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Franchise Canada Directory 2023

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FUNDAMENTALS OF FRANCHISING

FRANCHISEE SUCCESS STORIES

ADVICE FROM THE FRANCHISE PROS

MORE THAN 1,300 LISTINGS INSIDE

A Canadian Franchise Association Publication / www.FranchiseCanada.Online

DIRECTORY 2023 - YOUR COMPLETE SOURCE GUIDE TO FRANCHISING IN CANADA

FRANCHISE SOURCE GUIDE 2023 $9.99 PM 41043018

DISPLAY UNTIL JUNE 30, 2023


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preparing for tomorrow has been a key to success in our 40 year history.

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CONTENTS FRANCHISE

DIRECTORY 2023

CANADA

Looking for a franchise? Discover

the best franchise business opportunities available now

Start a business for yourself with the support of a credible franchise system! With hundreds of franchise opportunities, LookforaFranchise.ca is the most comprehensive online directory of legitimate franchises available in Canada. We make searching for a franchise easy – you can find franchises by company name, location, investment, or industry. Begin your search now and realize the dream of running your own business.

Get Started Today!

• Information you can trust • Credible franchise opportunities • Narrow your search • Contact franchisors directly • Get the info you need

LookforaFranchise.ca

FEATURES

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The Canadian Franchise Association (CFA): Helping everyday Canadians realize the dream of building their own business through franchising

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Why Choose a CFA Member? Investing in a franchise committed to excellence

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Franchising 101: An Introduction to Franchising

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10 Reasons to Become a Franchisee Explore the benefits that becoming a franchisee can bring

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Canadian Franchise Association

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3 Ways to Find the Right Franchise Fit

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Business Plan and Financial Management Basics Kick-start your franchising career with these tips to establish a strong business plan

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Resale Refresh

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Due Diligence Checklist

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Success Stories: The Faces of Canadian Franchising Meet thriving franchisees across Canada

www.cfa.ca | www.FranchiseCanada.Online


Franchise Canada is published by the Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

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5 Things Smart Franchisees Know about Support Services When and why you should call in the pros during your franchise search

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Thinking About Franchising Your Business? 4 BIG questions to consider before you get started

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Ask the Experts

DEPARTMENTS

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Publisher’s Message

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CFA Code of Ethics

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How to Use This Directory

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Franchise Brands Listings

219

CATCH UP ON ALL 6 SEASONS NOW, BEFORE SEASON 7 LAUNCHES IN WINTER 2023!

Franchise Support Services Listings

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Franchise Brands Index

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Franchise Support Services Index

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Advertisers’ Index

LISTEN & LEARN

Tune in to the Franchise Canada Chats Podcast!

A NOTE TO READERS Every attempt has been made to make the information in this guide as comprehensive as possible. But given the limitations of space, it can only be a beginning – not an end in itself. Every franchise system has its own unique characteristics. Consequently, each franchise you may consider purchasing must be examined anew, and may present considerations that are not touched upon in this guide. The CFA hopes that the materials in this guide, combined with your own careful analysis and common sense, will help you achieve your goals and avoid making mistakes in your search for the right franchise business. Every effort has been made to ensure the accuracy of the information supplied herein and the Canadian Franchise Association cannot be held responsible for any errors or omissions.

Available on Google Play, iTunes, SoundCloud, Spotify, and Stitcher Radio

FranchiseCanadaChats.ca

The information in the listing of this Directory has been provided by the franchise systems and franchise support services providers named. While the CFA has requested that such systems and providers submit information that is up-to-date and correct, the CFA makes no guarantee, endorsement, representation, or warranty of any kind regarding the completeness, accuracy, or reliability of any of the information submitted and the CFA disclaims any obligation to do so. The CFA encourages readers to conduct their own due diligence regarding such systems and providers (including obtaining and reviewing a disclosure document for each system of interest) and to consult with franchise lawyers, accountants, and financial advisors of their own choosing before entering into any agreement with or paying any deposit/retainer to any system or provider listed herein. All information listed for both Franchise Brands and Franchise Support Services/Suppliers in the 2023 Franchise Canada Directory is current as of Wednesday, December 8, 2022.

Franchise Canada Directory 2023

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PUBLISHER’S MESSAGE

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FRANCHISING THRIVES AMID ECONOMIC CONCERNS

s we head into 2023, the worst of the pandemic may be over, but economic uncertainty remains. This has not, however, been enough to slow down the Canadian franchise industry, which grew from $100B to $120B between 2021 and 2022. That growth is poised to continue in 2023, and that’s thanks to the strength of the franchise business model, which provides entrepreneurial Canadians with opportunities to go into business for themselves but not by themselves, with much-needed support behind them. Ready to make your business dreams become reality through franchising? This 2023 Franchise Canada Directory, which can serve as your essential companion on the journey to business ownership, is a great place to start. The articles found on pages 12 through 54 provide fundamental information to kick-start your franchise search, from choosing the franchise that’s right for you, to the legal and financial due diligence required before signing the franchise agreement. Have questions about franchise financing or whether purchasing through a resale might be the right path for you? We share a wide range of background information, tips, and advice to help you gain the franchising knowledge you need to make the best possible investment decision. As the authoritative voice of franchising in Canada, the Canadian Franchise Association (CFA) has been equipping entrepreneurs with the knowledge and tools to be successful for more than 50 years, and the Directory is an essential index of our family of member brands. Here you’ll find over 1,300 listings from our more than 700 corporate members, including emerging to iconic brands, across 50 different categories. The easy-to-use listings (starting on page 57) are arranged alphabetically, based on category, and contain information to help prospective franchisees evaluate an opportunity, including contact information, number of units, investment fees, territory availability, and more. The valuable information within these listings has been provided directly by the franchise systems. To ensure you have support in making the right franchising decisions, this Directory also includes listings for the CFA’s Franchise Support Service and Supplier members, who can play a pivotal role in your franchising

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journey. This section of the Directory, starting on page 219, connects you with services you’ll need to carry out the proper due diligence and build your franchise business, from franchise consultants and accountants to bankers and lawyers, and more. As you read through this Directory, note the CFA member logo that highlights the CFA’s many corporate members. As members of the Association, these companies voluntarily pledge to promote excellence in franchising by upholding the CFA Code of Ethics (listed on page 10). Beyond the essential tools found in this Directory, the CFA has additional resources to help put you on the path to franchise success. Find exclusive education articles, Franchise Canada Chats podcast episodes, and Franchise Canada TV learning videos on FranchiseCanada.Online. You can also sign up for Franchise Canada E-News, a bi-weekly newsletter filled with franchise opportunities, industry news, and more, which includes a digital subscription to Franchise Canada magazine. Connect with CFA member brands through the online directory, LookforaFranchise.ca, Franchisor Spotlight webinars available on CFA.ca, and through virtual and in-person events. Also be sure to follow the CFA on Facebook, Twitter, Instagram, LinkedIn, and TikTok. While the economy is reactive, the Canadian franchising space is proactive, responding to economic uncertainty with well-established strength and resilience. These businesses, with built-in support systems, will continue to foster growth for Canadian franchisees through 2023. CFA resources, including the tools, guides, and member information found within this Directory, can help you make informed decisions and weather any economic storms that may lie ahead. With the right tools at your disposal, you can make your business dreams become reality through franchising.

Sherry McNeil President & CEO, Canadian Franchise Association

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online


CFA BOARD OF DIRECTORS BOARD CHAIR David Druker*, The UPS Store PRESIDENT & CEO Sherry McNeil*, Canadian Franchise Association 1ST VICE CHAIR Ryan Picklyk, A&W Food Services of Canada Inc. PAST CHAIR Gerry Docherty*, Good Earth Coffeehouse SECRETARY & GENERAL COUNSEL

PUBLISHER

Canadian Franchise Association (CFA)

Larry Weinberg*, Cassels Brock & Blackwell LLP

VP, CONTENT & MARKETING Kenny Chan

TREASURER Lyn Little, BDO Canada LLP

EDITOR Lauren Huneault

CHAIR, FRANCHISE SUPPORT SERVICES

GRAPHIC DESIGNER Andrea Lee

Kirk Allen, Reshift Media

CHAIR, LEGAL & LEGISLATIVE COMMITTEE

Darrell Jarvis*, Fasken

LISTINGS MANAGER Andrew Schopp EDITORIAL ASSISTANT Daniel McIntosh ADVERTISING SALES Om Mehta

DIRECTORS

Steve Collette, 3rd Degree Training Chuck Farrell, Pizza Pizza John Gilson, COBS Bread Andrew Hrywnak, Print Three Franchising Corporation Rimma S. Jaciw, CFE, WSI Digital Joel Levesque, McDonald's Restaurants of Canada Ken Otto, Redberry Restaurants Gary Prenevost, FranNet John Prittie, TWO MEN AND A TRUCK Stephen Schober, Metal Supermarkets Family of Companies Thomas Wong, Chatime Todd Wylie, Master Mechanic *Executive Committee member

The CFA wishes to acknowledge and thank these National Sponsors for their support throughout the year. Find out more about these companies at www.cfa.ca/sponsorship

AD COORDINATORS

Andrea Lee, Om Mehta PRINTING Premier Printing FOR ADVERTISING INFORMATION:

Om Mehta omehta@cfa.ca

TO SUBSCRIBE TO Franchise Canada

visit www.FranchiseCanada.Online or call 1-800-665-4232 ext. 224. Return Undeliverable Canadian Addresses to: Canadian Franchise Association 5399 Eglinton Ave. West, Suite 116 Toronto, ON M9C 5K6

We invite your comments, questions and suggestions. Please contact us at editor@cfa.ca or 1-800-665-4232.

© 2023, Canadian Franchise Association. All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the publisher. Publications Mail Agreement No. 41043018

LAW FIRMS:

SHOWCASED FRANCHISES

Legal Disclaimer The opinions or viewpoints expressed herein do not necessarily reflect those of the Canadian Franchise Association (CFA). Where materials and content were prepared by persons and/or entities other than the CFA, the said other persons and/or entities are solely responsible for their content. The information provided herein is intended only as general information that may or may not reflect the most current developments. The mention of particular companies or individuals does not represent an endorsement by the CFA. Information on legal matters should not be construed as legal advice. Although professionals may prepare these materials or be quoted in them, this information should not be used as a substitute for professional services. If legal or other professional advice is required, the services of a professional should be sought.

FSC® certification is a commitment to good forestry practices, carried from forest to consumer

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Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online


CODE OF ETHICS

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he Canadian Franchise Association (CFA) is dedicated to encouraging and promoting excellence in franchising in Canada. Each member of the Association agrees to abide by the CFA Code of Ethics and to further the Association’s goals of encouraging and promoting ethical franchising in Canada. Each member of the Association agrees to comply with the spirit of this Code of Ethics in its general course of conduct and in carrying out its general policies, standards, and practices. The following are considered by the Association to be important elements of ethical franchising practices: 1. Franchise system and franchise support services members should fully comply with Federal and Provincial laws, and with the policies of the Canadian Franchise Association. 2. A franchisor should provide prospective franchisees with full and accurate written disclosure of all material facts and information pertaining to the matters required to be disclosed in advance to prospective franchisees about the franchise system a reasonable time [at least fourteen (14) days] prior to the franchisee executing any binding agreement relating to the award of the franchise. 3. A ll matters material to the franchise relationship should be contained in one or more written agreements, which should clearly set forth the terms of the relationship and the respective rights and obligations of the parties. 4. A franchisor should select and accept only those franchisees who, upon reasonable investigation, appear to possess the basic skills, education, personal qualities and financial resources adequate to perform and fulfil the needs and requirements of the franchise. Franchise systems and franchise support services members of the Association should not discriminate based on race, colour, religion, national origin, disability, age, gender or any other factors prohibited by law. 5. ­­­ A franchisor should provide reasonable guidance, training, support, and supervision over the business activities of franchisees for the purposes of safeguarding the public interest and the ethical image of franchising, and of maintaining the integrity of the franchise system for the benefit of all parties having an interest in it. 6. Fairness should characterize all dealings between a franchisor and its franchisees. Where reasonably appropriate under the circumstances, a franchisor should give notice to its franchisees of any contractual

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default and grant the franchisee reasonable opportunity to remedy the default. 7. A franchisor and its franchisees should make reasonable efforts to resolve complaints, grievances, and disputes with each other through fair and reasonable direct communication, and where reasonably appropriate under the circumstances, mediation, or other alternative dispute resolution mechanisms. 8. A franchisor and a franchise support services member should encourage prospective franchisees to seek legal, financial, and business advice prior to signing the franchise agreement. 9. A franchisor should encourage prospective franchisees to contact existing franchisees to gain a better understanding of the requirements and benefits of the franchise. 10. A franchisor should encourage open dialogue with franchisees through franchise advisory councils and other communication mechanisms. A franchisor should not prohibit a franchisee from forming, joining, or participating in any franchisee association, or penalize a franchisee who does so. 11. A franchise support services member that provides products or services to a franchisor or franchisee should encourage the franchises to comply with the spirit of this Code of Ethics. A franchise support services member should not offer or provide products or services if legislative or professional qualification is required to do so unless the franchise support services member has such qualification.

