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A Canadian Franchise Association Publication / www.FranchiseCanada.Online

DIRECTORY 2026 - YOUR COMPLETE SOURCE GUIDE TO FRANCHISING IN CANADA

FRANCHISE SOURCE GUIDE 2026 $24.99 PM 41043018

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CONTENTS FRANCHISE

DIRECTORY 2026

CANADA

Looking for a franchise? Discover

the best franchise business opportunities available now

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

Get Started Today!

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

LookforaFranchise.ca

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!

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

www.cfa.ca | www.FranchiseCanada.Online

Franchising Basics: How Do I Buy a Franchise? Franchise experts weigh in on what you need to know when taking the big step into business ownership Due Diligence Checklist

Buying a Franchise Resale Location vs. Building a New Location Everything you need to know to make this important decision for your new franchise

The Basics of Creating a Business Plan Follow these steps to create a detailed plan and set your new business up for success

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

DEPARTMENTS

Expanding Your Franchising Horizons Key legal considerations to help you grow to multiple franchise units The Tools You Need to Nail Local Store Marketing Insights and tips to elevate your marketing strategy with a focus on local communities

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

Seven Steps to Franchise Your Business Want to take the next step to grow your business? Find out how to convert your thriving business into a franchise

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

Ask the Experts Top tips from legal, marketing, financial, and franchising experts

SEASON 9 IS NOW AVAILABLE!

Publisher’s Message

CFA Code of Ethics

How to Use This Directory

Franchise Brands Listings

224

Franchise Support Services/ Suppliers Listings

246

Franchise Brands Index

253

Franchise Support Services/ Suppliers Index

254

Advertisers’ Index

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. 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.

LISTEN & LEARN

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

FranchiseCanadaChats.ca www.youtube.com/ @CanadianFranchiseAssociation

All information listed for both Franchise Brands and Franchise Support Services/Suppliers in the 2026 Franchise Canada Directory is current as of October 31, 2025.

Franchise Canada Directory 2026

PUBLISHER’S MESSAGE

SUPPORT FOR SUCCESS

here’s a common saying about franchising: You’re in business for yourself, but not by yourself. It represents the strength of the franchise business model, the ability to realize the dream of owning your own business, but with the support of an established system behind you. In a time when record numbers of Canadians are hoping to realize their entrepreneurial dreams, the franchise industry offers a pathway to success. Established systems have shown themselves to be resilient, weathering the economic uncertainty of the past few years. And everyday Canadians are looking outside the bounds of an unstable job market, towards opportunities to be their own boss. We see these trends playing out when we look at the franchise industry’s economic contribution. Projected to be worth $120 billion by the end of 2024, franchising actually exceeded those expectations, growing to a $128 billion industry. Current projections place the industry’s GDP contributions at $133.3 billion at the end of 2025. Franchising also employs nearly 2 million people coast to coast to coast. By picking up this annual directory, you’re counting yourself among the many prospective small business owners who may join this powerhouse industry. Within these pages you’ll find a veritable wealth of opportunities—more than 1,400 franchise systems across dozens of industry categories. You’ll also find valuable information to help you start your franchise journey off on the right foot. On pages 12 to 60, we’ve provided a number of educational resources to guide you, with everything you need to know from finding the right franchise brand for you to signing your franchise agreement. Want to take your learning even deeper? Visit FranchiseCanada.Online to check out articles, videos, podcast episodes, inspiring franchisee stories, and franchise tutorials that will help you along your way. Be sure to subscribe to our Franchise Canada E-News to get the latest content from Franchise Canada magazine delivered straight to your inbox.

Beginning on page 61, you’ll find our comprehensive directory of franchised businesses, organized by sector. As you scan these pages, make sure to Look for the Logo! The CFA Member logo is your sign that a brand has signed on to the Canadian Franchise Association’s Code of Ethics (page 10) and has committed to excellence in franchising, marking a brand that dedicated to providing the guidance and support franchisees need to succeed. We’ve also included a robust section of franchise support service and supplier members (starting on page 224), experts in areas such as franchise law, financing, and consultant services who can play a vital role in your journey to business ownership through franchising. You’ll want to keep these handy as you search for opportunities and enter the ownership phase—remember, it takes a team of professionals to set your business up for success! As you embark on your exciting journey into franchising, the CFA is happy to welcome you into the franchise community. This directory is more than a resource: it’s a roadmap to your future. Best of luck as you take those first steps, and remember to look for the CFA logo as your guidepost along the way!

Sherry McNeil President & CEO Canadian Franchise Association

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

• We provide the doctors • Patients are waiting • Government funded Access to medical attention is a basic human right, we need to make it a reality for everyone Own your own clinic and pharmacy Territories are going fast, reach out now Franchise@CanadasMedicalClinic.com or call 778-840-3077

psst… You don’t need to be a doctor

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

PUBLISHER

Canadian Franchise Association (CFA)

Darrell Jarvis*, Fasken Martineau DuMoulin LLP

SENIOR EDITOR Joelle Kidd

TREASURER Lyn Little*, BDO Canada LLP

CONTENT PRODUCER Alyssa Thulmann

CHAIR, FRANCHISE SUPPORT SERVICES

GRAPHIC DESIGNER Andrea Lee

Paul daSilva*, RBC

CHAIR, LEGAL & LEGISLATIVE COMMITTEE

Andraya Frith*, Osler, Hoskin & Harcourt LLP DIRECTORS

Andrew Arminen, Metal Supermarkets Jon Domanko, Restaurant Brands International Chuck Farrell, Pizza Pizza Dixie Ho, Mr. Lube + Tires Arno Krug Jr., CEFA Early Learning Scott McCannell, Foodtastic Ken Otto**, Redberry Restaurants Nathan Oxford, Jani-King Canada John Prittie, Koala Insulation Angela Rollins**, Great Clips Fiona Styant, CFE, MOLLY MAID Canada Cailin White, Boston Pizza Thomas Wong, CFE, Kevito Group *Executive Committee member **Franchisee Representative

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

ADVERTISING SALES

Jad Cheaib, Richard Davies AD COORDINATOR Andrea Lee PRINTING Premier Printing FOR ADVERTISING INFORMATION:

Richard Davies, Senior Sales Consultant rdavies@cfa.ca Jad Cheaib, Sales Representative jcheaib@cfa.ca TO SUBSCRIBE TO Franchise Canada

visit www.FranchiseCanada.Online Return Undeliverable Canadian Addresses to: Canadian Franchise Association 5399 Eglinton Ave. West, Suite 116 Toronto, ON M9C 5K6

We invite your comments, questions and suggestions. Please contact us at editor@cfa.ca or www.cfa.ca/ franchisecanada/franchise-questions.

© 2026, 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 FRANCHISOR:

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

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, the UPS Store, Great Clips, 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

THE CANADIAN FRANCHISE ASSOCIATION

Advocacy

Brand Awareness

Education

Community

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

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

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

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.

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 LOOK FOR only after they undergo a review proTHE LOGO cess performed by a committee of their peers. Look for the CFA Member logo when searching for franchise opportunities to ensure you partner with an ethical brand committed to franchising success. Members join the CFA voluntarily, as franchise systems are not obliged to belong to any trade organization. CFA members share the conviction that their commitment to excellence in franchising improves the industry as a whole for everyone involved, including franchisors, franchisees, suppliers, and customers. Realistically, however, what the Association can’t do is protect potential investors from making bad business decisions. The CFA doesn’t have specific punitive powers to use

against members if they violate the Association’s Code of Ethics. Members, however, may use the confidential, complimentary services of a third-party and neutral ombudsman (available through www.cfa.ca) to help resolve disagreements between franchisors and franchisees. We fulfill our mission by providing leadership, trust, credibility, and opportunity. 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 67,000 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

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. Franchisees with CFA member brands can also take advantage of the full suite of educational and events programming offered by the CFA every year. This includes free weekly Learn & Grow webinars, discounted access to the CFE (Certified Franchise Executive) program, participation in editorial coverage through Franchise Canada magazine, and more! Visit cfa.ca to learn more. 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

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!

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Franchise Canada Directory 2026

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:

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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.

Franchise Canada Directory 2026

ADVERTORIAL

One System, Two Franchising Paths: A Scalable Approach to Commercial Cleaning How JDI Cleaning Services created two franchise paths to support long-term growth

n service-based franchising, success doesn’t follow a single path. Some entrepreneurs are motivated by hands-on ownership and close client relationships, while others are driven by leadership, growth, and the opportunity to build teams and markets. At JDI Cleaning Services, the franchise model is intentionally designed to support both—within a single, integrated system. JDI has spent decades refining a structure that allows franchise owners to build sustainable businesses aligned with their goals. The result is a franchise platform that combines accessibility with scale, offering two complementary ownership paths: local franchise ownership and regional franchise leadership. Two paths, one system Local franchise owners lead frontline operations, employing a team, managing client relationships, and delivering service to commercial clients of all sizes through a proven system that emphasizes reliability and professionalism. This ownership path offers autonomy, flexibility, and a direct connection between effort and outcomes—appealing to entrepreneurs who value active involvement and a direct connection between effort and results. Regional franchise owners take on a broader leadership role. Rather than managing accounts directly, they focus on developing a defined and exclusive territory by supporting local franchise owners through sales development, ongoing coaching and training, and quality oversight. Their role is central to driving growth at the local level and ensuring the consistent service standards JDI customers have come to expect across each market. “Both roles are essential,” says Anita Elliott, President of JDI Cleaning

Services. “Our dual-path structure enables JDI to grow responsibly, maintaining service quality while creating opportunities for entrepreneurs with different goals.” Built on experience and designed for growth Founded in 1992 and franchising since 1996, JDI Cleaning Services has grown steadily across Canada. Today, the organization supports more than 180 local franchisees and 17 regional franchisees, alongside corporately operated businesses, United Janitorial & Drake Clean Up Systems and a U.S. franchise brand, SparkleTeam. The strength of JDI’s structure lies in alignment rather than hierarchy. From local franchise owners to regional franchisees and JDI’s National Support Centre, the system is designed to provide meaningful support at every level. JDI’s model is intentionally designed with low barriers to entry, allowing entrepreneurs to invest in themselves without the burden of heavy upfront costs. Under both ownership models, franchise owners benefit from best-

in-class/established systems, operational support, and a clear framework for growth. Culture as a competitive advantage Many franchise owners within the JDI network are long-tenured operators, family-run businesses, or multigenerational owners—creating an environment where collaboration and mentorship are part of everyday operations. Regional franchise owners play a key role in reinforcing that culture, acting as mentors, coaches, and connectors within their markets. “Systems matter, but culture is what sustains them,” says Elliott. “When people feel supported and connected to something bigger, they take more pride in their work—and that shows up in the experience our clients receive.” The commercial cleaning industry continues to offer stability and recurring revenue across economic cycles. JDI’s franchise structure adds another dimension—one that recognizes that successful entrepreneurs bring different strengths, experience levels, and ambitions to the table.

For more information, visit www.JDICleaning.com

Franchising Basics: How Do I Buy a Franchise?

