2018 Accomplishments Report / Key Advocacy Accomplishments
Successfully Advocated for the Need to Update the Uniform Franchises Act
The CFA made a presentation to the Uniform Law Conference of Canada (ULCC) in August 2017, to gain formal approval from the ULCC regarding the need to update the Uniform Franchises Act so it can be positioned as a best practice example for all jurisdictions across Canada to follow. The ULCC unanimously voted to move forward with the Uniform Franchises Act project, as an official ULCC internal project. This means that while the CFA will no longer “lead” the project, we will remain a key part of both working groups to ensure the objectivity of the final recommendations. The CFA will keep members updated as this process continues. Engaged Government Regarding Arthur Wishart Act Amendments
Bill 154: Cutting Unnecessary Red Tape Act, 2017 received Royal Assent in November 2017, making amendments to the Arthur Wishart Act (Franchise Legislation), 2000 (AWA). The CFA was actively engaged throughout the development of these amendments, and Bill 154 closely reflects the recommendations the CFA submitted to the Ontario Business Law Council (BLAC) in 2017. The amendments include important clarifications regarding certain exemptions, and remove some outdated language. Some of the highlights of the changes to the AWA are as follows:
Participated in 2018 Pre-Budget Consultations
Annually, the CFA participates in pre-budget consultations across Canada through detailed written submissions. The CFA’s submissions for the 2018-19 budget year focus on the following four priorities that we believe will contribute to the overall economic growth and sustainability of franchising in each province: 1. S upporting entrepreneurs by pursuing franchise-specific entrepreneur growth, targeting certain employment groups, and maintaining low corporate income tax rates for businesses; 2. E nsuring the independent nature of the franchisor-franchisee relationship is recognized and understood by enshrining the relationship in legislation; 3. Maintaining a reasonable, predictable, and fair minimum wage by ensuring policies balance the realities of what constitutes a fair wage with the responsibility of keeping the business environment healthy; and 4. Reducing red tape and regulatory burden for small businesses by making commitments to establish a comprehensive measure of the regulatory burden, and reducing and restricting the growth of unnecessary regulations. Submissions can be found in the Advocacy Headquarters of the CFA website.
• A mending the definition of “franchise” to include relationships where the franchisor has the right to exercise control, rather than the actual exercise of control, over the franchisee’s method of operation; • A llowing franchisors to accept fully refundable deposits that do not exceed a prescribed amount without triggering the disclosure document obligation; and • A llowing franchisors to enter into non-disclosure and location agreements with prospective franchisees without triggering the disclosure document obligation.
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Canadian Franchise Association cfa.ca / franchisecanada.online
