Franchising in Canada: seven provinces have their own legislation

Canada’s franchise sector operates within a legal framework that requires close attention to the province where a business will be based. In its review, “Franchise Law: Doing Business in Canada 2026”, published on 22 September 2026, McCarthy Tétrault identifies seven provinces that have adopted franchise-specific legislation. For prospective franchisees and franchisors alike, the review highlights an essential point: preparing a franchise agreement must take provincial disclosure requirements into account.

Seven provinces identified in the review

According to the publication, Ontario, British Columbia, Alberta, Manitoba, Saskatchewan, New Brunswick and Prince Edward Island have adopted franchise-specific laws. These are the seven provinces covered by McCarthy Tétrault’s 2026 review.

An important distinction should be maintained: the source reports that legislation has been adopted. The information provided does not detail when each provision comes into force or any transitional arrangements. It would therefore be unwise to assume that the same procedures apply at the same time across all seven provinces.

For a franchisor planning to enter the market, this legal landscape nevertheless provides a useful starting point. For a prospective franchisee, it raises a question worth asking from the outset: which requirements apply specifically to the proposed business and the province where it will operate? Checks tailored to the project remain preferable to treating Canada as a single, uniform market.

Building the disclosure period into the timetable

McCarthy Tétrault’s review notes that a franchisor granting a franchise in a province covered by this legislation must provide the prospective franchisee with a franchise disclosure document, or FDD.

Under the rule set out in the publication, the document must be provided at least 14 days before whichever of the following happens first: the franchise agreement is signed or the franchisee pays any consideration. The key is therefore the earlier event, not simply the planned signing date.

This period should be explicitly built into the project timetable. As a matter of good practice, prospective franchisees can record the date they receive the document and have the proposed timetable checked before signing or paying any money. For franchisors, planning this step from the start of discussions helps ensure that disclosure is not treated as a last-minute formality.

These practical precautions do not replace a legal assessment of the individual case. Rather, they help structure the questions to put to an adviser, particularly when several provinces are under consideration.

A sector with a nationwide presence

The significance of this framework is also clear from the economic figures included in the same review. McCarthy Tétrault cites the Canadian Franchise Association, which reports that around 1,100 franchise brands operate in Canada through some 66,000 franchised outlets.

According to the same figures, the franchise sector directly or indirectly employs more than 1.9 million Canadians and generates approximately C$120 billion in annual revenue. These are national estimates, rather than a breakdown by province or business activity.

The figures illustrate the sector’s scale, but cannot on their own establish its recent growth. The information provided includes neither year-on-year comparisons nor historical data. Nor does it indicate the profitability of any individual outlet. For prospective franchisees, the national significance of franchising should therefore be kept separate from the financial assessment of their chosen brand and location.

What to check before committing

The 2026 review offers two complementary reference points: a well-established franchise sector across Canada and a provincial regulatory framework that warrants careful examination. This legal overview should not, however, be mistaken for an announcement of new reforms throughout the country.

Before proceeding, prospective franchisees and franchisors should check the province concerned, the rules applicable at the time of the project, and the sequence of disclosure, signing and payment.

Key takeaway: have the legal timetable checked before making any commitment. The minimum 14-day period described in the review should be planned for in advance, not checked after signing.