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YOUR FRANCHISE FRANCHISEES WHO’VE STARTER PACK FOUND SUCCESS

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A Canadian Franchise Association Publication / www.FranchiseCanada.Online

DIRECTORY 2025 - YOUR COMPLETE SOURCE GUIDE TO FRANCHISING IN CANADA

FRANCHISE SOURCE GUIDE 2025 $9.99 PM 41043018

DISPLAY UNTIL JUNE 30, 2025

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CONTENTS FRANCHISE

DIRECTORY 2025

CANADA

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4 Canadian Franchise Association

FEATURES

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

Look for the CFA Logo Why you should invest in a franchise that’s committed to excellence

Franchising 101 What is franchising, and why should you consider it? Get all the answers right here!

Your Franchise Starter Pack If you’re not sure where to start in your franchising journey, you’ve come to the right place. Learn about some of the most important stages of the process, from determining the right brand to invest in to what you need to know about a system’s financial statements

www.cfa.ca | www.FranchiseCanada.Online

Find Additional Resources Online

The Ins and Outs of Emerging Franchises Should you consider a new or emerging franchise brand? It all depends on your goals

Business Plan and Financial Management Basics One thing that all franchise opportunities have in common is the need to plan for success. But sometimes, especially for those new to business ownership, knowing where to start can be tricky

10 Things to Look for in a Franchisor The franchisor-franchisee relationship is crucial, and these key considerations can help foster franchise success

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

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

5 Situations Where Franchisees Should Lean on Experts Get to know the support service professionals who are ready and willing to help you on your franchise journey

Marketing’s Inclusion Revolution By putting diversity and inclusion at the forefront of your marketing and hiring efforts, your small business can reach all-new audiences

How to Franchise Your Business The CFA has resources to help entrepreneurs scale their businesses through franchising

DEPARTMENTS

Publisher’s Message

CFA Code of Ethics

How to Use This Directory

Franchise Brands Listings

207

SEASON 8 NOW STREAMING!

Franchise Support Services/ Suppliers Listings

234

Franchise Brands Index

241

Franchise Support Services/ Suppliers Index

242

Advertisers’ Index

Ask the Experts

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.

LISTEN & LEARN

Tune in to the Franchise Canada Chats Podcast! Available on Google Play, iTunes, SoundCloud, and Spotify

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 2025 Franchise Canada Directory is current as of October 31, 2024.

Franchise Canada Directory 2025

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

Darrell Jarvis*, Fasken Martineau DuMoulin LLP

PUBLISHER

Canadian Franchise Association (CFA) SENIOR MANAGER, CONTENT & MARKETING

TREASURER Lyn Little, BDO Canada LLP

Lauren Huneault

CHAIR, FRANCHISE SUPPORT SERVICES

EDITOR Rachel Debling

Paul daSilva, RBC

CONTENT PRODUCER Daniel McIntosh

CHAIR, LEGAL & LEGISLATIVE COMMITTEE

GRAPHIC DESIGNER Andrea Lee

Andraya Frith, Osler, Hoskin & Harcourt LLP DIRECTORS

Andrew Arminen, Metal Supermarkets Chuck Farrell, Pizza Pizza Dixie Ho, Mr. Lube + Tires Joel Levesque, McDonald’s Restaurants of Canada Limited Ken Otto, Redberry Restaurants Nathan Oxford, Jani-King Canada Gary Prenevost, CFE, FranNet John Prittie, Koala Insulation Thomas Wong, CFE, Kevito Group *Executive Committee member

ADVERTISING SALES Stephanie Philbin AD COORDINATOR Andrea Lee PRINTING Premier Printing FOR ADVERTISING INFORMATION:

Stephanie Philbin sphilbin@cfa.ca

TO SUBSCRIBE TO Franchise Canada

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

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

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

© 2025, 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 FRANCHISE:

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

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

CODE OF ETHICS

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

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. The 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.

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

The Canadian Franchise Association (CFA) Helping everyday Canadians realize the dream of building their own business through the power of 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 through the power of franchising 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 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 embarking on its ninth season in 2025; 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. Taking place in key markets like Toronto and Vancouver, these shows provide Canadians with the opportunity to meet face to face with franchisors and learn about their proven business opportunities.

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

Voted THE HIGHEST IN FRANCHISEE SATISFACTION by the Canadian Franchise Association

We’re looking for more amazing franchisees to expand our footprint in British Columbia and New Brunswick.

TWO MEN AND A TRUCK® is the largest franchise moving company in North America with an overwhelming 94% of our franchisees expressing their satisfaction and confidence in the brand, stating they would invest in it again. This demonstrates the exceptional support and resources we deliver to our franchisees. TWO MEN AND A TRUCK offers diversified revenue streams from our traditional home moving service to long-distance relocation, packing, storage, junk removal, and specialty moving options – we’re the one-stop-shop for all moving needs. With almost 40 years in business, over 400 locations worldwide, and an average of 96% customer referral rate, TWO MEN AND A TRUCK has firmly established itself as an industry leader. With TWO MEN AND A TRUCK’s proven track record, diversified revenue streams, global recognition, and high franchisee and customer satisfaction rates, you’ll be building on a solid foundation!

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Each franchise is independently owned and operated.

THE CANADIAN FRANCHISE ASSOCIATION

Brand Awareness

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

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

The CFA’s wealth of knowledge flows, in part, from its prominent role in the nation’s business community. CFA members represent thousands of business outlets across the country. As a whole, the Canadian 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 (page 10). 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)

Trust

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

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.

to help resolve disagreements between franchisors and franchisees. We fulfill our mission by providing leadership, trust, credibility, and opportunity. Through these, 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.

So Many Opportunities

Made up of thousands of small businesses in every community from coast to coast, the franchising sector is the 12th largest contributor to the Canadian economy. The Canadian franchise industry is estimated to have more than 1,300 brands and more than 66,000 franchise locations across a variety of sectors. While franchise concepts operating in the foodservice 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 60 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’ dayto-day lives.

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

Look for the CFA Logo Why you should invest in a franchise that’s committed to excellence

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 toward 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, on top of those that are the larger stalwarts of the industry. Whether you’re interacting with brands at a Franchise Canada Show or flipping through the pages of this directory, 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 and lifestyle. At the Canadian Franchise Association (CFA), we strongly believe 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 the 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 the power of franchising. 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.

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

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LOOK FOR THE CFA LOGO

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 matters impacting the industry across Canada to ensure the government works to support the growth of your business, not hinder it.

FRANCHISE TUTORIALS

HIT THE BOOKS WITH THE CANADIAN FRANCHISE ASSOCIATION! When it comes to opening and operating a franchise business, there’s a lot to learn. But don’t worry, the CFA has you covered with Franchise Tutorials! Originally published in Franchise Canada Magazine, these 24 tutorials cover the fundamentals of franchising you’ll need to know before you open – from the various fees you’ll pay to training, inventory, renewals, and so much more.

Access FREE Franchise Tutorials at www.FranchiseCanada.Online

Tools to grow your business As a franchise owner in a CFA member system, you have a wide range of tools at your disposal 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 investment in purchasing your own franchise 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 franchising collectively employs almost two million Canadians, spanning across the country in almost every community. Franchise businesses are found in almost every sector and industry in Canada. In fact, 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. To learn more about the franchising opportunities available with CFA member systems, visit LookforaFranchise.ca.

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

Contact Contact Us Today Us Today to Learn to Learn More! More! 100% 100% CANADIAN CANADIAN MADE, MADE,stor-x.com/become-a-franchisee stor-x.com/become-a-franchisee OWNED OWNED & OPERATED & OPERATED 1.877.275.6868 1.877.275.6868

Join Join team team STOR-X® STOR-X® Our Our franchisees franchisees consult, consult, design design and and install install our 100% our 100% Canadian Canadian manufactured manufactured custom custom builtbuilt cabinetry cabinetry and and storage storage solutions solutions for for home, home, business business and and commercial commercial property. property. Everything Everything fromfrom closets, closets, offices, offices, kitchens kitchens and and mudrooms, mudrooms, theythey are their are their communities communities go-to go-to custom custom storage storage experts. experts.

