Franchise Facts on Canadian Business Opportunities

If you’re seriously thinking of buying a Canadian franchise, you may be interested in these facts: 

• The Canadian franchise industry earns about $68 billion annually
• Investments in Canadian franchises range from under $10,000 to more than $1,000,000
• More than 78,000 franchise units exist in Canada
• One out of four Canadians are employed, directly or indirectly, by a Canadian franchise business
• About 1,300 franchise brands operate in Canada
• More than 60% of franchises are not food or beverage related

Source: Canadian Franchise Association

More Facts:

• The term of a Canadian franchise usually runs from five to 10 years, depending on the agreement and the lease.
• Royalties are typically between 5% and 8% of gross sales. These percentages may vary from province to province.
• Franchisors in Alberta, Ontario, Manitoba, New Brunswick and PEI are required by law to provide a franchise disclosure document (FDD) to prospective franchisees at least 14 days before signing the franchise agreement.
• Check the Canadian Intellectual Property Office for trademark applications. Franchisors who have not registered their trademark is a red flag.
• The Canadian Franchise Association governs the franchisor-franchisee relationsh and has well-defined rules on ethical franchising. If the franchisor is not a member of the CFA, that's another red flag.

Source: Tony Wilson, Globe and Mail, Sept. 9, 2014