Underneath the Golden Boy - Robson Hall Faculty of Law

Franchise Law Consultation Paper 2007 251
recommended that alternate forms of resolving franchise disputes to litigation be
explored and adopted, and that the Ontario Government carry out wide
consultations and explore how national harmonized regulatory standards might
be pursued. 83
In 1998, the Ontario Government released a Consultation Paper on
franchise legislation, 84 and in 1999, a bill was introduced, 85 along with a private
member’s bill dealing with franchising. 86 Several franchisees, franchisors and
commentators made submissions at the public hearings that followed. 87 Among
the heavily debated topics were the power imbalance between franchisors and
franchisees, the restrictions placed on franchisees for the sourcing of products
and services, the need for provisions for alternative dispute resolution, and the
issue of good faith and fair dealing. 88
The Ontario Act is a disclosure statute based largely on the 1995 Alberta
Act, and similarly provides for a duty of fair dealing and the right to associate. 89
The Act does not include an alternative dispute resolution mechanism.
3. Uniform Law Conference of Canada Uniform Franchises Act
The Uniform Law Conference of Canada (“the ULCC”) had considered the
issue of franchise regulation from time to time from the 1980s. 90 In June 2002,
the ULCC established a working committee formed of franchise lawyers and
industry and government representatives to develop uniform franchise
83
Franchise Sector Working Team Report (August 30, 1995) in Zaid, supra note 1 at 2-142J-
142Z.4.
84
Ontario Ministry of Consumer and Commercial Relations, Ontario Franchise Disclosure
Legislation – Vision (Consultation Paper, June 1998), online:
(date accessed: May 8, 2007).
85
Bill 33, Arthur Wishart Act (Franchise Disclosure), 2000, 37 th Legislature, 1 st Session,
Ontario,1999-2001, background material online:
http://www.ontla.on.ca/web/bills/bills_detail.dolocale=en&BillID=740&isCurrent=false&Pa
rlSessionID=37%3A1 (date accessed: May 8, 2007).
86
Bill 35, Franchises Act, 37 th Legislature, 1 st Session, Ontario, 1999-2001, online:
http://www.ontla.on.ca/web/bills/bills_detail.dolocale=en&BillID=749&isCurrent=false&Pa
rlSessionID=37%3A1> (date accessed: May 8, 2007).
87
Ontario Legislative Assembly, Standing Committee on Regulations and Private Bills, Hansard
(March 7-9, 2000: Hearing on Bill 33: Franchise Disclosure Act, 1999), online:
(date accessed: May 8, 2007).
88
Ibid.; see also D.F. So, Canadian Franchise Law Handbook (2005) at 24-26.
89
See also O.Reg. 581/00 [Ontario regulations].
90
Zaid, supra note 5 at 35.