Franchises

The Franchises Act protects people buying a franchise 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

• 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.

For full details please review the Franchises Act, Regulation 2010-92: Disclosure Document and Regulation 2010-93: Mediation