On June 30, 2026, Saskatchewan will become the seventh Canadian province to bring into force franchise disclosure legislation, joining Alberta, British Columbia, Ontario, Prince Edward Island, New Brunswick, and Manitoba. The Franchise Disclosure Act, SS 2024, c 13 (the “Saskatchewan Act”) constitutes a marked departure from the province’s existing approach to franchise regulation and introduces new standards that will impact how franchisors and franchisees do business in Saskatchewan.
The Saskatchewan Act was passed in May 2024, bringing Saskatchewan into alignment with other regulated provinces as part of a broader national trend toward harmonizing franchise disclosure laws. The Saskatchewan Act draws heavily from the Uniform Law Conference of Canada’s Uniform Franchises Act, and its accompanying regulations include obligations that already exist in British Columbia and Ontario, ensuring a degree of consistency across jurisdictions.
The legislation is designed to protect prospective franchisees by mandating comprehensive disclosure requirements on franchisors, enforcing a duty of fair dealing on both parties, and providing remedies to franchisees for misrepresentation or statutory non-compliance. It also introduces rights of association for franchisees and prohibits waivers of statutory rights.
Key Features of the Saskatchewan Act
The new legislation mirrors many elements found in other provincial franchise legislation. During Saskatchewan’s public consultation process when developing the Saskatchewan Act, the Canadian Franchise Association recommended for the province to adopt a framework consistent with the most recently enacted franchise legislation in Canada, namely British Columbia’s Franchises Act, SBC 2015, c 35.
The following summarizes the key features of Saskatchewan’s new franchise legislation.
1. Comprehensive Disclosure Requirements
Under the Saskatchewan Act, franchisors are required to provide prospective franchisees with a Franchise Disclosure Document (an “FDD”) at least 14 days before the signing of any franchise agreement or the payment of any consideration. If a significant change occurs to the franchise system between the delivery of the FDD and the signing of the franchise agreement, a franchisor must also deliver a written statement of material change describing such change. This is intended to ensure franchisees have adequate time to review and assess the potential opportunity.
The FDD must include a wide range of prescribed information, such as:
- Saskatchewan-specific risk warning statements, presented at the beginning of the document.
- Audited financial statements of the franchisor, prepared in accordance with accounting standards of the relevant jurisdiction.
- Material facts and changes, including:
- Initial and ongoing fees
- Territorial rights and proximity policies
- Dispute resolution procedures
- Estimates of operating costs
- Earnings projections
- Termination and renewal terms
- Lists of current and former franchisees
- Litigation history
Each FDD and statement of material change must be accompanied by a Certificate of Franchisor that is signed in compliance with the Saskatchewan Act to certify that the disclosure is complete, accurate, and contains all material facts required by the Saskatchewan Act.
As in other provinces, the Saskatchewan Act provides franchisees a right to rescind their agreement with the franchisor if a franchisor fails to comply with their disclosure obligations. A successful rescission by a franchisee can result in repayment by the franchisor of all amounts paid by the franchisee when setting up and running the franchised business.
In addition to this rescission right, the Saskatchewan Act also permits franchisees to claim damages from the franchisor for misrepresentation. Liability for such misrepresentation can extend beyond the franchisor to a franchisor’s associates and the directors and officers who signed the disclosure document.
2. Duty of Fair Dealing
The Saskatchewan Act imposes a statutory duty of fair dealing on both franchisors and franchisees. This duty requires, among other things, that each party must:
- act in good faith;
- adhere to reasonable commercial standards; and
- avoid deceptive or misleading conduct.
While both parties are bound by this duty, it is generally more onerous on franchisors, given their greater control over the franchise relationship. The duty applies to all aspects of the franchise agreement, including its performance and enforcement.
Importantly, a breach of this duty gives rise to a right of action for damages, and parties found liable may be held jointly and severally responsible.
3. Franchisee Rights to Associate
The Saskatchewan Act explicitly protects the right of franchisees to associate with one another. This means franchisees can:
- form or join franchisee associations or groups; and
- collaborate to share information, advocate for common interests, or negotiate collectively.
