 7, 12 (Ontario e-Laws)
- O. Reg. 581/00, ss. 2–7.1, 9, 12 (Ontario e-Laws)
- Franchises Act, RSA 2000, c F-23, ss. 4, 13 (Alberta King's Printer)
- Franchises Act, SBC 2015, c 35, ss. 5, 6 (BC Laws)
- The Franchises Act, C.C.S.M. c. F156, ss. 5, 6 (Manitoba Laws)
- Franchises Act, SNB 2014, c 111, ss. 5, 6 (New Brunswick)
- Franchises Act, RSPEI 1988, c F-14.1, ss. 5, 6 (Prince Edward Island)
- The Franchise Disclosure Act, SS 2024, c 13, ss. 6–7 (Publications Saskatchewan)
- Government of Saskatchewan, news release, 30 June 2026
- Canadian Franchise Association: Saskatchewan, seventh province with franchise legislation
- Civil Code of Québec, arts. 1379, 1435–1437
- Charter of the French language, s. 55