Franchise experts weigh in on what you need to know when taking the big step into business ownership You’re ready to own your own business and have found a concept you love and want to invest in. But how do you take the next step? Franchise Canada reached out to four experts to help demystify the process of buying a franchise. Below, find out how to make your entrepreneurial ambitions a reality, with the help of a franchise consultant, franchise lawyer, financing expert, and franchise accountant. Your franchise fit The question of which franchise brand is right for you can be overwhelming—after all, there are franchise opportunities in just about every industry sector and across a wide range of investment price points. According to consultant Andrew Seid of MSA Worldwide, the most important element to consider is not the details of the product or service but whether that franchise is the right cultural fit for you. “Culture is key,” says Seid. Franchisees should make sure a potential franchisor’s culture prioritizes three things: “open communication, honesty, and collaboration.” “Of course, all the business elements need to make sense—return on investment (ROI) opportunity; what investment level you can afford; what fits your skill

set; etc.—but if the franchisor’s culture does not prioritize those three things, you likely won’t want to sign up,” he says. Because franchisees are committing to following a system, trust in the franchisor is an important element. “Franchisees need to trust that the franchisor is making decisions with the best interests of the brand in mind. Being able to collaborate and be a part of the discussions that go into those decisions can be key in building that trust.” When vetting a franchisor, along with determining whether the business model is profitable, Seid recommends asking “how they evaluate success, both for the brand as well as individual franchisees.” The answer should revolve around franchisee success and continually improving the unit economics for franchisees in the system. “If their

Andrew Seid, MSA Worldwide

Franchise Canada Directory 2026

FRANCHISING BASICS: HOW DO I BUY A FRANCHISE?

Peter Viitre, Sotos LLP

focus is on how many franchisees they’ve sold and how fast the brand is growing, that would be a red flag for me,” he says. Seid also recommends speaking with as many current and former franchisees of the brand as possible before making your final decision. “Not only can you gather important financial and other hard data, but you’ll be able to get a better understanding of the culture, communication, and other soft skills that the franchisor may or may not possess.” He adds, “Franchisees who have exited a system are some of the best validators for a brand. If they can tell you that even though they might not have had the best success as a business, that they were treated fairly and the franchisor worked with them to help them leave the system with grace and dignity, that is the type of franchisor I want to be aligned with.” Legal concerns When buying a business, it’s important to consult a legal professional. For prospective

franchisees, a franchise lawyer’s specialized knowledge is essential to help demystify the Franchise Disclosure Document (FDD), a document provided by the franchisor to break down the various elements of the business. This document is “the second-best source of information about the franchise opportunity” you can get, says Peter Viitre, partner at Sotos LLP. “I say second best because, really, the best way to find out what a franchise system is all about is to talk to existing and former franchisees.” Speaking with franchisees yields crucial information about the culture of the system as well as earning potential, which—because stating earning claims is optional for the franchisor—may not be part of the FDD. The FDD “can be daunting,” Viitre notes, “so you really want to get a good lawyer and a good accountant to go through it with you and highlight the things you need to know.” Going into business, he says, is all about risk: “Identifying the risks that are

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

FRANCHISING BASICS: HOW DO I BUY A FRANCHISE? there, that you’re going to need to deal with by either mitigating them, working around them, by insuring against them, or at least understanding them so that you can figure out whether it’s a good deal for you.” Some risks may include signing with a new or emerging franchisor, or a foreign franchisor that hasn’t opened a location in Canada yet. “All of those things can add risk to the proposition, and you’ve got to balance that against your own skills and against the amount of money you’re being asked to pay for the privilege of going into the system.” He adds, “Only your own business advisors and legal advisors can help you make that assessment.” In order to finalize a franchise decision, a new franchisee has to sign a franchise agreement, which sets out rights and obligations of both franchisee and franchisor. Viitre also recommends enlisting a franchise lawyer’s help to make sure you understand everything about this document and any other attached, relevant documents

such as a personal guarantee or general security agreement. While it may not be top of mind for new franchisees, Viitre also stresses the importance of thinking about an exit strategy from the moment you begin to consider buying your business. This includes discussing personal liability in case of a default, but also considering succession planning. Franchise financing Another expert it’s crucial to consult with when determining whether to make a franchise investment is your bank. Your advisors can help you determine financing requirements, the cost of your investment, and all the expenses included in running a franchise. To understand the different financing options and programs available, we turned to Paul daSilva, national VP of franchise markets for RBC. “Banks want to know, what is the total cost of the project, and how will you finance

Paul daSilva, Royal Bank of Canada (RBC)

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FRANCHISING BASICS: HOW DO I BUY A FRANCHISE?

Rick ChittleyYoung, MNP LLP

that cost?” says daSilva. “For franchisees getting into buying a franchise, you want to try and cover as much of your investment as possible.” Most first-time franchisees take advantage of a Canada Small Business Financing Loan (CSBFL), daSilva notes. However, “there are lots of financing options!” daSilva adds. Beyond the CSBFL, first-time franchisees can turn to regular bank loans. “Go to the bank where you already have your business,” he suggests. “They know who you are, they know your credit history.” Credit card financing is another option, though daSilva says he doesn’t recommend it because it’s much more expensive. “The other one we see a lot is friends and family,” he notes. Groups of friends or family members sometimes pool their assets to purchase a franchise. Other times, parents want to help their children with an investment—a franchise is a great business opportunity in this case, daSilva notes, as the proven system provides coaching and support for new business owners that makes it a much safer investment. When it comes to calculating the cost of your total investment, “You want to make sure there are no surprises,” daSilva says. “You also, in this environment, need to make sure you have liquidity—the ability to inject funds if an unexpected fee pops up. You want to make sure you have the capital to keep the business running.” Accounting for everything As you launch your business, it’s a good idea to consult with a franchise accountant who knows the ins and outs of franchising and can help with budgets, cash flows, and creating a business plan. A business plan is a crucial step in laying out the goals of your franchise and your strategy for success. Most importantly, it provides banks, investors, and lenders with a sense of the scope and specifics of your future business. “One of the main purposes of a business plan is to help the business owner, as well as the clients, stakeholders, and partners, visualize the direction in which the franchise is headed,” says Rick Chittley-Young, partner, assurance and accounting, at MNP

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LLP, an accounting firm. A business plan should begin with a summary of the franchise you hope to purchase, including a company profile of the franchisor, an assessment of the general market your franchise will cater to, and a description of your strengths and experiences as a manager, Chittley-Young says. “This is especially crucial, as the quality of management can ultimately make or break a franchise.” Next, your plan should analyze your business competitors and explain how you expect to meet sales and revenue targets. It should include a marketing section laying out “demographics and characteristics of the customer base, the expected market share, and the overall marketing strategy,” Chittley-Young says. After that, an operations section can explain the logistics and business principles that show exactly how your products and services will be produced. Finally, a section outlining your personal financial situation and how you expect the business to perform is crucial. When you’re ready to launch your business, Chittley-Young says, accounting should be one of your top priorities. New business owners might not give as much thought to maintaining clear records, but this is crucial for every small business owner, he adds. “New franchisees, one, need to make sure they have enough capital, and two, that they have up-to-date weekly, monthly, and yearly accounting records on a timely basis, that they can analyze and benchmark against other franchisees and against the market,” he says. Luckily, with modern tools such as QuickBooks, Dext, and POS systems, he notes, there’s no reason a franchisee’s accounting systems should fall more than a month behind. Chittley-Young’s top advice for franchisees? “Make sure you’re in a business you want to be in, and make sure it’s capitalized— that it has funds for the future and contingencies built in.” And, he adds, “Expect the unexpected.” Read an expanded version of this article, including more tips on franchise financing, on FranchiseCanada.Online!

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Due Diligence Checklist

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

Research the franchise system You should undergo a self-assessment, outlining your skills, assets, and abilities, before looking into specific franchise opportunities. Once you have a good idea of what you can contribute to your franchise business, you can create a short list of franchise systems that you want to research further. These systems should take the aforementioned strengths and abilities into consideration, along with your interests and passions. You can start by heading online to review the system’s franchise website and any other information about the system available online. You can also conduct this research in-person by attending a franchise-specific tradeshow, where you can meet and speak with representatives of the franchise system, and/or by visiting one of the brand’s established franchise locations so you can see firsthand how the franchise operates in its market. Some key factors to look for when researching franchise systems include franchisee selection, training, communications, marketing, problem-solving, rewards, and corporate culture. You’ll also want to evaluate the market, consumer demand, location, resale value, whether it’s an established or new and emerging system (and the pros and cons of each), and whether it’s a resale location. Submit a completed franchisee application form to the franchise system Once you’ve started researching specific franchise systems, you can fill out and submit a franchise application

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DUE DILIGENCE CHECKLIST form, which will provide the franchisor with important details about your background and experience, your financial information, and the skills you have to offer. Keep in mind that as you’re conducting your due diligence, the franchise system will also be carrying out their own research to determine whether, based on their experience, you’ll be a good fit as a franchisee of their system. Meet with current franchisees of the franchise system “You’ll want to talk to eight to 10 existing franchisees of the franchise concept that you’re most interested in. You’ll want to learn, from their perspective, what’s required to drive success. You’ll also want to know a lot about their relationship with their franchisor,” advises Gary Prenevost, president of FranNet, Southern Ontario and Eastern Canada. These franchisees should have different levels of experience, and should be chosen from franchise locations at different performance levels. Meet with franchise system representatives You’ll get to this stage if you’re almost ready to make a purchase. You should be prepared to fly to the franchisor’s

head office for a Discovery Day, where you’ll meet with their leadership team and get a final sense of whether the culture will be a good fit. “Essentially, you’re going there to look for reasons to say ‘no’ and hope that you don’t find any. You won’t make a purchase decision while you’re there, but usually within one to three weeks after you return, you should be ready to sign a franchise contract and pay the initial franchise fee,” explains Prenevost. Most established franchisors have a franchise review process in place that clearly defines their practices and procedures to help prospective franchisees make informed decisions, so you can follow this process, asking any questions that come up along the way. Build a comprehensive business plan A business plan lays out the goals of your franchise business, providing banks, investors, and lenders with an idea of the scope and specifications of the project in which you’re investing. This plan should include cash flow projections for the first three to five years your franchise will be in business, outlining the earning potential of your location and the strategy for achieving these goals.

Franchise Canada Directory 2026

DUE DILIGENCE CHECKLIST Your business plan should start with a summary of the franchise you intend to purchase, including essential background information about the franchisor and their track record. The financial section of the business plan should include your personal financial information, along with financial projections for your franchise. A realistic budget should also be provided, with details about the cash flow projections and profit and loss forecasts. The business plan should also analyze the marketplace, and should contain information about the products and services you’ll be providing, consumer demand, and the customers who’ll be looking for these products and/or services. Consult with franchise professionals As you contemplate your franchise investment decision, you’ll want to enlist the help of franchise professionals who can provide you with the guidance you need to make the right decision. • A franchise consultant can help you identify your objectives as you carry out a self-assessment, help you understand the franchisee/franchisor relationship, introduce franchise opportunities that you may not have considered, assist in evaluating and

analyzing opportunities, and introduce you to other franchise experts. • A franchise accountant can help you pinpoint the profitability of the venture, and can also help you calculate the start-up costs, assist you in reviewing documents from the franchisor, advise you on the advantages and disadvantages of a franchise investment opportunity, and help you put together your business plan. “In preparing to purchase a franchise, the prospective franchisee should look at fixed and variable costs to determine the break-even sales figure required to turn a profit. Understanding this figure, and the prospective market the franchisee will operate in, will allow the franchisee to determine whether the franchise location has the potential to generate sufficient revenues to cover costs,” notes Little. • A franchise development representative of a bank can help you determine the financing plan that works best for you and your business, providing financial solutions that are tailored specifically to your franchising situation. A franchise banker can also be an asset when it comes to figuring out your financing requirements so you’ll be able to sustain your business in the long term.

