UTGB Vol 5.pdf - Robson Hall Faculty of Law

136 Underneath the Golden Boy
waive the independent legal advice clause, granting them an extended period of
time to become acquainted with the agreement.
4. Layout of Disclosure Document
The main goal of adopting franchise legislation in Manitoba should be to help
franchisees make well--informed decisions when purchasing a franchise.
Requiring franchisors to provide clear and accurate disclosure documents is
necessary to accomplish this worthy goal. To ensure greater ease in reading a
disclosure document, Manitoba's franchise legislation should require franchisors
to provide a table of contents, indicating all headings and subheadings, together
with page numbers.
Australia's Trade Practices Act 1974 incorporates very thorough layout
requirements. For instance, under s. 7, the Act requires franchisors to include a
table of contents, as well as indicating the page number on which each item
begins. 187 In addition, Annexures .1 and 2 describe the specific manner in which
the disclosure document must be laid out. For instance, Annexure 1 sets out
what the first page of every disclosure document must include: the franchisor's
name, signature of the franchisor, officer or authorized agent of the franchisor
and the preparation date of the disclosure document. 188
Manitoba should only follow Australia's requirement to include a table of
contents. Requiring franchisors to adopt a specific template may be too onerous
for some franchisors coming from foreign jurisdictions and employing a wrap..
around. Furthermore, including a table of contents will suffice to make the
disclosure document clear to navigate, accomplishing the goal of franchise
legislation. Thus, Manitoba's franchise legislation should incorporate the
requirement that disclosure documents include a table of contents with page
numbers.
IV. CONCLUSION
Following a failed attempt to introduce franchise legislation in 1992, Manitoba
once again faces the opportunity to adopt a franchise act. Unlike then,
franchise legislation has become widely accepted in Canada and is currently in
force in Alberta, Ontario and P.E.I.; New Brunswick has recently completed the
first reading of its own franchise bill. The need for franchise legislation in
Manitoba is clear. With a business population comprised predominantly of
franchisees rather than franchisors, the former must be protected from abuse at
the hands of the latter without unduly impending fair commercial practices. In
187
Australia, Trade Practices (Industry Codes- Franchising) Regulations 1998, supra note 50 at s.
7.
188
Ibid. at Annexure 1, s. 1.1.