Franchise Canada May/June 2021 by Franchise Canada

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Franchising for the Future

PropertyGuys.com franchisees are playing a key role in transforming the real estate industry

FOR MORE INFO, VISIT PropertyGuys.com

SENIOR SERVICES BENEFITS OF FRANCHISEE FRANCHISES ACROSS CANADA ADVISORY COUNCILS

SPECIAL FOCUS ON CHILDREN & PETS To receive a FREE digital subscription to Franchise Canada Magazine, subscribe to Franchise Canada E-News for FREE now

RESTORATION NATION

Restoration franchises are helping Canada recover, one home at a time

ServiceFocused Franchises Issue

REAL FOOD FOR REAL LIFE. A REAL OPPORTUNITY.

the future is frozen As more people turn to meals prepared at home, M&M Food Market has become the franchise to own. Times are changing and our stores are changing right along with them. Never standing still, innovating, and adapting to the challenges of today while

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

Learn more about a franchise opportunity built for today and tomorrow at mmfoodmarket.com.

HELPING YOU DO MORE BUSINESS IS OUR BUSINESS Create a consistent payment experience across your franchise locations. Welcome our Consumer, Small Business and Corporate Cardmembers at your franchise locations. When franchisees accept American Express Cards, they get access to complimentary marketing programs such as American Express Maps®¹ so Cardmembers know you welcome their business.

To learn more about the benefits of accepting American Express, and how we can support your marketing efforts, visit www.americanexpress.com/canada/becomeamerchant

1. American Express Maps features eligible American Express Card accepting small merchants and is intended for general reference purposes only. It does not represent a comprehensive list of all Card accepting merchants. Data is updated from time to time and may not be 100% accurate. For a list of eligibility criteria or to access Frequently Asked Questions please visit https://icm.aexp-static.com/content/dam/one-amex/merchant/en-ca/footer/default/CAFAQs.pdf.

CONTENTS FRANCHISE

MAY/JUNE 2021

CANADA

Looking for a franchise? Discover

the best franchise business opportunities available now

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

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

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COVER STORY

Destination Restoration Franchise Canada explores four home restoration franchises that support Canadians when they need it most

FEATURES

Putting Service First How four commercial and residential services franchises are providing protection and comfort for Canadians at home and at work

Business-to-Business Support Explore five franchises that provide essential B2B services across Canada

Stimulating Discussion (and Growth) An effective franchisee advisory council can help both franchisees and the overall brand adapt to challenges and find ongoing success

Keeping Seniors Safe and Comfortable Franchise Canada highlights senior services franchises that provide care, comfort, and safety for Canada’s booming senior population

SPECIAL FRANCHISE FOCUS

A Drive for Success Discover four automotive service franchises that help Canadians get where they need to go safely and efficiently

4 Canadian Franchise Association

www.cfa.ca | www.FranchiseCanada.Online

Children and Pets Why children's and pet services are excellent franchise opportunities!

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

DEPARTMENTS

HOME-GROWN & LOCALLY-OWNED 100% Canadian Franchise Systems

MILLENNIALS IN FRANCHISING All the Right Moves Millennial franchisee Vlad Miklashevich finds success with Metropolitan Movers

LEADERSHIP PROFILE All in the Family Pizza Nova president Domenic Primucci shares how his family business has become a household name in the Greater Toronto Area

A DAY IN THE LIFE Helping Homeowners Cover Their Bases Saskatoon-based Bradly George outlines what a typical day looks like as a Pillar To Post Home Inspectors franchisee

THE FIRST YEAR Brewing Up Success How Chatime franchisee Keenan Wong and his son have teamed up to serve bubble tea to their community

ICONIC BRAND Serving Chicken and Success Mary Brown’s Chicken has been serving customers for more than 50 years, while creating rewarding business opportunities for Canadians

SHOW ME THE MONEY 4 Franchises for $50K-$150K

TUNE INTO NEW EPISODES OF SEASON 4 EVERY FRIDAY, AND CATCH UP ON SEASONS 1, 2, AND 3 NOW!

FRANCHISE FUN The Future of Franchising Ctrl V CFO Robert Bruski reveals how the virtual reality arcade has added a dash of innovation and fun to Canadian franchising

FRANCHISE TUTORIAL Tutorials 23 & 24 This issue: • Introduction to Dispute Resolution • Introduction to Termination, Transfers, and Assignments

COLUMNS

9 CFA CODE OF ETHICS 10 INDUSTRY NEWS 76 ASK THE EXPERTS 82 MARKETPLACE 87 ADVERTISERS’ INDEX 88 GIVING BACK

LISTEN & LEARN

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

FranchiseCanadaChats.ca

Visit www.LookforaFranchise.ca to find further information about the franchises featured in this May/June issue.

