Underneath the Golden Boy - Robson Hall Faculty of Law

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292 Underneath the Golden Boy Resources Institute for Dispute Resolution 242 and is non-binding and voluntary, although franchisors are asked to join for a minimum two year period. The Ontario and PEI regulations require a franchisor’s disclosure document to describe any alternative dispute process used or imposed by the franchisor. In Ontario, the document must also include a statement that any party may propose an alternative dispute resolution process, which may be used if agreed to by all parties. The ULCC Model Bill and the New Brunswick Bill contain provisions allowing one party to a franchise agreement to deliver a notice to the other party requiring the mediation of a dispute. According to the ULCC Working Group, The Committee considered at great length whether franchise disputes would be resolved more advantageously through a form of alternative dispute resolution. Recognizing that in certain provinces the rules of practice in civil proceedings mandate a form of pre-trial mediation, and recognizing that the Ontario Act contains a mandatory disclosure statement that mediation is a form of dispute resolution, the Committee determined that it would be beneficial to provide for mediation to be invoked by any party to a franchise agreement. The Committee believes based on its own experiences and those brought to the attention of the Committee that party initiated mediation will be of significant benefit to resolve franchise disputes prior to the commencement of, as well as after the commencement of, litigation proceedings. The mediation rules are to be set out by regulation. The mediation procedure does not preclude subsequent proceedings in relation to the dispute before a court, tribunal, or arbitrator. CONCLUSION Franchising is an important and growing component of the Canadian economy, and Manitoba is no exception. The franchise concept is appealing to many prospective business owners, offering a model for business success accompanied by ongoing support. However, franchising is not risk-free, and there is a trend in other jurisdictions toward regulating franchising, to require franchisors to provide significant disclosure to prospective franchisees, and in some cases, to regulate more extensively the ongoing relationship. This paper has provided an overview of franchising regulation, and the Manitoba Law Reform Commission invites your comments on the issues and 242 See the Center for Public Resources website at (date accessed: May 12, 2007). The CPR reports a success rate of approximately 80% in cases in which the franchisee agreed to participate, and in which a mediator was needed. Additional disputes were resolved before requiring a mediator.
Franchise Law Consultation Paper 2007 293 questions raised, together with any additional suggestions or ideas for addressing franchise law reform.
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Underneath the Golden Boy Volume VI
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Franchise Law: Consultation Paper 2
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Appendix A Bills Passed in the 1 st
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Bill Title Sponsor Type Noted 1 H.B
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