Franchise agreement review
Franchise agreement review is a lawyer's review of a proposed franchise agreement and the franchisor's disclosure document before a franchisee signs, covering fees, territory, term, renewal, restrictive covenants, termination and transfer rights. Franchise agreements are usually standard form documents written in the franchisor's favour, so review identifies risks and points that may be negotiated.
How BC law treats it
In BC, franchising is governed by the Franchises Act, SBC 2015, c 35, which requires disclosure and imposes a duty of fair dealing. The only statutory exit is rescission for late, deficient or no disclosure under s. 6.
What it means for your business
A prospective franchisee should have the agreement and disclosure document reviewed before signing anything or paying any money.
Risks and common mistakes
Signing without review can lock a franchisee into personal guarantees and non-compete terms that survive the end of the franchise.
For the full explanation, see our entry on Franchise agreements.
General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.