LOOK FOR EXCELLENCE As you investigate the many franchise opportunities available to you, you will see a special logo featured in franchise literature, on franchising websites, and in franchise tradeshow booths. This logo identifies franchise systems and franchise support services/suppliers as members of the Canadian Franchise Association (CFA). You should be on the lookout for this symbol when researching franchise systems or assembling a team of franchise support professionals to assist in your search. CFA encourages and promotes excellence in franchising in Canada, and members of the Association voluntarily agree to follow the CFA’s Code of Ethics in pursuit of these goals. Start your search for your franchise dream with a CFA member. Visit www.LookforaFranchise.ca today.

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online


INVEST IN YOUR FUTURE AND GIVE THE NEXT GENERATIONS CREATIVE COURAGE FOR LIFE. Find out how you can change your future, and theirs, by buying a Stagecoach Performing Arts franchise.

over

300 franchisees across 8 countries with 3,000

schools and classes worldwide delivering

5,000 hours per week

stagecoachfranchise.com

franchiserecruitment@stagecoach.global Creative Courage For Life®


The Canadian Franchise Association (CFA) Helping everyday Canadians realize the dream of building their own business through franchising What is the Canadian Franchise Association? Back in 1967, as Canada’s centennial was being celebrated, a group of franchise business owners recognized a need for a national umbrella organization committed to the growth, enhancement, promotion, and development of ethical franchising across the country. The Canadian Franchise Association (CFA) was founded with this mission and these principles, and is now the only national trade association serving the franchise industry and the needs of franchisors, franchisees, and anyone considering opportunities in the franchise sector. The CFA is now the recognized authority on franchising in Canada, and represents members and iconic Canadian brands across the country, including Pizza Pizza, M&M Food Market, and McDonald’s Canada. Our purpose: To help everyday Canadians realize the dream of building their own business The CFA’s mission is to amplify the understanding and power of franchising in Canada by advocating on the issues that impact this dream, connecting people with opportunities in franchising, and delivering learning opportunities that make the industry stronger. The CFA produces the annual Franchise Canada Directory, and Franchise

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Canada magazine, considered the country’s most trusted franchise resources. The bi-monthly magazine is a digital publication, with each issue available as a flipbook on FranchiseCanada.Online. The annual directory is a print publication that’s available on newsstands and in bookstores throughout the country. A digital version is also available for purchase at FranchiseCanada.Online. Prospective franchisees can also learn more about franchising through Franchise Canada E-News, a bimonthly digital newsletter; the Franchise Canada Chats podcast, about to embark on its seventh season; Franchise Canada TV, which features interviews and educational videos; and more resources that can be found at FranchiseCanada.Online. The Association also offers Canada’s only tradeshows that exclusively feature CFA member franchise systems. After going virtual during the COVID-19 pandemic, live Franchise Canada Shows returned in 2022, starting with shows in Toronto, Montreal, and Vancouver. These shows provide Canadians with the opportunity to meet face to face with franchisors and learn about their proven business opportunities. The CFA’s wealth of knowledge flows, in part, from its prominent role in the nation’s business community.

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online


Since opening in America in 2015, X-Golf has taken off. There are now over 60 locations spanning half of the states in the U.S.A. and for the first time ever, X-Golf ownership is now available in Canada. The X-Golf franchise model offers an exciting business opportunity for those ready to pursue a new venture in a unique, non-saturated, developing sports and entertainment industry. Each X-Golf location has the full support of our Head Office team. X-Golf has specialist resources to advise on each of the following franchise components:

Real Estate Site Selection & Store Fit-Out

Sales & Customer Relationship Training

Brand & Local Area Marketing

Supplier Relationships & Purchasing Discounts

Information Systems Business Development Implementation & Sales & Support Training

Want to Become a Part of the X-Golf Franchise Family? Visit XGolfCanada.com for More Information.


THE CANADIAN FRANCHISE ASSOCIATION

Leadership

Leadership

We amplify the understanding and power of franchising in Canada by advocating on issues that impact the dream of building a business through franchising.

Opportunity

Opportunity

We help everyday Canadians realize the dream of building their own businesses and connect people with opportunities in franchising.

CFA members represent thousands of business outlets across the country. As a whole, the franchise industry employs almost two million people. About half of these employees work under the banners of hundreds of CFA member franchise systems. What can the CFA do for you? One of the CFA’s primary roles is to help prospective franchisees make the best decision when investing in a franchise by providing resources and education about franchising. The CFA’s websites (www.cfa.ca, LookforaFranchise.ca, and FranchiseCanada.Online) offer valuable information and resources about franchising, as well as detailed listings in its online member directories. These directories are separated into franchise systems and franchise support services providers (e.g. franchise lawyers, accountants, consultants, etc.). CFA members represent a diverse cross-section of franchise systems in Canada, ranging from very large, established operations to smaller regional concepts. When you deal with CFA members, you can be confident you’ll be treated fairly because all members must adhere to a strict Code of Ethics. Franchisors can become members only after they undergo a review process performed by a committee of their peers. Members join the CFA voluntarily, as franchise systems are not obliged to belong to any trade organization. CFA members share the conviction that their commitment to excellence in franchising improves the industry as a whole for everyone involved, including franchisors, franchisees, suppliers, and customers. Realistically, however, what the Association can’t do is protect potential investors from making bad business decisions. The CFA doesn’t have specific punitive powers to use against members if they violate the Association’s Code of Ethics. Members, however, may use the confidential, complimentary services of a third-party and neutral ombudsman (available through www.cfa.ca) to help resolve disagreements between franchisors and franchisees.

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Trust

Trust

We deliver learning and networking opportunities for everyone in the franchise community to make franchising stronger.

Credibility

Credibility

We provide our members with credibility and a full range of programs and services to help them grow through the support of the franchise community.

We fulfill our mission through our four brand pillars— leadership, trust, credibility, and opportunity. Through these pillars, we create a unified force that represents different elements coming together to create and grow as a multifaceted whole. Working under the motto of “Growing Together ®,” we embrace the concept of growing your business with the support of the greater franchise community through CFA membership. This holds true to the concept of franchising—that a franchisee and franchisor can grow their businesses through partnership. Together, we all grow our businesses, our expertise, and our ability to advocate for a thriving future.

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So Many Opportunities

Made up of thousands of small businesses in every community from coast to coast, the franchising sector is the 12 th largest contributor to the Canadian economy. The Canadian franchise industry is estimated to have almost 1,300 brands and more than 76,000 franchise locations across a variety of sectors. While franchise concepts operating in the food service category dominate the industry, there’s more to franchising than just fast food. You’d be hard-pressed to find a Canadian neighbourhood devoid of a franchise business serving its residents. With franchise systems operating in more than 50 different sectors, Canadians from coast to coast are interacting with franchise systems daily; from coffee shops to cleaners and daycares to restaurants, hotels, and so much more, the franchise business model is an important part of Canadians’ day-to-day lives.

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

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CMY

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Ontario's freshest franchise. Become part of one of Canada’s most popular and successful franchise chains.

Edo Japan serves fresh, delicious Japanese-style fast food at more than 170 locations making us one of the most popular and successful franchise chains in Western Canada.

Now accepting applications for Ontario Locations with limited-time incentives* edojapan.com/franchising or franchise@edojapan.com Canadian owned and operated.

*Offer is subject to change without notice. Expires in January 2023.


Now Is The Time To Join The #1 Staffing Franchise Become a business owner today.

Express Employment Professionals is the #1 global staffing franchise with more than 860 locations in five countries. With 40 years of proven success in a $212.8B industry, Express puts more than 586,000 people to work each year.

2006-2022

FRANCHISE OPPORTUNITY


Why Choose a CFA Member? Investing in a franchise that’s committed to excellence

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or entrepreneurs looking to be in business for themselves, but not by themselves, franchising provides the opportunity to run a business and be your own boss, while being backed by an established system and brand. Taking the first step towards business ownership through franchising can be daunting. For a prospective franchisee, it’s easy to feel overwhelmed by the thousands of new and emerging franchise concepts available on the market. Whether you’re interacting with brands at the Franchise Canada Show or flipping through the pages of the annual Franchise Canada Directory listings, it’s abundantly clear that there’s no shortage of exciting franchising opportunities out there; it’s just a matter of finding the right fit for your goals. At the Canadian Franchise Association (CFA), we believe strongly that the franchise model is ultimately about people. It’s about everyday Canadians, working hand in hand within a franchisor-franchisee relationship to share success. Each one of our members is committed to this ideal. As members of the Association, CFA member franchises voluntarily pledge to uphold CFA’s core values of excellence in franchising through the CFA’s Code of Ethics (page 10), which ensures that our members are dedicated to helping

everyday Canadians realize the dream of building their own business through leadership, opportunity, trust, and credibility. By joining the CFA, these franchises have made the conscious decision as an organization to be the best franchisors they can be. Here are a few reasons why, as a prospective franchisee, you should keep your eyes open for the CFA member logo that highlights the CFA’s many corporate members. CFA members strive for excellence Franchisees have made a life-changing financial and time investment in purchasing a franchise. It’s up to franchisors to equip themselves with the right educational and networking tools so they can live up to their promises to franchisees. The CFA offers its members a wide range of educational programs to help them become best-in-class franchisors, resulting in happy and thriving franchisees. CFA members are constantly looking to improve their franchise systems. Whether it’s by attending Learn & Grow Webinars to upgrade their skills or attending Franchise Law Day to get up to speed on their legal obligations, CFA members are empowered to grow their network by becoming educated franchisors.

Franchise Canada Directory 2023

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WHY CHOOSE A CFA MEMBER? EMPLOYMENT RULES:

Employment Standards Tool Kit for Ontario Franchised Businesses

Published by

Fighting for franchising, on your behalf The CFA is the voice of the franchise community and the recognized authority on franchising in Canada. We speak for a business sector that represents every industry and touches the lives of every Canadian, in every community across the country. Our members understand that as a franchisee, your focus is on growing your business, which is why we’re committed to fighting for Canada’s franchising industry on your behalf. The CFA tackles a wide range of issues directly impacting the operations of a franchised business, including government support programs, common employer, and other important files impacting the industry across Canada to ensure the government works to support the growth of your business, not hinder it. Tools to grow your business As a franchise owner in a CFA-member system, you have at your disposal a wide range of tools that are designed to help your franchise grow and thrive, including our Member Savings Program, which allows you to enjoy the collective power of the CFA’s members and their franchise partners to save on everyday business needs like travel, payment processing, shipping, and so much more. As a franchisee in Ontario, you also

have access to the Employment Standards Training and Employment Program for Ontario Franchised Businesses program, which offers a Tool Kit, articles, webinars, presentations, and other materials to help make the employment standards and labour laws of Ontario easier to understand and navigate. Growing Together® as a franchising community The CFA is made up of a community of franchise leaders and small business owners who are committed to sharing best practices, amplifying the understanding and power of franchising in Canada, and ultimately, Growing Together ® by promoting franchise excellence. You’re making a life-changing financial and time investment in purchasing your own franchised business, but by moving forward with a CFA member franchise, you’d be doing more than just buying a franchise; you’d be joining the greater Canadian franchising community. Franchising is the 12th largest industry in Canada and well on its way to becoming 11th. Collectively, franchising employs almost two million Canadians, spanning across the country in almost every community. We’re found in almost every sector and industry of business. The average Canadian interacts with three to five franchises every day. The CFA is the “steward” of our community and the “keeper” of the power of that community. We are more than a service provider to individual franchise systems. We are also more than just the representation of the franchise community. We ARE the franchise community in this country. Because the CFA is you—the franchisors and franchisees who make up our membership. We’re successful when you’re successful and together, we’re stronger.

14 Locations and growing!! Join Pest Detective today!!

Contact Matt O’Neill for more information 1.604.690.4328 moneill@pestdetective.com

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Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

To learn more about the franchising opportunities available with CFA member systems, visit www. LookforaFranchise.ca


FRANCHISING 101: AN INTRODUCTION TO FRANCHISING

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ranchising is an attractive and powerful way for Canadians to make their business dreams become reality and achieve success as small business owners. Through the proven business concept and support provided by the franchisor, franchisees are able to be in business for themselves, but with the support and assistance of the franchisor, the advantage of the franchise system’s past success, and access to the knowledge and experience of a network of franchisee peers. Franchising is about sharing success. The success of a franchisee leads to the further success of the franchisor and the franchise system as a whole. When you invest in a franchise, you align yourself with a brand that may already enjoy established consumer awareness and loyalty in the Canadian marketplace. This instant brand recognition can bring many advantages, including a stronger position when applying for a business loan. As a franchisee, you’ll benefit from the license to use the franchise system’s proven branding, trademarks, and proprietary products and/or services. A franchise also provides you with the advantage of a tried-and-true system and an operations manual that fully explains how to replicate the franchise’s system at your location. While it’s impossible to eliminate all risk, if you work and follow that system, you can reduce the risk of business failure and increase your likelihood of success.

