UTGB Vol 5.pdf - Robson Hall Faculty of Law

88 Underneath the Golden Boy
hardships, it became clear to other members of the committee and myself that
something had to be done. 22
Jean.-Marc Lalonde, MPP for Glengarry.-Prescott..Russell, also spoke in support
ofBill33. In doing so, he stated:
Bill 33 is an Act concerning fair dealings between franchisees and franchisors. The
only thing I can say is that this legislation is about five years too late for many
franchisees in Ontario. 23
The testimonials described in the Legislative Assembly of Ontario make it clear
that franchise legislation is necessary to prevent franchisors from abusing
franchisees. Protection was effected in Ontario by composing a franchises act
that focused on pre.-sale disclosure of material facts, the duty of good faith and
fair dealing and the freedom to associate with other franchisees.
Although Manitoba does not have to adopt every provision from the Arthur
Wishart Act (Franchise Disclosure), 2000, it is useful to have as an example of
current franchise legislation. Ontario spent over 30 years conducting research,
releasing reports, interviewing people and holding many House debates to
introduce such legislation. Manitoba can now look at Ontario's experience and
learn from it by not only taking advantage of the latter's research but also by
consider current issues with the franchise legislation and by drafting an
improved version.
C. Uniform Law Conference of Canada (ULCC)
The ULCC has done much work in relation to the introduction of franchise
legislation across Canada. John Sotos and Frank Zaid delivered a report
discussing franchise legislation at the ULCC's 2002 Annual Meeting. 24 The
report supports the introduction of such legislation on the grounds that a lack
of pre..sale disclosure means that franchisees are often entering into long..tenn
agreements and complex contracts without an adequate opportunity to receive
relevant background information. Furthermore, franchise legislation will help to
protect small business owners, hopefully prevent unnecessary disputes, and
provide consumer confidence in the stability of franchisee units. 25
Of particular concern for Manitoba, a "franchisee province," is the fact that,
according to the report, franchisees in many cases are unsophisticated business
investors who may be entering business for the first time. Their family savings or
22
Ibid.
23
Ibid.
24
Frank Zaid & John Sotos, "Status Report on National Franchise Law Project/' (Paper
Presented to the Uniform Law Conference of Canada Annual Meeting, August 2002)
online: ULCC, Proceedings of Annual Meetings .
25
Ibid. at 23.