May 14, 2025 - Just months after obtaining a record C$38.9-million penalty in the first fully contested drip pricing case in Canada, the Competition Bureau has initiated a new drip pricing case against Canada’s Wonderland Company, the operator of Canada’s largest amusement park. The Bureau alleges that...
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Competition Law Considerations for the Franchise Industry in Canada
The Canadian franchise industry constitutes an important sector of the Canadian economy. The industry employs one in every 35 Canadian, generates approximately C$68 billion in revenues, and covers a wide variety of businesses (60% of franchisees are in non-food sectors and industries.)
Franchising in Canada is governed principally by provincial legislation, with six provinces having enacted specific statutes in this regard. However, in addition to provincial regulation, franchisors and franchisees operating in Canada must also comply with the federal Competition Act (the Act), which applies generally to all businesses and industries in Canada.
Given the potential sanctions involved, compliance with the requirements of Canadian competition law – as embodied in the Act – is a critical business imperative. This article provides a primer on the aspects of Canadian competition law that are most relevant to the franchise industry in Canada, with a view to providing the foundation for such compliance.
Read more on Competition Law Considerations for the Franchise Industry in Canada.
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