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As a franchisee, you’re considered a small business owner, and it’s important for you to assume a leadership role in your business. By joining an already established system, you don’t have to invent the business from the ground up like you would as an independent business. The franchise system can save you time and money by keeping you up to date on your market. Through the franchisor, you can stay on top of business trends, research and development, new marketing initiatives, and changes in consumer tastes or behaviours. Being a franchisee means there’s strength in numbers. Many franchise systems have an established supply chain and strong relationships with suppliers. By ordering your stock, supplies, and equipment through approved suppliers as a member of your franchise system, you may receive the benefit of preferential pricing or special delivery. Joining a franchise system also gives you a network of peers upon whose knowledge and experience you can draw. If you encounter an issue or have a question, your franchise system colleagues are just a phone call or email away. What are the key responsibilities of the franchisee? While system-specific responsibilities required of the franchisee will be outlined in the franchise agreement, there are a few key responsibilities that are generally required of the majority of franchisees.

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online


FRANCHISING 101: AN INTRODUCTION TO FRANCHISING The franchisee should: •F ollow the franchisor’s standards, methods, procedures, techniques, and specifications to ensure consistency; •P ay a fee (typically an initial franchisee fee and ongoing royalties) to the franchisor for the right to use the franchisor’s trademarks (brand) and business system; •T ake care of accounting, local marketing, staffing, and the other administrative aspects of operating a business; • I nvest their time, particularly during the start-up phase, by working hands-on in their business to fully understand the operational side of the franchise; and •W ork in partnership with the franchisor, allowing for effective two-way communication between the two parties and a mutually beneficial relationship. What are the key responsibilities of the franchisor? While the franchise agreement will outline the specific responsibilities and obligations of the franchisor, there are a few key responsibilities of the franchisor that apply in most scenarios. The franchisor should:

• Undertake to provide franchisees with operating systems and support services to help their businesses grow in ways that are effective, efficient, and profitable; • Continue to evolve the franchise system through research and development of new products and services; • Handle all brand advertising and (usually) provide franchisees with assistance for their local marketing activities; • Protect and manage the brand and its trademarks, while ensuring consistency and quality standards are maintained by all franchisees in the system; and • Provide initial and ongoing training and support. If you’re interested in embarking on a career in franchising, we’ve assembled the resources to help you make an informed investment decision. The Step-by-Step Guide to Franchising resource article on FranchiseCanada.Online takes you through the path to making a franchise purchase, hitting the highlights of finding your franchise fit, building a business plan, understanding franchise finance fundamentals, and navigating the franchise disclosure document, as well as a handy checklist of questions to ask the franchisor and other franchisees.

REDEFINING THE NEIGHBOURHOOD PIZZERIA BE PART OF FAMOSO'S SUCCESS: • 31 locations across Canada • Receive best in class support and training

• Required investment starting from $450k (streamlined model) to $800k (full size model)

partner@famoso.ca 1.888.597.7272

www.famoso.ca

(toll free Canada)

| 604.637.7272

401 – 1901 Rosser Ave, Burnaby, BC, V5C 6S3

Franchise Canada Directory 2023

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10 Reasons

TO BECOME A FRANCHISEE

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franchise provides you with the advantage of a tried-and-true system and an operations manual that fully explains how to replicate the franchise’s system at your location. While it’s impossible to eliminate all risk, if you work and follow that system, you can reduce the risk of business failure and increase your likelihood of success. Each year, thousands of people across Canada invest in franchise opportunities for a multitude of personal, financial, and vocational reasons. Here, we provide 10 of the many benefits that becoming a franchisee can bring. 1. No ‘reinvention of the wheel’ required A franchise prides itself on the system that it’s developed and tested over time. When you invest in a franchise, you gain access to and use of its operations systems, products/services, logos, and more. If you were starting your own independent business, the onus would be solidly on you to figure out all the aspects of the business, including what works, and what doesn’t. With a franchise, you’ll have the road map to recreate the brand’s success at your location—providing you follow it to the letter. 2. Trademarks and patents A good franchisor will have already secured the trademarks and patents related to its brand. Franchisees are then licensed to use the franchise’s branding, trademarks

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and proprietary products, services, recipes, etc. This can save you time and money during the start-up process, as you won’t need to go through the legal and governmental processes to secure the appropriate rights. You can also rest assured that your rights to make use of your brand’s trademarks and patents are enshrined in your franchise agreement. 3. Territory rights In most cases, you, as a franchisee, will be awarded an exclusive territory, giving you exclusive rights to offer your product or service within your designated area. The territory is designed to reduce competition, and can vary in size and scope. (A territory can be small, like a specific shopping centre, or large, like a geographic region.) Your territorial rights should be set out in and protected by your franchise agreement. 4. Start-up costs estimated In an independent business, you would be charting new waters. With a franchise, others have gone before you and can provide you with an example of what to expect in terms of start-up costs. Though each franchisee’s experience can vary and there’s always the possibility of unexpected or unforeseen expenses, your franchisor should be able to provide you with start-up cost estimates that are specific to the system.

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online


10 REASONS TO BECOME A FRANCHISEE 5. Franchisor support and training As a franchise system requires consistency in quality and service from location to location, most systems will train new franchisees on the basics of operating their location. The duration, breadth, and depth of the initial training may vary by system, but most will offer education on aspects such as operational procedures, accounting, marketing, computer systems, and more. 6. Consumer awareness Any business that opens in a new area, be it a franchise or an independent business, would expect to have to conduct local marketing initiatives to introduce the business to local consumers. A franchise, however, can bring with it pre-existing consumer awareness; though the business may be new to the area, potential customers may already be familiar with the brand, whether through other locations or through its regional or national marketing. While local marketing and community outreach will usually factor into your franchise location’s marketing mix, having an established base of consumers who have experience with your brand can give you a leg up. A brand’s history of success may also give you an advantage

when applying to a financial institution for a business loan to finance your location. 7. Strength in numbers Another advantage of a franchise system is working with suppliers and other merchants that have already been vetted for quality, pricing, reliability, and consistency. As a member of a growing franchise network with group purchasing power, you can gain immediate access to established relationships with vendors and may even enjoy perks such as preferred pricing or special delivery. 8. Peer network and support Being part of a franchise system also means you have a pool of knowledgeable peers who are just a phone call or email away. If you’re experiencing an issue or challenge with your business, chances are there are other franchisees in your system who have encountered the same or a similar issue, and who will have firsthand advice for overcoming it. Some franchise systems have more formalized ways for franchisees to interact, such as online forums, franchisee advisory councils, or franchisee meetings and conventions.

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10 REASONS TO BECOME A FRANCHISEE 9 . Research and development Through the franchisor, franchisees can be kept up to date on business trends and consumer tastes and behaviours. They can also benefit from their system’s research and development initiatives for things such as new products and services, technology, and marketing. With the franchisor looking after this side of things, franchisees can focus on the day-to-day operation of their location while knowing that they’ll still be on the leading edge in their industry and marketplace. 10. Small business ownership In addition to the reasons already mentioned, don’t forget that you’ll also be a small business owner, operating your own business with the brand and support of the franchisor backing you up. As the saying goes, in franchising, you’re in business for yourself, but not by yourself!

EXPLORE, INVESTIGATE, AND EVALUATE As wonderful as these reasons are (and there are more that could be added to this list), all these advantages may be for naught if a prospective franchisee doesn’t fully investigate the franchise system before signing on. Franchising is a business model that brings with it many benefits and challenges, so it’s important to make sure you have all the facts and information available before taking the plunge. For more information on the franchise investigation process and conducting proper due diligence, visit FranchiseCanada.Online.

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Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online


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3 WAYS TO FIND THE RIGHT FRANCHISE FIT

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rom accounting to winemaking, franchises can be found in virtually every business category. This wide range of opportunities provides prospective franchisees with a great amount of choice, and a lot of questions they need to answer. One of the biggest questions prospective franchisees ask is: how do I find the franchise that best suits me? Here are three things any prospective franchisee can do to help find a franchise system that fits with their goals and passions. 1. Take a look at yourself Before you start to look at franchises, you should take a good look at yourself. This will help you to focus in on what you want and need from a franchise system, and to identify the skills and qualities you can bring to your potential role as a franchisee. First, consider what you’re passionate about and how it could translate as a business—if you love animals, perhaps a pet grooming franchise would be of interest. As you identify ways that your passions could fit with your business goals, don’t forget to think about things that you absolutely don’t want to do. For example, if you have a passion for food, but dislike early mornings, it might make more sense to focus your investigations on restaurant franchises that don’t serve breakfast and open later in the day. Your friends and family members might be able to lend a hand as you come up with your lists. Even if you’re considering franchising as a way to move in a new direction from your current line of work, you’ll want to take stock of the skills, qualities, education, and experience that you’ll be bringing to your franchise endeavour. Not only will franchisors be interested in your background, but having a good resume of your strengths can also help you zero in on your franchise fit. If, for instance, you have a history of success in sales and marketing, maybe a business consulting franchise would

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work. Or you could translate those skills into generating business for your franchise in a completely different sector that’s in line with your passions. Another piece of the self-evaluation puzzle is a little more concrete. Once you’ve considered your passions and skills, you’ll also need to take a hard look at your financial situation. It’s important to know your net worth and assess whether your resources are readily available (unencumbered) or tied up in other assets (such as a house or car). An accountant who specializes in franchising can help you evaluate your finances and determine if you have the required resources to finance the franchises in which you are interested. (More on accountants and other valuable experts below!) 2. Get the facts By the time you’ve created a good overview of what you could bring to the role of franchisee, you’ll probably be itching to start investigating and evaluating the franchise systems that meet your criteria. There are many ways to go about this. Currently, one of the most popular is the internet. Sites like the Canadian Franchise Association’s (CFA) LookForAFranchise.ca provide search tools to help you find franchises by category, investment level, and location. You can also request further information and materials from the individual systems. Franchise publications (like the one you’re currently holding) can offer additional insight into franchise brands and the people who are making them a success. As well, they may introduce you to franchises that you had yet to discover or hadn’t previously considered. Face-to-face communication can give you even more insight into the franchises you’re interested in. Attending a franchise tradeshow is a great way to meet with many representatives from franchise brands in a

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online


3 WAYS TO FIND THE RIGHT FRANCHISE FIT relaxed environment. Individual franchise systems may also hold their own ‘discovery day’ seminars to help prospective franchisees learn more in a live setting. Once you’ve zeroed in on the franchises at the top of your consideration list, you’ll want to visit their locations, if possible, and familiarize yourself with their products and/or services. Another important step will be to meet with key team members at their head offices. This can give you a feel for the company culture and the people and personalities you’d be working closely with if you joined the system as a franchisee. It will be up to you to decide how comfortable you are with the system’s culture and people—be sure to listen to any ‘gut feelings’ you get. 3. Call in the experts As you move along in your research, creating a team of franchise experts will help ensure your search stays on track, and that your eventual franchise business gets off to a great start. Here are a few professionals you’ll want to recruit. Keep in mind that many of these relationships can continue once you’ve established yourself as a franchisee. • A s mentioned, a franchise accountant can help you assess your net worth, and can help in creating a business plan and cash flow for your business. • A franchise consultant can guide you in your selfevaluation and can point you toward franchises that might meet your needs. • A franchise lawyer can help you review any documentation and contracts, and offer advice on issues such as irregularities or points of negotiation. • A franchise banker can assist you in creating a business financing package, including loans and other financial products. • A franchise insurance provider can help ensure you have the insurance coverage you need to protect your franchise business. CFA’s franchise support services members include professionals from these disciplines and more, all of whom specialize in providing products and services for the franchise industry. The support service directory (cfa.ca/supplier-directory) offers information and contact details. Investing in a franchise business is an important decision; like all business ventures, there is some risk involved. One of the best ways to mitigate risk is to make the most informed decision possible, which is why it’s vital to do your due diligence before signing on the dotted line. Evaluating and assessing your own goals and strengths, fully investigating franchise systems, and assembling a solid support team to assist you should put you well on your way to finding your franchise fit.

Complete the Franchise Fit Quiz! CFA has developed an online Franchise Fit quiz to help you determine which franchise category is best suited to your goals and lifestyle. Head to https://cfa.ca/lookforafranchise/ to take the quiz and start narrowing your franchise search!