Franchise Canada

May | June 2021 5

PUBLISHER’S MESSAGE

SERVICING THE CHANGING NEEDS OF CANADIANS

t the time of writing, Canada is in the grips of a third wave of the COVID-19 pandemic. As the vaccine rollout intensifies, Canadian business owners look optimistically toward a time when they can (safely) engage with their communities again. Regardless of the economic climate, franchising remains a strong option for those looking to be their own boss, with a strong support system behind them. Franchised businesses have continued to meet the needs of their customers throughout the pandemic, even as these needs have shifted due to our “new normal.” Canadians continue to access services for their families, homes, vehicles, and businesses, many of which have been designated as essential services by provincial governments throughout the country. This ServiceFocused Franchises issue shines the spotlight on brands and franchisees who are delivering what their clients need in this difficult time. The cover story on page 15 introduces four home restoration franchises that work to restore Canadian homes when disaster hits. These franchises not only help families across the country get their lives back on track after damage to their homes but are also helping in the critical work of rebuilding the nation, one home at a time. On page 21, we delve into commercial/residential services franchises that are providing important services for homes and businesses, including renovations, fire extinguisher services, indoor air quality assessments, plumbing, electrical services, and much more. We also focus on franchises that are helping other businesses find success on page 27, through a wide range of services like accounting, promotional marketing, printing solutions, and flexible workspaces. Beyond improving and maintaining their homes and businesses, Canadians also always need to keep their vehicles in optimal driving condition. That’s where automotive services franchises like the ones featured on page 35 come in. These brands are helping to keep Canadians safe through vehicle maintenance, collision repair, glass repair, and more. We take readers through a variety of senior services franchises across Canada that help aging Canadians stay safe and comfortable at home on page 44. We also feature a special focus on franchises that provide services to children and pets (page 49) as Canadians look to keep

6 Canadian Franchise Association

their kids on track despite recent obstacles and add pets to their families to enrich added time spent at home. As you consider becoming a small business owner through franchising, it can help to learn from the experiences of franchisees who are finding ways to navigate these difficult times. On page 67, we introduce you to Chatime franchisee Keenan Wong, who is serving bubble tea to his Ajax, Ontario community alongside his son. We also hear about a day in the life of Pillar To Post franchisee Bradly George on page 64, who’s helping homeowners in Saskatoon navigate the critical home inspection process. For the inspiring story of young Metropolitan Movers franchisee Vlad Miklashevich, who started his franchise in the Halton region of Ontario at the start of the pandemic, turn to page 58. While there are service-focused franchises working hard to meet the needs of Canadians, there are also many other franchise opportunities available throughout the country. Check out Franchise Canada’s online franchise directory at LookforaFranchise.ca to search franchises by category, investment level, and more. You can also head to FranchiseCanada.Online to find educational information, success stories, and professional advice in the form of exclusive web content, videos, podcast episodes, and more. Also be sure to follow the Canadian Franchise Association on TikTok, Instagram, Twitter, Facebook, and LinkedIn. These are challenging times for all Canadians, but as this Service-Focused Franchises issue demonstrates, with the right resources and a lot of inspiration, you can find business ownership success through franchising, and be well on your way to making valuable connections with customers in your community.

Sherry McNeil President & CEO, Canadian Franchise Association

www.cfa.ca | www.FranchiseCanada.Online

Driverseat is a perfect franchise for couples... although many of our franchisees have a business partner or lead the business themselves. At Driverseat, franchisees hire Chauffeurs, market to customers and are an important part of their community as they build their transportation business. Owning a Driverseat franchise is rewarding in more ways than just the great revenue. This pandemic resilient business has experienced incredible success over the past year, with growth in new locations and in top line revenue. The business model is simple. Each franchisee provides Chauffeurs and in some cases shuttle vehicles for pre-booked transportation services like weddings, medical appointments, tours and employee transportation for companies. There simply is no other business that has this much opportunity. Be part of a growing dream with a business that enjoys high gross margin in a specialized field.

