CFA Accomplishments Report 2015 by Franchise Canada

CFA C A N A D I A N FR A N CH I SE A SSO CI AT I O N 2015 ACCOMPLISHMENTS REPORT

THE CFA ACCO M PL ISH M ENT S R EP O R T H A S B EEN PR INTE D COURTESY OF PREMIER PRINTING. W W W.PR EMIER PR INTING.C A

LEAD GENERATION

IMPACT

RESOURCES

OPPORTUNITY

CONCEPT APPROACH

COMMUNITY

BRANDS LEARNING

ADVOCACY

TRADESHOW

INDUSTRY

RECOGNITION

MARKET

STRATEGIC

MENTORSHIP CANADIAN

OPPORTUNITY

MARKET

PROFIT

MEMBERS

SYSTEMS PROFESSIONAL DEVELOPMENT

VALUE

SUCCESS EXCELLENCE

BRANDS

BENEFITS

AWARDS

LAW LOCATION

SUPPORT

VOICE

MARKET

INVESTMENT

FRANCHISE INVESTMENT

FRANCHISE

CONSULTING

INDUSTRY

TRADESHOW

FRANCHISEE

LEARNING

SYSTEMS FRANCHISING

FRANCHISOR GROW SUCCESS CANADIAN

EDUCATION

EXCELLENCE

RESOURCES

PARTNER

SUCCESS

ADVOCACY AGREEMENT

BUSINESS LEAD GENERATION

BENEFITS

WEBINAR

CHAIR’S MESSAGE

THE CANADIAN FRANCHISE ASSOCIATION’S STORY BEGAN NEARLY 50 YEARS AGO IN 1967, WHEN A SMALL GROUP OF FRANCHISORS SAW THE NEED FOR A COHESIVE, NATIONAL ASSOCIATION FOR FRANCHISING. WHILE CFA MEMBERSHIP HAS GROWN EXPONENTIALLY SINCE THOSE EARLY DAYS, THE CORE IDEA OF CFA REMAINS: WE ARE STRONGER TOGETHER. In this report, we look back on our accomplishments and successes and look forward to future endeavours. We have set some very high standards and goals through our mission and strategic plan to add even more value to your CFA membership. Based on what we’ve done so far, I am confident that we will achieve them while continuing to promote excellence in franchising. What does this mean for CFA members? It means that with CFA working in your best interests, franchising will stay strong and viable in the face of any legislative challenges. It means that you have your peers on your side to learn with and learn from. It means more educational opportunities and more ways to get involved with CFA through events, both live and online. It means more quality leads coming your way. It means time- and money-saving offerings that you can extend to your franchisees to add even more value to your franchise system. It means that CFA will be in your corner, advocating for you and protecting the franchise business model to ensure that the industry remains strong and vibrant.

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Because franchising in Canada IS strong and vibrant. Just looking at CFA membership shows over 600 corporate members, in nearly 50 categories and business sectors. We have a range of support service suppliers in over 20 disciplines and industries. Franchising directly and indirectly employs hundreds of thousands of Canadians from coast to coast to coast and undoubtedly makes a huge contribution to the overall Canadian economy. All of this, and more, makes the franchise business model worth protecting, enhancing, growing, and celebrating and the Canadian Franchise Association, with the continued support of its members, is poised to be the strong, unified voice of franchising in Canada for the next half-century and beyond.

Ken LeBlanc

President & CEO, PropertyGuys.com

Chair, CFA Board of Directors

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PRESIDENT & CEO’S MESSAGE

IT’S AN EXCITING TIME AT THE CANADIAN FRANCHISE ASSOCIATION. SINCE EMBARKING ON A RENEWED MISSION STATEMENT AND STRATEGIC PLAN IN 2012, WE HAVE BEEN WORKING STEADILY TO MEET THE OBJECTIVES SET IN FOUR KEY AREAS: LEAD GENERATION, EDUCATION, MEMBER SAVINGS, AND ADVOCACY. As the Authoritative Voice of Franchising and the only national association devoted to franchising, CFA is uniquely positioned to represent the franchise industry with governments and other key stakeholders. In the past, CFA’s advocacy was passive, reacting to franchise-specific changes and challenges. Our members have told us time and again that advocacy is a top priority. To make a significant impact in this area, our focus has moved from reactive to proactive and building relationships with government officials and representatives is a big first step in moving this objective forward. In addition, CFA has been advocating for members in several arenas. There are franchise-specific issues and legislation expressly governing the business model and broad legislation that specifically mentions franchising. There are also the general business challenges, such as access to financing and access to labour. We continue to consult with provinces that are considering franchise legislation and have developed a “wish list” for existing franchise legislation to help create more uniformity across jurisdictions. We have strengthened our lead generation and education activities to better serve members as a onestop provider to help them grow their businesses. Whether it’s online, in print or in person, CFA is helping members connect with over 170,000

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prospective franchisees from coast to coast, Canadians who are exploring the opportunities available through franchising. CFA’s network of franchise professionals makes for unique opportunities for peer-to-peer learning and networking. Our new mentorship program, Zor-2-Zor, takes full advantage of the knowledge and know-how of our members. CFA National Convention, Canada’s premier franchising event, continues to provide an unparalleled learning and networking experience. All of these accomplishments stand as significant building blocks for the future growth of CFA. As we move forward towards even greater success and greater value for members, we are reminded that we can’t do it without the support of our members, particularly the efforts of our fantastic group of CFA volunteers. The commitment and effort of these individuals, along with that of the CFA team, will continue to drive us as we build on our achievements and help our members grow and succeed together.

Lorraine R. McLachlan

President & CEO, Canadian Franchise Association

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CFA MISSION

IN 2012, THE CANADIAN FRANCHISE ASSOCIATION BOARD OF DIRECTORS SET OUT TO ESTABLISH A RENEWED STRATEGIC PLAN FOR THE CFA. FOUR ESSENTIAL AREAS WERE IDENTIFIED TO MAP OUT THE GOALS OF THE PLAN AND ARTICULATE ITS PATH.

