UTGB Vol 5.pdf - Robson Hall Faculty of Law

Appendix
Response to Consultation Paper on Franchise Law-Executive Summary
1. Should the province of Manitoba adopt
the ULCC approach to disclosure of
"material facts" or the approach under
current provincial regulations, which
provides less detail
• The ULCC the disclosure of •
all material (defined as any
information, about the business,
operations, capital or control of the
franchisor or franchisor's associate or
about the franchise or the franchise
system that would reasonably be
expected to have a significant effect on
the value or price of the franchise to be
granted or the decision to acquire the
franchise). The Regulations
complement the disclosure
requirement of material facts with the
most extensive list of required
infonnation.
• Arthur Wishart Act (Franchise
Disclosure), 2000, also requires
disclosure of all material facts. The
only difference lies in the Regulations.
This standard is regarded as the
strictest in the world of franchise law.
• Alberta and P.E.l.'s Franchise
Regulation require the disclosure of all
material facts but makes the
requirement more lenient by allowing
"substantial compliance."
Since the goal of franchise legislation is
to aid franchisees, the standard that
provides the most information should be
followed. Thus, the ULCC model should
be adopted. However, to avoid
introducing the strictest franchise
legislation in the world, Manitoba
should a "substantial compliance"
provision. This will grant a franchisor
some room to err while sti1l providing
the franchisee with sufficient information
to make an informed purchase.