CFA Franchisees Choice Designation 4 Consecutive years

Winner of CFA Awards of Excellence

Extensive training and support programs

State of the art business technology solutions

Chamber of Commerce Innovation Award

CFA BOARD OF DIRECTORS BOARD CHAIR Gerry Docherty*, Good Earth Coffeehouse PRESIDENT & CEO Sherry McNeil*, Canadian Franchise Association 1ST VICE CHAIR David Druker*, The UPS Store TREASURER Lyn Little, BDO Canada LLP

PUBLISHER

Canadian Franchise Association (CFA)

SECRETARY & GENERAL COUNSEL

Larry Weinberg*, Cassels Brock & Blackwell LLP

VP, CONTENT & MARKETING Kenny Chan

PAST CHAIR John DeHart*, Hartify Franchise Consulting

EDITOR Lauren Huneault

CHAIR, LEGAL & LEGISLATIVE COMMITTEE

GRAPHIC DESIGNER Andrea Lee

Darrell Jarvis*, Fasken

CHAIR, FRANCHISE SUPPORT SERVICES

Kirk Allen, Reshift Media

EDITORIAL ASSISTANT Stefanie Ucci ADVERTISING SALES Nav Matharu AD COORDINATOR Andrea Lee

DIRECTORS

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

CONTRIBUTING WRITERS

*Executive Committee member

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

NATIONAL SPONSORS

Georgie Binks, Jessica Burgess, Lauren Huneault, Roma Ihnatowycz, Gina Makkar, David Chilton Saggers, Karen Stevens, Stefanie Ucci, Jordan Whitehouse, Kym Wolfe FRANCHISE FUN ILLUSTRATION Sam Gorrie FOR ADVERTISING INFORMATION:

Nav Matharu nmatharu@cfa.ca

TO SUBSCRIBE TO Franchise Canada

visit www.FranchiseCanada.Online or call 1-800-665-4232 ext. 238.

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

© 2021, 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 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.

8 Canadian Franchise Association

www.cfa.ca | www.FranchiseCanada.Online

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 contrac-

tual 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 in providing products or services to a franchisor or franchisee should encourage the franchises to comply with the spirit of this Code of Ethics. A franchise support services member should not offer or provide products or services if legislative or professional qualification is required to do so unless the franchise support services member has such qualification.

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

Franchise Canada May | June 2021 9

INDUSTRY NEWS

Your source for what’s happening in Canadian franchising Pro Fleet Care Introduces Services to Coastal Communities Pro Fleet Care announced the third anniversary of the introduction of their mobile rust control services to a unique market segment along coastal communities. Beach grooming and garbage collection equipment, air conditioner systems, metal structures, and recreation vehicles are affected by corrosion due to their proximity to the ocean. Clients such as local, county, and state agencies, as well as property owners and the general public at large benefit by using Pro Fleet Care’s products and services, as they can greatly increase equipment life expectancy by protecting against rust and corrosion. In 2017, Matthew Gierschick of Loris, South Carolina, came across an article about Pro Fleet Care which appeared in a farming magazine. “When I read the article about protecting farm equipment, it made so much sense to me. I recognized that the coastal region needed this product, so I contacted the founders of Pro Fleet Care and asked them about introducing the concept to South Carolina,” explains Gierschick. “Initially, people did not really understand the concept until I sprayed an item for them, and they saw the product working firsthand. Within the last three years, I’ve secured work with several local agencies, protecting their beach equipment. I have also developed a good following with the agriculture and farming community spraying their fertilizer equipment, trailers, trucks, tractors, and storage containers. This year, we are working on expanding our operations to provide services to clients with RVs along the coastal region, in addition to property owners both private

10 Canadian Franchise Association

and condo in order to protect their beach equipment and air conditioning equipment.” FASTSIGNS Recognizes Achievements and Honours Franchisees During 2021 Virtual Convention FASTSIGNS International, Inc., franchisor of FASTSIGNS ®, the sign, graphics, and visual communications franchise with more than 740 locations in eight countries worldwide, recently held its 2021 Virtual FASTSIGNS®/Signwave International Convention. Themed Celebrating Connections, the multiple-day event taught best practices as well as celebrated franchisee achievements and the continued growth of the franchise network in both sales volume and number of locations. Over 1,000 people attended, which included FASTSIGNS franchisees, centre team members, 275 first-time attendees, exhibitors, and corporate staff members. Attendees represented 509 centre locations in nine different countries worldwide. “While 2020 brought challenges, it also highlighted our network’s resilient nature as FASTSIGNS franchisees adapted their business models and pivoted to assist businesses, organizations, and ultimately their communities,” says Catherine Monson, CEO of FASTSIGNS International, Inc and chair of the International Franchise Association. “Our annual convention brings our franchise network together to recognize, honour, and celebrate their many achievements, as well as to engage in educational and networking opportunities to kick off the year. This one-of-a-kind event enabled us to celebrate our connections through FASTSIGNS, and it set the stage for an even more successful 2021.”