THE CFA MISSION STATEMENT

To be the recognized authority on franchising in Canada representing over 700 franchise brands as their indispensable resource by: ➜

ENHANCING AND PROTECTING OUR INDUSTRY THROUGH ADVOCACY

➜

BEING THE PREMIER VEHICLE FOR LEAD GENERATION

➜

EING THE BEST SOURCE FOR INFORMATION B AND EDUCATION ON FRANCHISING

➜

DELIVERING A COMPELLING MEMBER SAVINGS PROGRAM

Whether it is growing your system, protecting your business environment, expanding your knowledge to be the best you can be, or helping you and your franchisees save money, CFA has been building on its foundation of success in these areas. CFA’s advocacy, business development, educational and other programs are designed to support your growth and ability to meet new challenges.

Over the past few years, CFA has strengthened existing programs and introduced a number of new initiatives to deliver value in these areas and help you become even more successful. This accomplishments report will outline some of the many key member benefits and celebrate your continued partnership with CFA.

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TABLE OF CONTENTS 4

CHAIR’S MESSAGE

EDUCATION

PRESIDENT & CEO’S MESSAGE

CFA MEMBER SAVINGS PROGRAM

CFA MISSION

CFA AWARDS PROGRAM

SNAPSHOT OF FRANCHISING IN CANADA

THE ESSENTIALS OF MEMBERSHIP: AT A GLANCE

RECENT ACCOMPLISHMENTS

THANK YOU TO OUR ADVOCACY DONORS

FIVE COMMON FRANCHISING MYTHS

CFA BOARD OF DIRECTORS 2015–2016

CFA’S KEY MESSAGES ON FRANCHISING

CFA COMMITTEES

FRANCHISING FAST FACTS

THANK YOU CFA SPONSORS

CFA MEMBERSHIP SERVICES

CFA STAFF RESOURCES

CFA ADVOCACY AND GOVERNMENT RELATIONS

CFA ADVOCACY SUPPORT PLEDGE FORM

LEAD GENERATION PRODUCTS & SERVICES

CEO CONSULTATIONS

C A N A DI A N F R A NC H I SE A S SOC I AT ION | 2015 ACCOMPLISHMENTS REPORT

SNAPSHOT OF FRANCHISING IN CANADA CFA MEMBERSHIP BY SECTOR

GROWTH OF FRANCHISE SECTORS # OF FRANCHISES IN 2011 IN 2015

34%

WHAT DOES CFAâ&#x20AC;&#x2122;S MEMBERSHIP LOOK LIKE?

2% 5% 38%

8% 8% 7%

Over

600

corporate members Operating in over

50 439 558

A 4%

brands

CFA members represent more than

40,000 franchised outlets across Canada

354

440

24%

CONSUMER PRODUCTS & SERVICES

330

388

18%

AUTOMOTIVE

-6%

BUSINESS TO BUSINESS

RETAIL

CHILDREN'S PRODUCTS & SERVICES

15%

HOME-BASED

100%

B 8%

K 3%

C 11%

J 4%

CFA FRANCHISE SYSTEM MEMBERS BY NUMBER OF YEARS FRANCHISING IN CANADA

D 8%

different sectors

franchise systems, with

FOOD

FSS MEMBERSHIP BREAKDOWN L 3%

GROWTH

E 6% I 35%

F 10% H 5%

> 25 years

23%

16 to 25 years

18%

11 to 15 years

16%

6 to 10 years

12%

1 to 5 years

24%

< 1 years

G 3%

A ACCOUNTANTS B ADVERTISING/GRAPHICS C BANKS/FINANCIAL SERVICES D BUSINESS AIDS & SERVICES E COMPUTER/SOFTWARE/INTERNET MARKETING F CONSULTING G DEVELOPMENT H INSURANCE I LAWYERS JO THER (INCLUDES ADR, EDUCATION/TRAINING, EXECUTIVE SEARCH, MEDICAL, SECURITY) K PAYROLL L PRINTERS

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5-YEAR GROWTH OF NEW CFA MEMBERS VS. NON-MEMBERS

Average Number of Units

By year 5, CFA members typically have 166% more franchises than non-members!

20 15 10 5 0

Alberta

10%

Year 1

Year 3

Quebec

Saskatchewan Manitoba

Year 5

THE UNIVERSE OF FRANCHISE BRANDS IN CANADA BY TOTAL CANADIAN UNITS (FRANCHISE & CORPORATE)

WHERE ARE CFA MEMBERS HEADQUARTERED?

British Columbia

Average Growth of New CFA Members Average Growth of Non-Members

UNITS

PERCENTAGE

0 to 4

20%

5 to 15

18%

16 to 30

24%

31 to 50

10%

Atlantic Canada

51 to 100

14%

101 to 150

151+

10%

Ontario United States

64%

WHAT'S CFA MEMBERSHIP MARKET PENETRATION?

WHERE ARE CFA MEMBER FRANCHISE SYSTEMS OPERATING?

0 to 4

26%

74%

22%

5 to 15

46%

54%

16 to 30

56%

44%

31 to 50

55%

45%

51 to 100

69%

31%

101 to 150

66%

34%

151+

62%

38%

20% 30%

60% British Columbia Alberta

34%

PEI

Quebec

88% Saskatchewan

Manitoba Ontario

35% 32%

Nova Scotia

New Brunswick

*Results add to more than 100% due to multiple responses. W W W.C FA .C A | W W W.LOOK FOR A F R A NC H I SE.C A

NON-MEMBER FRANCHISE BRANDS

Northern Canada

57%

CFA MEMBER FRANCHISE Units BRANDS

CFA members represent 44% of franchise brands in Canada. 66% of those brands have over 51 units. Meanwhile, non-CFA franchisors represent only 34% of the brands that have over 51 units.