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FRANCHISING 101 What is franchising, and why should you consider it? Get all the answers right here!

ranchising is an attractive, powerful, and recognized way for Canadians to make their business dreams become reality and achieve success as small business owners in their local communities. It achieves this in a number of ways: •U tilizing a proven track record. Through the proven business concept and support provided by the franchisor, franchisees are 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. •B eing an organization of like-minded people. 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. 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. •L everaging local, province-wide, and countrywide recognition. 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. •E nsuring brand consistency. 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. •P roviding valuable and necessary support. 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. •F unnelling knowledge and insights to its franchisees. 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. •E quipping its owners with trusted, approved vendors. 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. 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 most franchisees. The franchisee should: • follow the franchisor’s standards, methods, procedures, techniques, and specifications to ensure consistency; • pay a fee (typically an initial franchisee fee and ongoing royalties) to the franchisor for the right to use the franchisor’s trademarks (i.e., brand) and business system;

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

FRANCHISING 101 • take care of accounting, local marketing, staffing, and the other administrative aspects of operating a business; • invest 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 • work 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. So, what now? 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 articles contained in this annual directory are a fantastic place to start, but it’s not your only trustworthy source! FranchiseCanada.Online has a variety of articles that take you through the path to making a franchise purchase, finding your franchise fit, building a business plan, understanding franchise finance fundamentals, and navigating the franchise disclosure document, and much more. Sign up for the Franchise Canada E-News for even more brands to explore and success stories to inspire you along your business ownership path. Your franchising journey starts here—congrats, and good luck!

Franchise Canada Directory 2025

Your Franchise Starter Pack

If you’re not sure where to start in your franchising journey, you’ve come to the right place. Learn about some of the most important stages of the process, from determining the right brand to invest in to what you need to know about a system’s financial statements.

STEP 1

The “Big Decision”

ranchising is an excellent way to start a business, providing you with a proven system, a well-recognized name, and the infrastructure necessary to succeed and scale up efficiently. The blueprint has been tried and tested—all you need to do is follow it! If you are still on the fence as to whether to pursue small business ownership through franchising, ask yourself the following questions: - Does the thought of being a part of a larger, successful organization excite you? If the answer is yes, you will thrive within a franchise system. - Are you a person who is looking to innovate, or are you comfortable following a methodology? Those who want to reinvent the wheel are likely not suited for the franchise industry. - Are you interested in working alongside those who have the same goals and passions? As a franchisee, you have access to a network of other business owners who have the same drive and purpose—and they will be there to support you along the way. - Are you prepared to devote yourself to odd and long hours to achieve your dreams? Being a franchisee often means spending evenings and weekends setting up your business, being on-call to fix problems, and rolling up your sleeves to help, no matter the job. If this doesn’t sound appealing, other opportunities may better suit you. If you still aren’t sure, talk to current franchisees, whether from your ideal brand or from other sectors. They will share the first-hand benefits of being a part of a franchise system, such as: - Access to products and services through your franchisor - Cost efficiency, both for you and your customers - Upfront and ongoing support from head office And if you still aren’t sure, check “The Pre-Franchisee Checklist” at right for another tool you can use to gauge the feasibility of the franchise model for you and your lifestyle. Above all, it’s your money and your life—take your time and make an informed decision.

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

The Pre-Franchisee Checklist

A comprehensive how-to to prepare yourself for entry into the franchise industry  Evaluate your skill set, interests, and personal goals  Assess how your lifestyle would fit into the system and what changes you would need to make for it to work  Research and assess the different types of franchises, not just the brands themselves  Assess the risks and rewards, and understand the associated costs  Investigate the success of the franchise—talk to current and former franchisees  Reach out to franchise, legal, and financial experts for guidance  Thoroughly review your books to ensure you can handle the financial strain  Learn how a franchise agreement works  Determine what fees are associated with the opportunity  Perform a market analysis—will this business have long-term staying power?  Attend an industry tradeshow, seminar, or other event, like those held by the Canadian Franchise Association

YOUR FRANCHISE STARTER PACK

STEP 2

Assess your options

ongrats on your decision to purchase a franchise! Now that you’ve determined purchasing a franchise is right for you, it’s time to whittle down your options. There are many types of business models, within many different sectors. And keep in mind that just because you love a certain type of service or product, it doesn’t necessarily mean that you will be happy and successful as a business owner within that sector. Here are some areas you should consider when weighing a specific franchise model. The cost This is obviously an important one, and likely the most important for the majority of people investigating a franchise system. The required investment can vary widely between franchise brands, and within brands themselves. It can depend on many factors, including location, equipment needs, and upfront materials and inventory costs, if applicable, not to mention wages for employees. Check out the franchisor’s website to see if they list the average initial investment—LookforaFranchise.ca is also another fantastic resource for this information—as well as the brand’s net worth and liquidity requirements. It’s also in your best interest to be upfront about your financial situation and how much you are willing, or have available, to invest. If a franchisor doesn’t ask you about your finances early in your talks, consider it a red flag— they should want to know whether you will meet their qualifications and be “in it” for the long haul. The brand value In some industries, like fitness and foodservice, a passion for the product can certainly help franchisees stay connected and drive them to success. But it’s not always the case. In fact, some franchise systems that may seem “unsexy” provide a fantastic opportunity to grow. (Think cleaning or restoration services.) Still, a connection to the company should be apparent from the moment you hear about what it has to offer. Do you admire its brand image and relationship with its customers? Do you align with its values? If there isn’t a flicker of familiarity or esteem for the company and how it portrays itself at this stage, it likely will not develop over time.

The future Through franchising, people can often grow a business more quickly than they would be able to on their own. Having a path set for them, and a series of supports at the ready from a team who has been in their shoes, can help business owners settle into a rhythm and provide a faster return on investment. But there are still steps that you will need to take as the business owner. Make sure you have a handle on the ramp-up timeline, the working capital you would need to get to a break-even point, operating expenses, and whether there is an expectation to reinvest earnings to ensure the business continues to thrive. Look at the investment opportunity not just in the short term but as a potentially decades-long commitment. The WOW factor Before signing a franchise agreement, you should understand how the franchisor is unique amongst their competitors in the market, both locally and at the brand level. With a few exceptions, franchise systems are usually one in a pool of many similar businesses—which isn’t necessarily a bad thing, if they have a standout brand identity, services, and processes in place. You technically aren’t buying the products and services you will be selling; you are buying how the company manages its customer journey and how effective it is at retaining customers while plying new ones. A company’s unique value proposition isn’t always apparent, which is why you should speak with a knowledgeable representative from the brand who can speak to the minutiae of their approach. The pivot point Though we always want to have high hopes for the future, there may come a point when you need to excuse yourself from business ownership. It’s a potential outcome that you should plan for, especially in the early stages of considering a franchise brand. For instance, if you don’t have family who will be willing to step in and take the reins, is the system set up to easily transition to a new owner and still maintain the same rate of success? Begin with the end in mind and determine if the business, if properly managed, will be sellable if you want to try a new opportunity or retire.

Franchise Canada Directory 2025

YOUR FRANCHISE STARTER PACK

STEP 3

Understand the finances

With files from Cassandra Da Re, partner at Dale & Lessmann LLP

n provinces with disclosure legislation (Alberta, British Columbia, Manitoba, New Brunswick, Ontario, and Price Edward Island, as of publication), a franchise disclosure document (FDD) must always contain a copy of the franchisor’s financial statement. It’s important that prospective franchisees have a complete financial picture of the franchisor’s business in order to make an informed investment decision. When you receive the FDD and the required financial statement, go over it with a fine-tooth comb (preferably with a certified professional) and determine whether it meets the minimum standard requirements by asking the five Ws. Who? - It must be the financial statement of the franchisor company, which is the entity that will enter into the franchise agreement with you, the prospective franchisee. - I t cannot be the financial statement of another company, whether it be the parent company, an affiliate, a subsidiary, the owner of a corporate store, or the

trademark owner. - It should be identified within the FDD. - Note that some large franchisors may be exempt from including this statement if they meet certain criteria. What? - The financial statement must meet the prescribed review standards; note that these differ slightly depending on the province. - In general, it must be prepared in accordance with an audit or the review engagement standards, as laid out in the CPA Canada Handbook – Accounting or an equivalent standard. - It must contain all information necessary for disclosure. Failure to disclose the notes to the financial statement, for example, can render the statement incomplete and therefore a material deficiency of the FDD. - Franchisors that have been in operation for less than one fiscal year may disclose a balance sheet that is not subject to such review standards (unless the franchise location will be in British Columbia).

The Ins and Outs of a Financial Statement A rundown of several important elements you’ll encounter in a financial statement Balance sheet: Pay particular attention to this facet of the report, as it will tell you if the company has enough cash and assets to meet its financial obligations. This is important, because if a franchisee wishes to exercise its right of rescission but the franchisor has insufficient assets, the franchisee will be left in a difficult position.

The notes: Whatever you do, don’t skip over these! The notes can provide valuable information and details beyond the numbers that will help you better understand the overall financial health of the franchisor and any uncertainties that may lie ahead; for example, potential future liabilities, such as lawsuits and warranty claims.

Current assets and liabilities: This will help you understand the franchisor’s liquidity position. (i.e., is there enough cash to pay off any debts that may arise?) Working capital: This speaks to the franchisor’s ability to respond to claims. These can include trademark infringement, creditor claims, and other disputes. It also gives an indication as to how well the franchisor can manage day-to-day operations.

