Underneath the Golden Boy - Robson Hall Faculty of Law

296 Underneath the Golden Boy
3rd session of the 35th Legislature in 1992. The bill followed the Alberta
Franchises Act 2 very closely, providing for the delivery by a franchisor to a
franchisee of a statement of material facts containing prescribed information,
and further providing that no person shall trade in a franchise in the Province of
Manitoba until an application for registration in prescribed form, and a
prospectus in respect of the offer of the franchise, is filed with the Manitoba
Securities Commission and a receipt is issued for such prospectus. However, the
bill did not receive second reading and did not pass into legislation. 3
For the purposes of this paper, Mr. Maloway’s 1992 attempt is useful as it
produced a series of discussions in the Legislative Assembly dealing with the
need for franchise legislation in the province. Mr. Maloway introduced Bill 18 on
3 March 1992, arguing that franchise legislation is needed in the province
because, up until then,Manitobans had lost large amounts of money buying
franchises ranging from $5 000 to $100 000. Overall, he described the issue as a
“growing problem.” 4 Mr. Steve Ashton,
MLA for Thompson, addressed the Assembly in support of the bill, stating
that its introduction is not only warranted due to the “hard times we are faced
with” but also as a major public service. The “hard times” which he mentions are
in reference to the activities bordering on fraud, at the hand of franchisors, that
franchisees have had to face because of a lack of protection of their rights. 5 He
further stated:
I ask the question why the government is not doing anything to prevent people from
being ripped off as they are on an almost daily basis by those, Mr. Speaker, who are
misleading them about their abilities to deliver the kinds of promises we have seen in
terms of franchises. 6
Agreeing with Mr. Ashton and Mr. Maloway, Ms. Becky Barrett, MLA for
Wellington, delivered a comprehensive speech in favor of Bill 18. Ms. Barrett
emphasized the emergence of franchises over the past 20 to 30 years and their
popularity with many individuals and families in Manitoba who wish to invest in
2
R.S.A. 1980, c. F-17 (repealed)
3
Frank Zaid, Canadian Franchise Law, (Thomson-Carswell: Toronto, 2006), p. 2-142Z.45.
4
Manitoba, Legislative Assembly, House Debates (Hansard), Vol. 21, (3 March 1992), (Hon.
Denis Rocan); Legislative Assembly of Manitoba, “House Debates,” 3rd Session of 35 th
Legislature (3 March 1992), online: Hansard .
5
Manitoba, Legislative Assembly, House Debates (Hansard), Vol. 56 (30 April 1992), (Hon.
Denis Rocan); Legislative Assembly of Manitoba, “House Debates,” 3rd Session of 35 th
Legislature (30 April 1992) online: Hansard .
6
Ibid.