On June 30, 2026, Saskatchewan’s first franchise legislation – The Franchise Disclosure Act (the Act) and The Franchise Disclosure Regulations – will come into force, bringing the province in line with several other Canadian jurisdictions that have established frameworks for governing franchise relationships.
The new legislation promotes transparency and fairness by ensuring that prospective franchisees have sufficient information to make informed decisions about entering into franchise agreements. Under the Act, franchisors will be required to deliver a Franchise Disclosure Document (FDD) to prospective franchisees that includes all prescribed information, including material facts, financial statements, copies of all franchise agreements, and other related documents to be signed by the franchisee.
Franchisors that do not have a place of business in Saskatchewan must designate an agent for service in the province. The name and address of the person authorized to accept service in Saskatchewan on the franchisor’s behalf must also be included in the FDD.
Franchisors must deliver the FDD to a prospective franchisee at least 14 days before any franchise agreement is signed or any payment related to the franchise is made.
Franchisors are also subject to an ongoing disclosure obligation in the period between the delivery of the FDD and the execution of the franchise agreement. Any “material change” that occurs during this period must be disclosed to the prospective franchisee.
The Act also introduces several statutory rights for franchisees, which can pose significant risks for franchisors in the event of non-compliance. These include:
- A right of recission, allowing a franchisee to rescind the franchise agreement within prescribed periods where disclosure is deficient or not provided;
- A right of action for damages against a franchisor for a misrepresentation in the FDD; and
- A right of action for breach of the duty of fair dealing, which requires both parties to act in good faith and in accordance with reasonable commercial standards.
While the Act will not apply retroactively to franchise agreements already in place as of June 30, 2026, all franchise agreements entered into, renewed or extended on or after this date will be subject to the new disclosure requirements.
For a more detailed summary of the legislative changes and their implications for franchisors, please see our previous insights:
Franchisors operating in Saskatchewan that have not already done so should prepare or update existing FDDs to comply with the new Saskatchewan-specific requirements.
To reduce the risk of potential liability, franchisors are encouraged to obtain legal advice on compliance with the new legislation. Our franchise practice group is available to assist franchisors in navigating these changes, including the preparation and revision of FDDs.
Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.
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