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

YOUR FRANCHISE STARTER PACK When? - I t must reflect the most recently completed fiscal year. -H owever, the previous year’s financial statement may be used before the most recent financial statement is available as long as it is 180 days from the franchisor’s fiscal year end. For instance, if a franchisor’s year end is December 31, the previous fiscal year’s financial statement can be used until June 28 of the next year. Where? - I t must be disclosed as part of the FDD—“as one document at one time.” -T he exception: if the most recent financial statements are made available between the time an FDD is delivered and any agreement is made or compensation

STEP 4

is paid, then the franchisor may deliver the updated statement by way of a statement of material change. - A n example of non-compliance would be if a franchisor emails a standalone copy of the financial statement before or after the FDD is delivered. Why? - A financial statement is a formal record of a corporation’s financial activities and can inform a franchisee of the health of a franchisor to help them determine whether they should invest. - If a franchisee is deprived of the financial statement or another “foundational part of disclosure,” the FDD is rendered null and void and the franchisee can rescind from the contract.

Set yourself up for success

ou’ve signed your agreement, and you’re excited about what the future holds—great! But for many new small business owners, this is when a new challenge rears its ugly head: how to find balance amongst the daily hubbub of being your own boss. Achieving your dream of business ownership through franchising is something worth celebrating. But there will be days where your “new normal” can be more of a stressor than fulfilling. Follow these tips—the “three Rs” and the “three Bs”—to help you prepare for and overcome potential inconveniences. The Three Rs Rules: Creating a set of rules for yourself can aid in decision making and the prioritization of tasks. Analyze what you are willing to compromise on and what areas of your life and business you simply won’t. This can be applied to your work and business relationships: how do you want others to show up for you, and how will you do the same for them? This will help you figure out whether employees, business partners, clients, or suppliers will mesh well with you and your business. Rituals: Having practices to help you hone your physical, mental, and emotional strength is key in your business ownership journey and are unique to each person. The good news is that as you strengthen one area, the others will follow. Think about exercise. Not only does it work your muscles and cardiovascular system, it also improves your mental and emotional well-being.

Routines: An organized schedule that prioritizes what’s important to you can help alleviate stress and maximize output. Block time off time in your agenda each day for challenging work—the type that you usually try to avoid with all your might—and set meetings in the morning for when you are fresh and ready to face the day. The Three Bs Boundaries: Boundaries are limits we set for ourselves, both in regard to what we will do and what we will tolerate from others. If you’ve already set your rules, you are well on your way—your boundaries should naturally come from your rules. Once you have set your boundaries, practice identifying where they aren’t being respected in your life and using calm assertion to enforce them. Bounce back: Resiliency is important when it comes to facing difficult situations, and your rituals can help improve how resilient you are to stressors and opposition. After time, challenges won’t feel as insurmountable, and you’ll find you have better emotional regulation and productivity—both important to being a good boss and effective business owner. Bandwidth: You know when you feel as though you can’t possibly take on any more, let alone deal with what you already have on your plate? That’s how you know your bandwidth is full, which can lead to irritation, overreaction, and doing and saying things you may regret. Luckily, setting routines will help you recognize when you are nearing the tipping point and avoid maxing out your mental and emotional capacity.

Franchise Canada Directory 2025

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FIND ADDITIONAL RESOURCES ONLINE

Purchasing this annual directory is the first step in your franchising journey. But FranchiseCanada.Online also has a world of digital resources for prospective franchisees to gain advice, information, and updates on the Canadian Franchise Association (CFA) and our many members. This is a list of additional resources on the website to draw from throughout your franchise journey. Also, be sure to follow the CFA on social media for up-to-the-minute industry news, the latest stories from our franchise system members, motivational tales of franchisees who have been in your shoes, info on upcoming CFA events, and much more.

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 when you’re considering the purchase of a franchise. https://cfa.ca/franchisecanada/checklistfor-franchisees/

FRANCHISE CANADA E-NEWS Get franchise industry news 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. https://cfa.ca/franchisecanada/franchisecanada-e-news/

FRANCHISE SUCCESS STORIES Our franchisee and franchisor success stories highlight the friendly faces behind the brands and prove that franchise location owners are small business owners who make important contributions to their local communities. https://cfa.ca/franchisecanada/franchiseesuccess-stories/

ASK AN EXPERT Got a critical question about franchising? Franchise Canada turns your need-to-know questions to our suite of legal, finance, franchise, and accounting experts who provide expertise on franchise issues. https://cfa.ca/franchisecanada/category/ franchise-tips-advice/ask-an-expert/

FRANCHISE CANADA CHATS The Franchise Canada Chats podcast introduces listeners to franchisees and franchisors from within the industry. Guests discuss their journeys into franchising, challenges and successes they faced, and give advice to prospective franchisees. https://cfa.ca/franchisecanada/listen/

GUIDEBOOKS Get expert advice on key topics from our network of member brands. The CFA, with the collaboration of CFA experts, provides free resources to help franchise businesses reach their goals through digital guidebooks. https://cfa.ca/franchisecanada/ fcguidebooks/

FRANCHISE CANADA TV The CFA’s YouTube channel is your one-stop shop for the Franchise Canada content you love in a video format. Dive into the world of Canadian franchising with our exclusive video content, including interviews with established franchisors, franchisee success stories, behind-the-scenes content during CFA events, and much more! www.youtube.com/ canadianfranchiseassociation

FRANCHISE TUTORIALS Find the fundamentals on franchising from A to Z in these tutorials. The Franchise Tutorial series provides an overview on 24 topics every prospective franchisee should know about, from deposits to disclosure and disputes. Test yourself with the Franchise Tutorial quizzes to know you’re on the right track. https://cfa.ca/franchisecanada/franchisetutorials/

Franchise Canada Directory 2025

The Ins and Outs of Emerging Franchises

Should you consider a new or emerging franchise brand? It all depends on your goals BY ANGELEE BROWN, CEO, ALTIUS FRANCHISE GROUP

ranchising has long been a pathway to entrepreneurial success, offering individuals the opportunity to run a business with a proven model and established brand. While well-known franchises often dominate discussions, emerging franchises present another avenue into the industry for potential franchisees. Evaluating these opportunities requires a nuanced approach and careful consideration of various factors to mitigate risks and maximize potential returns. Understanding emerging franchises Emerging franchises are businesses that are relatively new to the local franchising scene or are rapidly expanding their franchise network. These may be either arriving in the Canadian marketplace from another country as a result of an expansion plan, or a new brand altogether. Unlike established giants, they may not have a long track record of success or widespread local brand recognition. This aspect can both attract and deter prospective franchisees, as they offer the allure of entering a potentially lucrative market early but also pose higher risks.

Key considerations for potential franchisees 1. Market potential and trends Assessing the market potential is crucial for analyzing an emerging franchise. Understanding industry trends, customer demographics, and the competitive landscape can provide insights into the franchise’s growth prospects. Conducting thorough market research helps you to evaluate whether the franchise concept aligns with current consumer preferences and if there is adequate demand to sustain the business. 2. Financial stability and performance Unlike established franchises, emerging ones may not have a proven financial track record. Potential franchisees should meticulously review the franchisor’s financial health, including audited financial statements and performance metrics of existing franchise units. This may be a challenge, especially for new franchise systems that rely heavily on a corporate location with proven success.

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

THE INS AND OUTS OF EMERGING FRANCHISES 3. Franchisee support and training A robust support system is critical for franchise success, especially in emerging franchises where operational processes may still be evolving. One major red flag is if the owner of the franchise system is exclusively involved in the day-to-day operations of the business (or even worse, is still working another day job) and lacks a support team, including outsourced support. It’s critical to have someone to answer the call when you need business support or franchisor guidance, day or night. Evaluate the training programs, operational support, marketing initiatives, and ongoing assistance provided by the franchisor. Strong franchisor support can mitigate risks and enhance the chances of achieving profitability within the early stages of the franchise. 4. Legal considerations and contracts Franchise agreements are legally binding documents that outline the rights, obligations, and responsibilities of both the franchisor and franchisee. Prospective franchisees should seek legal counsel to review the franchise disclosure document (FDD) thoroughly and understand the terms of the agreement, including territorial rights, renewal conditions, and exit strategies. Clarifying any ambiguities upfront can prevent potential disputes in the future and can go on to become standard practice for future franchisees as the system develops. 5. Brand reputation and growth strategy Assessing the franchisor’s reputation and long-term growth strategy is crucial. Investigate the brand and its leadership team’s reputation among consumers and within the industry. Review the franchisor’s expansion plans, market penetration strategy, and commitment to innovation. A clear vision and proactive approach to market challenges indicate a franchisor’s ability to sustain growth and support franchisee success. Mitigating risks in emerging franchises While the potential rewards of investing in an emerging franchise can be enticing, mitigating risks is paramount. Consider these additional strategies to safeguard your investment. •S peak with existing franchisees. Directly contacting current franchisees provides first-hand insights into their experiences, challenges, and satisfaction with the franchisor’s support. •C onduct due diligence. Beyond financial documents, you should conduct site visits, observe operations, and speak with local stakeholders to gauge community perception and market potential. •E valuate innovation and adaptability. Emerging franchises should demonstrate agility and innovation in response to market changes. Evaluate

the franchisor’s ability to adapt and capitalize on emerging trends. •E valuate the founder’s success path. Your franchisor should have a vision, purpose, and guiding mission for their system and be clear as to what they wish their franchise to accomplish. It’s okay to interview your franchisor and ask questions surrounding this and other important topics such as their long-term goals and purpose statement. Entering the world of franchising with an emerging franchise requires a balanced approach of optimism and caution. Potential franchisees must conduct thorough due diligence, assess market potential, evaluate financial stability, and scrutinize the franchisor’s support and growth strategies. While the risks are higher compared to established franchises, the potential rewards for early market entry can make it a compelling opportunity for aspiring entrepreneurs. By carefully evaluating all aspects of an emerging franchise, potential franchisees can position themselves for success in a dynamic and competitive market landscape.