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RECENT ACCOMPLISHMENTS

AS A CFA MEMBER, YOU CAN BENEFIT FROM NEARLY 50 YEARS OF KNOWLEDGE AND EXPERIENCE. OUR MEMBERS ARE OUR FOCUS AND WE ARE ALWAYS LOOKING FOR NEW WAYS TO HELP YOU INCREASE YOUR ODDS OF SUCCESS. WHETHER IT BE SUCCESS BY GROWING YOUR SYSTEM, PROTECTING YOUR BUSINESS ENVIRONMENT, OR BECOMING THE BEST FRANCHISOR YOU CAN BE, CFA’S BUSINESS DEVELOPMENT, ADVOCACY, AND EDUCATIONAL PROGRAMS HELP YOU GROW, SUCCEED AND MEET NEW CHALLENGES—ALL WITH THE SUPPORT OF A NATIONAL ASSOCIATION COMPRISED OF AN INTERNATIONAL NETWORK OF LEADING FRANCHISORS AND EXPERT SUPPORT SERVICE SUPPLIERS. OVER THE PAST YEAR, CFA HAS ACCOMPLISHED A NUMBER OF THINGS TO HELP YOU BECOME MORE SUCCESSFUL. HIGHLIGHTS INCLUDE:

CFA PROTECTED YOUR INTERESTS

individual court cases, the ruling in this particular case regarding “implied obligation” raised concerning issues that could potentially have had far-reaching future impact on franchising not only in Quebec but across Canada.

CFA advocates on your behalf to protect and enhance the legal environment in which you do business today and in the future. n Potential British Columbia (BC) Franchise

Legislation: As BC explores potential franchise legislation, CFA is influencing the discussion and highlighting key issues of importance to franchising through our ongoing consultation with the BC Attorney General. While CFA does not actively advocate for franchise legislation, if legislation is introduced, we advocate on your behalf for a uniform approach to franchise legislation across the country, balanced with best practices, and work to enhance the clarity, practicality, and usefulness of any potential legislation.

n Temporary Foreign Workers Program (TFWP):

When the federal Minister of Employment and the Minister of Immigration announced extensive changes to the TFWP that would have immediate and lasting effects on franchisees’ hiring practices, CFA advocated for responsible modifications through consultations with stakeholders to ensure a fuller understanding of the impact that restrictive changes would have on Canadian businesses.

n Amendments to the Trademarks Act: When

n C anadian Small Business Finance Program

(CSBFP): CFA helped make CSBFP financing more accessible and relevant to franchised businesses through our ongoing work with Industry Canada.

n Bertico vs. Dunkin’ Brands Canada Intervener

Status Application: CFA stood up for all franchise systems in Canada through our Intervener Status Application to the Quebec Court of Appeal on the Bertico vs. Dunkin’ Brands Canada case. While CFA does not typically become involved in

C A N A DI A N F R A NC H I SE A S SOC I AT ION | 2015 ACCOMPLISHMENTS REPORT

amendments to the Trademarks Act eliminated the requirement for demonstrated use of the mark and allowed for “squatting” on trademarks, CFA spoke out to protect you from increased costs and efforts in registering and enforcing your brands and trademarks. Our expressed concerns were brought forward by opposition parties as a point of debate of this Bill. While the amendments to the act received Royal Assent, the government has publicly stated that further work is need to amend the regulations and as such, the amendments to the Trademark Act will not come into force until a future date.

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CFA PROMOTED YOUR BUSINESSES CFA expands your marketing reach and helps demonstrate the value of your franchise opportunity to prospective franchisees across the country in print, online, and in person. n Reached over 170,000 prospective

franchisees: CFA helped you connect with over 170,000 prospective franchisees through our lead generation programs (LookforaFranchise.ca, The Franchise Show, FranchiseCanada publications, and FranchiseE-news). As your one-stop lead generation provider, CFA offers you a full suite of business development opportunities to power your stream of leads.

n The Franchise Show in Calgary: At your

request, we extended your reach into the Prairie Provinces through our expansion of The Franchise Show into Calgary. you to connect with prospective franchisees in every market through our new Franchise Recruitment Webinars.

n FranchiseCanada Advertorial Section: We

empowered you to tell your franchise story the way you want it told through our advertorial section in every issue of FranchiseCanada. CFA works to get your messages out to prospective franchisees through special promotions on newsstands across the country and into every Air Canada Maple Leaf Lounge around the globe.

CFA PROVIDED YOU WITH NEW RESOURCES TO BECOME BETTER FRANCHISORS CFA helps you do your job better through time- and money-saving resources, professional development, and best practice information. n Zor-to-Zor Franchise Mentor Program: CFA

introduced a mentorship program that gives you a franchise coach in your corner. These powerful peer-to-peer learning opportunities allow you to learn from one another’s experience in a one-onone consultative way. exclusive savings through the collective power of CFA’s 600+ corporate members and over 40,000

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n Year-round Webinar Programming: We

expanded our line-up of educational webinars to 28 new seminars so you can get franchise-specific professional development without ever leaving your office and it is quickly becoming an essential learning resource for our members.

We take pride in these achievements and we are excited about what the future holds. Motivated by a strong sense of purpose and direction for what is still to come, the commitment and drive of the CFA team—Board of Directors and staff—will ensure that we are ready to meet any challenges that may emerge and that we continue to achieve success for you, our members, and for franchising in Canada. CFA is at the centre of shaping the environment of franchising in Canada. We are a powerful ally. Let’s deepen and strengthen our relationship as we work together to build on past successes and look towards the future. Because you, our members, are at the heart of everything we do.

n Franchise Recruitment Webinars: We enabled

n CFA Member Savings Program: You can enjoy

member franchisees in CFA’s Member Savings Program. Each offering is curated by CFA and tailored for franchised businesses.

YOUR STRONGEST LINK One of the benefits of your CFA membership is the credibility of being aligned with CFA: the recognized authoritative voice of franchising in Canada. The CFA Member Logo signifies professionalism, high standards, and a commitment to excellence in franchising. It is one of the tools we provide that you can use to communicate your association with CFA and it can be used on all of your promotional/ recruitment materials and websites. The logo file is available in English or French, in black and white or colour, and for web or print. You can download the CFA Member logo in the CFA Members Only Area of the CFA website (www.cfa.ca).

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Myth: Franchisees are essentially employees of franchisors Fact: Franchisees are small business owners. While franchisees and franchisors have the same goal of creating success for the franchise system, they work cooperatively but independently toward this goal. The franchisor usually provides training, support, and operational guidelines to ensure consistency; however, franchisees are responsible for the daily operations, decisions, employee hiring and management, and, ultimately, success of their business.