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

DUE DILIGENCE CHECKLIST • It’s also critical for prospective franchisees to enlist the services of a franchise lawyer, who can explain and elaborate on the details of the franchise agreement, and review and explain the disclosure document, specifically outlining what each party is expected to provide. A franchise lawyer can also help in negotiating any terms or conditions of the franchise agreement as required. Review the franchise disclosure document In addition to speaking with the franchisor, existing franchisees, and franchise professionals, prospective franchisees should receive a franchise disclosure document once they reach a certain point in their investigation. As an important part of a proper due diligence process, disclosure documents contain a summary of information on the franchisor, its executive team, and its franchise agreements. In Canada, franchise systems are required by law to provide a disclosure document to prospective franchisees in provinces where franchise legislation is in place (currently British Columbia, Alberta, Manitoba, Ontario, New Brunswick, and Prince Edward Island, with Saskatchewan set to enact legislation in June 2026).

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

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Franchise Canada Directory 2026

Buying a Franchise Resale Location vs. Building a New Location Everything you need to know to make this important decision for your new franchise BY KAREN STEVENS

ne of the biggest early decisions each new franchisee faces is whether to purchase a franchise resale location or build a new store from scratch. Both options have their advantages and drawbacks, and understanding these factors is an important part of making an informed decision. So, which should you choose? Below we’ll explore the benefits and challenges of buying a franchise resale location vs. building a new location to help you make an informed decision.

Buying a franchise resale location

Buying a franchise resale location means you’re purchasing an existing franchise outlet or business that is already established and operational. Instead of building a new franchise from the ground floor, you’re taking over an existing franchise unit that is already up and running. So, should you buy a resale location? The answer isn’t a straightforward “yes” or “no”; the decision should be based on individual circumstances, goals, and risk tolerance. Here are some benefits and challenges to consider as you make your decision. BENEFITS: •E stablished brand recognition: Taking over a franchise resale location allows you to tap into an existing customer base and benefit from the established brand recognition. This can save you significant time and effort in building customer awareness and loyalty.

•P roven track record: Resale locations often have a track record of sound financial performance and operational success. This information provides valuable insight into the business’s potential profitability, making it easier to assess risks and make informed investment decisions. •T rained staff and infrastructure: A resale location might come with trained workers and existing infrastructure, such as suppliers. This can help you avoid the hassle of hiring and training new employees and setting up operational systems from scratch. •F aster start-up time: Buying a resale location typically means a quicker start-up process compared to building a new location. With an existing facility, plus permits, licenses, and a lease already in place, you can focus on other aspects of running the business. CHALLENGES: •H igher initial investment: You may need a larger upfront investment to purchase a resale location compared to building a new location. • Limited flexibility: Existing locations may come with established practices, procedures, and physical layouts that limit your ability to customize the business to your preferences. This lack of flexibility can be challenging if you want to run the franchise in a specific way. •P otential hidden issues: While resale locations may have a proven track record, there is always the risk of hidden problems that might not be immediately

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

BUYING A FRANCHISE RESALE LOCATION VS. BUILDING A NEW LOCATION

obvious. These issues could include declining sales, market saturation, or maybe a negative reputation with the local customers.

Building a new franchise location

When you buy a franchise in a new location it means you have to build your franchise from the ground up. You’ll go through the site selection process and conduct thorough market research to find the right place to open your franchise (some franchisors help with this). Then, you’ll have to do all the legwork of construction/renovations, hiring and training staff, and marketing to the new area. Here are some benefits and drawbacks to consider. BENEFITS: •C ustomization and branding: Building a new franchise location allows you to design and customize the space to align with your vision, branding, and target market. This flexibility provides an opportunity to create a unique customer experience that sets your business apart. •L ower initial investment: Compared to acquiring a resale location, building a new franchise location can often be more cost-effective. You have greater control over the construction and design process, which can enable you to find more cost-efficient solutions and negotiate better terms with contractors and suppliers. •M arket selection: Building a new location allows you to choose a market or location that aligns perfectly with your business goals. You can assess factors like demographics, competition, and market potential, ensuring your business is strategically positioned for success.

•U ncertain performance: Unlike a resale location with a proven track record, a new location is more uncertain. It may take time to establish brand recognition, build a customer base, and fine-tune operations. This unpredictability poses a greater risk for entrepreneurs. • Operational challenges: Building a new location requires meticulous planning and project management skills. Coordinating various contractors, suppliers, and construction timelines can be complex and stressful. It requires careful attention to detail to ensure everything is executed smoothly. Buying a franchise resale has both advantages and challenges. The main advantage is that you’re acquiring an existing business with a known history, which can reduce the risk compared to starting from scratch. On the other hand, there could be specific reasons why the current owner is selling, and you need to investigate these thoroughly to avoid inheriting any underlying issues. Remember, as with any significant investment, it’s crucial to seek professional advice from franchise accountants, lawyers, and business advisors to ensure you’re making a sound investment. Understanding the current state of the business and having a clear understanding of the franchise agreement and responsibilities is vital for a successful franchise resale acquisition. By carefully weighing these benefits and challenges, you can make an informed choice that aligns with your longterm business objectives. Want to hear firsthand from franchisees who have purchased through a resale? Visit FranchiseCanada.Online to find franchisee resale success stories!

CHALLENGES: •L onger start-up time: Constructing a new location involves a more time-consuming process than acquiring a resale location. You must navigate land acquisition, planning and zoning regulations, construction permits, and other bureaucratic hurdles. This can delay the opening of your business and potentially impact revenue generation.

Franchise Canada Directory 2026

The Basics of Creating a Business Plan Follow these steps to create a detailed plan and set your new business up for success BY RAAVYA BHATTACHARYYA

egardless of the franchise opportunity you choose, you need to map out your path to success before getting started. A comprehensive business plan holds the key to unlocking the full potential of a franchise and ensures a solid foundation for profitability. It also gives banks, investors, and lenders an idea of the scope and specifications of your project, so they’ll feel more comfortable providing their support. By creating a business plan, you signal that you’re serious and understand the tools you need to succeed. Here’s what your business plan needs to convey: • There’s a market for your products or services • You and your management team are capable • You have the necessary financial resources • You understand your franchise ownership goals and how you’re going to achieve them • The franchise you’re buying is financially viable and you’ll be able to repay any loans COMPONENTS OF A BUSINESS PLAN A comprehensive business plan is made up of several elements. Here’s a list of items you should include. 1. Executive summary The executive summary should describe the franchise you intend to purchase, include the background and track record of the franchisor and other existing franchises, and identify your core market.

2. Company description and management team profile You should outline the basics of your business in this section, like its name, location, and type of business. The management team profile should 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. 3. Description of products and services Here’s where you describe what your business offers. The description of your products or services should include featured benefits, an explanation of how your product or service differs from your competitors, and outline how you will deliver these products and services. 4. Core market information This section should describe your core market sector: 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? Here you can outline your competitors and describe your existing customer base. You can also talk about how much of the market share you expect to cover. 5. Description of operations The description of operations should describe where you’ll operate and explain how you’ll produce your products or services. Include information on location,

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THE BASICS OF CREATING A BUSINESS PLAN property, facilities, leases, employees, insurance, technology, equipment, and suppliers, which are all crucial details that need to be determined before you get started. 6. Financial information Make sure you complete a thorough financial analysis to ensure you have a plan for success. Your financial advisor can be particularly helpful with preparing and itemizing this part of your business plan. The financial section should cover the details of what makes this a financially viable business. You should describe your current financial situation and include monthly budget and cash flow projections/analysis. It should also include a personal net worth statement that lists all of your personal assets and liabilities. Remember that it often takes months or years for a new business to become profitable. Your business plan should include a comprehensive section on financial requirements, including detailed estimates of all anticipated start-up costs until the projected breakeven point. Here are some costs to include: • Legal and accounting fees • Marketing costs, including plans, website, print materials, tradeshows, etc. • Inventory purchases • Real estate and/or building and equipment procurement • Staffing • Working capital reserves to cover operating losses until the business is capable of generating sufficient revenue • Monthly overhead for six to 12 months • Personal living expenses for six to 12 months • Financing costs • Cash flow projections (see sidebar)

What is cash flow forecasting and why is it important to a business plan? A cash flow forecast outlines the anticipated income and expenses of the franchise. If you’re purchasing a new franchise location, you can determine the expected revenues and costs by doing your due diligence, including talking to the franchisor and other franchisees in the system. Once you start to get a picture of the numbers, you can do a sensitivity analysis to understand the impact of fluctuating cash flow. Create multiple cash flow scenarios: one based on high sales, one based on low sales, and one in the middle. This helps you determine the targets you need to hit, and the sales required for you to make money. Along with a complete accounting of cash requirements for the franchise, identify the sources of funding, as well as the relevant financing terms. Financing for most new franchise companies comes from the owners, supplemented by friends and family members, along with some bank financing. Investors or lenders expect owners to personally assume some of the risk with a solid self-financed capital base of 30 per cent to 50 per cent of the total debt.

7. Other supporting documents Here are some other supporting documents to include: • The resumes of yourself and the key members of your management team • Job descriptions • Personal and business credit history • Letters of reference • Letters of intent • Leases/contracts and other legal documents pertaining to the franchise you’re purchasing When it comes to franchise finances, a comprehensive business plan can give you a straightforward path to profitability. By following these steps, you can show lenders that you’re serious about your business ownership goals.

Franchise Canada Directory 2026

Expanding Your Franchising Horizons

Key legal considerations to help you grow to multiple franchise units

here are many important things you should consider as you explore franchising as a path to business ownership. The franchise business model allows you to be a small business owner in your local community, with the support and system of a strong brand behind you. Beyond deciding what type of franchise you’d like to own, whether it’s a brick and mortar, home-based, or mobile business, and in what category, you should also have a strong sense of the specific franchise model you’d like to explore before you make a final investment decision. What are my franchising options? Single-unit franchising: Many franchisees choose to start with single-unit franchising, which means they purchase a single franchise location. In this case, a franchisee signs a franchise agreement for that location, usually assigned to a specific area, or territory. Multi-unit franchising: A single-unit franchisee can then choose to purchase an additional franchise unit to become a multi-unit owner. They can purchase another unit in the same franchise system, or they can purchase a unit in a different system, which is a newer trend in franchising. There’s even a term for this: MUMBO (multi-unit multi-brand operators). Area development: You can, however, also choose to purchase more than one franchise unit right from the get-go. In an area development agreement, a franchisee signs on to develop multiple franchise units within the same territory. This method is often used as a way for franchise systems to expand into new territories, as it allows them to rely on the franchisee’s familiarity with the territory and local connections. Ready to learn more about multi-unit franchising? Let’s explore some of the legal considerations, with insights from Allan Dick, partner, Litigation Group with Sotos LLP. Dick has extensive experience with multi-unit franchising, and outlines what you need to know as you explore expansion to more than one franchise location.

