New Brunswick Franchises Act

On April 16, the Department of Justice and Consumer Affairs for the province of New Brunswick released a consultation paper setting out the proposed regulations under the province’s Franchises Act (the “Act”).
Originally passed in 2007, the Act, which has yet to come into force, clarifies five areas of the franchise relationship, specifically: the duty of fair dealing; franchisee association rights; franchisor duties to provide precontractual disclosure, and related remedies; mediation procedures; and, the overriding of provisions requiring litigation to be conducted outside New Brunswick. While there will be some differences from other provincial franchise laws in regard to the contents of a New Brunswick compliant disclosure document, the Act is most noteworthy because the mandatory mediation provisions are a marked departure from the franchise law statutes in the other provinces of Canada.
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