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Promoting Transparency in the Franchises Act

When someone first approaches us to say that they want to become a franchisee, they often have no idea just how much they need to know before they can sign on. By the time our discovery process is complete, we want to be confident that our franchisees know all about us and that we know all about them. We want to answer questions they don’t even know to ask.

“We were very lucky to have bought in to a franchise that shared all the information we needed to feel good about our decision to open a franchise, but we’ve heard that not everyone is so lucky. By giving people buying into a franchise all the information they need to make informed decisions before they sign on the dotted line, you really are setting them up for success. We love our school in Langley and are excited about opening our new location in Morgan Crossing in South Surrey. CEFA is a great franchise, and it’s good to know that those who aren’t as lucky as we have been will have more support.” – Jackie Jackson, CEFA Franchisee

Unfortunately, not all franchises in BC have been willing to provide this level of disclosure, and we have been working with the Government of BC to promote changes to the Franchise Act that would increase the amount of transparency that’s required. These kinds of changes are to everyone’s benefit in the long term. Entering into a Franchise Agreement is a commitment and both parties should know each other thoroughly before making that commitment.

“As the founder and CEO of CEFA Early Learning schools, I am thrilled to support this new legislation. Franchisees place a great amount of trust in us franchisors when investing in their new franchise, and they should have the information they need to make the right decision. CEFA has franchised schools nation-wide. We have already been providing all our franchisees, including those in BC, with a full disclosure document, for several years already, even though it was not required by law. Now all other franchisors in BC will have to do the same.” – Natacha Beim, Founder and CEO

For more information about the proposed changes, please refer to the press release on the Government website and this Globe and Mail story.

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