The PEI Act is largely similar to Ontario’s Arthur Wishart Act (Franchise Disclosure), 2000 (the “Wishart Act”). The few differences generally follow certain of the changes suggested in the Uniform Franchises Act that will likely soon be endorsed by the Uniform Law Conference of Canada. Some of the noteworthy differences between the PEI Act and the Wishart Act include:

• Fair Dealing- In the Wishart Act, a duty of fair dealing is imposed on each party in the “performance and enforcement of a franchise agreement.” The PEI Act expands the application of the duty of good faith by adding the words “including in the exercise of a right.” It is unclear exactly how this will affect any one party’s duty, but the result is that, under the PEI Act, the duty of fair dealing will apply in the exercise of a right under a franchise agreement, as well as the performance and enforcement of the franchise agreement.
• Interpretation of a Franchise Agreement- Unlike the Wishart Act, the PEI Act excludes confidentiality agreements and site selection agreements from the definition of “franchise agreement.” Accordingly, and unlike Ontario, these agreements may be entered into in advance of a disclosure document being given.
• Waiver of Rights- The PEI Act broadens the waiver of rights provision contained in the Wishart Act by extending it to include prospective franchisees. Specifically, the Franchises Act stipulates that any waiver or release by a franchisee or a prospective franchisee of a right imposed on a franchisor or franchisor’s associate is void. This is likely what is meant in the Wishart Act, but the PEI Act now makes it clear without having to rely on a judge interpreting it in this fashion.