Myth: Franchising is all big business Fact: Franchisees are small business owners who have invested in local communities and support their local economies. Though a franchise system may be regional, national, or international in scope, the success and growth of a system is driven by its network of small businesses operated by local franchisees in each market.

THE FACTS BEHIND

Myth: Franchisors will accept anyone who shows up with a cheque as a franchisee Fact: Joining a franchise system is an important decision that should be well thought out by both the franchisor and franchisee. Franchisees invest not only their money but also their time and effort. Similarly, franchisors want to ensure the continued success of the system by bringing the right people on board as franchisees. There should be a due diligence process on both sides to help confirm that investing in a franchise location with a specific system would be a prudent decision for all involved.

FIVE COMMON Myth: Franchises are limited to â&#x20AC;&#x2DC;fast foodâ&#x20AC;&#x2122; restaurants Fact: Any business concept that can be exactly replicated in a new location can grow using the franchise business model. While many people may first think of food service when they think about franchising, the reality is that franchises can be found in just about every industry and business sector. Canadian Franchise Association membership includes nearly 50 different franchise categories â&#x20AC;&#x201C; from automotive to retail to home-based businesses.

FRANCHISING

MYTHS

Myth: Investing in a franchise means buying a business Fact: When a franchisee invests in a franchise, what he or she receives is the licence to operate a business under the brand name of the franchise system, including associated trademarks and operating processes, for a specified period of time. The franchisee needs to adhere to the standards, procedures, and guidelines set out by the franchisor. (These will be outlined in the franchise agreement contract.) The franchisee is responsible for the day-to-day operations of the business and for driving revenue and profitability.

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CFA’S KEY MESSAGES ON FRANCHISING

FRANCHISING PLAYS AN IMPORTANT ROLE IN THE LIVES OF CANADIANS AND THE CANADIAN ECONOMY. WHEN THE CANADIAN FRANCHISE ASSOCIATION REACHES OUT TO AND WORKS WITH GOVERNMENT AND MEDIA, AS PART OF CFA’S ADVOCACY PROGRAM, THESE ARE JUST SOME OF THE KEY MESSAGES CFA USES TO EXPLAIN HOW FRANCHISING POSITIVELY IMPACTS PEOPLE AND COMMUNITIES ACROSS THE COUNTRY.

FRANCHISING OFFERS IMPORTANT BUSINESS, CAREER, AND EMPLOYMENT OPPORTUNITIES

FRANCHISEES ARE COMMUNITY-FOCUSED JOB CREATORS

Franchising provides an opportunity for a wide range of individuals – those looking to start a career, change careers, follow their passion, become a business owner, and more. The franchise business model is particularly valuable to new Canadians who want to operate their own business with the support of an established brand.

Franchisees are small-business owners and are invested in the local area, providing jobs and opportunities for those who live close by. Many franchisees are active in their communities – for example, they may join local business associations, sponsor sports teams and other community groups, and support local charities.

FRANCHISING HELPS OUR ENTREPRENEURS FIND SUCCESS THROUGH BUSINESS OWNERSHIP

FRANCHISING PROVIDES DIRECT AND INDIRECT ECONOMIC BENEFITS IN COMMUNITIES

Franchisees are entrepreneurs and small business owners. For those who want to own their own business, franchising can offer a lower-risk route to this goal. Franchisees get brand recognition, established processes, and a tried-and-true system by which they operate their business. Franchisors are able to grow their business’ points of sale and market share by partnering with entrepreneurs in local markets.

Every time a new franchise location opens, it creates a positive economic ripple effect in its local community, including new employment opportunities, the purchase of the materials, goods, and services required to operate the business, and the tax base that it creates.

FRANCHISEES ARE INVESTING IN THE CANADIAN ECONOMY

Unlike large, corporate ownership-based chains where money spent in one community may ultimately end up in another city, province or even country, the bulk of the money spent at a franchise location remains in its community and invested in the local area.

FRANCHISE REVENUE STARTS LOCAL AND STAYS LOCAL

When franchisees make the decision to start a business and invest in a franchise, they are investing in the Canadian economy. Because franchisees invest their financial resources, along with their hard work, time, and talent, they have a vested interest in ensuring the success of their location.

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FRANCHISING FAST FACTS The Canadian franchise

industry generates approximately

$68 billion every year Over 1 million

Canadians –approximately

1 out of every 14 W O R K I N G

CANADIANS

– are directly or indirectly employed by the franchise industry

The advantage of

being a franchisee

Franchisees are

independent

business people and have significant

control over the

success of their businesses

it creates new jobs

Individual investments

can range from under

$10,000 to over $1,000,000

There are over

,000 78 franchise units

across Canada

Franchising is more than food –

over 60% of franchises can be found in non-food sectors and industries There are an

Most prospective franchisees

1,300

be in business for themselves

estimated

franchise Every time a new franchise opens,

includes working a business that already has a proven business format, a successful track record, and a recognized brand

brands operating in Canada

explore franchising as a way to

but not by themselves Any business that can be

exactly replicated can be a franchise

Franchise fees can range from under $5,000 to over $75,000

Franchising is a thriving and wide-ranging business sector in Canada. The Canadian Franchise Association (CFA) is the authoritative voice for franchising in Canada and its members represent more than 600 brands in nearly 50 industries and over 40,000 franchised locations across the country.

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CFA MEMBERSHIP SERVICES

CFA MEMBERSHIP IS BUILT AROUND THE PILLARS OF INDUSTRY CREDIBILITY, LEAD GENERATION, ADVOCACY, EDUCATION, AND MEMBER SAVINGS. ALL THESE BENEFITS OF CFA MEMBERSHIP FIND THEIR ROOTS IN THE IDEA THAT TOGETHER WE ARE STRONGER, AS ONE UNIFIED VOICE WE ARE MORE POWERFUL.