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Franchise Canada Directory 2025

ere’s what should be included in the business plan you provide the financial institutions you hope to borrow from. The simple act of compiling this information will also help put you on the path to success, as these are the steps and elements you will need as you embark on your franchise ownership journey. Contents of the 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.

• describe your skills and experience, • explain why you’re suited to own and operate this franchise, and • include 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 any previous business success. The more the lender believes in you, the more likely they are to provide the financing you need.

If you’re looking to join an established franchise, you’ll likely want to focus on that facet. If it’s a newer franchise system, you should focus on the market trends and opportunities available.

Description of products and services The description of your products or services should include: • featured benefits, • a n explanation of how your product or service differs from those of your competitors, and • a n outline on how you will deliver these products and services at the ground level.

Profiles of the management team For many lenders, this is the most important part of the business plan. The management team profile should:

You should provide specific details about your offerings or services (e.g., coffee, car repairs, etc.), along with what sets it apart from others in the market.

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

BUSINESS PLAN AND FINANCIAL MANAGEMENT BASICS Core market information This section should: • describe your core market sector, • outline your current competitors and future prospects, • itemize strengths and how you’ll use them, • itemize weaknesses and how you’ll address and improve them, • estimate your projected market share, and • describe your existing customer base. Not only will banks and lenders 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? Description of operations The description of operations should: • describe the area and premises where the business will operate, • explain how you will produce your products or services, and • refer to location, property, facilities, leases, employees, insurance, technology, equipment, and suppliers. These crucial details should be determined before you get started. Location can be a particularly important one. You should provide as many details as you can about your location and the role it will play in your success.

Other supporting documents There are other elements that would serve you well to include within this package. These include: • Your resume and the resumes of key members of your management team • Job descriptions • Credit reports • Letters of reference • Letters of intent • Leases/contracts and other legal documents, as they pertain to the franchise you are purchasing The bottom line Ultimately, your business plan should assure investors: • there’s a market for your products and services, • you and your management team are capable, • you have the necessary physical and financial resources, • you know the steps you need to take to ensure your success, • you’re able to provide appropriate security, and most importantly, • the franchise you’re buying is financially viable and that you can repay any money lent to you. Franchise fees After completing a business plan, you should be ready to join the myriad of Canadians who made their business ownership dreams a reality. But remember: franchising isn’t free. After finding a franchise opportunity that works for you, you must pay two types of fees. • Initial fee: Think of this as a buy-in to the franchise family. An investment shows the franchisor that you’re

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Franchise Canada Directory 2025

10 Things to Look for in a Franchisor

The franchisor-franchisee relationship is crucial, and these key considerations can help foster franchise success

hen you apply for a franchise, you should expect that the franchisor will put your application under a microscope. That’s because good franchisors complete significant due diligence on their candidates to make sure that awarding a franchise would be in the best interest of everyone involved. This helps to ensure prospective franchisees are a good fit and they have the right disposition and finances available to take the leap. While the franchisor carefully analyzes its prospective franchisees, you should also be performing the same level of due diligence about the franchisor you’re considering. You need to ensure you’re entering a franchise system that meets your specific business goals, aptitudes, and interests. Here are some things you should be on the lookout for as you investigate the franchise opportunity. 1. A reliable franchise concept Franchising is all about consistency. The ability of franchise systems to replicate the success of the concept throughout dozens, hundreds, and even thousands of locations (potentially globally) is one of the biggest strengths of the business model. Here are some key questions franchisees should ask about a franchise’s replicability: • How many locations are there? • If it’s a start-up franchise system with a few locations, can the concept be replicated in new markets? • What kind of market would the franchise be successful in? • How many locations have failed? Why? • How similar are the existing franchised businesses in the system? Is the brand consistent across locations? 2. A strong franchise brand There are dozens of quick service franchise systems serving hamburgers across Canada, but a solid brand concept and established reputation can help a quick service burger franchise system stand out from the pack.

Here are some key questions to ask about the franchise brand and concept to determine what makes it stand out from the competition, no matter its sector: • Does the franchise have protected trademarks (e.g., brand name, logos)? • Does it have name recognition? • W hat’s the reputation/public opinion of the franchise? Is there negative feedback on social media? • How many corporate stores are there? Can customers tell the difference between a corporate store and a franchised store? • Is the franchise financially healthy? • If it’s a newer concept, what is the franchisor doing to differentiate the brand from the competition? Is it enough to stand out? 3. Consistent franchise operations Franchisors create consistency across all the franchises in a system through the operating standards and procedures documented in the operations manuals. The system, suppliers, and training are all designed to create a consistent experience for customers while setting expectations for franchisees. As a prospective franchisee, you should thoroughly review the franchisor’s operations manuals before signing a franchise agreement. If the franchise doesn’t have an operations manual, or won’t let you to review its contents before signing, this might be a red flag. 4. A supportive management team Franchises are often backed by a strong corporate management team that provides support to help the business thrive. The franchisor’s management team of professionals should be dedicated to the success of the system— which means supporting franchisee success. Some key questions to ask about the support for franchisees include:

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

10 THINGS TO LOOK FOR IN A FRANCHISOR • How involved is the franchisor in the day-to-day operations of the franchise? • W hat support does the franchisee receive? If the franchisee has questions, how do they get answers (e.g., phone call, email, web portal, etc.)? • How dependent is the system on its founder? • What are the founder’s long-term plans for the franchise? • Is there a private equity investor? If so, what is its role in management? And what are its short-term/longterm interests in the system? 5. Comprehensive franchisee training Typically, franchisee training occurs at the franchisor’s corporate office or at an existing franchised location. Again, training ensures the franchise’s consistency across all its units. It helps to make sure all franchisees are on the same page and includes key training areas such as site selection, operating standards, recruitment, and marketing. Before signing on the dotted line, franchisees should review the disclosure document for more information about training and should go over questions such as: • W hat type of training do franchisees receive (e.g., online, in-person, on-site, etc.)?

• W hat’s covered in the training program and how long is it? • Who must attend training? • Is there an additional cost for initial training? • Who conducts the training? • W hat happens if the prospect doesn’t successfully complete the program? How often does that occur? 6. A smooth site selection process When it comes to brick-and-mortar franchise concepts, location is critical: the location of a franchise can make or break its success. Each franchisor handles site selection differently. Some franchisors leave it to their franchisees, while others take complete control over the process. Prospective franchisees should ask the franchisor how involved they’ll be in the site selection process. They should also ask key questions regarding territory and development of the location. You should also find out what kind of lease the franchisor will hold. Is it a head lease? If not, you’ll have to find out how and whether it will exert any other form of land control to ensure it maintains an interest in the location if the franchisee fails.

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Franchise Canada Directory 2025

10 THINGS TO LOOK FOR IN A FRANCHISOR 7. A healthy supply chain A franchise system’s supply chain is what keeps it running. It’s what fills the shelves of a retail store or keeps fresh ingredients in stock to feed hungry customers ordering off a menu. Like site selection, supply chain management within a franchise system varies from franchisor to franchisor. Prospective franchisees should find out what their role will be when it comes to the supply chain. You should ask questions such as: • Is the franchisee required to purchase all equipment, products, and related accessories and supplies from the franchisor? • How are the products distributed? • How long does it take for orders to be filled? • Does the franchise offer discounts for bulk orders? 8. Marketing programs and support Without basic marketing, consumers won’t learn about a franchise’s products or services. In franchising, the marketing program is often laid out in the franchise brand standards manual and other operational and legal documents. Prospective franchisees will want to understand: • Has the franchisor established a national or regional marketing program?

“Empowering entrepreneurs through collaboration and innovation— together, we achieve more."

