Franchise regulations in Canada expand into Saskatchewan

Saskatchewan will begin to enforce its Franchise Disclosure Act (the Act) and accompanying regulations (Regulations) on June 30, 2026. The Act and Regulations mark Saskatchewan’s foray into franchise regulation, joining six other provinces with currently effective franchise legislation (Alberta, British Columbia, Manitoba, New Brunswick, Ontario, and Prince Edward Island).

Intended to promote transparency and fair dealing between franchisors and prospective franchisees, Saskatchewan’s Act closely aligns with the Uniform Franchises Act (Uniform Act) adopted in 2004 by the Uniform Law Conference of Canada.

Below, we summarize key details from the Act and outline implications for franchisors and franchisees.

Application

The Act and Regulations apply to franchises operated entirely or partly in Saskatchewan with franchise agreements that are entered into, renewed, or extended on or after June 30, 2026.

Key elements of the Act and Regulations

The Act and Regulations require the following:

• Franchise disclosure document (FDD): An FDD containing content set forth in the Regulations must be furnished to the franchisee. A comprehensive description of the franchise program is required, and must include descriptions of ongoing fees, operating costs, territorial rights, the franchisor’s policy on proximity of outlets, trademarks, dispute resolution provisions, franchisor financial statements, and risk warnings.


• Delivery of the FDD: The FDD must be delivered to the franchisee no less than 14 calendar days before the signing of any franchise agreement, or the payment of any consideration (with the exception of certain refundable deposits). Delivery by electronic means is permitted.


• Right to rescission: Franchisees may rescind the franchise agreement within 60 days after receiving the FDD if the FDD is not provided in the required timeframe, or the contents do not meet the Act’s requirements. In addition, rescission of the franchise agreement is permitted within two years if the franchisor never provides a disclosure document.


• Fair dealing: A duty of fair dealing is imposed upon each party to the franchise agreement, and either party may bring an action for damages against another party that breaches this duty.

Saskatchewan-specific updates

If using a “universal” or “wraparound” FDD across several provinces, certain Saskatchewan-specific updates will be necessary to make the FDD compliant with the Act and Regulations, such as in the following examples:

• Saskatchewan risk warning statement: The wording of the Saskatchewan-required risk warning statement differs slightly from those of other provinces.


• Certificate of accuracy: A certificate, signed by the franchisor, is required to be included in each FDD and in any statement of material change, certifying that information contained in the FDD is true and complete.


• Agent for service of process in Saskatchewan: If the franchisor does not have a place of business in Saskatchewan, an agent for service of process in the province must be appointed.


• Financial statement compliance: Financial statements may be audited or reviewed in accordance with the standards of the jurisdiction in which the franchisor is based, provided that those standards are at least equivalent to those of the Auditing Standards Board of the American Institute of Certified Public Accountants or the Public Company Accounting Oversight Board of the United States.

Differences from other provincial franchise laws

Certain differences exist between the Act and Regulations and similar legislation in other provinces, particularly Ontario. For example, the threshold to claim the large investment exemption is CAD5 million, as opposed to Ontario’s CAD3 million. Also, the Act and Regulations define a “franchise” more narrowly than in Ontario. In Saskatchewan, a franchise exists only where the franchisor or its associate actually exercises significant control over, or provides significant assistance in the franchisee’s method of operation, while in Ontario, it is sufficient for the franchisor to have the right to exercise control or assistance, even if the franchisor does not exercise that right.

Conclusion

Whether a franchisor has existing franchised outlets in Saskatchewan or is wishing to enter the province to offer and sell franchises for the first time, it is important that the Act and Regulations are considered when updating or preparing an FDD for use in Saskatchewan.

For more information, please contact the author.