Ontario Barrister and Solicitor Practice Exam

What obligations does the Arthur Wishart Act impose on franchisors?

1. To pay taxes on behalf of the franchisee

2. To provide extensive training program

3. To impose significant disclosure obligations

4. To limit the operating territory of franchisees

The correct answer is: To impose significant disclosure obligations

The Arthur Wishart Act is a provincial law in Ontario, Canada that governs the relationship between franchisors and franchisees. The act imposes significant disclosure obligations on franchisors that must be met before a franchise agreement can be signed. These disclosure obligations include providing the franchisee with a disclosure document that outlines all material facts about the franchisor and the franchise system. Option A, paying taxes on behalf of the franchisee, is incorrect because there is no provision in the Arthur Wishart Act that requires franchisors to do so. This would fall under the responsibility of the franchisee as a business owner. Option B, providing training programs, may be a part of the franchise agreement but it is not specifically required by the Arthur Wishart Act. Option D, limiting operating territory, is not an obligation imposed on franchisors under the act. The act does require franchisors to disclose any restrictions