Underneath the Golden Boy - Robson Hall Faculty of Law
Underneath the Golden Boy - Robson Hall Faculty of Law Underneath the Golden Boy - Robson Hall Faculty of Law
252 Underneath the Golden Boy legislation. The committee’s work was a component of the Commercial Law Strategy, the aim of which was “to modernize and harmonize commercial law in Canada, with a view to creating a comprehensive framework of commercial statute law that will make it easier to do business in Canada, resulting in direct benefits to Canadians and the economy as a whole.” 91 After examination of the Alberta and Ontario Acts, the Draft Model Franchise Law adopted by the International Institute for the Unification of Private Law (“UNIDROIT”) 92 (discussed below) and the United States Federal Trade Commission Franchise Disclosure Rule 93 (discussed below), the committee reported to the ULCC 94 with a draft Model Bill and regulations in August 2005. The Model Bill and regulations are based primarily on Ontario’s Wishart Act and regulations. Provisions from the Alberta model were also adopted, along with a mediation process that is mandatory if a party to the franchise agreement initiates it. The committee reported that: many items currently contained in the Alberta or Ontario regulations have been substantially enhanced with additional disclosure requirements, definitions, and more clarity in wording. In addition new disclosure items have been included in the Regulations where it was considered appropriate, reasonable, and necessary. In particular, the mediation Regulation is considered by the Committee to represent a significant and positive development in connection with the resolution of franchise disputes, in the interests [of] all stakeholders. 95 In August 2005, the ULCC adopted the Uniform Franchises Act (the Model Bill) 96 and uniform regulations 97 and recommended them to the provinces and territories for enactment. 98 91 Ibid. 92 International Institute for the Unification of Private Law [UNIDROIT], Model Franchise Disclosure Law (September, 2002), online: (date accessed: May 9, 2007). 93 U.S. Federal Trade Commission, Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures, Code of Federal Regulations, 16 CFR 436, online: ( date accessed: May 9, 2007). 94 Uniform Law Conference of Canada [ULCC], Uniform Franchises Act Working Group, Uniform Franchises Act Report of the Working Group (August 2005), online: (date accessed: May 9, 2007); see also ULCC Proceedings of Annual Meetings, Civil Section (August 10-14, 2003), online: (date accessed: May 9, 2007). 95 ULCC Uniform Franchises Act Working Group, supra note 23 at 10. 96 ULCC, Uniform Franchises Act [the Model Bill], online: (date accessed: May 9, 2007).
Franchise Law Consultation Paper 2007 253 4. Prince Edward Island Franchises Act A group of Prince Edward Island franchisees, the Islanders for Fair Franchise Law, advocated for franchise legislation in PEI in the 1990s. The group prepared a draft Bill, which was tabled in the Legislative Assembly in May 2001 and referred to the Standing Committee on Community Affairs and Economic Development. 99 The Standing Committee reported to the House in November 2001. 100 The Committee recommended against the enactment of legislation based on the tabled bill, but commented that “legitimate concerns were expressed to your Committee during the conduct of hearings that are worthy of further consideration”. 101 The Committee recommended that the Office of the Attorney General prepare a draft Legislative Proposal using the Ontario and Alberta statutes as reference documents, but not limited to those models. The Committee suggested that the draft should require disclosure in sufficient detail to ensure that franchisees have enough information to make business decisions, and be “as consistent as possible with other Canadian jurisdictions to ensure that Franchisors are not confronted with a different set of rules in each province in which they wish to establish business.” 102 Prince Edward Island enacted the Franchises Act, 103 modeled primarily on the ULCC Model Bill, in June 2005. The province also released a Discussion Paper on draft franchise regulations in October 2005, 104 and made the Franchises Act Regulations in April 2006. 105 Several substantive provisions of the Act (for 97 ULCC, Disclosure Documents Regulation, online: (date accessed: May 9, 2007); ULCC, Mediation Regulation, online: (date accessed: May 9, 2007). 98 ULCC, Report of the Commercial Law Strategy (August 21-25, 2005), online: . 99 Prince Edward Island Legislative Assembly, Hansard (May 10, 2001) at 2044 and 2046, online: (date accessed: May 9, 2007). 100 Prince Edward Island Legislative Assembly, Hansard (November 29, 2001) at 328-329, online: (date accessed: May 9, 2007). 101 Ibid. 102 Ibid. at 329. 103 Franchises Act, R.S.P.E.I. 1988, F-14.1 [PEI Act]. 104 P.E.I. Office of the Attorney General, Franchises Act Regulations Discussion Paper (October 19, 2005), online: (date accessed: May 9, 2007). 105 P.E.I. Reg. EC232/06 [PEI regulations].
