Appendix 3: Franchises Act

• Author: Frank Zaid
• Profession: Senior Partner Osler, Hoskin & Harcourt LLP
• Pages: 412-425

APPENDIX 3

FRANCHISES ACT

S.P.E.I. 2005, CHAPTER 36

BE IT ENACTED by the Lieutenant Governor and the Legislative As-

sembly of the Province of Prince Edward Island as follows:

1. (1) In this Act

(a)“disclos ure document” means the disclosure document required by

section 5;

(b) “franchise” means a right to engage in a business where the fran-

chisee is required by contract or otherwise to make a payment or

continuing payments, whether direct or indirect, or a commit-

ment to make such payment or payments, to the franchisor or the

franchisor’s associate in the course of operating the business or as

a condition of acquiring the franchise or commencing operations

and,

(i)in which

(A) the franchisor grants the franchisee the right to sell, offer

for sale or distribute goods or services that are substan-

tially associated with the franchisor’s, or the franchisor’s

associate’s, trade-mark, trade name, logo or advertising or

other commercial symbol, and

(B) the franchisor or the franchisor’s associate exercises sig-

nif‌icant control over, or offers signif‌icant assistance in,

the franchisee’s method of operation, including building

design and furnishings, locations, business organization,

marketing techniques or training, or

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