Enabling delivery of disclosure documents under the Arthur Wishart Act (Franchise Disclosure), 2000 (AWA)
Regulation - LGIC
Bill or Act:
Arthur Wishart Act (Franchise Disclosure), 2000
Summary of Decision:
Amendments to Ontario Regulation 581/00 (General) under the Arthur Wishart Act (Franchise Disclosure), 2000, have been approved - Effective July 1, 2016.
The amendments provide rules for the delivery of disclosure documents electronically and by courier; and provide for the delivery of a notice of rescission by pre-paid courier.
April 11, 2016
Summary of Proposal:
The Ministry of Government and Consumer Services seeks comments on a proposal to amend rules for the delivery of disclosure documents electronically and by courier; and to provide for the delivery of a notice of rescission by pre-paid courier.
Currently franchisors may provide disclosure documents to franchisees personally, by registered mail or by any other prescribed method. There are no other prescribed methods of delivery. A copy of the act and current regulation are attached (the regulation is only available in English).
The proposed amendments to Regulation 581/00 would provide rules for the delivery of a disclosure document by courier or electronically. A copy of the proposed amendments is attached.
The proposed amendments would provide that electronic delivery of disclosure documents must be in a form that enables the recipient to view, store, retrieve and print the disclosure document, and must not contain links to external documents or content.
In addition, the proposed amendments would provide that if a disclosure document is delivered by electronic means and consists of separate electronic files, the disclosure document shall contain an index listing (for each file): the file name; and if the file name is not sufficiently descriptive of the subject matter dealt with in the file, a statement of that subject matter.
The proposed amendments would provide that the disclosure would not be complete until the franchisor receives an electronic acknowledgement of receipt from the potential franchisor.
The proposed amendments would also provide for the delivery of a notice of rescission by pre-paid courier.
Interested parties are encouraged to provide comments to this proposal using the contact information above.
The ministry thanks all those who commented on the initial proposals and welcomes feedback.
Ministry of Government and Consumer Services Policy Branch
777 Bay Street, 5th Floor
Toronto, ON M7A 2J3
Attention: Business Law Review
July 1, 2016