Manitoba’s Franchises Act came into force on October 1, 2012. If you plan to offer franchises in the province of Manitoba or currently have franchises there which require renewal on or after October 1, 2012, you need to ensure that your franchise disclosure document (FDD) complies with the new Manitoba requirements. Manitoba is the fifth Canadian province to bring in a franchise law, and this law includes the requirement that franchisors provide an FDD to prospective franchisees at least 14 days prior to the prospective franchisee signing any agreement or paying any consideration in respect of the franchise. This new legislation also means that half of all Canadian provinces now have a statutory franchise disclosure regime.
Most franchisors now have a single form of Canadian FDD intended for use in the other four provinces currently mandating pre-sale disclosure, namely Alberta, Ontario, New Brunswick and Prince Edward Island. With some small amount of effort by counsel and franchisor, a franchisor can have a form of FDD that is compliant with all five franchise law provinces.