www.cfa.ca | www.FranchiseCanada.Online

CFA Members in the Restaurant Industry Participate in the Annual Restaurants Canada Show From February 28 to March 3, Restaurants Canada hosted the virtual Restaurants Canada Show with the theme, Feeding the Recovery: Rebuild, Reinvent and Reconnect, to help businesses in the restaurant industry recover from the impact of the COVID-19 pandemic. During the four-day event, speakers and experts in the restaurant industry participated in webinar presentations including curated exhibits, conferences, speaker sessions and panels, culinary experiences, and more. Among the many presenters included a variety of Canadian Franchise Association (CFA) members in the quick-service and fullservice restaurant industries. The following members participated in the virtual events: BDO Canada LLP, YUM! Brands, McDonald's, Tim Hortons, A&W Food Services of Canada, Workplace Safety & Prevention Services, Recipe Unlimited Corporation, Boston Pizza, and Silver Chef. Express Employment Professionals Tops Off Monumental Year with Sales Up 10 Per Cent in Q4 In a year filled with global economic uncertainty, international staffing giant Express Employment Professionals finished 2020 on a high note with sales up 10 per cent in Q4, 61 total franchise agreements signed, and numerous awards for industry recognition. Early in the year, the company announced the acquisition of Frontline Recruitment Group, a direct-hire staffing firm in Australia and New

INDUSTRY NEWS Zealand and is now expanding Express Employment Professionals franchises in the region. When the COVID-19 pandemic hit in March 2020, Express leadership pivoted all efforts to support franchisees, ensuring their survival through a once-in-a-lifetime event. This included temporarily adjusting the royalty agreement between the franchisor and its more than 830 franchises and other cost savings for franchisees. “While we hoped it would never be necessary, years of preparation and a strong business continuity plan ensured that Express would not only survive this pandemic but thrive as industry leaders,” says Express CEO, Bill Stoller. “Our amazing network of franchisees came to the table daily with ideas and support for their fellow business owners, creating an encouraging environment for each other in even the toughest times.” These efforts, combined with a focus on staffing essential businesses, propelled job openings to above pre-pandemic levels by the end of summer, with sales steadily climbing to record levels year-over-year. At the end of January 2021, sales were up over the previous year by nearly 15 per cent. Express sales topped out at $3.23 billion for 2020 and Express Employment placed a total of 526,000 employees at client companies. “Going into 2021, the future is bright for Express,” says Stoller. “We continue to focus on putting a million people to work annually and providing businesses with the HR and workforce solutions necessary to put the economy back on track.”

over. In addition to showcasing the resilient spirit of Canadian entrepreneurs, the survey results showed companies are adopting new technologies, such as collaboration software, e-commerce platforms, and workforce management tools like payroll to help adapt, innovate, and grow. “The global pandemic has brought unprecedented new challenges, trials, and tribulations for small businesses. We are proud of the high level of resiliency, innovation, and care for their communities that small businesses have shown despite these obstacles. Now, we need to ensure that small businesses continue to be supported, particularly in the hardest-hit sectors, while also clearing the way for businesses to grow, expand, and innovate,” says Alla Drigola, Director, Parliamentary Affairs & SME Policy at the Canadian Chamber of Commerce.

Wagepoint Releases 2021 Canadian Small Business Resilience Report Wagepoint, makers of online payroll software for small businesses, announced the availability of the 2021 Canadian Small Business Resilience Report. This report contains summarized survey response data from small business owners across Canada, as well as commentary and first-hand experiences from entrepreneurs and industry leaders, one year into the pandemic. “In spite of record employment losses in March 2020, demonstrated by a 70x jump in records of employment (ROEs), most small businesses have found ways to respond to radical change by pivoting their business models, adapting their workforce, leveraging relief programs, and embracing new technologies in order to not only move forward but to thrive,” says Shrad Rao, CEO of Wagepoint. “As a business built to serve and empower small businesses, we couldn’t be more proud of our fellow Canadian entrepreneurs.” Understandably, 60 per cent of small businesses surveyed said the pandemic had a negative effect on their business. At the same time, 65 per cent are optimistic that their business will recover when the pandemic is

Franchise Canada May | June 2021 11

ADVERTORIAL

FRANCHISING FOR THE FUTURE PropertyGuys.com franchisees are playing a key role in transforming the real estate industry BY LAUREN HUNEAULT

he current real estate model has been in place for a century, but thanks to PropertyGuys.com and its franchisees, it’s starting to look a lot different. “We believe that the real estate category is experiencing growth, especially in new models like PropertyGuys.com, because it is primed with a ton of disruption opportunities,” explains Ken LeBlanc, president and CEO of PropertyGuys.com. He notes the shift that has already happened in other industries such as shopping (Amazon), accommodations (Airbnb), transportation (Uber), and entertainment (Netflix). “The real estate category is the last real giant that is still dominated by a 100-year traditional model, but that clock is quickly ticking to turn it upside down to the benefit of buyers and sellers.” LeBlanc says that focus on buyers and sellers is key to the brand’s disruption of the market.