STRATEGIC IMPERATIVE: BEING AN INDISPENSABLE RESOURCE FOR OVER 700 FRANCHISE SYSTEM MEMBERS A focus on excellence in franchising, keeping members apprised of developments in franchising and the business landscape, putting members in a prime position to tell their story to prospective franchisees, pro-actively working to foster relationships with key government officials, offering unparalleled learning and networking opportunities, and access to an exclusive saving program are all part of your membership package. CFA membership grew from 494 brands in 2013 to 532 in 2014. We will be creating Regional Marketing Committees to help CFA membership grow and, in turn, add strength to our collective voice. As always, members are encouraged to refer other companies to join CFA and experience all the benefits of membership.

WHAT MEMBERS EXPECT OF CFA Advocacy and lobbying to government

37 38

Providing lead generation

General public education and awareness about franchising

11 10

Providing access to research and resources to help the industry

Acting as a forum for industry professionals (networking)

Keep members informed to help them to stay on top of trends and issues

Improve standards and encourage excellence

Providing the national convention Regulatory role overseeing franchises

6 Primary Contact (N=108) Other Contact (N=69)

2. Members expect CFA to attract quality franchisee prospects through its lead generation products and programs and CFA is delivering an expanded line-up of its popular tradeshows, new postshow webinars, an enhanced online interactive directory, new magazine advertorial features and more. 3. Members expect CFA to increase awareness of and education on franchising, both in the general public and in the industry, and CFA is delivering with an expanded schedule of learning webinars networking opportunities like National Convention for franchise professionals, and an everexpanding slate of resources for those interesting in getting into franchising. 4. Members expect CFA to keep them on top of trends and issues in the industry and CFA is delivering through a range of communications vehicles, from the monthly member e-newsletter e-NewsWorthy to the quarterly member magazine FranchiseVoice to the Member Bulletins that convey urgent news and action items.

1. CFA members expect their association to be the voice for franchising in Canada and CFA is delivering a comprehensive advocacy program comprising both proactive relationship-building and consultations and reactive response to new and proposed legislation and regulations.

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40 (%)

5. CFA members expect their association to encourage excellence and CFA delivers with its Code of Ethics and a robust and prestigious Awards Program.

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CFA ADVOCACY AND GOVERNMENT RELATIONS

DEMONSTRATING THE POWER OF CFA’S VOICE Franchise systems come in all shapes and sizes and in almost every sector from food service to senior care. What connects this diverse crosssection of business is the franchise business model. All franchise systems are impacted if the legal and legislative environment becomes hostile to franchising. As Canada’s only national trade association for franchising – representing nearly half of all franchised brands and more than half of all franchisees in Canada – CFA is the authoritative voice of franchising and is uniquely positioned to advocate on your behalf to protect your franchise system and foster an environment in which your businesses can flourish. Our most recent membership surveys ranks representing and protecting your interests through advocacy a number one priority. CFA has identified policy priorities and has put into place a comprehensive advocacy and government relations plan with the assistance of our Government Relations (GR) Committee and Legal & Legislative Affairs Committee (L&LAC). We have influenced discussions and decisions on legislation impacting franchised businesses in Canada. And we are pro-actively fostering relationships with government officials, providing them with insight into the importance and scope of franchising in Canada, as well as a better understanding of the franchise business model and independent nature of the franchisorfranchisee relationship.Instead of merely reacting to government actions and decisions, CFA‘s advocacy and government relations efforts proactively build relationships with policy and legislative decisionmakers and government officials. CFA’s advocacy agenda is moving forward… and we are gaining tremendous momentum.

ADVOCACY AND GOVERNMENT RELATIONS PLAN IN ACTION Historically, CFA’s advocacy agenda has generally been to work with government on franchise-specific legislation. While this is an area in which CFA is uniquely positioned to contribute, this is not the only type of legislation that impacts franchising. We can not only guide franchise-specific legislation but also safeguard against the indirect threats caused by policy makers who do not consider or misunderstand the impact their decisions have on franchising. Franchising is increasingly referenced in legislation and government policies. CFA is learning that there is a general lack of understanding about the franchise business model, its importance to the economic health of Canada, and what can help or hinder franchising when it comes to policies and legislation. CFA’s advocacy and government relations plan focuses on pro-actively educating all levels of government about franchising’s contributions so that they are fully aware and informed when considering policy decisions or changes that may have an impact on franchised businesses in Canada. To assist in this, we have compiled statistics and data about franchising, developed key messages and franchise educational materials for governments, and conducted an in-depth analysis of existing franchise legislation.

INFLUENCING PROPOSED FRANCHISE LEGISLATION IN BRITISH COLUMBIA (BC) As a matter of policy, CFA does not advocate for franchise legislation. However, if legislation is introduced, CFA advocates for a uniform approach to franchise legislation across the country, balanced with best practices. When the BC government announced it plans to propose franchise legislation,

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CFA was there from the beginning to influence discussions and decisions. CFA consulted with the British Columbia Law Institute on their report and recommendations to the government and CFA met directly with The Honourable Suzanne Anton, BC Minister of Justice and Attorney General for a general discussion about franchising and the importance of franchising to the economy. We also put forward several recommendations to the potential legislation. While BC franchise legislation is still being considered, CFA continues to maintain ongoing communications with the office of the Attorney General and is working to enhance the clarity, practicality, and usefulness of the legislation.

provincial budgets have resulted in a number of in-person meetings and communications, including the Finance Minister of Manitoba. We invited targeted politicians to CFA National Convention, resulting in greeting letters from the Prime Minister, the Premier of Ontario, and acceptances from the Minister of Labour, the MPP of Niagara Falls, as well as the Mayor of Niagara Falls. These are just the start of CFA’s relationship-building meetings with government and these activities will all lead up to our 2016 CFA National Convention in Ottawa. This event will serve as a “flagship” event for franchise advocacy and will strengthen our relationship with politicians and government officials.

GAINING THE ATTENTION OF GOVERNMENTS AT ALL LEVELS

In 2014, we have seen increasing threats and dangers to franchising. We need to look no further than the United States where the National Labor Relations Board’s directional decision on ‘joint employer status’ challenges the essence of the franchisorfranchisee relationship. In Canada, we are already hearing instances where government agencies are looking at whether a franchisor can be deemed a co-employer of a franchisee’s employees.