What are the benefits of owning multiple franchise units? Dick notes that many operational efficiencies come with operating multiple units within the same brand, including reducing management expenses for each unit, having access to additional trained employees as you need them, and reducing training expenses as you add more units. You also have the benefit of investing in a brand you already know and can increase your chances of success by choosing additional locations based on your experience in the system. Other major advantages include “increasing your influence in the franchise system when adding units in the same system, and potentially increasing negotiating power when dealing with the franchisor and suppliers,” explains Dick. “Franchisees may also be able to negotiate reduced initial fees when buying multiple units.” When it comes to adding units from different brands, Dick says this provides diversification, which helps to reduce the risks associated with operating a franchise. When you invest in multiple brands, you also have the advantage of learning best practices from different systems, and can apply this knowledge across all of your units. Finally, adding more units “increases the value of the entire enterprise, including for purposes of obtaining loans and investment,” notes Dick. What are the challenges I may face as a multi-unit franchisee? While there are clearly many advantages to expanding to multiple units, there can also be drawbacks. For example, while the franchise head office will provide extensive training before you open your initial location, they often won’t include multi-unit franchising as part of the training curriculum. This means you’ll need to determine your own best path forward and develop your own leadership style. While you can be very hands-on with your original franchise location, it’s impossible to give each location that same amount of attention after expansion. As it’s

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EXPANDING YOUR FRANCHISING HORIZONS impossible to be in all locations at once, you’ll need to learn to divide your time between locations and to rely on your managers, instead of just on yourself. Dick also notes that some franchisors may require franchisees in the same system to accept cross-default provisions in additional franchise agreements. “A franchisee is at risk of losing all units if only one fails,” explains Dick, noting that this provision should be negotiated by a franchisee. “There are genuine reasons why franchisors include cross-default provisions, but often one location will fail for reasons that are not reflective of the operator’s abilities, financial situation, or attitude to the system. A franchisee should not be dependent on the good graces of the franchisor not to act on a crossdefault provision in these circumstances.” When should I consider whether I want to own multiple units? Dick advises that prospective franchisees should have clearly defined goals before they start on the path toward expansion. For many, this should come before they even make their initial investment decision, when they should know if they plan to purchase multiple units in the form of an area development agreement, or will be looking to purchase additional individual units. “For the single operator looking to expand, the operator should have a first unit that is very successful and would continue to be with reduced owner presence,” advises Dick. Dick also notes that franchisees should proceed with caution when purchasing an additional unit. “When buying failed or distressed units or units for sale in the system, an investigation needs to be made into whether the market that the unit is servicing is strong and hasn’t been soured by previous bad operations,” he explains, adding that “It’s very hard to turn around a business, even ‘under new management,’ if previous management damaged the market.” How do I know if I have what it takes to operate multiple franchise locations? Generally, Dick says, successful multi-unit franchisees look a lot like successful single-unit operators—they have excellent management skills, take an interest in their customers, have a good relationship with their franchisor, and follow systems well. “In addition, they are able to develop and manage an excellent management team capable of overseeing each location in the absence of ownership presence, who have earned the confidence of staff.” Dick adds that successful multi-unit franchisees focus on building value across their entire enterprise, and need to have access to capital and cash reserves. Plus, “for the multi-unit operator that has outside investors, it is

critical that their internal legal agreements are prepared by experienced, sophisticated counsel.” What does a multi-unit franchise agreement look like? Will I receive a different agreement for each location? According to Dick, there are different ways to address multi-unit ownership. “The area development is its own type of agreement where the franchisee commits to opening a number of locations within a specific area within a specific time,” he says. “In some cases, there is a general development agreement and individual agreements for each unit. In other systems, one agreement will cover the prospect of additional locations being added. Usually, each location will have its own agreement to provide for the necessary length of time for each location to operate.” Dick also notes that depending on the jurisdiction, a franchisee may expect to receive disclosure for each additional unit within the same system. There are six provinces with franchise disclosure in place: British Columbia, Alberta, Manitoba, Ontario, New Brunswick, and Prince Edward Island. (Saskatchewan is set to enact franchise disclosure legislation in June 2026.) Is there anything else I should know before I finalize my plan for franchise expansion? It’s common for multi-unit operators to try to expand to a certain number of units with a plan to then sell or transfer the units. Dick explains that franchisees can face two obstacles with this plan. The first is that if the units are acquired over time, they may each have a different expiration date. “It’s very important that when looking to amass units for this purpose, the franchisee has negotiated franchisee-friendly option/renewal rights, and may even have limited the franchisor’s rights relating to transfers,” says Dick. “Full-time and attention clauses need to be reviewed. They will be inapplicable.” The second obstacle is that purchasing a single franchise unit is like buying a job for a specified time. The typical franchise agreement, he says, is drafted based on the premise that the franchisee will operate its unit for the term and isn’t expecting to make a gain from a later transfer of the business. “A person looking to invest in multiple units is more likely to view the acquisitions as investments, which may and should include an exit plan. It is critical for the prospective multi-unit investor to have the benefit of sophisticated franchise counsel to ensure that the investor’s longer-term aspirations are achievable within the particular system under consideration and that those expectations are reflected in the business arrangement between franchisor and franchisee,” explains Dick.

Franchise Canada Directory 2026

The Tools You Need to Nail Local Store Marketing Insights and tips to elevate your marketing strategy with a focus on local communities

s a business owner, brand awareness is vital to your success, and it’s never too early or too late to construct a new marketing strategy. A key benefit of working with a franchised brand is the access to extensive marketing and promotional materials. Even so, franchisees can benefit from adding a personal touch to their strategy, and getting involved with your community at the local level may be just the way to do it. We’re sharing the information you need to stock your Local Store Marketing toolbox with important instruments to help you build a successful marketing plan. This content is taken from the CFA’s April 23, 2025, Learn & Grow webinar titled “Local Store Marketing Toolbox,” hosted by Shawn Saraga, founder and president of The Franchise Academy. So, what exactly is Local Store Marketing? Local Store Marketing (LSM) refers to a designated amount of money spent in the community, at the franchi-

see’s discretion, through programs approved of by the franchisor. It’s very important that these programs are approved by the franchisor to ensure they align with the brand’s identity. While the national marketing afforded by franchise systems is an undeniable benefit of franchise ownership, franchisees shouldn’t overlook marketing on the local level. In fact, business owners can spend up to just four hours a week on LSM and see an increase in sales of anywhere from 10 to 15 per cent compounded year over year. Why does LSM work? By focusing on LSM, business owners are forging connections within their community, driving brand awareness, and as a result, sales. These relationships can transform a business into a well-known, recognizable staple in the area. Furthermore, by supporting their local community, a franchisee can make a positive impact on those around them and foster a welcoming environment.

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THE TOOLS YOU NEED TO NAIL LOCAL STORE MARKETING Where do I start once I’ve decided to invest in LSM? Local Store Marketing begins with the franchisor: franchisees can check their Franchise Agreements and Franchise Disclosure Documents to see what funds are available for LSM initiatives. Typically, the franchisor will prepare assets and training to ensure that the franchise owner is using their marketing toolbox appropriately and effectively. Regional managers can also provide coaching and ongoing support throughout the process. However, the responsibility to put these plans into action ultimately falls on the franchisee. It’s not recommended to outsource this responsibility, as the personal connections between business owners and their community is the cornerstone of the strategy. Once the franchisee becomes familiar with the options and opportunities at their disposal, they can move forward with concrete action items. What LSM initiatives should I focus on? There are many ways to go about LSM, and franchisees should seek a well-rounded portfolio of local investments, both regarding their time and funds, to get the best results. This isn’t a “one-and-done” kind of strategy! The key is to make community engagement a habit. Here are some avenues for business owners to explore: Online reviews Positive online reviews are massively important to business owners, as prospective customers and clients will rely on the information they see online. These ratings can have a serious impact on the traffic you see. The best reviews come from a personal touch—as the owner, when you connect with your consumers and personally ask them to leave a review after having a positive experience, both the quantity and the quality of these reviews can increase. The Chamber of Commerce The local Chamber of Commerce is a resource meant to help business owners by connecting them with opportunities for engagement and growth. By joining this organization as a member, you are giving yourself the chance to be introduced to other local business owners while letting them know you intend to be a reliable member of the community. Additionally, the Chamber of Commerce will forward you opportunities to get further involved with invitations to events and initiatives as well as vital information relevant to your business. Sports team sponsorship Local sports teams are a vital part of any community— they’re a well-loved activity and a source of local pride. By going to games or putting your logo on a team’s jersey, you’ll gain visibility in your community. Different

sponsorship programs are often offered as well, such as cheque or rebate programs involving different kinds of time or monetary investment in the team. When looking at potential sports teams to sponsor, it’s important to keep in mind a variety of different sports and leagues, as you want to make an impact with your relevant market and reach as many people as possible. School programs Reaching out to local schools is a great way to make meaningful connections with organizations integral to the community. You can do this by introducing yourself to the principal, letting them know that both you and your business support the school, and inquiring about initiatives such as sponsoring a Student of the Month program or a school fair. Some more options include: • Street fairs • Regional employers • Tourist attractions/buses • Business Improvement Areas, Business Network International, and networking groups • Universities and colleges • Road signage • Local and micro-influencers • Podcasters • Religious organizations • Social media • Media outreach As a franchisee decides the route they want to take when tackling Local Store Marketing, it’s vital to remember both consistency and variety are important. By continually involving oneself with local programs, initiatives, and engagement opportunities, a business owner is setting themselves up to reap greater rewards in terms of their business growth. How do I put my best foot forward? It can be daunting putting yourself out there, especially if you’re unfamiliar with the community you’re now a part of. But making connections is an important skill, and not one to shy away from. Growth in business is integral, and that extends to growing as a business owner. Forcing yourself out of your comfort zone is difficult but necessary. So knock on doors, introduce yourself, and get to know everybody in your community. People buy from people. Your community wants to get to know you and wants to learn more about you and your business. Learning about Local Store Marketing is the first step, and now it’s time to implement what you’ve learned and see the results for yourself!

Franchise Canada Directory 2026

FACES OF FRANCHISING

Stories of success from franchisees across Canada to inspire your franchising journey.

“EVERY DECISION, NO MATTER HOW SMALL, IS IMPORTANT.” Sangwan Kinkhat, McDonald’s

efore most people understand what franchising is, many are introduced to the concept as children through long-time favourites like McDonald’s, enjoying a Happy Meal and often pestering their parents to return for another meal in the future. Sangwan Kinkhat, whose family came to Canada from Laos, was no different. “One day I came into a McDonald’s, and I saw the Golden Arches and wondered how people started one. I was eight years old,” she recalls. Many years later, Kinkhat finally realized her dream of becoming a franchisee of this globally recognized brand, as she took ownership of her own McDonald’s restaurant—or rather two locations, in a suburb of Quebec City, in June 2023. Taking over an existing franchise location presents a unique challenge when compared to starting one from scratch. There are existing operational procedures, employees, and customers to understand, and exciting opportunities such as moving into a new community and getting to know your customers. However, in her first year as a franchisee, Kinkhat faced these challenges headon, drawing on her family restaurant experience and receiving much appreciated support from fellow franchisees and others within the company. She embarked on a nine-month training program where she learned everything about running a McDonald’s restaurant, from making hamburgers to guest service, finance, and management. Kinkhat immersed herself in the business, working every day alongside her employees. “I was very present. I would go see people, hold meetings with managers,” says Kinkhat. “I was on the floor, introducing myself, open

to being there. We were present every day of the week, and I tried to work and help as much as possible.” As an added bonus, working on the front-lines with her employees provided a good opportunity to help them while getting to know them personally. “In a way, we work together as a family,” Kinkhat notes. While improving sales and service is important, Kinkhat also prioritizes feeding and fostering her community. She enhances customer service by striving every day to create a better guest experience and engages with her local community through various initiatives, such as supporting the local hockey league and donating to local charities, to name a few. Kinkhat finds immense gratification in her role as a franchisee, especially as it allows her to support the community she serves. However, she acknowledges the challenges that come with the territory. Since she has successfully navigated her first year, she is now in a position to offer valuable advice to aspiring franchisees. “They need to be ready for all eventualities, as they don’t know where they will find challenges,” she says, adding that it’s important to reach out if you need support. “Everything is new, so you need to ask questions and ask for help when needed. Every decision, no matter how small, is important, and risk management is one of the keys to success.” Her final piece of advice to those looking to buy their own franchise is to get comfortable getting out of your comfort zone—but also don’t be afraid to take risks, because that’s often where the biggest opportunities lie, as evidenced by Kinkhat’s inspiring story.

