The Franchises Act protects persons buying franchises in New Brunswick by ensuring franchise information is provided to them before they  enter into a franchise agreement, and by providing avenues of recourse if they encounter problems.

The Act requires fairness in the legal relationship between franchisors and franchisees. It contains five key elements:
  • a duty of fair dealing;
  • the franchisees' right to form an association;
  • the franchisor's duty of disclosure;
  • a mediation procedure; and
  • protection from being forced to litigate outside New Brunswick.  

The company granting the franchise is required to provide a disclosure document with prescribed information that will enable the purchaser to make an informed decision before they buy in.

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