“At PropertyGuys.com, we firmly believe in empowering home buyers and sellers by putting them at the core of the transaction, whereas in the traditional real estate model, the agent is in complete control,” says LeBlanc. “Many Canadians are looking for more transparency in the process, control over what’s happening, and money in the bank after their real estate transactions.” He adds that PropertyGuys.com services are based on a flat fee (you only pay for what you get), instead of a commission percentage of the home’s value, which can save sellers tens of thousands of dollars. Innovation through technology As with all businesses, PropertyGuys.com felt the impact of the COVID-19 pandemic, but as LeBlanc notes, “The reality is that many people are still buying and selling homes.” And, thanks to technology

already in place to service a wide franchisee network across North America, franchisees were able to continue to conduct most of their business online, including interacting with customers. “We were already leading the way with virtual home tours, and they have become one of our biggest assets, as well as video chats to better serve and support customers safely, as opposed to face-to-face appointments,” says LeBlanc. Recognizing the importance of launching a new web platform just weeks before the pandemic was declared, LeBlanc says technology will continue to play a major role for PropertyGuys.com going forward. “We continue to introduce innovative services to ensure that franchisees and customers are supported, from e-signatures and buyer services to including remote signings (legal) and hosting our first virtual

ADVERTORIAL

franchise conference in February 2021,” he explains. “We also recently launched a new online home estimate tool to help answer the most popular question on prospective sellers’ minds: ‘how much is my house worth?’ Our franchisees are able to promote this locally to help reach more sellers in their area before they make a listing decision.” Franchisees are paving the way forward LeBlanc says franchisees play a crucial role in helping to advance the PropertyGuys.com concept throughout Canada and beyond. He notes that key benefits of franchising with PropertyGuys.com include access to a proven system for success, such as nationwide resources and support; robust technology tools; and the freedom to build your business around your own goals and lifestyle. On the other hand, the biggest challenge for LeBlanc and his team is to find the right franchisees for the right locations. “Because real estate is inherently local, our success in each market weighs heavily on selecting the right franchisee.” So what do those successful PropertyGuys.com franchisees look like? LeBlanc says they’re leaders from all backgrounds who want something different from the “9-5 corporate grind” and want to be in control of their own success in order to establish a better work-life balance.

To get up to speed on PropertyGuys.com and its approach to real estate, franchisees go through a rigorous orientation process at PropertyGuys.com University (PGU). After ‘graduating’ from PGU, they continue to take part in PGU+ training and coaching sessions. There are also opportunities for new franchisees to receive mentoring from more veteran franchisees, and franchisees can connect with each other through the online franchisee community. Operational support is also available seven days a week to assist franchisees and customers as required. The future of real estate As PropertyGuys.com continues to bring passionate franchisees on board who can help in transforming the real estate industry, what does the future look like for the brand? LeBlanc says PropertyGuy.com will “continue to strive to become a platform for everything real estate.” Through this platform, people will have access to a one-stop shop for residential, commercial, rental, and vacation properties. “We want to build a community where people enjoy flexibility – they get what they need, when they need it – instead of trying to fit into the box of the traditional industry model. That means keeping the theme of high-tech (with our platform) and high-touch (with our local franchisees) top of mind,” he explains.

Brand expansion will also continue in the long term, especially internationally, notes LeBlanc. PropertyGuys.com is looking to award 10 more master franchise agreements in the U.S. over the next three years. “To put that in perspective, each master franchise territory can have hundreds of franchise units to develop. We’re eying exponential growth in the near future and showing no signs of slowing down!” For those who are considering franchising in this uncertain time, LeBlanc says your success in franchising comes down to having the right mindset. “Success is all about attitude and passion, which starts within the entrepreneur. It will fuel your late nights, hard work, and challenging days. It will also boost you through your highest achievements, lead to life-long connections, and fuel your growth – all the way to the top.”