• Is there a requirement for the franchisor to report on the use of advertising funds generated from the franchisees? • To what extent do franchisees benefit from the fund compared to one another? • Is the franchisee required to do local advertising? How does that work? 9. The terms of the franchise agreement The franchise agreement should lay out, in clear terms, the rights and responsibilities of both the franchisor and franchisee. You can’t expect everything to balance in favour of the franchisee, but some agreements are more one-sided than others. Some key issues franchisees should note: • Are parts of the agreement negotiable? • What is the initial franchise fee? • What is the initial term? • A re there any conditions of renewal (e.g., will the franchisee have to spend a lot in renovations to renew)? • Does the franchisor retain the right to change the agreement at any point? • W hat rights has the franchisor reserved for itself while granting this franchise? Is there an exclusive territory?

Altius Franchise Group is more than just a parent company—it’s a catalyst for growth and success within the franchise community. Through our flagship brands Franchise Grade, Franchise Fix, and FranOvation, we are dedicated to bridging the gap between franchisees and franchisors, ensuring that both sides thrive. Our mission is simple: to empower entrepreneurs by fostering strong, collaborative relationships that elevate the entire franchise ecosystem.

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

Angelee Brown, CEO www.altiusfranchisegroup.com angelee@altiusfranchisegroup.com

10 THINGS TO LOOK FOR IN A FRANCHISOR • Are there minimum performance standards? • How much will the franchisor receive in ad fund fees, technology fees, additional training fees, and other royalties? • Does the agreement have a reasonable process for addressing disputes? • W hat happens in the event of a default/termination? What are the rights to transfer the business? 10. The lifestyle fit Ultimately, the decision to invest in a franchise is driven by a desire to be one’s own boss while running a business that has a proven track record or serious prospects of success. Not every franchise works with everyone’s preferred lifestyle, so here are some questions to help you decide if the franchise works for you: • W hat does the day-to-day life of owning this franchise look like? • W hat type of work will the business require? Is it physical? Is it customer-facing? • What are the expected working hours? • Can you do the job from home, or do you need to go to the location every day?

When franchisees invest in a franchise, they’re not just investing money and taking on financial risk; they’re also investing time, passion, and hard work. With the amount of resources that franchisees devote to a franchised business, they should get a full picture of the franchise opportunity before they sign. Documents like the franchise disclosure document will hopefully answer some of the questions included here, but speaking to existing and former franchisees, reading online reviews, seeking the advice of experienced legal and financial advisors, and even just visiting franchised locations in person will provide a clear picture of the franchise system. After reviewing all the documents and going through these questions, you should have a pretty good idea of what you’re getting yourself into and the quality of the franchise systems you’re considering. Remember, there are plenty of systems to choose from, so don’t settle for anything less than a great franchise fit.

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Franchise Canada Directory 2025

FACES OF FRANCHISING

Stephanie Applejohn Merry Maids Who among us hasn’t looked around our home and wondered if a cleaning service might be a worthwhile investment? For Stephanie Applejohn, owner of the Ottawa location of Merry Maids, the evidence is in her business growth, from eight to 25 staff since buying her location in 2015. (She’s worked for the franchise since 2008 and calls herself a “second-generation franchisee,” as her in-laws previously owned Merry Maids of Ottawa and ServiceMaster of Ottawa, where her husband is currently employed.) While a majority of her clients are residential (her teams also clean some small offices), Applejohn says her most common services are vacuuming, mopping floors, dusting, and cleaning bathrooms and kitchens. Clients most often request visits weekly or biweekly, although she also does a number of larger one-time cleans; a spring clean, for example, or someone who is moving in or out of a home. Applejohn admits that there’s quite a variety in living spaces and services requested. “Every house is different, and all clients have different preferences in terms of what we focus on,” she says. A standout feature of the company is that clients get a call or text reminder two days before cleaners arrive, plus it offers a 24-hour worry-free promise on service. While there are competing franchises, Applejohn considers private cleaners to be her main competitors and believes that Merry Maids stands out because her cleaners are insured, and there’s no stoppage in service for when she or her staff go on vacation. Merry Maids also provides its franchisees with ample support both in terms of technology and marketing, notes Applejohn. “We get a lot of support from the brand, they have all this wonderful technology like (field service management softwares) Dispatch and Salesforce—if you were to go on your own, you wouldn’t have that,” she says. On the marketing end, Google AdWords and social media support helps her to build her client roster. Franchisees keep in touch through monthly and quarterly

online meetings, plus twice-annual meetings in person. Staff training is also provided online, with an app for cleaners to refresh their memory if they forget what supplies to use on different surfaces. Besides being an owner, Applejohn is also Merry Maids’ regional franchise coordinator for North America. She says the key to franchisee success is being a people person, as well as adaptability. Background is less important (Applejohn’s own background was in recreation and leisure, then early childhood education), although you do have to like cleaning. For Applejohn, upsides to being a franchisee are her relationships with her team and fellow franchisees. While client interaction can be tough, especially when it comes to receiving harsh feedback, Applejohn adds that client relationships can also be a highlight. As an owner, her day includes meetings, scheduling, doing payroll, greeting her staff and customers (the franchise now has a physical office), plus work related to her corporate role. Of course, you can’t end a call with a cleaning expert without asking for insider tips. Applejohn’s best advice? Take a peek at the hidden places we all forget, from dusty blinds to window ledges to baseboards. And with that, as you ponder which cleaning franchise suits you best, feel free to go grab a cloth and put Applejohn’s advice into action.

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

Marcus Bailey Pillar To Post Moving from a decade-long construction career to owning a home inspection business sounds like a natural progression. For Marcus Bailey, a Pillar To Post franchisee in the Fraser Valley region of British Columbia, it wasn’t just easy an easy transition—it was necessary. “I absolutely hated it,” Bailey laughs when asked about his sheet metal contracting career. “My plan was always to own my own business.” Armed with an understanding of general contracting and HVAC, Bailey finally took the first steps toward entrepreneurship in 2012 and enrolled in a home inspection course at a local college so he could become fully accredited. In about a year, he was licensed and ready to roll. But it turned out that starting his own business wasn’t going to be as simple as he had originally believed. “I didn’t realize how much time or money it would take,” he remembers. So, he got some experience by working at Pillar To Post’s Langley location, owned by Bjorn Rygg, who Bailey still counts among his network today. The first year was a blur in the best way possible, with Bailey clocking 200-plus inspections. “I was thrown into

the fire,” he says, laughing. The opportunity to see how the business ran up close and personal convinced him that a Pillar To Post franchise was right for him. When a resale location became available in Fraser Valley— originally owned by Roger, Rygg’s brother, who Bailey knew well—he jumped at the chance to go into business for himself. Because he had a wealth of experience in the area, and in the industry, Bailey saw immediate success, increasing business by five per cent within the first year. While at launch it was just him and a woman he had hired to answer phones, last June he added his first full-time inspector; within the next year or so, he’d like to add at least one more. As one of two Black home inspectors in the province (“That I’m aware of,” he adds), Bailey recognizes the value of diversity in the franchising industry, noting that any sector is strengthened by a variety of experiences and views. For anyone looking to purchase their own franchise, Bailey has a few pieces of sage advice. “Be personable. Do your research. Hit social media hard, hit the pavement hard, be a part of the community— and be passionate about what you’re doing.”

Franchise Canada Directory 2025

Bruce Galts Paul Davis Restoration Though much of his company’s services address postdisaster restoration and involve working with insurance companies to restore homes to their previous glory, Bruce Galts names certain types of residential work as the most emotionally impactful. Specifically, those instances in which his team has the difficult task of rehabilitating a dilapidated home that a loved one may not want to leave. “In the very least, it’s disruptive [for the client], and at most, traumatic,” explains Galts, owner of Paul Davis Restoration franchise locations in Lethbridge, Alberta, and Okanagan Valley, British Columbia. These tense situations can sometimes be spurred by the need to move older family members into long-term care, or when concerned kin call on his services because of hoarding issues that have made living in the space untenable. “The business is usually less emotional—the sewer backed up, the water main broke in my store and I need to get open again as fast as possible,” he says. “There’s some emotion there, but it’s more about dealing with the facts. “I’m pretty impressed with our team. They’re not social workers by background. They come from all walks of life, and they’ve learned to manage those situations pretty well.”

Dealing with sensitive moments is something that Galts has faced time and time again over his career. In his previous life as the owner of a homebuilding company (which Galts still sometimes dabbles in, though not as frequently), he and his team had the pleasure of helping customers create their dream homes, though he notes that it still came with its own set of barriers. Now several years into his Paul Davis ownership journey (which began at the start of the pandemic— unlucky timing at best, Galts jokes), he has continued to see growth, despite the added challenge of straddling two provinces, each with their unique certifications and standards. But Galts has taken every roadblock (sometimes literally) in stride and doesn’t hesitate to espouse the benefits of joining a franchise system like Paul Davis. “I don’t want anybody to think that to start a restoration business, or any kind of franchise, it’s just ‘throw that the doors open,’” he stresses. “It’s hard, but it’s also rewarding. I’m happy that it’s Paul Davis that I signed a contract with. We’re growing very steady, and quite rapidly. “[To be successful], the one thing that you need to do is care about the people who work for you, as well as the people who you work for.” Between Galts’ approach to management and his ongoing work in the community, it’s clear that he has that aspect of restoration business ownership down pat.