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Franchise Canada Directory 2023

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BUSINESS PLAN AND FINANCIAL MANAGEMENT BASICS

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egardless of the franchise opportunity you choose to pursue, you need to map out your path to business success before getting started. By establishing a business plan, you’re signalling to lenders and the franchise system that you’ve established and understand the tools you need to succeed. You’re ready to work hard and do what it takes to make your business dreams become a reality. At a previous Franchise Canada Show, John Leavitt shared information that prospective franchisees can use to establish a strong business plan and kick-start their franchising careers. As the national franchise industry leader at BDO, Leavitt has extensive experience working in the franchise industry, helping clients with their accounting, tax, and advisory needs. Here, Leavitt shares what you need to know as you look to build the business plan that can put you on the path to franchising success. Who should write the business plan? When you realized that your bank requires a business plan to provide you with financing options, your immediate thought was likely that you don’t know where to

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begin. You may be tempted to find someone to do this for you, but ultimately, this responsibility lies with you. You can seek assistance from franchise professionals, but you need to understand and present what your plans are for the business, rather than someone else’s. It’s important to build a business plan because you want to map out and ensure your business is going to succeed. This is a crucial part of the due diligence process that can improve your chances for building a profitable franchise business. Your business plan should include: 1. EXECUTIVE SUMMARY The executive summary should: • Describe the franchise you intend to purchase; • Include the background and track record of the franchisor and other existing franchisees; and • Include a background of your products and services, while identifying your core market. If you’re looking to join an established franchise, you’ll likely want to focus on that. If it’s a newer franchise system, you should focus on the market trends and opportunity available.

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online


BUSINESS PLAN AND FINANCIAL MANAGEMENT BASICS 2. MANAGEMENT TEAM PROFILE This is the most important part of a business plan for many lenders. The management team profile should: • Describe your skills and experience; •E xplain why you’re suited to own and operate this franchise; and • I nclude the same information for any other members of your management team. This is the place to highlight any attributes that make you particularly suited for this franchise, and to share any details about previous business success. The more the lender believes in you, the more likely they are to provide the financing you need. 3. DESCRIPTION OF PRODUCTS AND SERVICES The description of your products or services should include: • Featured benefits; •E xplanation of how your product or service differs from those of your competitors; and •O utline how you’ll deliver these products and services at ground level. Here, you should provide the specific details about the product or service that your franchise will be providing, along with what sets your offering apart from others in the market. 4. CORE MARKET INFORMATION This section should: • Describe your core market sector; •O utline your current competitors and future prospects; • Itemize strengths and how you’ll use them; • I temize weaknesses and how you’ll address and strengthen them; • Estimate the market share you plan to achieve; and •D escribe your existing customer base. While the bank will want this information, it’s also important for you to have the answers to the following questions: Who’s your competition? What do they do well? What do they not do well? How are you going to stand out? Is your market trending up or down?

CASH FLOW FORECASTING: A key tool for the business plan and beyond

The base of a cash flow forecast is the anticipated income and expenses of the franchise. If you’re purchasing a new franchise location, you can determine the expected revenues and costs by doing your research, including talking to the franchisor and other franchisees in the system. Once you start to get a picture of the numbers, you can do a sensitivity analysis, wherein you carry out multiple cash flow scenarios: one based on high sales, one based on low sales, and one in the middle. This helps you determine what targets you need to hit and what sales are required for you to make or lose money. Along with a complete accounting of cash requirements for the franchise, identify the sources of funding, as well as the relevant financing terms. •F inancing for most new franchise companies comes from the owners, supplemented by friends and family members, along with some bank financing. Investors or lenders expect owners to personally assume some of the risk with a solid self-financed capital base of 30 to 50 per cent of the total debt. •T o secure the funds, lenders may require a second-charge mortgage on residential property or personal guarantees up to the maximum amount of the loan. This points out the importance of reducing the risk of undercapitalization, and why the business plan should detail the amount of funding required, how the funds will be used, and when investors and lenders can expect a return on their investment.

5. DESCRIPTION OF OPERATIONS The description of operations should: • Describe the premises where you’ll operate; •E xplain how you’ll produce your products or services; and •R efer to location, property, facilities, leases, employees, insurance, technology, equipment, and suppliers. These are all crucial details that need to be determined before you get started. Location can be a particularly important one, and if this is the case for you, you

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BUSINESS PLAN AND FINANCIAL MANAGEMENT BASICS should provide as many details as you can about your location and the role it’ll play in your success. 6. OTHER SUPPORTING DOCUMENTS Other supporting documents to include are: • Your resume, and those of the key members of your management team; • Job descriptions; • Credit reports; • Letters of reference; • Letters of intent; and • Leases/contracts and other legal documents, as they pertain to the franchise you’re purchasing. 7. FINANCIAL INFORMATION Most businesses fail because they run out of cash. If you don’t want to follow suit, you need to make sure you complete a thorough financial analysis to ensure you have a viable plan based on reasonable assumptions. This is not only for your own sake, but also because the bank will need to have total confidence to move forward, and they’ll find that with reasonable financial forecasts that show how you’re going to become profitable.

Your financial advisor can be particularly helpful with preparing and itemizing this part of your business plan. The financial section should: • Address the financial potential viability of the business; • Include monthly budget and cash flow projections/analysis; • Describe your current financial situation; and • Include a personal net worth statement that lists all of your personal assets and liabilities. The financial section needs to show that your business is viable, which means that it’s going to be profitable. It should include cash flow projections (see sidebar on previous page) and information about your financial situation. Some terms that will come up as you complete the financial section are: Pro forma financial statements (including balance sheet, income statement, and cash flow statement) should be prepared for the short term (monthly statements for 12 months) and long term (three to five years; quarterly for the first year). These should be based on realistic assumptions to account for the typical delays and challenges experienced by every business start-up.

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Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online


BUSINESS PLAN AND FINANCIAL MANAGEMENT BASICS • 1st authentic Neapolitan • Monthly overhead for six to 12 months; pizzeria in Canada • Personal living expenses for six to 12 months; and • Financing costs. • Authentic quality It’s important to remember that it often takes months ingredients imported for income to come in regularly.from This means Italy it’s essential to have adequate capitalization to reduce the risk of fran• 29should locations with 6 chise failure. Your business plan include a comlocations opening in prehensive section on financial requirements, including 2020 in BC, AB & ON detailed estimates of all anticipated start-up costs until the projected breakeven point. • Required investment

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Breakeven analysis that demonstrates what the company must sell to cover costs. Relevant financial ratios that serve as benchmarks for management to monitor the financial performance of the overall franchise and that of individual franchisees. These ratios will be used to identify both performance strengths, as well as emerging problems that could threaten the health of individual franchisees or of the entire franchise system.

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Franchise Canada Directory 2023

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RESALE REFRESH

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s a prospective franchisee looking to start your own franchise business, you might imagine that doing so requires you to buy—or even build—a new location and establish that location from the ground up using the franchise’s system. While this is sometimes the case, franchisees may also acquire their business through a resale: that is, buying an existing location of a franchise and continuing to operate that business. Resales happen when a franchisee wants to sell their franchised business to a new owner—perhaps because they want to retire, make a profit from selling their business, or exit their franchise agreement. Resales can happen from one franchisee to another, from a franchisor (in the case of a corporate location) to a franchisee, or from a franchisee back to a franchisor. So how does purchasing a resale differ from investing in a brand-new location? And why might you want to consider a resale when looking for a franchise? We spoke with franchising and legal experts to round up the basics on franchise resales. Pros and cons Resales, or transfers, occur in almost all franchise systems, and are a natural part of the franchise model. “Most franchise agreements don’t contain a franchisee right of termination, so often, a franchisee’s only way to get out of a franchise agreement is by transferring the business to a new owner with the franchisor’s consent, and then mutually terminating the franchise agreement so that the franchisor can sign a new [one] with the new franchisee,” says Noah Leszcz, a franchise law and business associate at Cassels Brock & Blackwell LLP. For a franchisee, buying a resale means being able to “step into the shoes” of a previous owner “and continue

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operation,” he says, noting that there are many potential advantages to buying a resale. Not only does the new owner inherit customer loyalty and existing goodwill from the business, but starting up can be a much simpler and faster process. “The business has already been in operation, so the new franchisee can commence operations immediately,” says Leszcz. Also, “if the same employees continue with the new owner, there’s little training required and the operations continue seamlessly—and customers are typically unaware that a change in ownership even occurred.” Leszcz also points out that in the case of a resale, the franchisor already has the benefit of the previous franchisee’s experiences, and may be able to offer more tailored assistance to the new franchisee. “The potential ‘pros’ include existing cash flow, employees, and customers,” says Jania Bailey, CEO of FranNet. Purchasing a resale means that “the buyer doesn’t have to go through the build-out process, the grand opening marketing, [or] trying to build a customer base.” One con against buying a resale is that it may potentially be a higher cost than starting the business from scratch. “A franchise that’s more than a one-person business will have a much lower resale value than a business that’s not totally dependent on the owner,” Bailey points out. She also notes that paying more money results in a higher debt service. Beyond this, you may also have a difficult time determining the real cash flow, Bailey adds. When considering a resale, she offers these ‘red flags’ to look out for: the seller is hesitant to give you the financial history you request; the seller is pushing to get a deal done quickly; or you see declining trends in the business.

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online


RESALE REFRESH Should you do it? There are several reasons you might be considering a resale as a franchise investment, but overall, it’s important to understand the context of the resale, Leszcz says. “Prospective franchisees should try to ascertain why the existing franchisee is seeking an exit,” he says. “It could be a profitable business that’s been in operation for decades and the existing franchisee is looking to retire, or it could also be a location that was performing less well, and the existing franchisee is looking for a fresh start.” And while “there’s nothing wrong with taking over a location that wasn’t performing as well as some others in the system,” he says, “the purchase price should reflect the realities of the transaction.” Prospective franchisees should do their due diligence to ensure they’re buying a valuable business, since it’s possible that a location isn’t succeeding for reasons outside an owner’s control. When considering a resale, Bailey says that a potential franchisee should “take the time to really understand the existing cash flow. You’ll need to do a reconstructed income statement to identify the actual cash flow you can expect.” You should also clarify what sort of training you’ll receive from the seller or franchisor. And if the business isn’t in a good place, be careful. “Don’t buy a turn-around unless you have experience in turn-arounds,” says Bailey. “Never underestimate the damage that could have been done to the name and reputation of the business by a poor owner.” Making an informed decision can be easier with a resale than a new location, as there’s more information, Leszcz notes. “Things like historical sales, neighbourhood demographics, and leasing issues will all be available for inspection prior to acquiring the existing location.” When making the decision, a potential franchisee should look out for a history of repeated transfers in the same location, and leasing issues like known plans for the location to be redeveloped or untenably high rent, Leszcz says. It’s a good idea to have a business evaluation prepared, particularly if you’re uncomfortable with the asking price and need advice on what price to pay—as Bailey says, “Don’t overpay for goodwill.” “As with any business decision of this magnitude, be sure you have done all the necessary due diligence. Don’t let your emotions make the decision,” says Bailey. Planning ahead “Anyone purchasing a franchise, whether it’s a resale or a new unit, should be thinking about their exit strategy,” says Bailey. “This is something that should be considered when deciding whether or not the concept is the right fit for you.”

Bailey suggests thinking about what you plan to do with your business in the future, from the very beginning. “If you plan to sell someday, verify that the franchise concept has a good track record of resales. If you plan to turn the business over to your kids, you need to verify the franchisor supports that sort of activity. If you plan to transition to semi-absentee [ownership], does the model have a record of this being done successfully?” When considering buying a resale, Leszcz recommends contacting existing franchisees within the system to learn more about their experiences. Contact information for current franchisees is required as part of a Franchise Disclosure Document (FDD), which will also tell you how many resales have occurred in the last three years, and contacts of franchisees that recently left the system. “Some of these may be franchisees that resold their existing business, so hearing their insight will be very informative.” Like any large investment, a resale requires research, he adds. “Speak to existing franchisees, former franchisees, professional advisers, and any other resources available to you. Purchasing a franchise, whether a new one or an existing business, is an important decision and a big investment, and you should do your due diligence to make sure the acquisition is right for you.”

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Founders, investors, and entrepreneurs alike turn to Global Franchise when keeping up with the latest industry news and trends. And with the recent introduction of Global Franchise Pro, the Global Franchise experience is now supercharged. Interested in discovering brand-new franchise concepts, funding your expansion, or learning from the titans of industry? Look no further.

