Acts and Regulations

2014, c.111 - Franchises Act

Section 6
Disposition versions

Full text
Right of rescission
6(1)A franchisee may rescind the franchise agreement, without penalty or obligation, no later than 60 days after receiving the disclosure document, if the franchisor failed to provide the disclosure document or a statement of material change within the time required by section 5 or if the contents of the disclosure document did not meet the requirements of section 5.
6(2)A franchisee may rescind the franchise agreement, without penalty or obligation, no later than two years after entering into the franchise agreement if the franchisor never provided the disclosure document.
6(3)Notice of rescission shall be in writing and shall be delivered to the franchisor personally, by registered mail, by fax or by any other prescribed method, at the franchisor’s address for service or to any other person designated for that purpose in the franchise agreement.
6(4)The notice of rescission is effective
(a) on the day it is delivered personally,
(b) on the fifth day after it was mailed,
(c) on the day it is sent by fax, if sent before 5 p.m.,
(d) on the day after it was sent by fax, if sent at or after 5 p.m., or
(e) on the day determined in accordance with the regulations, if delivered by a prescribed method.
6(5)If the day described in paragraph (4)(b), (c) or (d) is a holiday, the notice of rescission is effective on the next day that is not a holiday.
6(6)Within 60 days after the effective date of the rescission, the franchisor or franchisor’s associate, as the case may be, shall
(a) refund to the franchisee any money received from or on behalf of the franchisee, other than money for inventory, supplies or equipment,
(b) purchase from the franchisee the inventory that the franchisee had purchased under the franchise agreement and remaining at the effective date of rescission, at a price equal to the purchase price paid by the franchisee,
(c) purchase from the franchisee the supplies and equipment that the franchisee had purchased under the franchise agreement, at a price equal to the purchase price paid by the franchisee, and
(d) compensate the franchisee for the losses that the franchisee incurred in acquiring, setting up and operating the franchise, less the amounts set out in paragraphs (a) to (c).
2007, c.F-23.5, s.6