For our advocacy work to be most effective, CFA needs to be the first contact governments consult when the word franchising comes into their purview. To achieve this, CFA’s government relations activities have focused on building relationships with targeted government decisionmakers through in-person meetings and constant communications. Through these relationships, CFA educates about the importance of franchising’s contributions to the Canadian economy and highlights the critical importance of protecting the franchise business model and the independent nature of the franchisor-franchisee relationship. CFA arranged a number of inperson meetings in Ottawa with key government representatives, including the Office of the Prime Minister. Our policy position letters and consultation requests on

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If CFA does not address these threats on your behalf, who will? If you were to face these challenges alone, the cost you would bear would be prohibitive. Our history has taught us that we are stronger together – we are most effective when we speak and act in unison. As a collective group, we have a far greater impact for much less cost to each franchise. Through CFA advocacy, the unified voice of our members is powerful.

RECENT MEETINGS WITH GOVERNMENT OFFICIALS Matt Boudreau, Policy Advisor, Office of the Associate Minister of Health and Long-Term Care (Ontario) James Rajotte, MP (Edmonton – Leduc, Alberta),Chair of Standing Committee of Finance, Conservative Party of Canada Peggy Nash, MP (Parkdale – High Park, Ontario), Critic of Industry, New Democratic Party of Canada John McCallum, MP (Markham – Unionville, Ontario), Critic of Immigration, Liberal Party of Canada Dean Allison, MP (Niagara West – Glanbrook, Ontario), Chair of House of Commons Liaison Committee / Chair of Standing Committee on Foreign Affairs & International Development, Conservative Party of Canada Judy Sgro, MP (York West, Ontario), Critic of Industry, Liberal Party of Canada Cynthia Tran, Advisor, Stakeholder Relations and Outreach, Office of the Prime Minister Jesse Rosenberg, Senior Policy Advisor, Office of the Minister of Labour (Ontario) Hon. Greg Dewar, Minister of Finance (Manitoba), New Democratic Party of Manitoba Scott Brison, MP (Kings – Hants, Nova Scotia), Critic of Finance, Liberal Party of Canada Hon. Suzanne Anton, Minister of Justice and Attorney General of British Columbia, Liberal Party of British Columbia

2015 CFA NATIONAL CONVENTION ATTENDEES*: Hon. K. Kellie Leitch, Minister of Labour and Minister of Status of Women (Canada), Conservative Party of Canada Wayne Gates, MPP (Niagara Falls, Ontario), New Democratic Party of Ontario Mayor Jim Diodati, Mayor of Niagara Falls *Attendance confirmed at time of print

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LEAD GENERATION PRODUCTS & SERVICES

CFA IS COMMITTED TO BEING A ONE-STOP PROVIDER FOR QUALITY LEAD GENERATION FOR MEMBERS. WHETHER IT IS ONLINE, IN PRINT, OR IN PERSON, CFA IS CONNECTING YOU TO QUALITY FRANCHISEE LEADS FROM ACROSS CANADA.

STRATEGIC IMPERATIVE: BEING THE PREMIER VEHICLE FOR LEAD GENERATION ONLINE: Our web strategy has grown in recent years, encompassing not only lead generation, but also education for prospective franchisees. To this end, we introduced LookforaFranchise.ca, CFA’s official online directory, to direct prospective franchisees to resources and, ultimately, to member franchise systems. The customer-centric approach of this award-winning website combines a custom search function, interactive features like video, and a ‘Profile Builder’ function that allows prospective franchisees to easily contact franchise systems and access exclusive content.

CFA’s web lead generation presence is supported by a marketing and communications strategy designed to drive leads to LookforaFranchise.ca and other CFA lead generating properties.

SNAPSHOT OF PROSPECTIVE FRANCHISEES TODAY First learned about franchising online. (39%) Is looking to invest in 12 to 24 months. (30%) Has $100,000 to $300,000 to invest. (29%) Is between 25 and 44 years old. (58%) Is a college/university graduate. (62%)

Male

70%

Female

30%

Spends 1-2 hours per week investigating franchise opportunities. (32%) 18

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PRINT: CFA’s award-winning consumer magazine, FranchiseCanada, continues to connect with readers across the country. The title was selected to appear in Air Canada Lounges in Canada and around the world. This prestigious program allows select publications to be available to travellers in these spaces and FranchiseCanada is the only franchise publication to be accepted. 10 STEPS TO FIND YOUR FIT

HOW MUCH $$$ CAN YOU MAKE?

HOT BRANDS, SUCCESS SECRETS & MORE…

A TO Z GUIDE TO FRANCHISING

SMALL BUSINESS SUCCESS STORIES

BONUS: SPECIAL

CASUAL DINING FOCUS

LookforaFranchise.ca

YOUR COMPLETE SOURCE GUIDE TO FRANCHISING IN CANADA

PUBLISHED BY

www.CFA.ca

OVER 1,300 LISTINGS INSIDE

YOUR MOST TRUSTED FRANCHISE RESOURCE

BUILDING A

BEAUTY EMPIRE HOW KRISTEN WOOD AND THE TEN SPOT ARE TAKING OVER, ONE LOCATION AT A TIME

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DIRECTORY 2015

BROUGHT TO YOU BY THE CANADIAN FRANCHISE ASSOCIATION, THE AUTHORITATIVE VOICE OF FRANCHISING IN CANADA

IN PERSON: The Franchise Show continues to attract thousands of prospective franchisees to events in Toronto (February and October), Vancouver, Montreal, and, new this year, Calgary. Also new, The Franchise Show received an updated and rebranded look in all host cities as well as a mobile show guide that attendees could download to their device to access information on the event, exhibitors, seminars and sessions. Post-show Recruitment Webinars were added as a way for exhibitors to connect with prospective franchisees after the show and help them learn more about specific franchise opportunities.