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DUE DILIGENCE CHECKLIST

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hen you invest in a franchise, it’s important to keep in mind that you’re investing more than just money—you’re also investing your time, passion, and hard work. With the resources required to start and maintain your franchise venture, you’ll want to have a complete picture of the franchise opportunity before you sign on the dotted line of the franchise agreement. That’s where due diligence comes in. Lyn Little, partner with BDO Canada LLP, says the due diligence process also allows prospective franchisees to determine whether they’ll be investing in a bona fide franchise opportunity, with all legal and financial requirements in order. “It’s important for a prospective franchisee to conduct proper due diligence, as this may allow the franchisee to identify potential red flags in the business, or indicators which may suggest that the franchisee should look at an alternate franchise system, or request reductions in the franchise fees, royalties, or other fees to the franchisor,” says Little. When you’ve checked off every item on the following list, you should be ready to make an informed decision and be prepared to invest in the perfect franchise opportunity for you. Don’t forget to ask lots of questions, so everything is as clear as possible at every step of the

investment process. For questions to ask the different people you’ll meet along the way, consult the Checklist for Franchisees, available at FranchiseCanada.Online. Research the franchise system You should undergo a self-assessment, outlining your skills, assets, and abilities, before looking into specific franchise opportunities. Once you have a good idea of what you can contribute to your franchise business, you can create a short list of franchise systems that you want to research further. These systems should take the aforementioned strengths and abilities into consideration, along with your interests and passions. You can start by heading online to review the system’s franchise website and any other information about the system available online. You can also conduct this research in-person by attending a franchise-specific tradeshow, where you can meet and speak with representatives of the franchise system, and/or by visiting one of the brand’s established franchise locations so you can see firsthand how the franchise operates in its market. Some key factors to look for when researching franchise systems include franchisee selection, training, communications, marketing, problem-solving, rewards, and corporate culture. You’ll also want to evaluate the market, consumer demand, location, resale value,

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DUE DILIGENCE CHECKLIST whether it’s an established or new and emerging system (and the pros and cons of each), and whether it’s a resale location. Submit a completed franchisee application form to the franchise system Once you’ve started researching specific franchise systems, you can fill out and submit a franchise application form, which will provide the franchisor with important details about your background and experience, your financial information, and the skills you have to offer. Keep in mind that as you’re conducting your due diligence, the franchise system will also be carrying out their own research to determine whether, based on their experience, you’ll be a good fit as a franchisee of their system. Meet with current franchisees of the franchise system “You’ll want to talk to eight to 10 existing franchisees of the franchise concept that you’re most interested in. You’ll want to learn, from their perspective, what is required to drive success. You’ll also want to know a lot about their relationship with their franchisor,” advises Gary Prenevost, president of FranNet, Southern Ontario and Eastern Canada. These franchisees should have different levels of experience, and should be chosen from franchise locations at different performance levels. Meet with franchise system representatives You’ll get to this stage if you’re almost ready to make a purchase. You should be prepared to fly to the franchisor’s head office for a Discovery Day, where you’ll meet with their leadership team and get a final sense of whether the culture will be a good fit. “Essentially, you’re going there to look for reasons to say ‘no’ and hope that you don’t find any. You won’t make a purchase decision while you’re there, but usually within one to three weeks after you return, you should be ready to sign a franchise contract and pay the initial franchise fee,” explains Prenevost. Most established franchisors have a franchise review process in place that clearly defines their practices and procedures to help prospective franchisees make informed decisions, so you can follow this process, asking any questions that come up along the way. Build a comprehensive business plan A business plan lays out the goals of your franchise business, providing banks, investors, and lenders with an idea of the scope and specifications of the project in which you’re investing. This plan should include cash flow projections for the first three to five years your franchise will be in business, outlining the earning

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potential of your location and the strategy for achieving these goals. Your business plan should start with a summary of the franchise you intend to purchase, including essential background information about the franchisor and their track record. The financial section of the business plan should include your personal financial information, along with financial projections for your franchise. A realistic budget should also be provided, with details about the cash flow projections and profit and loss forecasts. The business plan should also analyze the marketplace, and should contain information about the products and services you’ll be providing, consumer demand, and the customers who’ll be looking for these products and/or services. Consult with franchise professionals As you contemplate your franchise investment decision, you’ll want to enlist the help of franchise professionals who can provide you with the guidance you need to make the right decision. • A franchise consultant can help you identify your objectives as you carry out a self-assessment, help you understand the franchisee/franchisor relationship, introduce franchise opportunities that you may not have considered, assist in evaluating and analyzing opportunities, and introduce you to other franchise experts. • A franchise accountant can help you pinpoint the profitability of the venture, and can also help you calculate the start-up costs, assist you in reviewing documents from the franchisor, advise you on the advantages and disadvantages of a franchise investment opportunity, and help you put together your business plan. “In preparing to purchase a franchise, the prospective franchisee should look at fixed and variable costs to determine the break-even sales figure required to turn a profit. Understanding this figure, and the prospective market the franchisee will operate in, will allow the franchisee to determine whether the franchise location has the potential to generate sufficient revenues to cover costs,” notes Little. • A representative from the franchising division of a bank can help you determine the financing plan that works best for you and your business, providing financial solutions that are tailored specifically to your franchising situation. A franchise banker can also be an asset when it comes to figuring out your financing requirements so you’ll be able to sustain your business in the long term. • It’s also critical for prospective franchisees to enlist the services of a franchise lawyer, who can explain and elaborate on the details of the franchise

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online


DUE DILIGENCE CHECKLIST agreement, and review and explain the disclosure document, specifically outlining what each party is expected to provide. A franchise lawyer can also help in negotiating any terms or conditions of the franchise agreement as required. Review the franchise disclosure document In addition to speaking with the franchisor, existing franchisees, and franchise professionals, prospective franchisees should receive a franchise disclosure document once they reach a certain point in their investigation. As an important part of a proper due diligence process, disclosure documents contain a summary of information on the franchisor, its executive team, and its franchise agreements. In Canada, franchise systems are required by law to provide a disclosure document to prospective franchisees in provinces where franchise legislation is in place (currently British Columbia, Alberta, Manitoba, Ontario, New Brunswick, and Prince Edward Island). It’s important to fully review the disclosure document with your franchise lawyer and financial advisors to ensure that you understand the information it contains, including your obligations as a franchisee.

Trust your own judgment Ultimately, you’ll be the owner-operator of your franchise system, so it’s essential that you be the one to make the final decision before signing the franchise agreement. “Don’t allow yourself to be sold or unsold by anyone else. Rely solely on your own research and make a decision to proceed only when you can justify how and why this business meets your criteria, and why you know you’ll be successful at running it (or to eliminate the opportunity when you can logically identify why it’s not right for you),” cautions Prenevost.

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SUCCESS STORIES:

The Faces of Canadian Franchising Meet some of the thriving franchisees who have achieved success by going into business with the franchise model

Aleena and Bilal Zaidi, Angus Valley Montessori School Opening a preschool franchise location during a pandemic is no small feat. That’s what Aleena and Bilal Zaidi, a brother and sister franchising team, discovered when they opened their Angus Valley Montessori School location in September 2021. The first challenges the two faced were delays in opening their Vaughan, Ontario location. The pair originally hoped to open in 2020, and then in summer 2021, Bilal says. “There were a lot of delays, labour shortages, and restrictions by York Region on how many people you could have in the building, [as little as] one tradesman at a time. We anticipated we would be open for summer camp, but that was pushed back.” Once they opened, the Zaidis needed to be ready for a different kind of experience. “The first month was intense,” Aleena says. “It was all hands on deck; everyone was here at 7 a.m. because it was so new. Now we’ve worked out what’s best for each person between me, Bilal, and our supervisor.” Bilal handles the back-office responsibilities and Aleena manages the day-to-day parent-based operations. “We also have our supervisor. She and I are up front, meeting with parents, doing pick up and drop off and working on day-to-day tasks,” says Aleena. “My day ends at about 5:30 p.m., but we still have a lot of tours [with interested parents], and we can’t do the tours when school is running, so I schedule them for after hours.” The siblings speak very highly of the Angus Valley Montessori franchise. “You benefit from the experience of being with an establishment that’s been around for [years]. I think there’s been a lot of thought put into the curriculum and the design of the school. They have the experience—all the details have been thought through.” Aleena adds, “When we started, there was a lot to think of because there are young children in your care. There are all these policies, and everything needs to be in place. It’s a lot for someone to take on. I think being part of a franchise is great because it’s laid out for you.” She also values her interaction with other franchisees. “It’s not your typical cookie-cutter franchise. When you go to the other locations, they have the same feel in terms of design and aesthetics, but as owners, you get to inject your personality. Most of the franchisees

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know each other. It’s nice to interact with other franchisees who are going through exactly what we’re going through.” Aleena had already worked for the franchise for two and a half years, running their art camps, before working in administration, as well as in all the classrooms, to get a feel for how the franchise operated. During this time, she also qualified as an ECE (Early Childhood Educator). “Having some experience in business and education definitely helps to implement your vision,” says Aleena. “Being a franchisee, things were laid out for us, but we also hired a supervisor who has an educational background. Our supervisor has been in the education business for 20 years.” Aleena concludes, “I love working with children and it’s been nice connecting with families. Our primary goal was to provide reliable care for parents. There are so many families going back to work. I can’t even imagine how tough that must be if I had just dropped off my children for eight hours at a place that I had no idea about. So, our goal has been to make families feel like their child is in good hands.”

Search for Angus Valley Montessori School on LookforaFranchise.ca

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online


SUCCESS STORIES: THE FACES OF CANADIAN FRANCHISING

Jen McCain, Dogtopia Pet parents would do anything to satisfy their furry friends, and Dogtopia has been providing that satisfaction since 2002. That’s what drew 31-year-old Jen McCain to become a multi-unit franchisee with the pet care brand. Her locations, in Toronto and Newmarket, Ontario, opened throughout 2017 to 2019. The third location in Halifax, Nova Scotia provided the New Brunswick native a return to Eastern Canada. “Part of the fun in owning a franchise is bringing the concept to new markets—and [the Halifax location] effectively unlocked Dogtopia as a coast-to-coast operator—which is a great story to be part of,” she notes. Dogtopia offers services for dogs including daycare, boarding, grooming, training, and a spa. McCain adds, “We’re not the lowest cost player in the market, and there’s a reason for that. Dogtopia dogs live differently. That’s what makes Dogtopia unique.” McCain points to the franchise support and network as key to her business success. “The best part about the franchise network is knowing there are others in a similar position to you, working towards a similar goal. Not just another small business, like yours, but another franchisee with very similar variables. While circumstances vary from location to location, we all want the brand to grow and be recognized as the leader in our industry.” When the pandemic hit in early 2020, Dogtopia responded by putting the health and safety of its clients— both humans and dogs—first. “We pivoted to curbside services and leveraged technology to reduce face-to-face interaction,” explains McCain. “We created video and multimedia collateral to replicate in-person tours.” She adds that opening a new business is a challenge in itself with start-up pains and a steep learning curve, but layering in pandemic restrictions and pressure to maintain revenue was quite difficult. In addition, McCain says that “being an entrepreneur can be isolating. When you run a business, you’re often in your own company, a lot. A franchise network allows you to be both entrepreneur-

ial and intrapreneurial. A franchise is like a puzzle—you put it all together and it fits just right.” As a young business owner, McCain recognizes that some stakeholders do take her age into consideration, however, she was born into a business family and has never known anything but the corporate lifestyle, so she’s built up plentiful business experience, which is more important than how many years she’s spent orbiting the sun. McCain is also a female business owner within the predominately male-oriented franchising industry. She says she tries not to think about gender in business, but there are moments when being a woman factors into how she’s perceived or treated. Fortunately, the word “franchisee” is gender neutral, so she says she only registers gender when wearing the label as a “female business owner,” which works to the advantage of inclusion and diversity within the franchising community. McCain offers her own advice to other young entrepreneurs looking to dip their paws into franchising. “Do your research and be prepared to be a collaborator. A franchise is a long-term relationship—at least it’s intended to be. Being, or becoming, a franchisee is a journey and there are very predictable milestones along the way. Franchisees will go through different states of mind. Try and anticipate those.” She adds that it’s important to recognize that there are things you can and can’t do as a franchisee since you’re effectively representing the franchisor’s brand. “Develop your own team—you’re only as good as your team is.” And if you’re considering joining the Dogtopia franchise, a love for pups sure will help.