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FACES OF FRANCHISING “THERE ARE SO MANY PIECES THAT YOU HAVE TO CONNECT.” Anita Mushitsi, British Swim School

or Anita Mushitsi, British Swim School is not just business, it’s a way to help keep children safe. Mushitsi’s daughter was involved in a near-drowning event at the age of nine. For Mushitsi, who immediately enrolled her daughter in swim lessons that certain swim programs lacked, the experience was a wake-up call to take pool safety more seriously. Ten years later— when she decided to leave full-time work and purchase a franchise—it weighed heavily in her decision to go with British Swim School. With a background in communications, leading teams, and project and crisis management, Mushitsi found the most useful areas of her initial franchise training were finance, budgeting, and using analytics in decision-making. Equally valuable was the individual coaching she received. “It’s hard when you start. There are so many pieces that you have to connect.” She explains, “Making cold calls was quite a challenge for me.” A franchise coach accompanied her to initial meetings with managers to discuss renting pool space, giving Mushitsi an opportunity to watch and learn.

One benefit of this franchise, says Mushitsi, is that you can rent pools in apartment buildings, hotels, and fitness clubs—securing times when pools are not typically being used to full capacity. This means she has no fixed overhead and has the flexibility to move to new locations in response to changing demographics in her franchise area. Her full-time operations manager works remotely, so there is also no overhead for physical office space. Since opening in 2019, Mushitsi has expanded to three pool locations in Ottawa, all near post-secondary institutions, which helps attract students to work parttime. Mushitsi employs an aquatics trainer to train new instructors in the British Swim School curriculum, which focuses on teaching water survival skills. Mushitsi says her key to success is building systems and putting the right people in place so that each location can run efficiently and independently. That will enable her to continue expanding–one life-saving lesson at a time.

Franchise Canada Directory 2026

FACES OF FRANCHISING “LOOK FOR BRANDS WITH A STRONG SUPPORT SYSTEM.” Sohail Iqbal, The UPS Store

fter working in the IT industry for 17 years, Sohail Iqbal wanted a business of his own. He chose franchising with The UPS Store, attracted to its systematic approach, established support, and recognizable name. He quickly expanded to six locations and says the support he receives from The UPS Store is a cornerstone of his success. “I believe in UPS. As a BIPOC entrepreneur, I have faced challenges, from financing to expansion to [learning] how to network. There’s a lot of support from people within and outside the network sharing their experiences.” In the short-term, Iqbal is focused on streamlining operations to ensure continued growth. In the longterm, he hopes to open more stores and mentor aspiring franchisees. “I can help them by showing them what I have done and helping them to grow. It’s that first step everyone is afraid of. They have to embrace it and work hard, have a good mindset, have a vision, and follow it through.” He adds that his mentorship of others in the local community has taught him a lot about diversity. “I’ve learned a lot about what different people have gone through, the socio-economic barriers they’ve faced,” he says. “I believe that with understanding, we are moving in the right direction.” Iqbal sees franchising as a good option for BIPOC franchisees due to its established training structure and shared resources. “I believe that BIPOC entrepreneurs need to get involved and let the community know that owning a franchise is not as difficult as they think. I believe more BIPOC entrepreneurs will create more representation that will lead to more opportunities and economic empowerment within our communities.” Part of his growth came from connecting with others who have been in the industry for a decade or more. Learning from their shared experiences broadened his understanding and propelled his success. “If they can do it, and I can apply the same rules, I can be successful

too. Don’t be afraid to network. Talk to people and get involved,” notes Iqbal. He advises franchisees to choose a system that aligns with their goals, skills, and interests. “Look for brands with a strong support system. Look at their financials. Look at their success stories. Take advantage of the resources available to you. Talk to franchisees who are in the system.” He adds that hard work, a positive mindset, and persistence will help build a successful business, and supporting fellow up-and-coming business owners is paramount. “BIPOC entrepreneurs have to help the new generation. We have to show them what is possible. It’s our responsibility.”

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FACES OF FRANCHISING “IT’S BEEN NOT ONLY A LEARNING EXPERIENCE BUT ALSO EXTREMELY FULFILLING.” Christina and Justin Dabu, Massage Addict

hristina and Justin Dabu began their relationship with Massage Addict as customers, and upon seeing the health benefits, quickly became regular members. Christina came from a background in the dental industry while Justin gained experience in leadership roles at various hospitality and wellness companies. When it came to their careers, though, the couple had another role that they wanted to muscle their way into. “Christina and I were always keen to one day start a business,” says Justin. “[We] felt franchising was the best approach, with the ability to leverage tried-and-true methods and a support system.” Having experienced for themselves the value of a membership with Massage Addict and learning of the brand’s positive reputation as a franchise, they jumped into opening a location of their own. For the Dabus, 2024 was a big year: Justin earned his MBA and the couple prepared to open the doors of their own Massage Addict location. Fortunately, the franchisor was there to help along the way: “Training and support was best-in-class from the very start. There were weekly calls and regular check-ins in the six months prior to opening,” says Justin. Massage Addict also provided a library of training resources including recruitment trackers, construction and clinic set-up guides, and operations manuals, alongside virtual cohort training and hands-on in-clinic training. Finally, on September 4, 2024, the Dabus opened the doors to their new business in Okotoks, Alberta, offering therapeutic wellness services to a welcoming community. “It’s been not only a learning experience but also extremely fulfilling,” the couple shares. “We did not anticipate the impact this business would have and what it would mean for our practitioners and for our clients.” The first year of operation can be a period full of fluctuations, changes, and challenges for any franchisee. However, the Dabus built up a support system and a strategy to tackle anything thrown their way. They explain how they focused on prioritizing tasks, delegated

and deferred as needed, set boundaries for themselves, and relied on the supports being offered: “This helped to prevent burnout and maintain a healthy balance during this crucial period.” “In addition, we really needed to be patient, resourceful, and to lean on the franchise systems in place,” says Justin. Since it was their first time owning and operating a business, it was integral they took to heart the expertise of the corporate team. “They helped guide us through many of the year-one challenges of development, construction, recruitment, start-up, and operations.” “What we enjoy most is the opportunity for Christina and I to bring both of our passions to life through this business. It’s exciting to see how hard work and enthusiasm can translate into something meaningful for so many people,” says Justin. Now, the Dabus are looking forward to a promising future. They hope to make their clinic the go-to for therapeutic wellness in the Okotoks community. In light of all the positive experiences they’ve gained and the lessons they’ve learned opening their first Massage Addict location, they have plans to open one to two more locations in the next five years as well.

Franchise Canada Directory 2026

FACES OF FRANCHISING “WHEN YOU FIND A FRANCHISE THAT HAS A PROVEN TRACK RECORD, IT PUTS YOU AT EASE AND MAKES YOU MORE CONFIDENT.” Kristen Martyn, Wild Birds Unlimited

hat is a Canadian, backyard bird-watcher’s favourite bird? If you guessed cardinal, you’d be right. For franchisee Kristen Martyn, owner of Wild Birds Unlimited stores in Barrie and Newmarket, Ontario, it’s not a guess, but knowledge gathered serving thousands of fellow bird enthusiasts. Martyn opened her first store in Barrie in 2012, alongside her father. She also acquired the existing Newmarket location in 2020 and now operates both stores with the help of a manager and assistant manager alongside the rest of the staff. While she started out on the floor serving customers, Martyn now manages primarily from the back office. “I look at myself as the person who brings new customers to the store, and the team in stores as the people who are keeping them there, offering a really good experience for them once they hit that door,” she says. Back in 2012, she and her father had both been looking at the franchise independently but decided to buy-in together. For him, it was a post-retirement challenge and for her, a way to engage her passion for wildlife. Her baby boomer father brought the sales experience that he’d grown throughout his career while Martyn brought with her a millennial’s perspective regarding social media, taking up social media platforms even before they were standard across the franchise system. The pair concentrates on their collection of quality products, from the freshest food to the highest variety of offerings to help customers attract their favourite birds. “We are the experts, and we have lots of products to support us,” Martyn explains. “We have great feeders and bird baths, but the food is really what keeps people coming back.” Today, Martyn says the online store makes up a solid percentage of customer traffic, so she tries to make sure that customers have a similarly positive experience by using tools like Google and Facebook Ads to pull them in, and regular interaction to make them stay. She has a dedicated marketing manager, and uses Instagram, Face-

book, and even a YouTube Channel that includes a live bird cam trained on five feeders. From day one, Martyn has been pleased with the franchise system’s support. Starting with online training at Wild Birds Unlimited University, franchisees then gain experience working in an existing store for two or three weeks before opening their own location. Additionally, Martyn considers the franchise’s proactive approach to introducing improvements as outstanding, from a new point-of-sale system to updated handbooks and training videos to new platforms for internal communications. As a millennial starting a business with her baby boomer father (who exited the business after four years), Martyn says that taking advantage of the natural skills divide was key. “For my generation, what we can bring to the table for franchising is that we’re probably the first generation to grow up with computers in the home and in school, and so we’re a bit more tech savvy,” Martyn points out. Yet she says she has the impression that millennials don’t always consider franchising first, which puzzles her. “There’s so many great businesses out there that are already running wonderfully. Opening a business is a scary thing for so many different reasons, and when you find a franchise that has a proven track record, it puts you at ease and makes you more confident.” Martyn says she also appreciates the franchise community, which she says makes franchising stand above an independent business.

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FACES OF FRANCHISING “I THOUGHT THAT PARTNERING WITH A FRANCHISE WOULD BE A WAY TO START ON THE RIGHT FOOT.” Mia Carrier, Choice Hotels

he city of La Malbaie, located in the Charlevoix region just past Quebec City on the north shore of the St. Lawrence river, draws tourists from across North America and Europe for its natural landscapes, foodie scene, and recreation, such as whale watching and golf. For businesswoman Mia Carrier, the area was a natural place to invest in a hotel, an investment she was searching for as a way to diversify her family real estate portfolio by way of the hospitality industry. “I thought that partnering with a franchise would be a way to start on the right foot in the hospitality industry, to learn more about the good practices of the industry,” says Carrier. After joining the Choice Hotels Canada system and moving ahead with the Clarion Pointe brand, she says it’s been the right move for both the hotel and her new direction. Carrier says she chose Clarion Pointe because of its modern design, which would help to attract the younger tourists who visit the area. Part of the Choice Hotels Canada system, which offers a variety of brands from the upscale Ascend Hotel Collection to the more valuedriven Econo Lodge, Clarion Pointe is situated in the midscale space, along with well-known brands like Comfort and Quality. It focuses on a younger demographic through contemporary room styling, mural décor, and conveniences such as fitness facilities and healthy breakfast options on-site. Carrier says she especially appreciates the support of having the franchisor on-call. Her favourite aspects of working with Choice Hotels Canada include the brand standards, a dedicated website where guests can book directly (saving the online travel agency website commission fees, although the hotel is also merchandized on those sites), the brand’s shared marketing programs and resources, in addition to Choice Privileges, a pointsbased rewards program for guests, which offers perks and benefits including member exclusive offers, personalized rewards and more. She also values the opportunity to join Choice’s revenue management program,

ChoiceRM, which allows her the opportunity to meet with a revenue manager monthly to make sure the hotel’s rates are competitive, discuss market overviews, and strategize for overall optimal performance. Choice Hotels Canada is also pleased with Carrier’s operation—the brand recently named her hotel as the 2024 Best New Entry: Conversion Upper Midscale/Midscale Brands in its prestigious annual Awards for Property Excellence (APEX). Instead of working on the day-to-day operations, Carrier’s role as a franchisee is more about overseeing the big picture of all her businesses, including managing costs, preparing budgets, approving purchases, and arranging contracts with management personnel. She also manages parts of guest relations, organizes marketing and stays on top of the hotel’s brand presence. At her management office in Quebec City, Carrier works alongside her spouse, who is vice-president of operations. Other staff include human resources, accounting, and marketing teams. “You need to be confident in the people you delegate to,” she says. “It’s a matter of developing systems so that you can delegate tasks but still receive reports that will confirm that things are going as you would expect them to go.” Carrier says that for some franchisees, the reward is in the daily, face-to-face operations with customers. Her passion, however, lies in growing businesses and seeing them develop—or in this case re-develop—into a thriving operation. “I like developing ideas and bringing them to the finish point,” she says. “Hotels were new to us, so I figured, if we’re going to start in hotels, then why not learn from the best?” she says of her decision to choose Choice Hotels Canada. “Very experienced people who really know that domain.”