SCAN THIS QR CODE

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Display in business until Jun. 30, 2015

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In addition to a fresh streamlined design, FranchiseCanada has added a new focused advertorial section in each issue, which allows member franchise systems to tell their brand stories to readers in their own words. Exclusive online content, available only to those who build their profiles on LookforaFranchise.ca, a digital version and a focused magazine micro-site continue to build connections between the print magazine and online lead generation.

WHEN ARE THEY LOOKING TO INVEST?

Each year, thousands of attendees attend The Franchise Show events in four cities across Canada.

WHAT’S THEIR AGE RANGE?

WHAT SECTORS ARE THEY LOOKING AT? 18-24 5%

Now 18% Food 42% 25-34 25% 6 Months 24% Home-based 16% 35-44 33% 1-2 Years 30% Other 8% 45-49 15% 3-4 Years 6% Retail 2 1% 50+ 22% 5+ Years 4% Services 30% WHAT IS THEIR HIGHEST LEVEL Unsure 18% *Results may not add to 100% due to

HOW MUCH DO THEY HAVE TO INVEST?

OF EDUCATION?

multiple responses.

High School 10% WHAT DO PROSPECTIVE College/University 62% FRANCHISEES CONSIDER MOST Graduate Degree (and higher) 28%

$500 - $10,000 13% $10,000 - $50,000 20% WHAT ARE THE TOP 3 REASONS FOR $50,000 - $100,000 24% EXPLORING FRANCHISING? $100,000 - $300,000 29% Be your own boss 35% $300,000 - $500,000 9% Change careers 19% $500,000+ 5% Start my career 1 0%

IMPORTANT WHEN EVALUATING A FRANCHISE OPPORTUNITY?

Brand recognition 28% Investment level 27% Support/training 26% Concept 19%

Source: The Franchise Show attendee registration & surveys, LookforaFranchise.ca information request data.

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EDUCATION

CFA IS COMMITTED TO DELIVERING MORE AND BETTER EDUCATIONAL RESOURCES FOR OUR MEMBERS ONLINE, IN PERSON, AND IN PRINT, AS AN INDISPENSABLE EDUCATION AND ORGANIZATIONAL DEVELOPMENT RESOURCE FOR BOTH EMERGING AND MATURE CFA BRANDS.

STRATEGIC IMPERATIVE: BEING THE BEST SOURCE FOR EDUCATION AND INFORMATION ON FRANCHISING Our new-look corporate website, www.cfa.ca, is the hub for all the information and resources CFA offers its members. From the expanded yearround webinar program and online resources to information about live events and advocacy initiatives, cfa.ca and the expanded Members Only Area makes it your one-stop-shop for the resources you need. A new advanced search tool lets you search archived articles, tutorials, white papers and other information quickly and easily by topic or key words. One of the key strengths of CFA in the education arena is the potential for peer-to-peer learning. We will continue to maintain and grow our current

successful educational and networking offerings, including CFA National Convention, Franchise Law Day, and FranchiseVoice Member Magazine. The success of the new CFA mentorship program and continued popularity of live events and their networking opportunities speak to the educational and professional development benefits of your participation with CFA. As well, CFA’s memberfocused publication, Franchise Voice, was expanded from a newsletter to its new edition as a full-fledged member magazine to better provide even more value and information. As we go forward, CFA’s Education Advisory Committee and event-specific committees are dedicated to improving existing programs and events and introducing new initiatives to help make education engaging and accessible for members everywhere.

ZOR-2-ZOR: FRANCHISE COACH IN YOUR CORNER To help emerging franchise system members benefit from the collective wisdom and experience of CFA’s membership, CFA offers Zor-2-Zor: Franchise Coach in Your Corner, a franchise mentoring program. Program participants will be partnered with an established franchisor, who will provide personalized mentoring, guidance, consultation, and support to address the participant’s self-identified challenges and concerns. The Zor-2-Zor: Franchise Coach in Your Corner, franchise mentoring program, was launched at

the 2014 CFA National Convention as a way to provide CFA members with an engaging new educational opportunity and member value at no additional cost. Available to CFA members entering their second consecutive year of membership (or who have joined on the two-year introductory membership bundle), the CFA franchise mentor program is an exclusive opportunity for new and emerging franchisors to learn best practices and strategies for success through personalized mentoring and support directly from established CFA member franchise systems. Since its launch in 2014, Zor-2-Zor has matched up 15 pairs of mentors and mentees.

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CFA NATIONAL CONVENTION RECEIVES AN OVERALL SATISFACTION RATE OF 80% AMONGST ATTENDEES. WHO ATTENDS THE CFA NATIONAL CONVENTION?

Over 550 Delegates Attended The 2014 CFA National Convention.

G A

A CEO/PRESIDENT, COO, CFO, CAO, CMO �� 27% B E XECUTIVE VICE PRESIDENT / SENIOR VICE PRESIDENT / VICE PRESIDENT / ASSOCIATE VICE PRESIDENT ��13%

C MANAGER / FRANCHISE DEVELOPER ��13% D OTHER (ASSOCIATE, SPECIALIST, COORDINATOR, ETC.) �� 17% E GENERAL MANAGER / DIRECTOR ��15%

B D C

F PARTNER �� 12% G FRANCHISEE �� 3%

OVER 50

SPEAKERS & PRESENTERS WHO ARE INDUSTRY EXPERTS & SPECIALISTS IN THEIR FIELDS.

100+

HOURS OF EDUCATIONAL CONTENT DELIVERED OVER THREE DAYS.

HERE’S WHAT SOME OF THEM ARE SAYING ABOUT THE VALUE OF THE ZOR-2-ZOR PROGRAM: MENTEE:

KRISTEN WOOD, THE TEN SPOT

MENTEE:

KIM WATT-SENNER, EVERYTHING ORGANIZED

Why did you apply for the Zor-2-Zor program? Why is this initiative important to you?

“Since starting up the franchising arm of the business, I’ve realized quickly that there are many things I don’t know. Meaning it’s not until I’m faced with a challenge or have made a mistake that I recognize that area as a blind spot. To be able to get advice and guidance from more established franchisors that have paved the way and learned from their own hindsight is invaluable to me.”