To learn more about PropertyGuys.com franchising opportunities: Email: opportunities@propertyguys.com Phone: (844) 333-7017

Make life easier. BDO’s franchise team is here to support franchisees through growth and recovery. Let us take care of your tax compliance and bookkeeping, delivering the information and advice you need to make strategic decisions to move your business forward. Contact us today. Lyn Little Partner, National Franchising Leader 905-633-4942 | llittle@bdo.ca

People who know, know BDO.SM Assurance | Accounting | Tax | Advisory

COVER STORY

DESTINATION RESTORATION

Franchise Canada explores four home restoration franchises that support Canadians when they need it most BY GINA MAKKAR

When a disaster strikes, an expert restoration service can mitigate risks and minimize losses. It can also help those affected not only rebuild and restore their homes, but also their lives. Here’s how top restoration companies with a renewed focus on servicing their communities have remained essential during the COVID-19 pandemic and beyond.

Franchise Canada May | June 2021 15

Supporting the Local The ProColor PROcess is a winning formula. A proven business model for almost 20 years, ProColor Collision provides an alternative to independent body shops that want to join one of the fastest growing networks in the world. Local business owners are supported by a team of sales, operational and marketing professionals, and backed by proven tools and ongoing training programs. ProColor Collision is committed to helping shop owners grow their business in their communities while leveraging strong established relationships with global insurers, suppliers and ﬂeet companies.

PROsper with the PROs Learn about franchise opportunities franchise@procolorcollision.com

STIMULATING DISCUSSION (AND GROWTH) The FAC usually meets formally two to four times a year, with informal phone calls and discussions taking place between these meetings. Before the COVID19 pandemic, they would meet at the franchisor’s head office, a resort, or a conference centre, with a meeting often occurring around the system’s annual convention. Travel, meeting room costs, and other business expenses are usually covered by the franchisor, but in some systems, these costs are paid by franchisees through the payment of FAC dues. Franchisees are usually not compensated for the time spent participating in these formal meetings. What are the benefits of a franchisee advisory council? Most successful franchise systems have an FAC. There aren’t any specific rules for when an FAC should be formed, but the sooner an FAC is in place, the better. With a smaller system, the FAC may be more informal, but it plays an integral role in helping to shape the policies and direction of the franchise. When implemented properly, the FAC can play a crucial role in the success of a franchise system. It encourages constructive two-way communication between the franchisees and franchisor, and it also fosters a positive culture of respect when these parties work together to evolve the brand. Successful franchisors recognize that their franchisees have a valuable contribution to make, as they’re the ones working on the front lines for the brand every day. Through their work on the FAC, franchisees feel more empowered, as the franchisor recognizes their contributions and respects their needs and opinions. Brian Leon, president of Choice Hotels Canada, a multi-hotel brand made up exclusively of franchisees, says an FAC can play an extremely crucial role in the overall health of the organization. “The key to any successful franchisor is effective communication, and an FAC can really augment and improve the level of communication between the franchisor and franchisees,” he explains. “From the standpoint of the franchisor, there is much you can learn from franchisees and unfortunately, we can’t talk to everybody about everything all the time. We, for example, have an advisory group that broadly represents our franchise community: those who know our business, who are doing a great job operating their businesses, and who are not shy about sharing feedback, whether it is positive or negative.” Leon adds that with all the challenges and uncertainty facing franchisees throughout the pandemic, an FAC plays an even bigger role in a brand’s ability to respond not just quickly, but also efficiently. “We needed to make decisions fast, but they had to be smart decisions that would best serve our franchisees through this incredibly challenging period,” he shares.

Brian Leon’s Top Tip: Ensure Two-Way Value “We have to be creating value for the overall franchise community, and we have to be respectful and making good value of the time these franchisees are giving up – we really need to create that opportunity to learn from our franchisees. We think of it as a forum to actually make better decisions.”

“This is where our CCFAB (Choice Canada Franchise Advisory Board) came in. They gave us a different – and crucial – perspective since they were the ones on the ground interacting with consumers and guests. They knew firsthand what the issues and priorities were at the hotel level. This allowed for the free flow of information and gave us the ability to react swiftly to help all of our hotels to the best of our ability.” Why should franchisees participate in their franchisee advisory council? “Franchisees should recognize the value that an FAC can have for their own business,” says Leon. “It is a way of holding the franchisor accountable, and ensuring their decisions serve everyone in the business and make it more successful. An advisory council looks at issues from the lens of the franchisee and that provides an important perspective to the franchisor. By getting involved with an FAC, a franchisee can share their voice and ensure that the interests of the broader franchisee community are addressed.” He also notes that it’s important for those franchisees who aren’t directly involved with the FAC to “engage in the process, to read the communications from the meetings, and to pay attention to the issues being discussed. The FAC exists to serve its franchisees, and the more engaged the franchisees are, the more effective the FAC is to the overall business and to everyone’s collective success.”