Franchise Canada Directory 2026

Seven Steps to Franchise Your Business BY MARIETTA SNETSINGER, CFE, FRANCHISE GROWTH EXPERT, ASCEND FRANCHISE SOLUTIONS

Franchising can be one of the most effective ways to grow a successful business—but it’s not a one-size-fits-all solution. Before jumping in, it’s important to understand what franchising actually involves and whether it’s the right fit for you, your business, and your goals. Are you ready to lead other entrepreneurs? Is your brand distinct and proven in the market? Do you have systems that others can follow and replicate successfully? These are just a few of the questions to consider. In this guide, we’ll walk you through the seven essential steps to determine your franchise readiness and—if the model fits—how to take your business from solid foundation to scalable franchise system. Whether you’re just starting to explore the idea or already know franchising is in your future, this will give you the roadmap to do it right.

STEP

Build a solid foundation

efore you can franchise, your business needs to be solid, profitable, and ready for replication. Start by evaluating whether your concept is truly suitable for franchising: Is your offer in demand? Are your operations consistent and teachable? Does your brand stand out in the market? This is also the time to register your trademarks. Protecting your brand—your name, logo, and any proprietary language—is critical before handing it over to others to use. Equally important is defining the roles and responsibilities of both the franchisor and the franchisee. What will franchisees be expected to do on their own? What will you provide as the franchisor? Clear expectations now will prevent confusion (and conflict) later.

STEP

Dollars & sense

ranchising only works if the numbers work for everyone involved. That means the business needs to be exceptionally profitable at the unit level before you try to replicate it. Start by confirming that your unit economics make sense not just for you, but for your future franchisees and the end consumer. Can a franchisee earn a healthy return after paying royalties, marketing fees, and operating costs? Can you, as the franchisor, generate sustainable revenue while delivering real value and support? Pricing, margins, and scalability all need to be factored in. You’ll also need to carefully design your franchise fee structure—this includes the initial franchise fee, royalties, and any ongoing fees (like marketing or technology). These decisions should be strategic and sustainable,

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SEVEN STEPS TO FRANCHISE YOUR BUSINESS because once your franchise agreement is signed, there are no redoes. Changing fees later can be complicated and even legally restricted, so it’s worth getting expert input and thinking long-term. Finally, consider how you’ll fund the franchise system until you’re royalty positive. It often takes time to build up enough locations that royalty revenue covers the overhead. Will you self-fund, reinvest, or bring in outside capital? A clear financial runway helps ensure you can support your early franchisees and grow from a place of strength.

STEP

•

Create your Franchise Operating System (FOS)

f someone else is going to run your business in another market, they need more than a great concept; they need a complete and consistent system. Your Franchise Operating System (FOS) is the blueprint that allows you to replicate your business with clarity, quality, and confidence. Think of your FOS as the operational heartbeat of your brand. It captures not just what you do, but how you do it—your standards, your rhythms, your decision-making style, and your customer experience. It’s the playbook behind the phrase: “This is how we do things around here.” This includes your culture. Your values, leadership style, tone of voice, and customer interactions all play a role in shaping your brand experience. The best franchise systems don’t just teach processes—they pass on identity. Your FOS should help ensure every new location reflects the heart of your brand, not just its functionality. To prepare for successful duplication, you’ll need to set up: • Detailed process documentation Create clear, step-by-step instructions for every core function of the business—from how a customer inquiry is handled to how services or products are delivered, team members are onboarded, and the day is opened and closed. This should include checklists, workflows, and visuals wherever possible, so franchisees don’t have to guess. • Territory guidelines Define what makes a territory viable based on data: population size, income levels, demographics, or business density—anything relevant to your model. You’ll also want to clarify how territories will be protected or shared, and what the boundaries are for franchisee responsibilities. • Localized marketing strategy Provide marketing templates, brand-approved assets, and clear messaging guidelines. Franchisees should be able to take your national strategy and apply it to

•

their local market with confidence. Include suggested tactics (community events, social media, referral programs, etc.) that are proven to work in your business. Technology stack Decide which software and systems franchisees will need to run the business efficiently. This could include customer relationship management (CRM), point-ofsale (POS), scheduling, email marketing, inventory tracking, and financial reporting tools. Standardizing these platforms ensures consistency and makes it easier for you to monitor system-wide performance. Sales toolkit Document the full sales process from lead generation to the closing of a sale. What’s the typical customer journey? What offers convert best? How are sales tracked and followed up on? Include scripts, followup schedules, email templates, and conversion benchmarks so franchisees can hit the ground running. Compliance tools Outline how you’ll monitor performance and ensure franchisees are operating in alignment with brand standards. This could include regular field visits, mystery shopping, self-assessment tools, or digital dashboards that track key indicators. Make it clear how often performance will be reviewed and what happens if standards aren’t being met. KPI framework Identify the key metrics that define success in your business (e.g., revenue, gross margin, customer retention, average sale, online reviews). Show franchisees how to track and report them, and what the benchmark goals are. This helps everyone stay focused on what matters most and enables proactive support when things go off track. Brand and culture guide Your brand isn’t just your logo or color palette—it’s how people feel when they interact with your business. Define what your brand stands for, how your team interacts with customers, what tone you use in communications, and what kind of internal culture you want franchisees to carry forward. This ensures consistency even as your business grows in new locations.

A strong FOS sets the stage for franchisees to confidently implement your business strategy in their local markets without reinventing the wheel. It also frees you, the franchisor, from needing to micromanage every new location, because the systems do the heavy lifting.

Franchise Canada Directory 2026

SEVEN STEPS TO FRANCHISE YOUR BUSINESS STEP

Document Your Franchise Operating System

nce your Franchise Operating System (FOS) is built, the next step is to turn it into a detailed, user-friendly operations manual—the core resource your franchisees will use to run the business. This document brings your systems to life, turning your proven processes into clear instructions that can be followed consistently in any market. The operations manual isn’t just a formality. It’s a critical tool that supports onboarding, day-to-day operations, field coaching, and brand protection. It becomes the go-to reference for your franchisees as they learn how to deliver your product or service, manage the business, and represent your brand in their community. Even if you already have internal SOPs or training documents, the operations manual used in a franchise system needs to be more comprehensive. You’re not just teaching someone how to do the work—you’re showing them how to run the business. A strong operations manual should include: • Standard Operating Procedures (SOPs) These are the step-by-step instructions for how to complete core tasks. SOPs remove guesswork and ensure that franchisees (and their teams) can execute consistently—whether it’s handling a customer inquiry, scheduling appointments, or preparing a product for delivery. Each SOP should clearly outline who is responsible, what tools are used, how long it takes, and what success looks like. • Checklists Checklists are one of the simplest and most effective tools for ensuring nothing gets missed. Include checklists for opening and closing each day, safety inspections, inventory reordering, marketing tasks, and employee onboarding. They help maintain standards even when the owner isn’t on-site or new staff are being trained. • Brand standards This section outlines the non-negotiables that protect your brand identity—things like logo use, signage requirements, color schemes, tone of voice, customer experience standards, and visual merchandising. This is especially important in a franchise system, where brand consistency builds recognition and trust across multiple locations. • Marketing guidance Franchisees often have local marketing responsibilities. Give them a framework for what works—including promotional calendars, event strategies, referral programs, and sample social media posts. Explain how they should use the marketing fund (if applicable) and what support they can expect from you.

• Sales process A repeatable sales system is key to helping franchisees grow revenue. This includes how to generate leads, what a typical sales conversation looks like, how to present pricing or offers, and how to follow up. Include scripts, objection handling tips, and a sample sales funnel or pipeline. • Technology usage Most franchise systems rely on specific software— POS systems, CRMs, scheduling tools, and reporting dashboards. Include setup instructions, login protocols, and basic troubleshooting. Explain how data should be entered and what reports are required. • Financial tracking and KPIs Help franchisees understand what numbers matter and how to track them. This could include revenue targets, gross margin, cost of goods, labor ratios, customer retention, and other key performance indicators. Include sample dashboards or spreadsheets and define benchmark goals for a healthy location. • Reporting and compliance Clearly outline what franchisees are expected to report to you—weekly sales numbers, marketing updates, customer feedback, etc.—and how often. Detail your compliance process: how you’ll monitor performance, how often reviews or audits happen, and what happens if something falls below standard. The operations manual should be clear, practical, and easy to navigate—not a dense binder that sits on a shelf. Use tables, visuals, screenshots, and real-world examples wherever possible. Keep language straightforward and actionable. Creating this manual is a foundational step in delivering a turnkey franchise offering. It empowers franchisees to replicate your success, supports smoother training and onboarding, and creates alignment across your system as you grow. It’s not just about documentation— it’s about building confidence, consistency, and trust in your brand.

STEP

Days to First Dollar

nce the franchise agreement is signed, the real work begins. This phase—from signing to making the first sale—is all about setting your franchisee up for success. It’s where expectations are managed, timelines are clarified, and both sides understand what’s needed to get the business open. New franchisees are usually energized and eager to launch. But without clear guidance, that energy can turn into confusion or delay. Helping them understand what

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

SEVEN STEPS TO FRANCHISE YOUR BUSINESS this phase looks like—and what’s required—builds trust and momentum from day one. When a physical location is involved, timelines often stretch. Permits, contractors, inspections, and deliveries can delay progress. That’s why it’s critical to outline the typical steps, offer consistent support, and reinforce that this phase requires patience and project management. Franchisees are responsible for setting up their business but they will require guidance—legally, financially, operationally, and physically. This includes foundational items like setting up their company, securing the right licenses and insurance, preparing their space, hiring a team, completing training, and getting ready to market and serve customers. Your role is to guide them through this process. That includes providing a clear onboarding plan, reviewing key decisions, supporting setup and marketing, and checking in regularly to keep everything on track. A strong onboarding experience sets the tone for a strong franchise relationship. This phase is about alignment and support. When franchisees understand the journey and feel confident in the plan, they’re more prepared to open successfully—and more likely to thrive in the long run.

STEP

Finding Your Franchisees

nce your franchise model is ready, it’s time to get in front of the right people. This step is about building visibility and generating interest from potential franchisees who align with your brand. Start with warm leads—past customers, team members, or industry contacts who already know and value your business. These are often your best first candidates. Use digital marketing to expand your reach: a dedicated franchise page on your website, targeted social media, online ads, email outreach, and listings on franchise directories. Make sure your message is clear and speaks to who your ideal franchisee is. Franchise expos and industry events can also be helpful, especially for building awareness. Come prepared with a one-pager that outlines your opportunity and who it’s for. Some franchisors work with franchise brokers to generate leads. While this can be effective, it’s often costly and may not be the best fit during the early stages when budgets are tight. Focus first on low-cost, high-connection opportunities to build your pipeline. The key is to be visible, consistent, and intentional about where you show up—and who you’re speaking to.

