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Buying A Franchise in Canada


Buying A Franchise in Canada

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Franchising In Canada

Franchising is the licensing out of a business name, product, technique, philosophy, trademark, etc, for a percentage of the income. Instead of setting up new outlets as part of your expansion, you license your existing business blueprint out to franchisees who then set up and manage it for you.

The benefits of franchising your business in Canada include: more freedom, as the franchisee takes on major responsibilities; minimal expense; lower cost and higher profits; potential for fast growth; brand building.

Disadvantages of franchising a business in Canada: although few, rely predominantly on your franchisees. They include: poor quality franchisees; franchisees not declaring all income; poor performance.

Canada has nearly 80,000 franchises nationwide, operating under more than 1,000 brand names and contributing US $85.4 billion to Canadas GDP. Canada is home to the second largest franchise market worldwide, second to the United States and one of the largest per capita franchise markets. Within its vast regional franchise landscape, 85% of franchises operating in Canada are located in the three most populous provinces, Ontario, Quebec, and British Columbia. Franchising is undergoing an exceptional growth period, confirming to be a profitable way to expand a business in Canada.

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