Watch the Franchise Tutorial Video on Franchisee Advisory Councils

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FRANCHISE TUTORIAL

TUTORIAL 23: THE FUNDAMENTALS OF FRANCHISING

INTRODUCTION TO DISPUTE RESOLUTION DESPITE BEST EFFORTS, there may come a time during a franchise partnership where a franchisee and franchisor disagree. This is a reality in any relationship. Maybe you disagree with how national advertising dollars are being spent, or think new menu items being introduced will not sell well in your market. Many franchisors have a franchisee advisory council where issues can be dealt with as a group. Another approach is to simply talk to the franchisor. Many issues can be resolved by open communication between the parties with mutual respect for each other’s viewpoint. Set up a face-to-face meeting and present your case, but at the same time keep an open mind and listen. You may not have heard the research and logic behind the decision. Similarly, the franchisor may not have fully taken into account the franchisees’ firsthand experience. If agreement still cannot be reached, there are options. The Canadian Franchise Association (CFA) has an Ombudsman program, a free program available to all franchisees and franchisors in Canada. The Ombudsman will listen to one or both sides and try to facilitate communication. All discussions are completely confidential and done informally by phone. Contact the CFA Ombudsman at 866-443-8255. A franchise agreement will typically address dispute resolution. The agreement may make reference to both parties being required to go to mediation to resolve differences. Mediation is an effective way to resolve disputes that’s quicker and often less costly than going to court. The costs of mediation are shared by both the franchisee and franchisor and will vary depending upon the complexity of the disagreement. The process is formal and involves both parties meeting face-to-face with a neutral third party facilitating discussions to reach an acceptable agreement. Mediation is voluntary and nonbinding. It’s important to find a neutral mediator that both the franchisee and franchisor agree upon. If an agreement can’t be reached through mediation, then arbitration becomes the next step to resolving the differences. Whereas mediation is non-binding, arbitration is binding and may result in a decision that’s not acceptable to one party. It’s a quicker and more efficient process than going through the courts and often less costly. By going to arbitration, the parties agree to give up their rights to pursue the dispute in court.

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The arbitration must be agreed to by both parties. The arbitrator is ideally someone who understands law and franchising, often a lawyer or judge. The franchisee and franchisor typically must agree on an arbitrator. If an agreement can’t be reached, then often the franchisee and franchisor will each pick an arbitrator and the two arbitrators then pick a third. The arbitration process is then conducted before a panel of three arbitrators. This will result in the costs, shared equally by the franchisee and franchisor, being as much as three times more as that of a single arbitrator. The arbitrator(s) listen to both sides and review all evidence. This may take several days or several weeks. Once all material is reviewed, the arbitrator(s) deliberate before making a final decision. The entire process may take several months. The last method of dispute resolution is going to court. In some cases, this may be the only way to find a solution, although it’s the most costly and can take years to resolve. This method is one that both franchisees and franchisors should look to as a last resort. Disputes are often a part of any long-term relationship. Good franchisors are sensitive to individual circumstances but make decisions for the system as a whole. Communication and discussions often resolve many issues. If not, it’s prudent to understand the resolution alternatives.

Watch the Franchise Tutorials video on Dispute Resolution

www.cfa.ca | www.FranchiseCanada.Online

FRANCHISE TUTORIAL

TUTORIAL 24: THE FUNDAMENTALS OF FRANCHISING

INTRODUCTION TO TERMINATION, TRANSFERS, AND ASSIGNMENTS AT SOME POINT DURING THE FRANCHISE relationship, there may come a time where a decision is made to bring the franchise partnership to an end. The franchise licence term may simply come to an end and you may decide not to renew, or there could be other reasons why an end of the franchise agreement would take place. All franchise agreements make reference to defaults. This is where you’re in breach of the franchise agreement. The franchise agreement has obligations that you must meet, and failing to meet these obligations will cause financial loss to the franchisor or cause damage to the franchise brand. Some defaults can be corrected or “cured.” Examples would be non-payment of royalties or fees, noncompliance with standards, or failing to submit reports and financial statements. In these cases, the franchisor will give you a reasonable amount of time to cure these defaults, usually 14 days. If you need more time due to unusual circumstances, let the franchisor know and they will often grant extensions. If you still fail to cure the default, then the franchisor has the right to terminate the agreement. Through your actions, you will decide whether or not the agreement comes to an end. There will be some instances where the franchisor has the right to terminate the franchise agreement without notice due to your actions. It may be that you have charged a security interest or sold the business without the franchisor’s permission, intentionally provided false or misrepresented financial statements, or you have given away confidential information. It may be that your company has gone bankrupt, into receivership, or simply been abandoned. These circumstances all reflect a failing business. It’s important to remember that a good franchise system will usually minimize your risk, but doesn’t make you immune. The nature of business is that there will always be a chance that the business will fail for a variety of reasons. Ideally, you and the franchisor have been communicating and dealing with the shortfalls of the business long before it gets to this stage. Know that, in the event that the business is failing, you have choices. One is to sell the business and transfer or assign the franchise licence agreement to a new franchisee. This is a far better choice than letting the business fail, as it allows you to recoup some, if not all, of your investment. You may also choose to transfer the

