The Saskatchewan Legislature started its spring sitting off strongly on Monday by completing its second reading of Bill 149, The Saskatchewan Franchise Act (the "The Franchise Disclosure Act").
MLT Aikins Franchise Law Group is committed to following the progress and development of The Franchise Disclosure Act and what this means for franchisors and franchisees doing business in Saskatchewan. We will continue to monitor the status of The Franchise Disclosure Act as it progresses through the Saskatchewan Legislature.
Overview of The Franchise Disclosure Act
Previously, we provided updates and insights on The Franchise Disclosure Act, which included an in-depth look at the proposed legislation and what it could mean for Saskatchewan franchisors and franchisees.
- For a detailed overview of what is proposed in The Franchise Disclosure Act, see What Saskatchewan's new franchise disclosure legislation means for franchisors.
- For how The Franchise Disclosure Act compares to franchise disclosure legislation currently in place across Canada, see Saskatchewan's franchise disclosure legislation: How does it measure up?
Next steps
The Franchise Disclosure Act had been before the Saskatchewan Legislature for its second reading since November, 2023. Following completion of its second reading on Monday, the Saskatchewan Legislature referred The Franchise Disclosure Act to the Standing Committee on Intergovernmental Affairs and Justice (the "Committee") for examination.
Prior to The Franchise Disclosure Act coming into force, it will also undergo a detailed review by the Committee. The Committee will be able to propose amendments to the proposed franchise legislation to the Saskatchewan Legislature.
Following consideration by the Committee, The Franchise Disclosure Act will be debated by the Saskatchewan Legislature for a final time prior to it receiving Royal Assent and coming into force.
The Committee stage will be a particularly significant stage to follow in the (proposed) enactment of The Franchise Disclosure Act – it is at this stage that it will be determined whether any changes will be made to the current form of The Franchise Disclosure Act prior to its coming into force, or whether it will be enacted in its current form.
How to prepare
In advance of The Franchise Disclosure Act coming into force, franchisors operating solely in Saskatchewan should start evaluating whether their existing practices are in-line with the requirements set out by The Franchise Disclosure Act. Most importantly, but not exclusively, to begin preparing a compliant disclosure document for use with its franchisees and prospects. As well, it is worth noting that draft Regulations to accompany The Franchise Disclosure Act have not yet been released.
It is anticipated that such Regulations will provide, among other things, additional detail as to what franchisors in Saskatchewan will need to include in their disclosure documents. In particular, this is likely given the approach presently taken in other jurisdictions and the fairly broad right for the Lieutenant Governor in Council to include requirements in these Regulations.
MLT Aikins has extensive experience advising franchisors on franchise structures, multi-unit franchise arrangements, area developers, master franchisees and all related franchise agreements and disclosure documents in Saskatchewan and Manitoba, as well as under similar franchise legislation across Western Canada.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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