The Manitoba legislature recently introduced franchise legislation in that province. This legislation aims to:
- allow franchisees to recover losses following misrepresentations made by the franchisor;
- require franchisors to disclose certain information to prospective franchisees, including financial statements and material facts related to the franchise;
- allow franchisees to associate with one and other, and provide them with a right of action to recover damages if franchisors impose penalties for associating; and
- create a duty to deal fairly and act in good faith in the performance and enforcement of the franchise agreement, in accordance with reasonable commercial standards.
It remains to be seen whether the current draft legislation will stay in its current form or if additional modifications will be made.