Saskatchewan is poised to significantly reshape its franchise landscape with the introduction of the Franchise Disclosure Act, which received Royal Assent in May 2024. When fully in force, likely in late 2025 or early 2026. This legislation will position Saskatchewan as the seventh Canadian province to enact franchise-specific laws. The implications are substantial, promising greater transparency, fairness, and consistency for franchisors and franchisees alike.
The Act is modeled closely on the Uniform Law Conference of Canada’s template and aligns heavily with British Columbia’s Franchises Act. It enshrines key franchisee protections that have become the norm in other regulated provinces. Among the most impactful provisions are the mandatory disclosure requirements, which oblige franchisors to furnish prospective franchisees with detailed disclosure documents at least 14 days prior to any agreement or payment. These documents must include material facts about the business, financial statements, and other critical data, ensuring that franchisees can make informed decisions.
Importantly, the Act codifies the duty of fair dealing between parties, requiring good faith and commercially reasonable conduct in the performance and enforcement of franchise agreements. It also affirms the franchisee’s right to associate freely without interference from the franchisor. Any contractual attempt to waive or restrict these rights is rendered void.
Equally noteworthy is the inclusion of the franchisee’s right to rescind a franchise agreement for up to two years if the franchisor fails to provide the required disclosure. This remedy, coupled with the right to claim damages for misrepresentation or non-compliance, gives franchisees considerable leverage. Additionally, the Act prohibits parties from waiving the application of Saskatchewan law, preserving local jurisdiction and legislative intent in disputes.
Complementing the Act are the newly released Franchise Disclosure Regulations, which mirror those in British Columbia and Ontario but contain several distinctive features. For instance, the Saskatchewan Regulations mandate disclosure of proximity policies—franchisor practices on the location of other franchises or similar businesses—which go beyond the Ontario standard. They also require upfront risk warnings, agent-for-service disclosures for out-of-province franchisors, and address cooperative franchise models.
These developments offer reassurance for national franchisors. The high degree of harmonization with other provinces means that a single national disclosure document remains viable, albeit with Saskatchewan-specific adaptations. For franchisors already operating in regulated provinces, the transition should be relatively seamless, though attention to subtle regulatory differences will be necessary.
While the legislation has yet to be proclaimed into force, the window for public comment on the Regulations closes June 15, 2025. This presents a critical opportunity for stakeholders to influence the final contours of the law. Industry participants should proactively assess their compliance strategies, update internal protocols, and prepare to pivot quickly once the law is enacted.
Ultimately, the Franchise Disclosure Act marks a milestone in Saskatchewan’s commercial evolution. It promises to level the playing field and foster a more predictable legal environment—benefits that will accrue to franchisors and franchisees alike, and further integrate Saskatchewan into Canada’s broader regulatory framework for franchising.
Always consult a lawyer and accountant familiar with Ontario franchise law before finalizing any transaction. This article is for informational purposes only and does not constitute legal advice.
