UNIFORM LAW CONFERENCE OF CANADA CIVIL SECTION

The application must be made on the prescribed form and must annex the completed disclosure document, a sample of the franchise agreement, the operations manual, the training manual, a copy of the latest audited accounts, financial statements, and the reports of the auditors and directors of the applicant. [...] The law instructs the franchisor on what must be in the contract, the form and registration of the contract, and the obligations and limitations of the parties. [...] Disclosure is required only by the franchisor and must be delivered in conjunction with the proposed franchise agreement at least 14 days before the earlier of the signing of the agreement or payment of any fees relating to the acquisition of the franchise by the franchisee. [...] If the disclosure document is not delivered within the period of time permitted, the franchisee is entitled to terminate the franchise agreement or any pre-contractual arrangement unless the franchisor can prove that at the time of the conclusion of the franchise agreement the franchisee had the information necessary to make an informed decision. [...] The right to terminate the franchise agreement TOR_P2Z:564944.3 200207261126 38 must be exercised no later than the earlier of one year of the act or omission constituting the breach or within 90 days of the delivery to the franchisee of a written notice providing details of the breach accompanied by the franchisor’s then current disclosure document.