Franchisors' Disclosure Obligations in Ontario

In Ontario, a franchisor’s disclosure obligation does not end once it has created its first disclosure document. In fact, a disclosure document may need updating every time it is to be given to a prospective or renewing franchisee. Under Ontario’s Arthur Wishart Act, a franchisor is under an obligation to disclose all “material facts” at the time of disclosure to each prospective franchisee.

This bulletin outlines areas that typically require updating in a franchise disclosure document.