Importantly, any attempt by a franchisor to interfere with, restrict, or penalize a franchisee for exercising this right is prohibited by the Saskatchewan Act. This provision aligns with similar protections in other provinces and reinforces the principle of fair dealing by ensuring franchisees can organize without fear of retaliation.
4. Parties Cannot Contract Out of the Saskatchewan Act, or Resolve Disputes Outside of Saskatchewan
In keeping with its remedial aims, the Saskatchewan Act expressly prohibits a franchisor from contracting out of the Saskatchewan Act. In other words, the Saskatchewan Act presents a floor below which parties cannot fall.
The Saskatchewan Act also requires that Saskatchewan franchise agreements be subject to the law of Saskatchewan and that franchisors cannot require that disputes arising under such agreements be resolved outside of Saskatchewan.
5. Saskatchewan Compared to other Disclosure Provinces
While the Saskatchewan Act draws heavily from other jurisdictions, namely BC, in structure and substance, it introduces several deviations that distinguish it from both British Columbia’s and Ontario’s legislative frameworks. These differences reflect Saskatchewan’s targeted policy choices and warrant close attention from franchisors and legal practitioners operating across provincial boundaries.
Proximity Disclosure Requirements
Saskatchewan explicitly requires franchisors to disclose their policies and practices regarding proximity. This requirement is designed to protect franchisees from internal competition and market saturation. Specifically, franchisors must disclose whether they have formal or informal policies governing the geographic placement of new franchises relative to:
- existing franchises of the same type;
- other distributors using the same branding;
- company-owned outlets offering similar products under different branding;
- franchises granted under different trademarks but offering similar services.
While Ontario’s Arthur Wishart Act contains a similar provision, British Columbia’s Franchises Act only has territory provisions and does not mandate specific disclosures regarding proximity policies or practices.
Narrower Definition of “Franchise”
Saskatchewan adopts a narrower definition of “franchise” than Ontario. It requires the actual exercise of control or assistance by the franchisor, rather than merely the right to do so. This aligns more closely with British Columbia’s definition and may reduce the scope of what qualifies as a franchise under the Saskatchewan Act.
Under the Saskatchewan Act, a franchise relationship exists only where the franchisor:
- grants the right to sell or distribute goods/services under its trademark.
- receives payment from the franchisee.
- exercises control or provide assistance in the franchisee’s business operations.
Ontario’s Arthur Wishart Act includes relationships where the franchisor merely has the right to control or assist, regardless of whether that right is exercised.
Earnings Projection Definition
Initially excluded from Saskatchewan’s regulations, the term “earnings projection” was later added in 2025 amendments. This term is defined as any information provided by or on behalf of the franchisor that enables a prospective franchisee to reasonably ascertain a specific level or range of potential financial performance at a franchise location.
British Columbia defines the term using nearly identical language. Ontario, by comparison, does not define earnings projections in its regulations, leaving more room for interpretation. For example, Ontario courts have found that even historical earnings data presented in graphs can constitute an earnings projection if it implies future performance.
While earning projections are not required in any province, if the information is provided, Saskatchewan, BC, and Ontario impose strict disclosure obligations on franchisors, which include:
- a statement of reasonable basis for the projection;
- the assumptions underlying the projection; and
- the location where substantiating information is available for inspection.
What this means for Franchisors and Franchisees
Taken together, the core provisions the Saskatchewan Act establish a robust framework for franchise relationships in the province. By codifying disclosure obligations, enforcing duties of fair dealing, and providing meaningful remedies for non-compliance, the Saskatchewan Act aligns with trends in other provincial legislation.
The evolving landscape of franchise legislation across Canada underscores the importance of jurisdiction-specific compliance for both franchisors and franchisees.
For franchisors, these differences require careful preparation of a disclosure document that meets each province’s legal standards. Failure to do so can expose a franchisor to significant legal risk, including a franchisee exercising its rescission rights as well as statutory penalties.
For franchisees, these distinctions affect the scope of their protections and the clarity of the information they receive. Understanding the nuances of each province’s legislation empowers franchisees to make informed decisions and seek appropriate professional advice.
For more information on updating your disclosure documents or understanding how this legislation may impact your business operations, please contact Adam Bruschetta, Matthew Nakatsu, or a member of our franchise law group.
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