PEI Updates Franchise Law
The Prince Edward Island Franchises Act
(the "PEI Act") comes fully in force in the East Coast province effective January 1, 2007. The PEI Act closely resembles the Franchises Act for both Ontario and Alberta. Three of its three core principles include:
1.a duty of fair dealing
2.disclosure obligations targeted at franchisors
3.the unrestricted right of franchisees to associate and organize
An interesting point to note: franchisers can be exempt from having to include their financial statements in their disclosure documents if they have not had any judgment, order, or award made in Canada against them in the five years preceding the date of the disclosure document relating to fraud, unfair or deceptive practices.
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