Search for Dogtopia on LookforaFranchise.ca

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SUCCESS STORIES: THE FACES OF CANADIAN FRANCHISING

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customers creates longevity of the business.” In addition to unparalleled brand recognition and triedand-true practices, Le says the company has its finger on the pulse of what consumers really want, and can pivot and adapt to changing markets. In fact, the young, trendy Vancouver market brimmed with love and support: neighbours were knocking on the door before Le and Jackson’s location was even open. In the early days, Jackson and Le often worked from open to close, doing a lot of the deliveries themselves. “We still take most of the deliveries. Coming from our background, we understand that a little smile and ‘thank you’ goes a long way and resonates a lot of happy memories for our customers,” says Jackson. Jackson adds that a key to success is investing in staff. In addition to vetting their staff properly prior to hiring, Jackson and Le foster a family environment, coming together as a team for Friday night family dinners. “When the staff have your respect, they care, and it becomes their restaurant as well.” The couple has clearly done something right. They were appointed as B.C. corporate trainers, an accomplishment they’re proud of and humbled by, and they added fundamental content to the franchisee training program by drawing from their experience. As young entrepreneurs, the duo rose to the challenge, taking the pizza game by storm with the intention of growing, expanding, and thriving. “We’ve found it’s a two-way street with Pizza Pizza,” says Le. “They’re always doing something new and innovative. They look to grow and impress the market, and that allows us to grow with them. We’ve had a great relationship so far, and it’s only going to get better.”

Search for Pizza Pizza on LookforaFranchise.ca

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

Photo credit: Laura Shortt Photography

Kim Le and James Jackson, Pizza Pizza 2020 was a rollercoaster for the food service industry, but one thing remained constant: Canadians’ love of pizza. According to Technomic’s 2020 Canadian Pizza Consumer Trend Report, 52 per cent of consumers said that pizza is a preferred menu item. It’s easy to see why young franchisees like Kim Le and James Jackson are clamouring for a slice of the pie. The Vancouver-based couple opened their Pizza Pizza location in January 2020. With over a decade of experience in the food industry between them, from running sports bars and bistros to overseeing fine dining establishments, their skills transferred from selling hundreddollar steaks to selling $7.99 walk-in specials. “It’s the same passion. I love working in restaurants. I love how dynamic things are and how quickly things can change, and you’re always thinking on your feet,” says Le. Prior to Pizza Pizza, the duo also worked as restaurant consultants, helping to increase efficiencies and overhaul menu designs and recipes. “To summarize us, we’re restaurant people,” says Jackson. When the couple decided to open something of their own, they turned to franchising. “We had the experience, passion, drive, and energy to do it, but we wanted a systematic approach to building a business, something that was already established,” says Le. Just their luck, Pizza Pizza was looking to expand in western provinces. “We found out they were coming to British Columbia, the last stop of their total Canadian domination,” says Le. For Jackson, there are big benefits to aligning with a franchise. There’s much to offer, from market analysis and menu campaigns to advertising and supply chain resources. For Jackson and Le, having these practices in place frees their time to focus on other areas, like interacting with customers. “We know all our regular customers by first name, because a lot of our time has been made available. If we were solo, we’d have to manage a lot of the back-of-house. Creating relationships with


SUCCESS STORIES: THE FACES OF CANADIAN FRANCHISING

Vitul Patel, WingsUp! When Vitul Patel arrived in his new home in Canada back in 2014, his first job was working part-time at WingsUp! in Burlington, Ontario. He moonlighted as an electrical engineering student at Mohawk College, working towards a diploma to get his foot in the door of the engineering world. But the 29-year-old franchisee ended up taking a slightly different turn. After finishing college, Patel realized that it was more enjoyable to work at WingsUp! rather than in the field he’d studied. He says that working 14-hour days at the restaurant was a breeze, but six hours of engineering had him feeling bored, which made for an obvious decision when an ownership opportunity popped up. In October 2017, a former manager asked Patel if he knew anyone who would be interested in purchasing her WingsUp! location in Hamilton, Ontario—exactly where Patel was planning to settle down. “For a year and a half, I was a crew member and then I got the opportunity to be a manager, running the entire restaurant by myself,” explains Patel. “When I got the opportunity to [take over and] own that business, which I had already managed for three years, it was the perfect opportunity for me.” Fast forward to October 2020, and Patel was ready to spread his wings and purchase a second resale location in Hamilton. As a multi-unit franchisee, Patel doesn’t do it all on his own. He has two business partners who are also managers at his two Hamilton locations to add helping hands in keeping the businesses running. Patel also notes that much of his support comes from the WingsUp! head office that guides franchisees through every step of their franchise ownership process. “WingsUp! is really great for its support system and I’m always in touch with my operations manager if I have any issues. If I need help, I get instant replies,” says Patel. So far, Patel says he’s had a “very good experience” with WingsUp! and notes that the biggest benefit of being a business owner is the flexibility to choose his own schedule. “Some people don’t get that flexibility and have to work 14 hours, but it’s part of being [a franchisee] and it’s allowed me the opportunity to grow constantly,” he notes.

But Patel also notes that one of his main challenges early into his franchise ownership was with hiring. “I made sure that I had good people and that I trained them. Most are working with me right now and some [became] business partners in my other locations.” As for advice Patel has for future franchisees, he says that franchising is a “very safe” business model to consider. “Franchising is a very good way to start, especially if you’re a new [entrepreneur.] You have a lot of support from head office for operational and marketing support, especially if you don’t know the industry. If there’s already been proven systems, I’d rather follow that and get myself successful using that system.”

Search for WingsUp! on LookforaFranchise.ca

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SUCCESS STORIES: THE FACES OF CANADIAN FRANCHISING

Emilie Nadeau, College Pro College Pro, the window-cleaning franchise system that seeks to develop young entrepreneurs, celebrated its 50th summer in 2021. The brand has been a go-to for businessminded post-secondary students looking to learn new skills and make an income over the summer months. For Emilie Nadeau, a College Pro franchisee, business ownership hadn’t been a conscious part of her life plan. Nadeau says she stumbled on the College Pro opportunity while looking for summer employment on a job site in the spring of 2021. After going through the interview process, Nadeau says “it seemed like the perfect opportunity.” Before joining College Pro, Nadeau was working in long-term care while studying nursing—a stressful place to be during the COVID-19 pandemic. “The people I’ve been working with had been there for many years, and were starting to get [drained by] the pandemic. It was causing a lot of stress for them. And even though I was new to long-term care—I had only been there for two years—it was starting to get to me too.” College Pro offered a brand-new routine and a chance to learn how to lead a team and manage many aspects of a business. Nadeau says her days would start by meeting her crew of two employees at the first job site. Then they would go from job to job, cleaning windows in Ontario’s North Simcoe County and part of Muskoka. Depending on the size of the homes they were cleaning, “we could go from one really big cottage job to maybe four or five smaller jobs in a day.” At each house, Nadeau would greet the customer. After cleaning the windows or gutters, she would reconnect with them, show them the job to make sure they were satisfied, and then move on to the next house. After completing the jobs for the day and sending her crew home, Nadeau would head home and do various administrative tasks to keep the business running smoothly, from filing invoices to promoting her business on social media. “There’s a lot more work to do once the actual work day is done, that you don’t really see when you’re just an employee of a company,” she notes. Nadeau says that being a franchisee gives her invaluable tools to take into her daily life and her future career in health care. Inspired by the corporate culture at College Pro, Nadeau says she can see herself in a future

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leadership role, creating an environment where it’s fun to come to work and people are free to voice their ideas to make the team stronger and more inclusive. “I think that’s really important, especially right now, given the pandemic. A lot of [health care professionals] are feeling burnt out.” Owning the franchise helped Nadeau come out of her shell, she says. “Before I ran this franchise, I was super shy!” Running her College Pro location meant getting herself out there, meeting new people, and sharing genuine connections. “I feel like owning this franchise just shaped my life in a totally different way—if I look at myself from one year ago, I’m completely different now.” For those interested in running a College Pro franchise, Nadeau says it’s important to be personable and able to create relationships with customers, and to be willing to work hard and push the limit. When asked her number one piece of advice for a new or prospective franchisee, Nadeau says, “Your intuition will often know what to do, even if you feel uncertain about it. Just [believe] that everything that you do is working out in your favour, even if it doesn’t seem like it is right now.” “Just trust yourself.”

Search for College Pro on LookforaFranchise.ca

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online


FIND YOUR FRANCHISE AT FRANCHISE.ORG

Unleash your potential as a franchise business owner. At the International Franchise Association’s website, franchise.org, you can search, select and compare thousands of franchise businesses by industry, investment level and keywords. Check it out today and be in business for yourself, but not by yourself.


5 Things Smart Franchisees Know about Support Services

When and why you should call in the pros during your franchise search

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uring the franchise investment process, there will be instances where you, as a prospective franchisee, will want to rely solely on yourself. You’ll want to base your decision on whether (or not) to invest in a franchise opportunity, in part, on things only you will know or feel—your research, your conversations with the franchise system’s staff and franchisees, how well it fits with your goals and aptitude, and maybe even the “gut feeling” you have about the opportunity. But there are a few points along the path to becoming a franchisee where it’s usually recommended that you not go it alone. Here are some of the scenarios in which the best course of action may be for you call in a franchise professional to assist. SCENARIO 1: Identifying which franchise will suit you best There are many franchise opportunities available, so figuring out your franchise fit may seem like a huge undertaking. Franchise consultants can help you to identify your unique mix of skills, talents, and experience, as well as how those may translate in a franchise environment. They can also help you pinpoint what your ideal franchise would look like and sort out questions to ask during the investigation process that will bring you closer to it. SCENARIO 2: Figuring out how much money you have to invest In addition to finding a franchise that fits your goals and skills, you also need to know if the opportunity fits your financial capabilities. An accountant who is wellversed in franchising can help you figure out your net worth, assets, and obligations. He or she can also provide advice and guidance on creating a business plan,

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which summarizes your current and projected finances for your venture, as well as how you’ll set up and operate your business. Not only is this a great way to map out your plans for your franchise, it’s also an essential document that potential lenders will want to look at when you approach them about securing further financing for your franchise venture. SCENARIO 3: Securing more money to invest Once you know your net worth and have calculated how much money you have available to invest in your franchise, you may need additional funds to finance your new business. Many franchisees require financing from a business lender to combine with the personal funds they’ll be investing. A banker with a background in franchise financing can help you select the banking products and services that will support your franchise as you open and grow your business, including business loans, lines of credit, and business accounts. SCENARIO 4: Deciphering disclosure documents A franchise disclosure document is a summary of information on the franchise system. This can include items such as background on the franchisor and its officers; fees, estimated costs, and total required investment; and the franchise agreement, which will outline the rights, responsibilities, and obligations of both the franchisor and franchisee. In other words, understanding the information contained in the disclosure document is a vital part of the franchise due diligence process. An experienced franchise lawyer will be able to guide you through the document, help you in understanding the material

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online


5 THINGS SMART FRANCHISEES KNOW ABOUT SUPPORT SERVICES it contains, and, as he or she will have reviewed many similar files, will be able to spot anything that’s out of the ordinary, a possible cause for concern, or items that may be open to negotiation. SCENARIO 5: Protecting your new franchise location As a franchisee, your franchise system can train you for the regular, day-to-day operations of the concept. A good franchisee is also equipped to handle the unexpected— the kinds of events or situations that you hope never occur. Luckily, there are ways to mitigate some of these types of risk. A business risk management plan will usually include a business insurance package. There is a wide range of policies, from more general ones that the majority of businesses may need to those that are specific to an industry, geographic area, sector, customer profile, etc. An experienced insurance broker who’s aware of the needs of a franchise business will be able to assist you in putting together an insurance package that best protects your business.

as you investigate franchises and start your franchise venture. As you grow your business, you may find the need or have the opportunity to seek further advice from experts you’ve consulted previously and/or add other franchise professionals to your support team. An important point to keep in mind—though you may be tempted to get legal advice from your cousin who’s a personal injury lawyer or ask your neighbour who works in accounts receivable for accounting guidance, resist that impulse. When it comes to your franchise business, it’s always better to get help from professionals who aren’t only legal, accounting, banking, or insurance experts, but are also familiar with the ins and outs of the franchise business model. Working with specialized support can save you considerable time, money, and trouble on your path to franchise success. Check out Support Services for Franchise Investors on Franchise Canada TV at FranchiseCanada.Online!

While it’s a good general starting point, this is not an exhaustive list of the experts you may wish to consult

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Thinking About Franchising Your Business? 4 BIG questions to consider before you get started BY MARIETTA SNETSINGER 1. Why should I use franchising to grow my business? As a smart and successful entrepreneur, you’re probably thinking about how you can continue to capitalize on your success and grow your business. As you consider your options, you may find that the franchise business model could be a contender. Let’s start with the most obvious and popular reasons to consider franchising your business: Local connection: What better way to secure the success of a new location/business than to start with a local connection? Expanding into new markets with a franchise partner who has an “invested” interest and the ability to connect with a local audience can go a long way toward expediting growth. Local representation and connection to the brand can help you expand into markets where you just couldn’t build local relationships and connections as quickly with a corporate model. Leverage capital investment: Franchising is a great way to grow and scale a business using other people’s money. This type of growth format allows for a business to expand by leveraging the capital of others, i.e. franchisees who are more likely to deliver an exceptional customer experience, and share common values with the franchisor.