STEP

Creating a Qualification Process

ot everyone who’s interested in your franchise will be the right fit—and that’s a good thing. A strong qualification process helps ensure you’re bringing in franchisees who align with your values, can follow your system, and have what it takes to succeed. This isn’t about just “making a sale.” It’s a mutual evaluation. You’re looking for people who are committed, coachable, financially prepared, and aligned with your brand. And they’re looking for a business they can believe in and often that means that they trusting you personally. Start by outlining your minimum requirements— things like available capital, time commitment, location, or relevant experience. Then design a clear step-by-step process, which might include: • An inquiry call or intro form • A franchisee application • A discovery call or info session • A financial review • A more in-depth interview or discovery day This is a very general overview but the goal is to help your future franchisees make a valid business decision to join your franchise. And in the earlyUse this process to share expectations, answer questions honestly, and pay attention to how they show up. Are they engaged? Asking thoughtful questions? Open to feedback? Choosing the right franchisees early on protects your brand, strengthens your network, and lays the foundation for long-term success—for both of you. Franchising is one of the most powerful ways to grow a business—but it takes more than a great concept. With the right systems, structure, and people in place, you can expand with clarity, confidence, and long-term success. These seven steps are your starting point to build a franchise that not only grows—but thrives.

Franchise Canada Directory 2026

5 Things Smart Franchisees Know about Support Services

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

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

SCENARIO 2: Figuring out how much money you have to invest In addition to finding a franchise that fits your goals and skills, you also need to know if the opportunity fits your financial capabilities. An accountant who is wellversed in franchising can help you figure out your net worth, assets, and obligations. He or she can also provide advice and guidance on creating a business plan, which summarizes your current and projected finances for your venture, as well as how you’ll set up and operate your business. Not only is this a great way to map out your plans for your franchise, it’s also an essential document that potential lenders will want to look at when you approach them about securing further financing for your franchise venture. SCENARIO 3: Securing more money to invest Once you know your net worth and have calculated how much money you have available to invest in your franchise, you may need additional funds to finance your new business. Many franchisees require financing from a business lender to combine with the personal funds they’ll be investing. A banker with a background in franchise financing can help you select the banking products

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5 THINGS SMART FRANCHISEES KNOW ABOUT SUPPORT SERVICES and services that will support your franchise as you open and grow your business, including business loans, lines of credit, and business accounts. SCENARIO 4: Deciphering disclosure documents A franchise disclosure document is a summary of information on the franchise system. This can include items such as background on the franchisor and its officers; fees, estimated costs, and total required investment; and the franchise agreement, which will outline the rights, responsibilities, and obligations of both the franchisor and franchisee. In other words, understanding the information contained in the disclosure document is a vital part of the franchise due diligence process. An experienced franchise lawyer will be able to guide you through the document, help you in understanding the material it contains, and, as he or she will have reviewed many similar files, will be able to spot anything that’s out of the ordinary, a possible cause for concern, or items that may be open to negotiation. SCENARIO 5: Protecting your new franchise location As a franchisee, your franchise system can train you for the regular, day-to-day operations of the concept. A good franchisee is also equipped to handle the unexpected—the kinds of events or situations that you hope never occur. Luckily, there are ways to mitigate some of these types of risk. A business risk management plan will usually include a business insurance package. There is a wide range of policies, from more general ones that the majority of businesses may need to those that are specific to an industry, geographic area, sector,

customer profile, etc. An experienced insurance broker who’s aware of the needs of a franchise business will be able to assist you in putting together an insurance package that best protects your business. 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 have the opportunity to seek further advice from experts you’ve consulted previously and/or add other franchise professionals to your support team. An important point to keep in mind—though you may be tempted to get legal advice from your cousin who’s a personal injury lawyer or ask your neighbour who works in accounts receivable for accounting guidance, resist that impulse. When it comes to your franchise business, it’s always better to get help from professionals who are not only legal, accounting, banking, or insurance experts, but also familiar with the ins and outs of the franchise business model. Working with specialized support can save you considerable time, money, and trouble on your path to franchise success.

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Franchise Canada Directory 2026

ASK A FRANCHISE EXPERT Ask a Franchise Expert: How do I set myself up for success in the franchise awarding process? YOU’VE DONE YOUR HOMEWORK. You’ve read, you’ve researched, and you’ve narrowed it down to one or two franchise systems that meet your criteria. All that’s left to do is make your final decision and sign on the dotted line… right? Not all franchise buyers realize that franchises are not simply “sold,” they’re awarded. Each franchisor has a particular set of criteria that a prospective franchisee must meet in order to be approved for a franchise purchase. Even once you’ve decided that a specific brand is the right one for you, there’s no guarantee that the franchisor feels the same. So how do you put your best foot forward? Know your strengths… and your weaknesses Take a hard look at your skills and experience to identify what you’re great at. Evaluate how your strengths will translate into success within the franchise system, and be prepared to articulate this throughout the discovery process. This is not the time to be humble! Demonstrate to the franchisor that you understand what success looks like within their business model, and that you have the skills to achieve it. Toot your own horn, but be sure to temper this with a healthy dose of self-awareness. We all have weaknesses, and it’s important that you know yours. Address how you’ll navigate these gaps as a business owner and discuss your weaknesses from a solutions-based perspective. Talk about how you’ll hire a team whose strengths compliment your areas of weakness. Outline how you’ll leverage the franchisor’s resources to level-up in the areas where you’re not as skilled. By highlighting your strengths and addressing your weaknesses in a constructive way, you’ll present yourself as a well-rounded, transparent, and coachable franchise partner. Respect the process Franchises are built on systems and processes that have been carefully curated over time to drive success. The franchisor has tried and tested everything so that you don’t have to. They’ll provide you with a roadmap to success; show them that you can follow it. Just as franchise operations are carefully structured, so is franchise recruitment. Franchise recruiters manage many interested candidates and deliver a huge amount of information to ensure all parties can make an informed decision about the business. There are systems in place to ensure nothing is overlooked during the discovery process, and following these systems benefits everyone. If you skip steps, rush timelines, or shirk homework, you

are doing yourself a disservice and raising a major red flag for the franchisor. If you’re already challenging the process at this early stage, why should they trust you’ll follow their systems as a franchisee? Work with the system, not against it. Be Prepared Demonstrate that you have a deep understanding of what it takes to succeed in the franchise system by getting to know the business really well. The franchisor will provide you with resources to support your due diligence: use them! Secret shop the brand. Read customer and employee reviews online. Thoroughly review the Franchise Disclosure Document and any other resources the franchisor supplies. Talk to a wide variety of franchisees about their experiences. Ask questions, and then ask more questions! Once you have a firm grasp of the franchise business model and what success looks like, apply your learnings. The franchisor (and your bank) will expect you to prepare a business plan. Get a head start on this during the discovery process: complete a SWOT analysis, a break-even analysis, and projected budgets for a variety of scenarios. Then, use your business plan as a tool to demonstrate to the franchisor that you are serious about the franchise opportunity and the risks and rewards that come with it. Be Realistic Responsible franchising is all about transparency. Your franchisor wants you to succeed, and they will help you get there, but you need to provide them with confidence that you understand the highs and lows inherent to their franchise. They will assess you to determine that you have the skills and mindset to thrive in their business model, and that you have the grit to weather any storms you might face. Clearly communicate your ambition and optimism, but make sure it’s grounded in reality. Do you understand the amount of work you’ll need to put in while you get the business off the ground? How might this change as the business matures? What will you do if it takes longer

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

Mackenzie Allsop Account Director Cadence Franchising

ASK A FRANCHISE EXPERT than you thought to break even? How will you turn things around if your business is underperforming? Define what success looks like to you, understand the various obstacles you might face along the way to that goal, and communicate this to the franchisor. Believe in Yourself and Your Franchise Purchasing a franchise is a big decision. Do your homework and help the franchisor get to know you so that you

can decide together if there’s a mutual fit. You want to align yourself with a franchisor who will protect your investment by building a franchise system of like-minded franchisees who share the organization’s vision, culture, and operational requirements. Give the discovery process the time and consideration it deserves to ensure a healthy long-term partnership.

ASK A FRANCHISE EXPERT What questions should I ask myself before investing in a franchise? IN TODAY’S DYNAMIC BUSINESS LANDSCAPE, franchise ownership offers a path to entrepreneurial success—but only when you choose a franchise that truly aligns with your goals, values, and vision. While the appeal of being your own boss is compelling, achieving sustainable success requires thorough evaluation of both the franchise opportunity and how prepared you are, both financially and mentally. By asking yourself critical questions, as well as asking the franchisor and existing franchisees questions specific to their roles, you can make an informed decision about whether franchising aligns with your entrepreneurial future and whether it will be a suitable foundation for achieving your business dreams. Personal self-assessment The journey begins with honest self-reflection. Understanding your objectives, working style, and preferences for business ownership will help eliminate opportunities that don’t match your goals and capabilities. Many prospective franchisees focus solely on potential returns, overlooking the importance of personal satisfaction and lifestyle fit. Taking the time for this crucial first step can save you from investing in a franchise that doesn’t align with your long-term vision. 1. What are your business objectives and investment goals? 2. Are you looking to replace your current source of income, build wealth, or create a legacy? 3. Do you plan to be a full-time operator, part-time owner, or absentee investor?

4. Are you better suited for business-to-business or business-to-consumer operations? 5. Which industries align with your interests and expertise? Financial readiness Beyond the initial franchise fee, successful franchisees need resources to sustain and grow their business. Conservative financial planning, including substantial contingency reserves, can make the difference between struggling and thriving in your early years. Many aspiring franchisees underestimate the total capital required for success, failing to account for extended ramp-up periods. Understanding your complete financial commitment is crucial for long-term success. Franchise validation is also an essential part of the process, as it helps assess both immediate viability and long-term potential. Understanding the complete financial picture is essential to make an informed decision. Success often depends on maintaining healthy margins and managing costs effectively. Your analysis should focus on both current performance metrics and trends that could impact future profitability. 1. Do you know how much you must invest, accounting for all start-up costs (equipment, leasehold improvements, inventory, insurance, etc.)? 2. Can you maintain 12 to 18 months of operating capital, including a 15 to 20 per cent contingency buffer? 3. Have you considered the financial requirements for future expansion?

Franchise Canada Directory 2026

ASK A FRANCHISE EXPERT 4. What is the historical return on investment? 5. What level of revenue is necessary to cover all costs? 6. How much flexibility exists in pricing and cost management? 7. What ongoing fees and royalties should you expect? Franchise system evaluation A mature franchise system should offer comprehensive training and proven operational systems. Don’t assume that bigger is always better—sometimes smaller, emerging franchises can offer more personalized support and greater territory opportunities. Look for evidence of systematic operations, documented procedures, and a track record of franchisee success. You should also consider the territory rights, as they directly impact your potential for success. A welldefined territory policy protects your investment while providing room for expansion. The best systems provide sophisticated market analysis tools and support their franchisees’ growth with data-driven insights—it’s part of their commitment to franchisee success. 1. What is the history and reputation of the franchise? 2. How comprehensive is the franchise’s initial training and ongoing support? Are there detailed systems and playbooks for operations? 3. What types of support staff will be accessible daily? 4. What are the specific operational requirements? 5. How much autonomy do franchisees have? 6. Does the franchisor assist with marketing and customer acquisition? 7. How is territory determined and protected? 8. What opportunities exist for multi-unit expansion? 9. What is the competitive landscape in your target market? 10. How does the franchisor stay current with industry trends?

