Ontario proposes electronic delivery for disclosure documents

15 April 2016

In response to submissions made by the Ontario Bar Association and the Canadian Franchise Association, the Ministry of Government and Consumer Services is proposing changes to Regulation 581/00 to the Arthur Wishart Act (Franchise Disclosure), 2000 (the “Act”) to permit electronic delivery of disclosure documents. The Act currently allows for delivery of a disclosure document either personally or by registered mail.

Similar to Manitoba’s The Franchises Act, the proposed change would allow for a disclosure document to be delivered electronically to a prospective franchisee if the document: (i) is in a form that enables the recipient to view, store, retrieve and print the disclosure document; (ii) does not contain links to external documents or content; and (ii) contains an index for separate electronic files. The proposed amendment also provides that delivery would not be effective until the franchisor receives an electronic acknowledgement of receipt.

A copy of the proposed amendment can be found here:
http://www.ontariocanada.com/registry/view.do?postingId=21482&language=en

Allowing for delivery of a disclosure document electronically would be a welcome change for both franchisors and franchisees and provide consistency with other jurisdictions which permit electronic delivery.

The proposed amendment will also permit delivery of a disclosure document by courier and for delivery of a notice of rescission to a franchisor by pre-paid courier.

Comments on the proposed amendments may be made until May 2, 2016.


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