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Speed of unit expansion: By leveraging the investment of your franchisees, you can expand more quickly and efficiently. In exchange for sharing your “know how” and proven business model, it’s possible to have more locations, sooner! Opportunity demand: Simply put, you have a concept that’s been successful, and others are willing to pay you for this knowledge. There are many “intrapreneurs” who are seeking opportunities to be in business for themselves and they’re happy to invest in your franchise for access to this proven format. They become implementors of your concept at a local level as your franchisee. 2. What makes your business “franchisable”? If you’re wondering what makes a business “franchisable” and more specifically, if your business would be a great candidate for franchising, here are five ways to evaluate the franchisability of your existing business: I. Innovative/unique selling proposition (USP) The concept has established a strong brand, including unique and innovative services. The products and service are delivered with a customer-centric approach. The company is clear about who they serve and what services/products are offered.

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online


THINKING ABOUT FRANCHISING YOUR BUSINESS? Checklist: ❑ W hat makes your business unique and different from competitors? ❑ A re you offering something that doesn’t already exist in your market? ❑ Is your business focused on the customer’s experience? II. Unique franchise proposition (UFP) Creating a concept that has a clear business proposition for franchisees who choose to invest with you is essential. Part of your franchise marketing program will include clearly communicating exactly what sets you apart from other franchise concepts, including proprietary programs, which often revolve around acquiring clients and/or staffing your concept. If there’s a common challenge within your industry, your concept has a proprietary way of solving the problem. Checklist: ❑ W hat makes your concept stand out among your competitors? ❑ Will someone pay you to learn your business format? ❑ How will you manage franchisee expectations? III. Scalability The business can be duplicated in a different market, and steps have been taken to prove this theory by opening a second or multiple locations. The ability to replicate results needs to be established before the business is offered as a franchise investment to others. In addition to being replicated, the business should also have established and clearly defined standard operating procedures. Checklist: ❑ Can the concept be reproduced? ❑ Have you tested ‘scalability’? ❑ Have you added systems to your existing business? ❑ Have you duplicated the business already? IV. Current profitability The business is currently very profitable! You’ve kept accurate financial records, have a solid understanding of why and what makes your business profitable, and there’s a history of profitability over time, including different economic cycles. The profit margins should exceed that of your general industry. Have the financial statements and overhead costs been properly accounted for, and is there a history of profitability over time? Taking that one step further, will it be profitable for both the franchisee and the franchisor? ❑ Does the business unit make money today? ❑ Has it been profitable for a minimum of two years? ❑ Do the margins exceed that of the industry norm? ❑ Do you have accurate financial records?

3. What makes it a franchise? As much as franchise systems may differ in products and services offered, the underlying premise of franchising remains the same. Before you begin exploring expansion options, take some time to explore and understand the components of the business model and exactly what it means to establish a franchise system. A little bit of due diligence and understanding early on can go a long way. The five fundamental components of a franchise system include: I. Proprietary operating system: The initial franchise fee covers access to the franchisor’s validated and documented business system. A good turnkey franchisor provides help with set-up, initial training, and ongoing support, all designed to reduce the number of “days to first dollar.” The “system” allows the franchisee to expedite their business launch and focus on sales vs. setting up a system and process. II. Brand equity and marketing power: Developing brand standards using the franchisor’s proven system (inclusive of the franchisor’s trademarks) is at the core of any franchise system. Adherence to the system is critical, as it helps manage customer expectations and often factors into a customer’s decision to do business with you. Franchisees may also be required to contribute to national advertising fund programs designed to support more general brand awareness initiatives. This doesn’t negate the need to also engage in local unit advertising initiatives, nor does it mean that “if we build it, they will come.” Brand strength is built upon commitment from all stakeholders. III. Revenue sharing: For access to the ongoing programs offered by the franchisor, the franchisee agrees to remit a percentage of their sales to the franchisor. Basically, the brand and the systems which are included within the brand are part of the reason why a customer may choose to do business with your company over another similar brand. IV. Development and distribution of products and services: Timing is everything, and ongoing market research on the latest products and anticipated needs of the customers often falls to the franchisor. As a franchisor, you must be aware of industry trends, developments, or products. V. Customer centric: Organizations wherein the franchisor and the franchisee are aligned and focused on delivering client-centric goods and services with an emphasis on loyalty are infinitely more successful. Basically, both the franchisor and the franchisee are focused on acquiring and retaining customers who will use more and more of the products, on a more regular basis … and tell their friends.

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THINKING ABOUT FRANCHISING YOUR BUSINESS? Making the decision to franchise your business starts with a fundamental understanding of the business model. No matter which option you choose, if you’re prepared and have done your research, you can approach your expansion plan with confidence. 4. Who can help me franchise my business? It takes a team to create, build, and support a sustainable and profitable franchise system. A strong team of experienced franchise experts will allow you to get to market faster and avoid costly mistakes and delays. Franchise consultant Early on, a good franchise consultant can help you make the decision to franchise your business and should act as a quarterback to help you manage the franchise project. They’ll be invaluable as you move forward with creating and adding systems to your business. They’ll also be able to help you understand roles and responsibilities between you (the franchisor) and your future franchisees. Figuring out who does what and when early on is fundamental, as this will also have a direct impact on the financial and future fee structure.

Franchise lawyer Once you’ve determined what your system will look like (based on the current proven model), a franchise lawyer can help create the supporting legal documents required to create your Franchise Disclosure Document (FDD). It’s important to use legal counsel that specializes in the practice of franchise law so you meet the constantly evolving laws surrounding the franchise model. Accountant In conjunction with your accountant, the franchise consultant will be able to help you establish a fee structure for your franchise concept. Their thorough understanding of your business financials will be helpful as you establish your franchise entity. Banker It’s important to keep your banker in the loop with your expansion plans. This will also be helpful in the future, should you choose to franchise. Your banker will be familiar with you and your concept, and that will help future franchisees as they seek financing for your concept. Marketing professional A branding and marketing strategy for your franchise concept is essential. You may be familiar with how you market locally, but you’ll need to have a plan and be strategic about how you scale your marketing activity and infrastructure. A marketing professional with franchise marketing experience will prove invaluable as you move forward with your concept.

YOUR BUSINESS. YOUR SUCCESS.

YOUR PIZZA PIZZA. 21937_1/3_CFAAd_Franchising_4.75x4.625_R3.indd 1

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FRANCHISES AVAILABLE www.pizzapizza.ca/franchising franchisinginfo@pizzapizza.ca

2019-02-26 11:01 AM

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

Marietta Snetsinger is a franchise expert and founder of Ascend Franchise Solutions. With over 25 years of franchise experience, Marietta has coached hundreds of franchisees. She is committed to teaching emerging franchisors how to create profitable and sustainable relationships with their franchisees.


FIND ADDITIONAL RESOURCES ON FRANCHISE CANADA ONLINE

Franchise Canada Online also has a world of digital resources for prospective franchisees to access advice, information, and updates on the Canadian franchise industry. This is a list of additional resources found on the website to draw from throughout your franchise journey. FRANCHISEE CHECKLIST Investing in a franchise is a major investment decision, and not every franchise will be the right fit for you. The franchisee checklist has essential questions to ask all the key stakeholders when you’re considering the purchase of a franchise. https://cfa.ca/franchisecanada/checklistfor-franchisees/ FRANCHISE TUTORIALS The franchise tutorial series contains the basics you need to start your franchising journey. From identifying a franchise to recruitment and franchise growth formats, you can find 24 tutorials on topics you should know about before signing a franchise agreement. You can also complete quizzes to test your knowledge after reading through the series! https://cfa.ca/franchisecanada/franchisetutorials/ HOW TO FRANCHISE YOUR BUSINESS The How to Franchise Your Business series is a prime asset for owners looking to take their business to the next level through franchising. Franchise Canada provides tips and advice through short, digestible videos from reputable industry professionals. We share all the essential information from marketing, legal, insurance, and franchise experts to help you achieve your franchise dreams. https://cfa.ca/franchisecanada/category/ how-to-franchise-your-business/

ASK AN EXPERT Hear firsthand from Franchise Canada’s suite of legal, finance, franchise, and accounting experts as they answer common questions prospective franchisees have as they get started. https://cfa.ca/franchisecanada/ask-anexpert/ FRANCHISE SUCCESS STORIES Want more insight into what being a franchisee is really like? Franchisees from a wide range of backgrounds and industries share their paths to success, highlighting the challenges they’ve overcome, along with their advice to help newcomers like you launch their own franchise careers. https://cfa.ca/franchisecanada/franchiseesuccess-stories/ FRANCHISE CANADA E-NEWS Get the latest in franchising delivered right to your inbox! The twice-monthly newsletter features new franchise opportunities, information about the CFA’s events, and updates on the latest issues in franchising. Subscribe now to receive a free digital subscription to Franchise Canada magazine! https://cfa.ca/franchisecanada/franchisecanada-e-news/ FRANCHISE CANADA CHATS The Franchise Canada Chats podcast introduces listeners to franchisees and franchisors, who discuss their journeys into franchising, outline the challenges and successes they faced, and share their tips for success. https://cfa.ca/franchisecanada/listen/

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Q A

ASK AN ACCOUNTING EXPERT How important is your personal credit report when you look to finance your franchise? MOST LENDERS WILL REQUIRE A CREDIT CHECK before making a decision on whether to extend credit for your franchise. How you’ve managed your personal credit is a good indication of how you’ll handle your franchise credit. It’s important to understand how the choices you’ve made towards handling your personal credit may impact your future access to credit. Your credit report is a review of your financial history. It lists your credit history with banks, retailers, finance companies, and even cell phone companies. The report will show up to an 18-month history of your payments on the outstanding debt you have. If you missed a payment or if you were late on a payment, it’s reflected in your credit report. The report will also show closed credit you’ve had. The credit report will provide your full legal name, any alias you may have, your address, birthdate, social insurance number, and your current and previous employer. If you’ve had a bankruptcy or a judgement placed against you, those will also be reflected on your credit report. Judgements may include speeding tickets, taxes that are past due, or family support payments. Lenders who’ve pulled your credit report will also show on your credit report. What’s not included in your credit report is how much income you claim on your personal tax return or balances in your bank’s accounts (chequing, savings, or investments). Your ethnicity, medical history, or criminal reports (if applicable) aren’t included in a credit report. If you’re new to Canada or have never applied for any credit, there are some simple ways you can establish credit. First, if you’ve been living at the same address for a number of months and/or have a consistent pay cheque, you can look to a big box retailer for a store credit card. Those are usually the easiest to qualify for. Secondly, you can approach a bank or credit union and apply for a secured loan or credit card. A secured loan or credit card is where you provide the bank or credit union cash to hold as collateral. The third option is to have a co-signer or co-applicant on the credit request. Both you and the co-signer or co-applicant are responsible for the credit. After having the credit for a period of time, you can approach your lender to see if you’ve established enough history to qualify on your own. When you establish credit, a good rule of thumb is not to utilize 100 per cent of the limit. It’s best to try and keep your utilization at 35 per cent. For example, if you have a $1,000 credit line, don’t use more than $350 at a given time. Doing this will help improve your credit report.

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Another aspect to consider when applying for credit is if you have several credit cards, department store credit cards, or lines of credit with established limits with zero balances. Your lender will see that you have the potential to go into additional debt that they believe could impact your chances of being approved. A good rule of thumb is not to have more than two credit cards. Remember, anyone that you’ve co-signed for or been a co-applicant for will also impact your credit. You can review your personal credit report by checking out either TransUnion or Equifax. These companies are the two primary credit reporting companies that lenders use in Canada. The report will show you your FICO (Fair, Isaac, and Company) score, which is a numerical score rating your credit. The score goes as high as 900, and the higher your score, the better your credit is and potentially the better rate you can quality for. It’s always good practice to review your credit report annually so you can see who’s pulled your credit reports, as well as to potentially stop identity theft you may not be aware of if a credit card or loan has been established under your name. Some banks and credit unions have the ability, through their online banking platforms, to allow you to review your credit report monthly. Doing this doesn’t impact your credit history but is a good practice before you apply for additional lending. You’ve worked hard to either start or grow your franchise. Don’t let a poor personal credit report get in the way of your franchise growth.

