Franchisors should regularly consider whether their Canadian franchise disclosure document (“FDD”), or other franchise related documents, require updating. If you plan to offer franchises in any of the five Canadian provinces requiring disclosure, you need to ensure that your FDD complies with the requirements of each applicable province’s legislation, and that the contents of your FDD are consistently accurate and up-to-date. That includes updating of all prescribed disclosure items (some of which require updating on the change of a franchisor’s fiscal year, and others which require more frequent updating), and ensuring the FDD always includes include all material facts. If an FDD is not yet ready to be used in all five franchise law provinces, a small amount of effort by counsel and the franchisor can yield a form of FDD that is compliant across all five of the Canadian provinces that now have a statutory franchise disclosure regime.
While franchisors should frequently turn their minds to updating and maintaining their Canadian FDDs, the start of a new calendar year marks a time at which if they haven’t already, franchisors should begin the process of updating the contents of their franchise documentation and/or ensuring such documentation is compliant with the requirements of all applicable franchise legislation.