Cbc:
Prince Edward Island will soon be one of only three provinces with legislation protecting people who buy franchises.
The Franchises Act is scheduled to become law on July 1, having been passed by the legislature last year. It was prompted by complaints from some Islanders that off-Island companies they bought franchises from didn’t give them all the information they needed up front.
The law forces franchisors to disclose certain information to potential buyers before the sale is made, such as start-up costs, fees, and financial statements.
“The purpose really of the disclosure is to make sure that the franchisee has all of the information that is needed to make a wise decision before they actually sign on the dotted line or hand over any money,” says Edison Shea, acting deputy attorney general.
Ontario and Alberta are the only two other provinces with laws protecting franchisees.
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