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

Karan Kapoor Nani’s Gelato Nani’s Gelato, under the guidance of founder Parry Sohi, has taken the European dessert and enhanced it for the multicultural Canadian market, in turn attracting customers of all ages and backgrounds—and young entrepreneurs wanting to stake their claim in the franchise industry. Take Karan Kapoor, one of Nani’s newest franchisees, who opened his Burlington, Ontario, location in June 2024. At 34 years old, he left his banking career to enter small business ownership, with the encouragement of family members who have franchise industry experience themselves. One thing that appealed to him as he and his wife were exploring investment options was that Nani’s is a smaller brand and newer to the market. “To be very honest, when we first applied for Nani’s, it wasn’t high on our consideration list,” Kapoor admits. “I mean, I love the product. I tried it [at] multiple locations, the quality was fantastic, and my wife and I thought that the gelato was absolutely delicious.” What sealed the deal was that, since it’s an emerging franchise brand, Kapoor felt Nani’s doesn’t have some of the issues that can come along with larger, more established franchises, such as fewer available or nearly overlapping territories and an over-saturated market. “With newer, younger franchises that are just starting to come up, you can grow with the franchise, and there’s a lot more flexibility and openness [to new ideas].” And luckily for Kapoor, the company agreed he was a good fit, and much to his surprise, the day after he submitted his application, he received a follow-up call. For Kapoor, one of the biggest advantages of signing with Nani’s is the strong relationship he’s built with founder Parry Sohi who, even as the owner of the brand, finds time to mentor him in his path to business success. “He’s been so hands-on and supportive,” raves Kapoor. “I call him 10 times a day. And every single time he answers the phone, he’s happy to answer any questions I may have.”

Plus, the training he undertook prior to launch taught him the ins and outs of the entire system, in a condensed time frame. “We had a two-week training program where they taught us how to make the product; how to run the kitchen, back of house; how to manage the operations, front of house; and everything else.” He does caution that franchise ownership is not for the faint of heart, a fact that is becoming more and more apparent each day he opens his doors. “[You are] emotionally, financially, and physically invested in the store,” he explains. “No matter how much you’ve been warned, to see it and experience it for yourself is completely different. And it’s exhausting.” But Kapoor is also invested emotionally in the Nani’s Gelato brand, speaking with pride about how far it’s come and where it’s going. “The sky is the limit, especially the way they’re growing,” he explains. “They have a good team, and they’re building slowly but steadily.” It’s an approach that, as an investor, he truly appreciates, and one that he understands and trusts 100 per cent. “I’m glad we’re doing things a little differently and we’re taking a more calculated approach.”

Franchise Canada Directory 2025

Becky McDougall Sola Salons Becky McDougall is co-owner of the Sola Salons franchise territory in Ontario’s Durham region, along with her husband and another couple. The four began pursuing Sola franchise ownership in 2019 and went to the head office in Denver in February 2020, hoping to make a final decision. Of course, those plans had to be postponed due to the pandemic, which had a huge impact on the salon industry. In 2023, the four were able to revisit their decision and opened their Sola Salons location in Oshawa, Ontario, where McDougall is the lease manager and first point of contact for all the daily operations. Sola Salons rents studio space to independent beauty professionals, enabling them to operate autonomously without the risk and overhead costs associated with opening a traditional salon. Each move-in-ready suite comes with high-end furnishings and the equipment that the beauty pro will need to provide their services. Since opening in Denver, Colorado, in 2004, Sola has become a dominant brand in the salon suites category in the U.S. and is working to repeat its success in the Canadian salon landscape. “This is a fairly new concept in Canada, but many hairstylists here are familiar with it because it’s very popular in the U.S.,” says McDougall. That familiarity was helpful in attracting tenants to the newly built 7,000-squarefoot space that houses 36 studios. Located in a plaza, the building has ample free parking and is close to shopping centres, restaurants, and coffee shops. During the first year, McDougall leased 20 of the turnkey private salons. On any given day McDougall may be meeting with the painter, handyman, or health and safety inspector prior to a move-in, or attending a ribbon cutting for a newly opened suite. She may take a potential tenant on a tour or find herself with some unexpected free time due to a lastminute tour rescheduling. “Every day is different, but it’s a very flexible schedule,” says McDougall. As a mother of three, she appreciates that flexibility. McDougall is impressed with the tools and resources that the brand provides to Sola Salons tenants. The company recently revamped its website as well as the Sola

Pro app. The app is for tenants—they can edit the information on their webpage themselves and take technical courses on a variety of topics, from running a business to keeping up with the latest trends in hairstyling. Tenants are often attracted by the prospect of having total control over their business. “They can set their own hours and have access to come and go whenever they choose, 24/7,” says McDougall. “It’s a little more expensive than renting a chair in a salon, but their space is their own, and it’s fully equipped with everything they need, including cabinets, shelving, sinks, and chairs.” There’s also free Wi-Fi, a 24-hour security system, and video surveillance. When the Oshawa building first opened, McDougall wasn’t sure what to expect. “I didn’t realize how fulfilling it would be to see these business owners invest in themselves and thrive. Most of them are women, and I feel like Sola Salons is empowering them and helping them to be successful,” she says. “We’ve already seen some of them expand and move into a larger studio space. We are definitely disrupting the traditional salon model, and in a good way.”

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

Ciara Jean and Nona Vincent Oxygen Yoga & Fitness For Indigenous business owners Ciara Jean and Nona Vincent, becoming Oxygen Yoga & Fitness franchisees was a no-brainer. Not only was Nona able to meld his construction business, AKI General Contractors, with this new endeavour (his company not only built their Kanata, Ontario, location, but two others in the Ottawa area) but Ciara was able to leverage her 12-plus years of yoga instruction experience as she ran her own studio. “I worked in a couple of different gyms,” explains Ciara, a Kanien’kehá:ka woman and member of the Lower Mohawk First Nation. “I worked for a couple of boutique studios over the years, and I did have a few private clients that were more women’s health-focused.” She first stumbled across Oxygen Yoga & Fitness while visiting family in Nanaimo, B.C., and immediately fell in love with the concept. From there, the partnership grew from an unexpected place. Nona, who is a member of the Algonquin Anishinaabe, had been tapped to build the studio, but the original owner had to back out due to medical reasons. He knew Ciara through her father, a friend of more than a decade, and felt an opportunity had risen that they just couldn’t say no to. “I had my whole summer lined up, building the place,” says Nona with a laugh. “And then I thought, ‘You know what? I’ll be a franchisee.’” After signing their franchise agreement and undergoing the comprehensive method and managerial training offered by Oxygen Yoga & Fitness, it took only around three months for them to prepare the space. They officially opened their doors in 2023 with a dozen instructors, three employees, and a jam-packed schedule of classes. They now have two additional employees and recently welcomed their first co-op student to the facility. One aspect of Oxygen Yoga & Fitness that both Nona and Ciara appreciated right off the bat was how it treats its franchisees and their clients. “It’s very community-oriented,” says Ciara. “As a First Nations woman, community is really important to me. [The company does] provide really comprehensive training leading up to opening and support through the opening process. Even now, if there is something that I have questions with, my director of sales is literally just a text or call away. She never makes you feel like she’s too busy, she’s just got your back.”

Head office is also a big supporter of initiatives close to both of their hearts. For instance, in 2023 the company supplied orange shirts so franchisees and guests could participate in Orange Shirt Day (September 30, a.k.a. the National Day for Truth and Reconciliation) to raise money and help spread awareness. The Kanata location alone raised $1,800 for the Indian Residential School Survivors Society. Their heritage has even made its way into the studio, with Indigenous-inspired artwork covering many of their location’s walls. And when Ciara is at the front of the classroom, she tries her best to educate in a natural, organic way. “I do try to weave in more cultural knowledge and traditional teachings within my yoga classes in a subtle way that I think is valuable for any human being,” she says. Both Nona and Ciara say that in order to succeed as a franchisee, you have to have a passion for the services and products you offer. “People always have to keep in mind that you don’t just jump into business without being 100-per-cent ready,” says Nona. “[Ownership] can be very intensive,” agrees Ciara. “If you want it to be successful, you need to be really invested in it in terms of your time. The people who are coming in will feel it if you are fully there, if you are really happy even when working long hours, if you are passionate about what you’re offering. You need to believe in your brand.”

Franchise Canada Directory 2025

5 Situations Where Franchisees Should Lean on Experts Get to know the support service professionals who are ready and willing to help you on your franchise journey

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 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 for assistance.

