What to do next
Check whether disclosure was proper and when you got it
Franchise statutes require a disclosure document delivered a set period before signing or payment. Missing, late or materially deficient disclosure can trigger a statutory rescission right — the most valuable remedy in franchise law.
Act on rescission immediately if it may apply
Rescission rights have short windows measured from the disclosure failure. This is the single most time-critical issue in a franchise dispute, so get advice before doing anything else.
Assess fair dealing and the association right
Statutory duties of fair dealing apply to both sides. Franchisors cannot penalise franchisees for associating with each other, which matters if a group of franchisees has shared concerns.
Read the renewal, transfer and territory terms
Most ongoing disputes are about encroachment on territory, refusal to consent to a transfer, or renewal conditions. These are contractual and turn on the agreement's wording.
Frequently asked questions
Can I get my investment back?
Possibly, where disclosure was not delivered or was materially deficient — statutory rescission can require the franchisor to compensate you. The window is short, so act fast.
Does franchise legislation apply everywhere in Canada?
No. Several provinces have it and others do not, and the details differ. Which province governs matters enormously.
Can I talk to other franchisees?
Where franchise legislation applies, the right to associate is protected and franchisors cannot penalise you for it.
The franchisor opened a location near mine.
Whether that is a breach depends on your territory rights in the agreement, and possibly on the duty of fair dealing. Review the agreement's exclusivity language.
This is general information, not legal advice. Laws vary by location and every situation is different — speak with a qualified lawyer about your specific circumstances.