UTGB Vol 5.pdf - Robson Hall Faculty of Law

134 Underneath the Golden Boy
franchisor's reasonable expenses if the expenses or their method of calculation
have been set out in the agreement. 180
As an alternative, Manitoba could follow s. 8 of The Condominium .Act. 181 The
Act allows a prospective purchaser who has signed an agreement to purchase to
cancel the agreement within 48 hours. The prospective franchisee would be
able to cancel the agreement by personally giving a written notice of
cancellation to the franchisor or franchisor's agent or by sending a written
notice of cancellation by registered mail, fax or any other method, except e-
mail, that provides proof that it was sent, to the address or fax number given by
the franchisor or the franchisor's agent for this purpose.
3. Independent Legal Advice (ILA)
The power and information imbalance separating franchisees from franchisors
could be reduced, in addition to providing disclosure documents, by introducing
an independent legal advice clause in Manitoba's franchise legislation. Ideally,
all franchisees should be forced to consult a lawyer to achieve insight into the
franchise agreement that they may not be able to attain on their own due to the
document's complexity and length. Furthermore, such a clause would reduce
litigation between parties to a franchise, as the franchisee will be well aware of
all that the franchise agreement entails. Thus, Manitoba should seriously
consider addressing the matter through legislation.
Currently, there is no legislation in existence in Manitoba that enforces seeking
independent legal advice. However, the Reverse Mortgage Regulation encourages
doing so. 182 The disclosure form provided under the Regulation's schedule in
section L pertains to seeking advice. It states:
It is strongly recommended that you talk to your lawyer about this reverse mortgage
before you sign the mortgage or any other document that requires you to sign the
mortgage. 183
Because reverse mortgages are complicated, and many borrowers lack the
background and expertise to evaluate both the suitability of the mortgage for
them and the terms of the mortgage offered to them, independent advice and
counseling should be sought by most prospective borrowers. 184 This argument
could also be applied to franchising.
180
Australia, Trade Practices (Industry Codes - Franchising) Regulations 1998, supra note 50 at s.
13.
181
R.S.M. 1987, c. Cl70.
182
Man. Reg. 65/2002.
183
Ibid.
184
"Manitoba Law Reform Commission Review of the Garnishment Act," Commonwealth
Law Bulletin, (2006) 32:1 103-139 online: at 137.