4. What unexpected challenges did they face and how did they overcome them? 5. How helpful is the franchisee community? 6. What type of culture does the franchise promote? 7. How does the culture align with your personal values? 8. What is the franchisor’s vision for the brand? Long-term planning Consider your future position within the system before making your investment: your exit strategy should inform your initial decision-making. Smart franchisees think beyond the start-up phase to understand how their business will evolve over time. The strength of your longterm plan often determines both your day-to-day satisfaction and your ultimate return on investment. 1. What is the process for renewing or terminating the agreement? 2. How does the franchisor support franchisee growth? 3. What potential risks could affect the business long-term? 4. What is your long-term exit strategy, whether selling the business or creating a family legacy? Investing in a franchise represents a significant commitment of your time, capital, and entrepreneurial energy. By thoroughly investigating these areas and honestly assessing your goals and capabilities, you can make an informed decision about whether franchising— and which specific opportunity—aligns with your vision for success. Remember that successful due diligence isn’t just about finding a good franchise; it’s about finding the right franchise that aligns with your vision for success and provides the foundation for achieving your entrepreneurial dreams.

Current franchisee insights and cultural alignment The intangible aspects of a franchise system often determine long-term satisfaction, and existing franchisees can offer real insights into the culture of operating within the system. Their experiences can reveal both challenges and opportunities you might not otherwise discover. These first-hand perspectives often provide the most reliable indicator of what your ownership journey might look like, making franchisee validation a crucial step in your due diligence process. Do the franchisee’s values, goals, and vision generally match your own? Pay particular attention to franchisees who have been in the system for varying lengths of time. 1. What has their experience been with the franchise system? 2. Did financial projections match reality? 3. How long did it take to reach break-even?

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

Renée Boudakian, CFE Founder/CEO Rubicon Franchise Partners renee@rf.partners

ASK A LEGAL EXPERT As a prospective franchisee, why is it important to hire a lawyer that specializes in franchise law? AT THE CORE OF THE FRANCHISOR-FRANCHISEE relationship is a contract that sets out the parameters of that relationship and the manner in which the franchisee must operate the franchised business. Entering into a franchise agreement is a significant legal commitment that requires a careful understanding of both the opportunities and the risks involved. Beyond the franchise agreement itself, there are many other legal elements that a franchisee may face, including the incorporation of a company, shareholder agreements, lease negotiations, and operational matters such as employment, permits and licensing, and supplier and vendor agreements. For prospective franchisees, hiring a lawyer that specializes in franchise law is an important step to ensure that (a) the franchisee has understood the legal commitment they’re entering into and (b) that they have the adequate legal support to successfully operate the franchised business. The legal landscape of franchise law in Canada In Canada, six (soon to be seven) provinces have specific franchise legislation in place. Legislation is unique to each province, however they share a common purpose: to ensure that a prospective franchisee is provided with the information required to make an informed investment decision before purchasing the franchise. In addition, franchise legislation creates a legal framework that governs the relationship between franchisors and franchisees outside of the confines of the franchise agreement. It is paramount that a prospective franchisee understands their statutory rights and the legal protections afforded to them by the franchise legislation in their province. On the other hand, if the prospective franchisee is located in a province that does not have franchise legislation, then the relationship between the franchisor and franchisee is governed by the law of the contract, and the prospective franchisee should understand that it cannot access statutory remedies; therefore, the negotiation of the franchise agreement becomes even more important. Negotiating franchise agreements The franchise agreement is the foundation of the franchisor-franchisee relationship. This contract will affect many aspects of the franchisee’s business, including financial obligations, operational duties, territory rights, and any restrictions during and after the length of the contract. The franchisor will present a standard franchise

agreement to the franchisee, prepared by the franchisor’s lawyer, which will contain various protections, rights, and remedies in favour of the franchisor. An experienced franchise lawyer can provide invaluable assistance in reviewing and negotiating the terms of the franchise agreement. While some franchisors may be flexible, others may be more rigid in their terms. A franchise lawyer can help identify (a) contextual factors that ought to be reflected in the franchise agreement and (b) any clauses that are particularly onerous, atypical, or otherwise unfavourable to the franchisee, as well as suggested amendments. Managing corporate governance and shareholder agreements In many cases, franchisees incorporate corporations or enter into joint ventures with others to share the financial burden and operational responsibilities of running a franchise. If multiple individuals are involved in the franchise, it is essential to establish a comprehensive shareholder agreement that outlines the terms of corporate governance as well as the rights and obligations of the shareholders, and defines the dispute resolution process. While any corporate lawyer can draft a shareholder agreement, a franchise lawyer’s input is vital as the shareholder agreement should be tailored to reflect the realities of the franchise agreement, both with respect to the practical operation of the business as well as the limitations and responsibilities of the franchisee. For example, the franchise agreement may specify that particular terms are included in the shareholder agreement as it relates to death, disability, and transfer, and failure to include such terms would be a violation of the franchise agreement. Furthermore, any distribution of shares, liquidation of assets, or transfer of the business will be governed by both the shareholder agreement and the franchise agreement. It is important that these two documents work hand in hand to avoid any conflict.

Cassandra Da Re Partner Dale & Lessmann LLP cdare@dalelessmann.com

Franchise Canada Directory 2026

ASK A LEGAL EXPERT Why hire a franchise lawyer? Franchising offers an exciting opportunity, but is a serious legal commitment that requires careful planning and expert advice. Hiring a franchise lawyer is essential to navigating the legal complexities of franchise and/or contract law, negotiating fair and beneficial terms in the fran-

chise agreement, and setting up the proper legal and corporate structure for the business. With the guidance of a skilled franchise lawyer, franchisees can protect their interests, minimize risks, and set themselves up for longterm success.

ASK AN ACCOUNTING EXPERT What accounting and tax information do I need to know when buying an existing franchise unit? THE FRANCHISE INDUSTRY is a massive contributor to the Canadian economy, with more than 1,100 franchisors and some 67,000 units across the country. As the 12th largest economic sector in Canada, franchising is predicted to grow an additional 4% by 2026. It’s no wonder savvy investors and business owners are interested in purchasing existing franchise units to grow their portfolios and incomes. In addition to having a proven record of sales and dedicated market share, those purchasing an existing franchise unit don’t need to account for a ramp-up period. You can make sales projections using historical numbers rather than best guesses. While buying an existing franchise does come with advantages, it’s vital for investors and business owners to manage their risk by carefully reviewing the financial and tax implications before signing on the dotted line. Understand asset vs. share purchase tax implications Knowing the difference between an asset and a share purchase is vital, as the type of purchase you make will have direct impact on your finances, taxes, and legal risk. With an asset purchase, you buy specific assets, such as equipment and inventory, and assume fewer liabilities, debts, taxes, and lawsuits. In a business sense, this is a fresh start with significant risk protection. This structure is preferable for many buyers because of the ability to depreciate assets that are being purchased over time (capital cost allowance) and a reduced risk of inheriting any liabilities from the previous owner. With a share purchase, you acquire the entire franchisee corporation, which includes the assets, liabilities, and tax attributes. This structure is preferred by franchise sellers because of their potential access to the lifetime capital gains exemption on the sale of shares of a qualified small business corporation (QSBC).

When negotiating your sale structure, consider your risk tolerance, potential tax savings, and business continuity needs. Review historical financials and tax compliance Carefully examine financial statements from the last three years. Keep in mind that many franchisees may not have an audit or review engagement during this period, so it is your responsibility to assess if you can rely on the information provided, and to request additional information as necessary. Pay attention to revenue trends, expense anomalies, and seasonality. Assess profitability and determine if you will be able to recoup your investment in a reasonable time frame. If you’re conducting a share purchase, it’s vital to do your due diligence on tax compliance. Confirm the Canada Revenue Agency (CRA) filings for GST/HST, payroll, and corporate tax are up to date. Consider whether there are any outstanding tax liabilities or audits, and whether the proper remittance of franchise fees and royalties have been made. Evaluate working capital and cash flow Assess whether the unit generates sufficient cash to cover debt service and working capital needs. You can

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

Lyn Little Partner, National Franchise Industry Leader BDO llittle@bdo.ca

ASK AN ACCOUNTING EXPERT do this by reviewing historical cash flow statements and preparing projections post-acquisition. Be sure to consider your own cash flow requirements during the first months of the business. If the business will be your full-time job, for example, determine whether you’ll have enough cash flow to cover your personal expenses. Don’t forget about any significant costs the business may need to incur in the next few years. For example, many restaurant franchises are required to undergo a design refresh at specific intervals. Or if you’ve entered into a loan agreement, you may need to meet specific ratios as part of the lending agreement. Consider transition and setup costs Regardless of whether you have an asset or share purchase, you’ll need to determine transition costs, which can include legal and professional fees, training seminars, and inventory valuation. If you have existing

businesses, it’s important to transition accounting systems so they are consistent across the board. In a share purchase, consider if you or the seller will be responsible for the termination of any employees. If you exit an employee after the transition, you may be responsible for the cost of their severance. In an asset purchase, you will need to rehire the franchise employees and may need to renegotiate contracts, which could include additional costs. The importance of financial and tax due diligence cannot be understated. By considering these implications, you’ll be better equipped to prepare accurate financial projections without any surprises. Work with a franchise-savvy accountant and legal advisor who can support your business venture, help mitigate risks that could threaten your franchise, and work with you to build a plan for long-term growth.

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Franchise Canada Directory 2026

LOOK FOR

THE LOGO

The Canadian Franchise Association (CFA) is dedicated to encouraging and promoting ethical franchising in Canada and requires all members to follow a strict Code of Ethics. CFA member brands believe in the importance of the franchisee-franchisor relationship as the ultimate marker of franchising success! As you research franchise opportunities online, at tradeshows, and in the Franchise Canada directory ... Look for the Logo! The CFA member logo tells you that a brand is a part of the CFA community, has signed on to the Code of Ethics, and meets a high standard of excellence.

Interested in learning more? View the full Code of Ethics on page 10!

HOW TO USE THIS DIRECTORY Franchise Canada Directory 2026 is the Canadian Franchise Association’s (CFA) most comprehensive guide to the franchise opportunities available in Canada. With more than 1,300 listings from quick service restaurants to retail, health/fitness to automotive repair, home improvement to beauty supplies and hair salons, there are so many opportunities available. T he listings information is provided by Franchise Brands and Support Services/Supplier specialists Organized for easy reference into Franchise Brands listings and Franchise Support Services/Suppliers listings Directory listings for CFA Members are identified with a CFA Member logo and a shaded box so you can easily identify the systems that adhere to the CFA’s Code of Ethics

FRANCHISE BRANDS

Categories and listings start on page

FRANCHISE SUPPORT SERVICES/SUPPLIERS Categories and listings start on page

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Convenient tabs help identify categories.

We Print, Ship & More! 1-1115 North Service Rd W Oakville, ON L6M 2V9 Phone: (888) 875-0007, (905) 338-9754 ext. 246 Web: www.theupsstore.ca Email: development@theupsstore.ca Contact: Chati Narayan, Franchise Development Department The UPS Store services individuals and small businesses in need of printing, shipping, mail and parcel receiving, and other business services. The UPS Store franchisees enjoy the training and ongoing support of experienced home office and infield teams, from grand opening and beyond. Single-centre, traditional concepts are currently available as well as multi-centre, store-in-store concepts, across most of Canada. Proud to have been designated as an essential service. Franchise units in Canada: Over 400 In business since: 1990 Franchise fee: $40K Start-up capital required: $100K Investment required: $219.5K to $299.5K plus working capital Training: Yes Available territories: All of Canada CFA member since: 1991

PRINTING / COPYING / SHIPPING

THE UPS STORE

BLUE TABS are for Franchise Brands. RED TABS

are for Franchise Support Services/Suppliers.

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

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

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

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

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

Franchise Canada Directory 2026