UTGB Vol 5.pdf - Robson Hall Faculty of Law

Although implementing a regulatory body would give more ('teeth" to any
franchise legislation, several lawyers, primarily those representing franchisors,
oppose such a change. Joseph Adler, an Ontario based lawyer, argues that such
cumbersome laws will only dissuade honest franchisors from conducting
business in that province and increase the cost of doing business for franchisors
and franchises. 141 Mr. Dillon, who also opposes such a body, blames the amount
of media attention the 3 for 1 Pizza cases have received. He states:
When one considers the number of franchises operating in the province [of Ontario]
at any time, it should not come as a surprise that a certain number of systems will
operate below the accepted community standard in the enforcement and performance
of their franchise rights and obligations. 141
Mr. Dillon argues that instead of introducing a regulator, it should be
franchisees' responsibility to inform themselves and become acquainted with all
disclosure documents prior to purchasing a franchise, in order to avoid being
abused. 143 A franchisee may become informed by using the large variety of
resources made available by the CFA, 114 the Ministry of Government
Services, 145 at or a number of franchise magazines and publications that would
empower a franchise prospect to avoid many of the situations in which these
people find themselves. After all, an individual must be expected to take some
responsibility for his own welfare. Mr. Dillon then adds that the direct costs of
administering such a regime, and the indirect cost to the industry sector as a
whole of being subject to further regulation are incalculable. He closes by
pointing out that Alberta abandoned its regulatory system after 24 years in favor
of a presale disclosure regime. 146 At this point it is important to note that in
1992 Manitoba's Legislature refused to adopt franchise legislation based on
Alberta's old model.
Last, Richard Cunningham, president of the CFA in 2006, opposes the
establishment of such a body on the grounds that there is no need for
regulators. Instead, he suggests that franchisees should inform themselves
properly or consult specialists in franchise law before entering into a deal. 147
Consequently, the CFA offers workshops to its members, such as the "Franchise
141
Daw, supra note 133.
142
Dillon, supra note 131.
143
Ibid. at 2.
144
Canadian Franchise Association, "Events Education," online: Canadian Franchise
Association .
145
Government of Ontario, "Ministry of Government Services.'' online: Government of
Ontario .
146
Ibid.
147
Daw, supra note 133.