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

Graeme Green Director of Franchising Western Canada RBC graeme.green@rbc.com


Q A

ASK A FRANCHISING EXPERT

What do I need to consider when choosing a franchise? IF YOU’RE THINKING OF BUYING A FRANCHISE, there’s no shortage of options in Canada. In fact, there are so many opportunities that it can be difficult to choose. The best way to compare and rate the various franchises that might appeal to you is to use a checklist in order to create a level playing field. In business marketing, there are three terms we use frequently. They’re called the three Ps: price, product, and placement. These can also be used to help in choosing a franchise. Let’s go over how you can use the three Ps in your franchise search: 1. P rice: This can be broken into two sections. First the “price” or cost to purchase the franchise. Every franchise system has a franchise fee—an initial investment that a new franchisee must pay to obtain the franchise. Over and above the initial fee are royalties that are paid monthly to the franchisor based on your sales. You must also budget for construction, equipment, inventory, staff, marketing, etc. Depending on the type and size of franchise you buy, these costs will vary, but you’ll need to budget for them ahead of time. 2. P roduct: The other “price” you should consider is the cost of the product or service you’ll be selling to the public. This leads us to your product. How many people will it appeal to? Will you have repeat customers or are you selling a one-off product or service? Will it appeal to the masses or only a select few? Is this product or service new, innovative, or trendy, or is it something that’s been around for a long time and has a history in the marketplace? 3. P lacement: In franchising, the marketplace is also the territory you’ll be given as a franchisee. It could be as small as a few city blocks or as large as a whole city, or even a province. Each franchise system will have or should have a plan to ensure that each franchisee has enough of a “territory” to generate the required number of customers to sustain a viable business. Typically, you’ll have competition from other franchises or businesses that sell the same or similar products and services, but you shouldn’t have to compete with another franchisee from your own system for the same piece of the pie. Make sure you know how the territories are decided and divided. Price, product, and place are the three Ps of marketing that also apply to buying a franchise; but there are also three more I also recommend looking at: 1. P ersonality: Just like people, every brand has a personality. Think of some well-known brands and

what personality traits come to mind. Take Disney for instance: you probably associate them with fun, family, and entertainment. Another might be State Farm Insurance: reliable, trustworthy, and steadfast. If you’re a quiet, reserved person who enjoys spreadsheets over dancing, then you might not want to be part of a franchise system that requires you to wear a clown suit and greet each customer at the door with a balloon and song. 2. P eople: They are a tremendously important part of any franchise system. As a franchisee, you’ll be working closely with many people at the franchise head office. You’ll probably be working with people in operations, marketing, and possibly real estate and sales. In the process of choosing your franchise, try to get a feel for how things are run at head office and the people who work there. Are they helpful, knowledgeable, and accessible? Will you get the support you need, or will you be on your own once you get going? Being part of a franchise system should mean you’re in business for yourself, but not by yourself. 3. P assion: Lastly, but probably one of the most important Ps in choosing a franchise is passion. Is this a business that you can see yourself working at day in and day out for years, or even decades to come? Is it a business that excites you, that you’ll look forward to growing and developing? Is it a business that you’ll gladly invest in financially, physically, and emotionally? I recommend looking at all six of the Ps when buying a franchise, whether it’s your first or your fifth. Buying a franchise is a big commitment, but one that will pay dividends if you make the right decision for you. Not every franchise system is suited for every person, so make sure that the system is the right fit for you, your lifestyle, and your goals. Don’t be afraid to take a long, hard look at everything each system has to offer. Price, product, place, personality, people, and passion—all these traits are important aspects of any franchise system and any decision you make. With the right fit and the right franchise for you, the opportunities and rewards are far more easily attained. So do your homework and choose wisely. The right franchise is waiting for you. Patti Hone President As You Like It Marketing phone@asyoulikeitmarketing.com

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ASK A LEGAL EXPERT Besides the franchise fee and royalties, what other provisions should I consider when reviewing my franchise agreement? WHILE EVALUATING POTENTIAL FRANCHISES, prospective franchisees may naturally zero in on the franchise fee and royalties, but there are three other provisions to consider and revise in the franchise agreement, if possible. 1. Resale conditions No one wants to rain on the exciting parade of purchasing a franchise by considering the exit strategy before things have even started. Still, whether due to life changes, shifting priorities, or as part of the business lifecycle, it’s natural for a franchisee to consider selling the franchise at some point. They’ll generally not be able to sell without the franchisor’s consent. The following are common examples of conditions to the franchisor’s consent: • Right of first refusal: the franchisor may have a certain period to step in as the purchaser. This right could be a continuing right, where the franchisor gets another “kick at the can” if the sale isn’t completed within a certain period of time. A franchisee will want a short period (for certainty with their potential purchaser), and a sufficiently long period to complete the transaction to account for any disclosure period, obtaining landlord’s consent, and the purchaser completing financing arrangements and due diligence. • Release: the franchisor may require a release from the franchisee. A franchisee may want to ask their lawyer to review whether this provision is enforceable. • Fees: various fees may be payable by the seller on a transfer provision, such as transfer fees, administration or “other fees.” Rather than generally described fees, for certainty, fees should be specifically enumerated, such as the franchisor’s reasonable legal costs, training, legal fees, costs associated with credit checks, and more. When the time comes, the seller will need to factor these fees into their desired purchase price. • Store upgrades: the franchisor may also require that the premises be updated prior to the transfer. It may be possible to include certain exemptions, such as if the premises were recently updated at time of the transfer. Franchisees are well-advised to budget for this when prepping their business for sale.

“mid-term” refresh of the premises. For example, franchisees may need to purchase new equipment for new product lines or change signage to reflect new logos or store designs. Some franchisors may allow for a “freeze” period so that the franchisee would be exempt from making these changes in the early part of a franchise agreement’s term while the business is still being established. Capping the amount that the franchisee will be required to spend may also be appropriate. Ultimately, franchisees should budget for these requirements and regularly set aside funds. 3. Renewal Franchisees often assume that the renewal of a franchise agreement is a “given,” which can be a dangerous assumption. Renewals are generally subject to conditions, such as the following: • Notice: franchisees are commonly required to provide written notice of their intent to renew within a window prior to the expiry of the current term. This window should be reviewed to ensure that it’s not overly broad or restrictive and lined up with any lease renewal notice windows, if possible. • Release: similar to the resale condition, the renewal provision might also require that the franchisee provide a release of the franchisor, which legal counsel may also want to review for enforceability. • New franchise agreement: franchisors often require that franchisees sign the then-current form of the franchise agreement on renewal, which may contain materially different terms and fees. These changes could be quite impactful on the franchisee’s business. The franchisee should request that the renewing franchise agreement preserves critical terms, such as its exclusive territory. • Store upgrades: similar to the resale conditions, the premises may need to be upgraded to the franchisor’s then-current standards prior to or immediately after renewal. Franchisees are well- advised to plan for this expense by either setting aside a renovation budget during the term or by making financing arrangements in advance of the term’s expiry.

2. Rebrands, system updates, and renovations Generally, franchise agreements will require a franchisee to implement all system changes that the franchisor imposes at any time at the franchisee’s cost. Additionally, a franchisee may be responsible for conducting a

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Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

Dixie Ho V.P. Legal Mary Brown’s Inc, MBI Brands dixie@marybrowns.com


These three examples highlight how important it is to fully understand all provisions of the franchise agreement. These and other provisions may seem burdensome, but franchisees are encouraged to raise any concerns with the franchisor. Even if a franchisor won’t make changes to the franchise agreement, this discus-

Q A

sion can be helpful to gauge how a franchisor might generally respond to a franchisee’s inquiries and can help ensure that each party has a clear understanding of its obligations, which are the foundation of any successful franchise relationship.

ASK A CONSTRUCTION EXPERT

How long will the construction of my franchise take? THIS IS A QUESTION franchise experts get asked all the time, and there are many different factors that need to be considered when answering this. As a franchisee, if you’re deciding to go with a brick-and-mortar franchise, there will of course be a construction component to get your doors open. But there are a few things to consider and check off your list before construction can start. To ensure the success of your business, and your own peace of mind, you don’t want to be rushed through your franchise journey. After you sign your Franchise Disclosure Document (FDD), here is a list of steps (with some variable timeframes) to consider through the process of building a brick-and-mortar franchise—before, during, and after construction. 1. Finding a space: Depending on the brick-and-mortar franchise you’re going with, it can take some time to find great real estate. In my experience, I’ve seen some franchisees find a location in three to six months, and in other cases six to 12 months or longer. Be cautious about finding the right space. Don’t rush into the wrong space just because you’re feeling the time crunch. Follow the same process when it comes to finding design and construction teams. 2. Designing: Once you have your space, you can engage your design team. There are two types of drawing packages you can expect from your designers. The first is a permit set, which is submitted to the city to grant you a permit to build. The second is your construction set, which will be issued to your contractor to receive a quote for the build. The timeline for these drawings varies for different reasons, so make sure to ask your designers how long they expect it to take, and then leave some buffer time in case life gets in the way. 3. Permit: You can’t do construction without a building permit! Timelines to get approval for permits varies

from city to city. The typical turnaround time can be anywhere between four to 12 weeks. 4. Tendering: Once you’ve narrowed down your list of contractors, they’ll send the drawings out to be priced by the various tradespeople whose services will be required, which will form the construction costs. 5. Construction: Naturally, just like everything else on this list, construction times can vary. Your contractor should give you a construction schedule at the time they send you their quote; feel free to discuss it with them to gain a better understanding of the process and any delays that may be expected. 6. Post-construction: Make sure that you allow enough time for the contractors to finish up completely. When you watch a show like Restaurant Impossible and you see contractors building a restaurant as the crowd is waiting outside, remember that that’s television and not real life. Once construction is completed, you can bring your team in to start training. If you choose a franchise that requires heavy-duty equipment (for example, a restaurant), your contractor/suppliers should help you with the required training. Leave yourself enough time to prepare for the grand opening so you’re not rushing frantically in the final days! (Continued on page 54) Kayleigh Bradshaw Director of Operations Fortitude Construction Management kbradshaw@fortitudeconstruction.ca

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ASK A CONSTRUCTION EXPERT (Continued from page 53) Tips for finding the best contractor Your relationship with the contractor is not one to take lightly. This person is going to be building your commercial space, which is crucial to the success of your business This is, in fact, one of the larger financial investments that you’ll make in your franchise journey. You’ll want to ensure you have time to build a relationship with your contractor. As soon as you sign your Franchise Disclosure Document (FDD), start doing your research on the contractor that you want to work with. Here are some tips to help you choose the right contractor for you: 1. Interview potential contractors: Ensure your vision is understood and reciprocated.

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2. Check out their online presence: Website, social platforms, and Google reviews can provide a bigger picture of their work habits based on previous customers’ responses. 3. Get multiple prices: Remember, cheapest isn’t always the best. 4. Collect references: Clients, trades, and designers can also provide crucial information about previous work scenarios with your contractor. 5. Visit their previous work sites: This allows you to see their quality of work firsthand. 6. Make sure they have all legal and workplace safety guidelines in place: This includes insurance, following any regulatory guidelines, as well as having a health and safety policy in place.

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online


HOW TO USE THIS DIRECTORY Franchise Canada Directory 2023 is the Canadian Franchise Association’s (CFA) most comprehensive guide to the franchise opportunities available in Canada. With more than 1,300 listings from quick service restaurants to retail, health/fitness to automotive repair, home improvement to beauty supplies and hair salons, there are so many opportunities available. T he listings information is provided by Franchise Brands and Support Services/Supplier specialists n Organized for easy reference into Franchise Brands listings and Franchise Support Services/Suppliers listings n Directory listings for CFA Members are identified with a CFA Member logo and a shaded box so you can easily identify the systems that adhere to the CFA’s Code of Ethics n

FRANCHISE BRANDS

Categories and listings start on page

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FRANCHISE SUPPORT SERVICES/SUPPLIERS Categories and listings start on page

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Convenient tabs help identify categories.

We Print, Ship & More! 1-1115 North Service Rd W Oakville, ON L6M 2V9 Phone: (905) 338-9754 ext. 246 Web: www.theupsstore.ca Email: development@theupsstore.ca Contact: Chati Narayan, Franchise Development Department The UPS Store services individuals and small businesses in need of printing, shipping, mail & parcel receiving and other business services. Franchisees of The UPS Store network enjoy the training and ongoing support of experienced home office and infield teams, from grand opening and beyond. Single centre, traditional concepts are currently available as well as multi centre, store-in-store concepts, across most of Canada. Proud to have been designated as an Essential Service. Franchise units in Canada: 350 In business since: 1990 Franchise fee: $40K Start-up capital required: $100K Investment required: $199.25K-$218.5K Training: Yes Available territories: All of Canada CFA member since: 1991

PRINTING / COPYING / SHIPPING

THE UPS STORE

BLUE TABS are for Franchise Brands. RED TABS

are for Franchise Support Services/Suppliers.

Listings and categories are in alphanumeric order. Every listing contains contact information. Some companies provide their logo for positive identification.

FEATURED company listings are highlighted in green and are accompanied by their company logo.

CFA Members are highlighted with a blue border and feature a CFA Member logo. All Support Services/ Suppliers listed are CFA Members.

Listings highlighted in beige identify the National Sponsors of the Canadian Franchise Association.

Keep an eye out for award-winning franchises. These are franchises that have been recognized as industry leaders by the CFA.

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