SCENARIO 2: Figuring out how much money you have available 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 well-versed 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, 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 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 assist you in pinpointing what your ideal franchise would look like and sort out the questions to ask during the investigation process that will help you discover your perfect fit.

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.

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

5 SITUATIONS WHERE FRANCHISEES SHOULD LEAN ON EXPERTS SCENARIO 4: Deciphering disclosure documents A franchise disclosure document is a summary of information on the franchise system. (See page 53 for more information on this important document.) It 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 it contains, and 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, as they will have experience reviewing similar files. 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 to never occur but are possible. 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, or other situations. 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. While it’s a good general starting point, this is not an exhaustive list of the experts you may wish to consult as you investigate franchises and start your franchise venture. As you grow your business, you may find the need or want to seek further advice from experts you’ve consulted previously, 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 best to get help from professionals who are not only legal, accounting, banking, or insurance experts, but who are also familiar with the nuances of the franchise business model. Working with specialized support can save you considerable time, money, and trouble on your path to franchise success.

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Franchise Canada Directory 2025

Marketing’s Inclusion Revolution

By putting diversity and inclusion at the forefront of your marketing and hiring efforts, your small business can reach all-new audiences BY RACHEL DEBLING

ften the first exposure that a customer has to a business is through its marketing. This isn’t just TV, podcast, print, or social media advertising; this can extend to its out-of-home advertising, like in-window or location signage, among other touchpoints. When you purchase a franchise, you’ll receive help from your franchisor in determining the right marketing mix. The brand will usually provide system-wide marketing materials to ensure consistency across locations, helping franchisees adhere to the brand image and voice, and reflect its values. But that doesn’t mean you can’t make a splash on a local level by putting a spin on the tried-and-true advertising that your franchise system invests in regionally or nationally. Keep your eyes open and analyze how to best work within your marketing budget for maximum impact. Does your store experience a lot of foot traffic? Window signage that is eye level or sidewalk pop-ups may pay in dividends. Or, if your clientele is largely millennials or Gen Z, a paid Instagram or TikTok campaign might be in order. You can also help steer how the brand markets itself as a whole, based on your personal experience and research. How? Become involved in the committees that your franchise system offers (such as franchise advisory councils), reach out to the departments and individu-

als who contribute to the company’s strategic plan, and speak up when talking to those who have pull at the franchisor level. After all, you invested in the system, and therefore have a vested interest in its overall success. While you’re required to follow the processes provided by your franchisor or laid out in the franchise disclosure document, you can help influence future business decisions by providing real-world feedback. On a local scale, being aware of and sensitive to the growing need for representation and diversity is of the utmost importance. Keep an eye on trending topics and hashtags among the customer base you wish to reach. When your brand appears invested in your customers’ interests, this can create a positive connection in their minds. Partnerships are also a great way to connect with new audiences and generate local business. Consider collaborating with individuals, organizations, and influencers who have a large audience of the customers you wish to capture. For example, a food franchise may partner with a mukbang YouTuber, leading potential customers to make a link between their favourite influencer and a potential new favourite restaurant. By being cognizant of the demographics and desires of your customers, you can better speak to them through advertising campaigns and hiring practices that allow them to truly see themselves in your brand.

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

MARKETING’S INCLUSION REVOLUTION The following information was taken from “Building a Culture of Inclusion,” an Elevate & Empower webinar hosted by Amy Silverstein, senior director of people at Pizza Pizza Limited. In your own business ownership, check with your franchisor for the parameters you must adhere to when marketing your location. Why should I care about inclusivity in marketing? By participating in inclusive marketing practices, franchise systems and their franchisees will create stronger and more empathetic relationships with current and prospective clients and customers. • Reflects a variety of cultures, identities, and lifestyles • Allows a brand to appeal to a wider audience • Brings a level of authenticity to a brand’s image (when executed correctly) • Helps franchise locations recruit employees from different backgrounds • Helps franchisors to enter new markets The best ways to succeed at inclusive marketing 1) Engage your community—and know it inside out. What local events, from sports tournaments to farmers’ markets, are in your franchise location’s area? Mark your calendars, contact the organizers, and see how you can have your brand represented through sponsorships, giveaways, or other forms of outreach. If you’re present at a booth or are attending the event in person, utilize the feedback you receive from community interactions to shape your business strategies. 2) Tailor the messaging. Your marketing materials should be reflective of the full scope of people who are soliciting your company for its products and services. For the most part, that means it includes a variety of ages, ethnicities, genders, and cultures. Your target audience should be reflected in both the language and visuals of your advertisements. 3) Don’t be stagnant. Your franchisor is constantly adjusting its approach to better the business— shouldn’t you be doing the same? Check regularly to ensure that you’re keeping up with your community’s evolving demographics. 4) Get to know your neighbours. Are there any organizations or groups that reflect your brand’s values? Supporting them is the perfect way to tell your prospective customers that you care about the same things they do.

especially when recruiting for open positions. Also, use a variety of websites and outlets to advertise that you’re hiring—not everyone is active on LinkedIn! Job fairs and employee referrals are also great ways to get leads. 3) Implement unbiased candidate screening and interviews. Before reviewing resumes, ask a staff member or other party to remove identifying information and other pieces of information that could create bias, such as graduation year, so you can focus on their experience. In interviews, use standardized questions for all candidates to create an even playing field, and enlist the help of a rating system and evaluation form to analyze candidates. 4) Set up employee resource groups (ERGs). Employee resource groups provide employees with a formal structure to support their needs related to specific personally identifying characteristics. For example, an ERG focused on disabilities may set its focus on improving accessibility around the office. ERGs are one way to guide inclusivity from within.

The Data Behind the Diversity Drive •A ccording to the 2021 Census, more than 450 ethnic or cultural origins were reported. • I t also showed that nearly one in four citizens have been a landed immigrant or permanent resident at some point in their lives. • I n a 2020 survey by Statistics Canada, 92 per cent of Canadians aged 15 and older agreed that ethnic or cultural diversity is a Canadian value. •T he 2022 Canadian Social Survey found that 79.5 per cent of immigrants placed importance on their ethnic or cultural origins, compared to 47.6 per cent of non-immigrants. Source: Statistics Canada

How to elevate diversity in your business 1) Walk the walk. When hiring, note that having employees who reflect your customer base can go a long way in broadcasting that you understand their needs. 2) Ensure welcoming messaging in your job postings. Utilize inclusive wording in all communications,

Franchise Canada Directory 2025

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How to Franchise Your Business

Thinking of getting into the franchise industry? The CFA has resources to help you scale your business

urning your business into a franchise can be an exciting but daunting experience, and there are many moving parts to consider before initiating the process. From financial aspects to legal compliance, down to the marketing of your brand to attract both franchisees and customers, you should be well equipped and educated before deciding to embark on this adventure. The CFA’s Franchise Your Business (FYB) program offers insightful articles and videos about franchising and live sessions to get advice from successful franchise professionals.

Learn about upcoming FYB programs by subscribing to our e-blasts: https://cfa.ca/franchisecanada/franchise-canada-e-blasts/

Get Caught Up on FYB! Find all Franchise Your Business content in brief video format at cfa.ca/blog/tag/watch-fyb. When it comes to the franchise business model itself, there are a wide range of key benefits to adapting the model to lift your concept to new heights and obtain scalable growth: • B enefit from partnering with independent franchisees in local markets who have invested in the system and have a strong motivation to make their franchise location successful. • Achieve accelerated growth by expanding through franchisee investment (compared to corporate expansion with company capital). • Attain further market share by expanding points of sale. • Share in the revenue generated by the system through royalties collected from franchisees (typically either a standard set fee or calculated as a percentage of gross sales volume). Ready to take your business journey to the next level? Learn all there is to know from seasoned pros at cfa.ca/franchiseyourbusiness.

Franchise Canada Directory 2025

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.