franchise agreement because the business is doing well and you wish to recoup a return on your investment. You may want to retire, there may be a partnership breakup, or you’ve simply decided you want to do something else. Understand that a franchise isn’t a life sentence. Although the term of the franchise agreement may say 10 years, you may choose to sell your business and get out sooner. When selling your business and assigning the franchise licence, be sure to check with the franchisor to see if they have a resale program. They may be working with qualified buyers who have an interest in your location. A transfer involves several requirements. The franchisor will want to approve any advertising that you do for the business sale. The franchisor must approve the new franchisee, all royalties and fees must be paid, and the franchise must be in good standing. There will typically be a transfer fee to pay to the franchisor, often a percentage of the current franchise agreement and, in some cases, a percentage of the total business sale price. The transfer fee will typically be used to cover the franchisor’s administration and training costs to facilitate the transfer to the new franchisee. Note, in many franchise agreements, there will be a clause where the franchisor has the right of first refusal and may choose to match the purchase price and buy the business themselves. There are several unique circumstances where a change in ownership takes place. In some cases, you may decide to assign shares to potential investors or even key employees. The franchisor will typically want to approve the new shareholders if it’s a substantial share transfer and will definitely need to approve the assignment of shares if it changes controlling interest in the company. There may be circumstances where you transfer shares to family members. Often franchisors will allow this to take place without a transfer fee. There may be the harsh reality of death or permanent disability. The franchise agreement will often contemplate these situations with terms allowing the estate a reasonable amount of time to transfer the franchise to a new franchisee and recoup the investment. During this time, the business must continue to operate and the franchisor will often step in and manage or arrange the management of the business for a fee. (continued on page 81)

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FRANCHISE TUTORIAL (continued from page 79) When the franchise is terminated, you’ll be required to immediately cease doing business under the brand. You’ll be required to return the confidential operation manuals and pay all outstanding fees and payments to the franchisor. In some cases, this may include future royalties that the franchisor would have earned if the franchised location had continued. Typically, you won’t be able to operate a competing business within a defined geographical area for a specified period of time. Franchise relationships will come to an end for a variety of reasons. In many cases, it’s you and your actions that’ll dictate if it will happen and how. In other

circumstances, it’ll be events outside of your control. When it’s time to bring the franchise relationship to an end, review your franchise agreement to have a full understanding of what the terms and conditions are for your agreement in these various scenarios. This will allow you to maximize your return on investment, or alternatively, minimize your loss. Watch the Franchise Tutorials video on Termination, Transfers, and Assignments

STUDY QUESTIONS TUTORIAL 23

TUTORIAL 24

1. The first method of dispute resolution a franchisee or franchisor should explore is: a) Mediation b) An open discussion c) Legal proceedings

1. A default is: a) When a franchisee is in breach of a franchise agreement b) Something that all franchise agreements make reference to c) Both a) and b)

3. Mediation is a non-binding process, while the results of arbitration are binding. True or False? a) True b) False 4. Going to court is the fastest and cheapest way to resolve franchisee-franchisor disputes. a) True b) False

2. When selling your business and transferring the licence to a new franchisee: a) You should advertise and conduct the sale without notifying the franchisor b) You must allow the franchisor to approve the new franchisee c) You will never pay a transfer fee 3. If your franchise agreement is terminated, you can open a competing business next door right away. True or False? a) True b) False 4. Franchise relationships can come to an end for a variety of reasons. True or False? a) True b) False

Answer Key: 1) c 2) b 3) b 4) a

2. The costs involved in mediation, arbitration, or a court case are paid for by: a) The franchisee b) The franchisor c) Splitting the cost equally between the franchisee and franchisor

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Answer Key: 1) b 2) c 3) a 4) b