Key Compliance Requirements and Practical Implications for Franchisors
| By: Denim R. Martyn | June 22, 2026 |
Intro
On June 30, 2026, Saskatchewan will implement its first franchise-specific legislative framework with the coming into force of The Franchise Disclosure Act (the “Act”) and The Franchise Disclosure Regulations (the “Regulations”). This marks a significant shift in the province’s legal landscape, aligning Saskatchewan with other Canadian jurisdictions that have established frameworks governing franchise relationships.
A Shift Toward Transparency and Fairness
Until now, franchising in Saskatchewan has been governed solely by general contract law. The introduction of the Act reflects a clear legislative intent to address the information imbalance between franchisors and franchisees by mandating standardized disclosure requirements. The goal is to promote transparency and enable prospective franchisees to make more informed investment decisions.
At the core of the new regime is the requirement for franchisors to provide a comprehensive Franchise Disclosure Document (“FDD”) to prospective franchisees before entering into a franchise agreement.
Scope and Application
The Act applies broadly to all franchise agreements entered into, renewed, extended, or transferred on or after June 30, 2026. While it does not apply retroactively, existing franchisors operating in Saskatchewan must ensure their documentation and practices are compliant going forward.
Franchisors without a physical presence in the province are required to appoint an agent for service in Saskatchewan, and the agent’s name and address must be disclosed in the FDD.
Timing and Ongoing Disclosure Obligations
Compliance is not limited to the content of disclosure, but also extends to timing and ongoing obligations.
Franchisors must deliver the FDD at least 14 days before:
- Any franchise agreement is signed; or
- Any payment or consideration is made.
In addition, franchisors are subject to a continuing obligation to disclose any “material change” that occurs between delivery of the FDD and execution of the agreement.
Core Disclosure Requirements
The Act and Regulations prescribe detailed requirements for what must be included in an FDD. These include:
- Risk warnings
- Financial statements prepared in accordance with prescribed accounting and audit standards
- Fees, costs, and any earnings projections
- Territorial rights and restrictions
- Dispute resolution processes
- Lists of current and former franchisees
- All material facts
- Copies of all agreements and related documents to be signed
Each FDD must also include a certificate of accuracy signed by the franchisor, confirming that the disclosure is complete and not misleading.
The Regulations further clarify key definitions, including “earnings projection” and “officer,” aligning Saskatchewan’s framework with other Canadian jurisdictions. Financial disclosure requirements are also clarified, including acceptable accounting standards and the requirement to follow the accounting principles of the franchisor’s home jurisdiction.
Franchisee Rights and Franchisor Risk
The Act introduces significant statutory protections for franchisees, which carry corresponding risk for franchisors in cases of non-compliance. These include:
- A right of rescission, which may extend up to two years where no FDD is provided
- A right of action for damages for misrepresentation in the FDD
- A right of action for breach of the duty of fair dealing, requiring parties to act in good faith and in accordance with reasonable commercial standards
These rights cannot be waived by agreement.
Harmonization with Other Jurisdictions
Franchisors operating across Canada will generally be able to continue using a harmonized or “wraparound” FDD; however, Saskatchewan-specific modifications will be required to ensure full compliance. These may include adjustments to risk disclosure, financial statement presentation, certificates of accuracy, agent for service requirements, and certain jurisdiction-specific assumptions.
This transition presents an opportunity for franchisors to standardize and modernize their disclosure documents across jurisdictions while incorporating Saskatchewan-specific elements.
Practical Steps Toward Compliance
With the June 30, 2026, effective date approaching, franchisors should take proactive steps to prepare, including:
- Reviewing and updating FDDs to meet Saskatchewan requirements
- Confirming financial disclosure practices align with regulatory standards
- Implementing compliant delivery procedures to satisfy the 14-day rule
- Appointing a Saskatchewan agent for service
- Establishing processes to monitor and disclose material changes
- Ensuring internal teams understand compliance obligations
Many franchisors may find it efficient to align these updates with annual disclosure revisions.
Conclusion
The introduction of The Franchise Disclosure Act and its Regulations represents a fundamental shift in franchising in Saskatchewan. While the new regime imposes additional compliance obligations, it also strengthens transparency, aligns the province with national standards, and enhances confidence in franchise investments.
Franchisors operating in or expanding into Saskatchewan should act now to ensure a smooth and compliant transition ahead of June 30, 2026.
*The law may have changed since this article was first published. You should consult with your lawyer to confirm the current state of the law*
For further information please contact:
| Denim R. Martyn Direct Line: (306) 477-7261 Email: dmartyn@cuelenaere.com |