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ASK A MARKETING EXPERT

As a new franchisee, how can I quickly attract new customers and grow profitably? CONGRATULATIONS, YOU SET UP A NEW FRANCHISE LOCATION! That means you made it through the application and selection process, through training, through the launch, and you’ve started getting your first customers. This is where the “fun” challenge starts: how to grow the business and start making money. Growing profit, not just revenue In order to attract new leads and customers, you’ll need to invest in marketing. There are a number of different marketing strategies you can employ, from billboards to TikTok videos, each with their own merits and drawbacks. However, one key determining factor of success for a new franchisee is the importance of spending as little of your precious cash as possible. Remember: the less it costs to win new customers, the higher your profit margin and the more cash you keep from every sale. Here’s a top tip for early, profitable growth: leverage the great experiences of your early customers to generate referrals and reviews. This is known as customerdriven growth. Customer-driven growth Customer-driven growth is a powerful technique, underpinned by the idea that every customer should bring you (at least) one more. Here’s how it works: Step 1: Deliver amazing customer experiences For any business to thrive, it needs to deliver an amazing customer experience. In the early days, it’s extra important to focus on delivering knockout service, as it’s a way to separate your emerging business from established local operators. Think about how you and your team can go the extra mile, exceed expectations, and delight your customers. Step 2: Capture the voice of your customer To create customer-driven growth, you need to capture your customers’ thoughts on their experience with your business. I’m talking about reviews! It’s vital to develop a consistent system for sourcing reviews from customers; ideally a method that’s automated, that makes it effortless for customers to leave them, and that follows up when they forget. If that sounds like a lot, there is software that can help manage your franchise’s digital reputation. Step 3: Use those awesome reviews to create more opportunities In today’s world of information overload, 90 per cent of customers start out by searching on Google. Reviews play a massive role in helping you show up in those search results and ensuring that you get chosen versus your competition. But there is more that you can do to go the extra mile:

• I nclude reviews on your website. Reviews, used properly on a website, can have an immediate impact on your conversion rate (how many website visitors become new leads). This is because they add social proof: potential customers checking out your business can know that real people experienced great service. It’s even more powerful if you can show that those reviews are recent! •A mplify reviews on your social media. It can be daunting thinking you have to post on your social accounts every day. Review content is perfect for this: it’s free, customer-generated, and really resonates with your audience. A few likes or shares mean those reviews reach a much larger audience than if they just sit on your Google Business Profile. •A sk those happy customers for referrals. Another great thing about reviews is that they identify those vocal fans of your business that would be most likely to spread the word and refer their friends. Make sure you follow up good reviews with a referral request, as these are often the best leads you can find. Step 4: Every customer brings you (at least) one more By acting on the first three steps, you can turn your customers into a powerful growth engine for your emerging franchise location. Furthermore, by building a great reputation, you will also be building a strong and enduring competitive advantage that will ensure further growth for years to come. High growth, low cost The beauty of this customer-driven growth approach is that it is both highly effective and very low cost. As long as you’re investing in delivering an incredible service, reviews should pour in, whilst the costs associated with obtaining those reviews should be minimal. This means more profit and a stronger business. If you’re looking for a proven growth strategy that can help your new business quickly stand out, attract more customers, and grow profits as well as revenues, you should include a customer-driven growth approach as part of your plan. To make it even easier, you can explore software options that automate the whole process. Oscar Wimshurst Senior Manager, Partnerships NiceJob oscar@nicejob.com

Franchise Canada Directory 2025

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ASK A FRANCHISE EXPERT What factors should I know about when choosing a site for my business? THERE’S A TRIED-AND-TRUE ADAGE that floats around in the field of commercial real estate: location is everything. It sounds simple, but choosing the right site for your business is anything but. Choosing the right type of real estate for your business depends on a variety of factors: Location: Consider accessibility, visibility, and the surrounding neighbourhood. Accessibility doesn’t just mean that the building adheres to accessibility standards. Depending on the concept, think about how you will personally approach the location. For example, if you anticipate working on-site often, is the distance to travel and commute time convenient for you? Of course, a prime location is difficult to determine these days. Following COVID-19, it’s a landlord’s market out there, with Alberta and Ontario considered the toughest. Salespeople used to generate additional interest by telling prospective landowners that they have other clients looking at the same property, when in reality, there was no one else. Today, however, there are likely three other franchisees vying for the same site as you. Demographics: Understand the target market and whether the area aligns with your business. Your franchisor should understand what your target market is— including age, income, education levels, and cultural diversity—and communicate it with you. This will help you assess the market potential of a location, tailor your services to that area, and plan for infrastructure development. In the long run, this will enable a deeper understanding of your target audience, ensuring that the business and its services align with the needs and preferences of the local population. Keep in mind that, as a franchisee, you may want to be in a certain area, but it doesn’t fit the brand’s concept. For example, you may have your ideal mall site in mind, while your franchisor is focused on opening drive-thru locations. Many larger franchisors will benchmark their top three stores against a location that the franchisee is considering and provide guidance. Costs: Evaluate your initial investment, property taxes, maintenance fees, and potential renovation costs. One budget item that many investors don’t consider is ongoing common area maintenance (CAM) charges. Right now, the cost of CAM is high, and it may change from year to year, for better or worse. There are areas of the country where CAM is more expensive than rent, so be aware before signing on the dotted line. Other costs to take into consideration are whether you purchase a pre-built property or a piece of land on which

you intend to build. Some franchisors will allow locations to be self-built rather than pre-built or in a location built by the franchisor, and many franchisees think they will save a lot of money if they take it on themselves. However, if you don’t have construction experience, it will probably end up costing you more. Construction management is a headache and best left to the professionals—focus instead on your training and your employees’ training. Zoning regulations: Ensure the property is zoned for your intended business activities before putting in a letter of intent or lease agreement. To check the zoning of a new location, you can contact the local planning or zoning department, which will typically provide zoning maps and regulations. Risks you should be aware of include zoning restrictions affecting your intended use, potential changes in zoning laws, and compliance challenges. If you need a location to be re-zoned, the local planning or zoning department can help point you in the right direction. Remember that zoning changes will take time and money, so it’s often best to consider another location. Future growth: Assess the area’s potential for development and future market trends. This means that you’ll want to find out if the area has any planned redevelopments or construction in the future. Future growth can benefit a business by increasing customer demand, providing access to a larger talent pool, and creating opportunities for potential partnerships. While future growth is positive, prospective business owners should take care of opening their businesses during ongoing construction, as this can limit access and traffic to your store. To gauge if future growth is viable, businesses often analyze market trends and economic indicators and conduct thorough research on the target area’s development plans. One way for a franchisee to anticipate an area’s future growth is to contact the city planner and business improvement areas (BIA). BIAs are made up of commercial and industrial property owners and their nonresidential tenants who come together under a volunteer board of management to carry out improvements and economic development within their designated area and can be a great source of information about the future of businesses in the area. Competition: Analyze existing businesses in the area to gauge competition. Competition shouldn’t be something to fear—if similar businesses are in the area, there must be a reason! Healthy competition can drive efficiency, encourage creativity, and enhance overall industry standards. It also compels businesses to continuously innovate and improve their products or services to stay competitive.

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

ASK A FRANCHISE EXPERT Market research: Understand the demand for your business in that specific location. This ties into your franchise’s demographics and the demographics of the area and will help you identify potential challenges and opportunities. A franchisor typically assists franchisees with market research by providing access to consumer behaviour insights and industry trends. They may offer guidance on local market conditions, provide a competition analysis, and help franchisees understand their target audience. Additionally, franchisors often share best practices and proven strategies based on successful experiences in other locations to support franchisees in making informed decisions about their business.

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Real estate selection is an incredibly important early step in setting up a franchise location. By paying attention to the details laid out by the franchisor and analyzing the potential future of the business, prospective franchisees can set themselves up for success. Joel Friedman Owner/Vice President Southbrook Business Development Group joelfriedman@southbrookbusiness.com

ASK A LEGAL EXPERT

What’s the difference between a franchise disclosure document and a franchise agreement? A FRANCHISE DISCLOSURE DOCUMENT (FDD) and a franchise agreement are two of the most important documents involved in buying a franchise. However, the differences between the two documents, and when they apply in the franchise buying process, can often create confusion among prospective franchisees, and even franchisors. It is critical that prospective franchisees understand the difference between these two documents to make a well-informed investment decision. What is a franchise disclosure document? The FDD is a comprehensive written resource that is presented to prospective franchisees by the franchisor before the parties enter into a franchise agreement. The FDD contains vital information that serves as a tool for conducting due diligence and is intended to help prospective franchisees make an informed investment decision before entering the franchise agreement. Broadly speaking, the FDD will disclose detailed information about the franchisor, the franchise system, and the terms and conditions of the franchise opportunity. More specifically, the FDD will include information on: • the franchisor’s background, • the franchise system’s history, • any prior or pending litigation matters and bankruptcy, • all initial and ongoing fees, • the territory,

• the intellectual property rights, • the training programs and other support, • any advertising requirements, • financial performance data (if any), and • any other material facts about the franchise opportunity. In addition, the FDD will disclose a copy of any agreement relating to the franchise that the prospective franchisee will be required to sign. This means that a copy of the franchisor’s franchise agreement will be disclosed as part of the FDD. In contrast, what is a franchise agreement? Unlike the FDD, a franchise agreement is a binding contract that imposes legal obligations on both the franchisor and the franchisee and governs their relationship. Therefore, while a prospective franchisee may be provided with an overview of the franchise relationship in the FDD, as well as valuable information about the franchise system as a whole, the contractual relationship between the parties will only come into force once the franchise agreement is signed. Once the franchise agreement is signed, the prospect will officially become a franchisee. The contractual nature of the franchise agreement as opposed to the FDD is the most important difference to grasp between the two documents. (continued on page 54)

Franchise Canada Directory 2025