Are you thinking of becoming a restaurant franchisee? Amazing!

You’ll definitely want to know about the FDD. Not sure what that is? That’s why we’re here.

The FDD (or ‘Franchise Disclosure Document’) is one of the most important documents you’ll review as a potential franchisee.

WHAT IS A FRANCHISE DISCLOSURE DOCUMENT?

A franchise disclosure document is a legal document that franchisors are required to present to prospective buyers of franchises during the pre-sale process in some Canadian provinces. It was originally known as the Uniform Franchise Offering Circular.
The purpose of the Franchise Disclosure Document (FDD) is to provide those interested in becoming a franchisee with information about the franchisor and to ensure that the candidate can make an informed decision about whether they should invest in the franchise they have set their eyes on.

FRANCHISE DISCLOSURE REGIME IN CANADA

In Canada, six provinces (the “disclosure provinces”) have enacted legislation to regulate franchising. The legislation was designed to protect both franchisees and franchisors. Explore Canada’s current Franchise Acts below:

• Alberta Franchises Act
• British Columbia Franchises Act
• Manitoba Franchise Act
• New Brunswick’s Franchises Act
• Ontario’s Arthur Wishart (Franchise Disclosure) Act
• Prince Edward Island’s Franchise Act
• Saskatchewan - in progress

Depending on the province, different rules and regulations may apply. In other provinces in Canada, no laws currently oblige franchisors to provide prospects with any particular information or document about their franchise.

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