Franchise compliance
Franchise compliance refers to both parties meeting their obligations in a franchise relationship. For the franchisor, this includes statutory disclosure and fair dealing; for the franchisee, it includes following the franchise agreement and system standards. Most operational obligations, such as support, training and marketing, come from the franchise agreement rather than statute.
How BC law treats it
In BC, the Franchises Act, SBC 2015, c 35 imposes a duty of fair dealing (s. 3), protects franchisees' right to associate (s. 4) and requires disclosure (s. 5). It does not impose operational obligations, such as support or training, which arise only from the agreement.
What it means for your business
A franchisee should keep records of its own compliance and of any failures by the franchisor to meet its contractual obligations.
Risks and common mistakes
Repeated breaches of system standards can give the franchisor grounds to terminate the franchise.
For the full explanation, see our entry on Franchisor obligations.
General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.
