Article by Tony Wilson about Franchise Legislation in BC

Tony Wilson is respected around town (Vancouver) as a Franchise Lawyer which is why when he writes an article in the Globe and Mail, the VCSFA pays attention.  In this recent article “Franchising is Big in BC – So Where’s the Legislation?”, Mr. Wilson talks about the British Columbia Law Institute’s (BCLI) consultation paper on franchise legislation in BC.  He explains BC’s odd position of being one of few provinces that remains without franchise legislation and even brings up an argument that the legislation may not bring notable changes as follows:

But will it [bring change]? If most franchisors in Canada – including those headquartered in B.C. that are selling franchises in Ontario, Alberta, Manitoba, PEI or New Brunswick – must comply with the legislation in effect within the disclosure provinces anyway, it is arguable this will add little more in terms of compliance costs to B.C.-based franchisors. They will simply adapt their FDDs to include B.C. Franchisors in other provinces will do the same.

Thankfully the VCSFA has had the honour of meeting with some of the people involved in this consultancy report and have been able to express our position on the matter.

Although Mr. Wilson is correct that many reputable Franchises are currently operating in compliance with other province’s franchise legislation and that they will be able to quickly adapt to any implemented BC legislation, this doesn’t take into account the fact that there are BC-born Franchises that have been operating without it for years *here in BC* and continue to sell stores.  Take for example the following ‘bigger name’ coffee shop franchises from our Francouver list that are either BC-born or operate primarily here:

  • Bean Around the World
  • Blenz Coffee
  • BG Urban Cafe (formerly “Bread Garden”)
  • Serious Coffee
  • Take 5 Cafe
  • Wave’s Coffee
  • Wired Monk

We have received local Vancouver reports from current and previous Franchisees involving horrific business practices that have resulted in bankruptcies, broken families, or other similar tragedies. In fact, some of the stories are so bad that you would be hard pressed to believe that the events could have possibly taken place in Canada.  Some people have been begging us to bring some of these stories to light and the companies behind them, but we are convinced that by means of the current court systems and eventual Franchise legislation in BC, that nasty people will be unable to continue in their nasty ways.

Do not think that just because a Franchisor is complying in other provinces that they will play nice and follow suit in BC.  We need clear and reasonable legislation right here at home.

In conclusion, let it be known that the VCSFA takes a very strong position *in favour of immediate Franchise legislation* so that it becomes very difficult for Franchisors to commit premeditated acts of business atrocities in our beautiful country, and especially in our province of British Columbia.