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Franchise <strong>Law</strong> Consultation Paper 2007 253<br />
4. Prince Edward Island Franchises Act<br />
A group <strong>of</strong> Prince Edward Island franchisees, <strong>the</strong> Islanders for Fair Franchise<br />
<strong>Law</strong>, advocated for franchise legislation in PEI in <strong>the</strong> 1990s. The group prepared<br />
a draft Bill, which was tabled in <strong>the</strong> Legislative Assembly in May 2001 and<br />
referred to <strong>the</strong> Standing Committee on Community Affairs and Economic<br />
Development. 99<br />
The Standing Committee reported to <strong>the</strong> House in November 2001. 100 The<br />
Committee recommended against <strong>the</strong> enactment <strong>of</strong> legislation based on <strong>the</strong><br />
tabled bill, but commented that “legitimate concerns were expressed to your<br />
Committee during <strong>the</strong> conduct <strong>of</strong> hearings that are worthy <strong>of</strong> fur<strong>the</strong>r<br />
consideration”. 101 The Committee recommended that <strong>the</strong> Office <strong>of</strong> <strong>the</strong> Attorney<br />
General prepare a draft Legislative Proposal using <strong>the</strong> Ontario and Alberta<br />
statutes as reference documents, but not limited to those models. The<br />
Committee suggested that <strong>the</strong> draft should require disclosure in sufficient detail<br />
to ensure that franchisees have enough information to make business decisions,<br />
and be “as consistent as possible with o<strong>the</strong>r Canadian jurisdictions to ensure that<br />
Franchisors are not confronted with a different set <strong>of</strong> rules in each province in<br />
which <strong>the</strong>y wish to establish business.” 102<br />
Prince Edward Island enacted <strong>the</strong> Franchises Act, 103 modeled primarily on<br />
<strong>the</strong> ULCC Model Bill, in June 2005. The province also released a Discussion<br />
Paper on draft franchise regulations in October 2005, 104 and made <strong>the</strong> Franchises<br />
Act Regulations in April 2006. 105 Several substantive provisions <strong>of</strong> <strong>the</strong> Act (for<br />
97<br />
ULCC, Disclosure Documents Regulation, online:<br />
(date accessed: May 9,<br />
2007); ULCC, Mediation Regulation, online:<br />
(date accessed: May 9, 2007).<br />
98<br />
ULCC, Report <strong>of</strong> <strong>the</strong> Commercial <strong>Law</strong> Strategy (August 21-25, 2005), online:<br />
.<br />
99<br />
Prince Edward Island Legislative Assembly, Hansard (May 10, 2001) at 2044 and 2046, online:<br />
(date<br />
accessed: May 9, 2007).<br />
100<br />
Prince Edward Island Legislative Assembly, Hansard (November 29, 2001) at 328-329, online:<br />
(date<br />
accessed: May 9, 2007).<br />
101<br />
Ibid.<br />
102<br />
Ibid. at 329.<br />
103<br />
Franchises Act, R.S.P.E.I. 1988, F-14.1 [PEI Act].<br />
104<br />
P.E.I. Office <strong>of</strong> <strong>the</strong> Attorney General, Franchises Act Regulations Discussion Paper (October<br />
19, 2005), online: (date<br />
accessed: May 9, 2007).<br />
105<br />
P.E.I. Reg. EC232/06 [PEI regulations].
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