Underneath the Golden Boy - Robson Hall Faculty of Law

Response to Consultation Paper on Franchise Law 337
below the accepted community standard in the enforcement and performance of their
franchise rights and obligations. 142
Mr. Dillon argues that instead of introducing a regulator, it should be
franchisees’ responsibility to inform themselves and become acquainted with all
disclosure documents prior to purchasing a franchise, in order to avoid being
abused. 143 A franchisee may become informed by using the large variety of
resources made available by the CFA 144 , the Ministry of Government Services
web site 145 < or a number of franchise magazines and publications that would
empower a franchise prospect to avoid many of the situations in which these
people find themselves. After all, an individual must be expected to take some
responsibility for his own welfare. Mr. Dillon then adds that the direct costs of
administering such a regime, and the indirect cost to the industry sector as a
whole of being subject to further regulation are incalculable. He closes by
pointing out that Alberta abandoned its regulatory system after 24 years in
favour of a presale disclosure regime. 146 At this point it is important to note that
in 1992 Manitoba’s Legislature refused to adopt franchise legislation based on
Alberta’s old model.
Last, Richard Cunningham, president of the CFA in 2006, opposes the
establishment of such a body on the grounds that there is no need for regulators.
Instead, he suggests that franchisees should inform themselves properly or
consult specialists in franchise law before entering into a deal. 147 Consequently,
the CFA offers workshops to its members, such as the “Franchise Excellence
Series: Franchisee Training Program,” hoping to educate franchisees entering or
already in the business. 148
The first matter to be decided is not what type of a regulatory body
Manitoba needs, but if it needs one. First, Manitoba cannot follow Ontario’s
argument for adopting such a body because the same problems have not arisen in
the former due to its smaller size. Whereas in Ontario several franchisees have
suffered at the hands of 3 for 1 Pizza & Wings, there has only been one such case
142
Peter M. Dillon, supra note 129.
143
Ibid. at 2.
144
See .
145
See .
146
Ibid.
147
James Daw, supra note 131.
148
Canadian Franchise Association, “Upcoming Events by Region,” online: Already in
Franchising, Events Education .