“This was important to me because as a new franchisor I found myself ‘spinning’ with certain aspects of my business due to the fact I had not had any franchise experience in my lifetime. This has become important to me as it has given me a chance to bounce ideas off my mentor that I may have taken on myself, when in reality it may not have been the wisest choice. He has certainly saved me thousands of dollars, time, and, ultimately, stress.”

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CFA MEMBER SAVINGS PROGRAM STRATEGIC IMPERATIVE: DELIVERING A COMPELLING MEMBER SAVINGS PROGRAM The CFA Member Savings Program (MSP) was developed as a time- and money-saving benefit that franchisors can extend to their franchisees. Through the collective strength of CFA’s 600+ members and their franchisees, CFA is able to negotiate extraordinary discounts on essential business products and services that every franchise needs. The MSP fills the need for franchisors and their franchisees to access lower costs on key services, which is made possible through the power of group buying. The Member Savings Program officially launched at the 2014 CFA National Convention and currently boasts 13 offers, with more added on an ongoing basis. CFA’s group purchasing program was created to provide CFA members access to ongoing savings on day-to-day business expenses to help offset their annual CFA membership dues. The MSP provides CFA members with a tangible membership benefit which they can pass along to their franchisees: the opportunity for their

franchisees to save money on their bottom line and increase their individual profitability. A redesigned microsite for the MSP has been developed and will be launched imminently to enhance online access to the program. The MSP microsite will utilize the new Member Savings Program Privilege Card which will provide each MSP user with a personalized login for the program. Each CFA member contact (including franchisees) will be assigned a Member Savings Program Privilege Card to facilitate their access to all the offers available through the MSP. To help drive this program, CFA has reached out to member franchisors with marketing efforts to help promote MSP savings to their franchisees. CFA offers customized branded brochures which can be distributed by the franchisor or which CFA will distribute on their behalf to their franchisees. Also, on request, CFA provides franchisor members with a version of the MSP logo, which can be used to create a hyperlink to the MSP login from their own website providing franchisees easier direct access to MSP savings.

Companies offering savings to CFA members through the CFA Member Savings Program include:

… and more to be announced soon.

For full details, visit www.membersavingsprogram.ca

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CFA AWARDS PROGRAM

THROUGH ITS AWARDS PROGRAM, CFA IS PROUD TO HONOUR ITS MEMBERS FOR THEIR ACHIEVEMENTS. RECIPIENTS OF ALL CFA AWARDS ARE ANNOUNCED AND CELEBRATED EACH SPRING AT THE CFA NATIONAL CONVENTION.

CFA AWARDS OF EXCELLENCE IN FRANCHISING

FRANCHISEES’ CHOICE

The CFA Awards of Excellence program recognizes excellence in franchise operations and celebrates the mutually-rewarding relationship between a franchise system and its franchisees. The Awards are the pinnacle of franchise achievement in Canada and are the highest recognition a franchise system can receive from the CFA.

Recipients of this designation are participants that have achieved a score that exceeds the benchmark established by CFA. All recipients of this designation are recognized as franchises with solid rankings in franchisee satisfaction. Special honours are bestowed on companies that receive the designation over five or more consecutive years. This year marks the fifth year of the Franchisees’ Choice designation and 15 of the 2015 recipients will be receiving this significant designation for an impressive fifth time. These companies receive a special five-year logo to display, showing a consistent, positive response from their franchisees.

Franchise brands compete each year for these Awards through an independent process that evaluates the calibre and strength of their franchisee relationships. The Awards are presented annually to franchise systems that have demonstrated a dedication to superior franchisee relations, team work and communications.

CFA AWARDS OF EXCELLENCE BENCHMARKING REPORT Participants in the CFA Awards of Excellence in Franchising program can opt to receive a benchmarking report based on the results of the Awards surveys completed by both the franchisees and franchisor. The benchmarking report generated by the program provides the average franchisee responses for the participating system, plus the aggregated responses from all franchisees in the same category and the responses from all franchisees in all categories. The report provides significant added value, especially to those who participate every year, to track franchisee response and satisfaction.

CFA RECOGNITION AWARDS Each year, the Canadian Franchise Association pays tribute to individuals and franchise systems for their outstanding achievements and contributions to the Canadian franchise community and for their commitment and contributions to philanthropic endeavours. HALL OF FAME AWARD – exceptional performance and leadership by a franchise company over a significant period of time. OUTSTANDING CORPORATE CITIZEN AWARD – philanthropic innovation, support and impact to the community. W W W.C FA .C A | W W W.LOOK FOR A F R A NC H I SE.C A

LIFETIME ACHIEVEMENT AWARD – exceptional achievement and contribution to franchising. VINCE NICHOLS MEMORIAL AWARD for VOLUNTEER LEADERSHIP – entrepreneurial spirit and dedication as a volunteer, particularly with CFA.

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THE ESSENTIALS OF MEMBERSHIP: AT A GLANCE www.CFA ca ADVOCACY & GOVERNMENT RELATIONS As the recognized authority on Canadian franchising, CFA works with all levels of government and advocates on behalf of franchisors and franchisees in Canada to enhance and protect the franchise business model.

WWW.CFA.CA offers a wealth of franchise educational and best practice resources including events, webinars, white papers, articles, and more.

CFA NATIONAL CONVENTION is a threeday annual event filled with learning, networking, and the latest resources to help your business succeed.

CFA AWARDS OF EXCELLENCE IN FRANCHISING is the ultimate prize in Canadian franchising. Open exclusively to CFA members, the awards recognize excellence in franchise operations.

FRANCHISEES’ CHOICE DESIGNATION The Franchisees’ Choice designation, presented annually by the Canadian Franchise Association (CFA), is awarded to CFA member franchise systems for their solid rankings in franchisee satisfaction.

The CFA MILITARY VETERANS PROGRAM helps military personnel transition to civilian life through ownership and employment opportunities with member franchises.

STAYING INFORMED CFA HAS MANY WAYS – IN PRINT, ONLINE, AND THROUGH EMAIL – TO KEEP YOU UP-TO-DATE WITH WHAT’S HAPPENING IN YOUR ASSOCIATION AND YOUR INDUSTRY AS AN EXCLUSIVE BENEFIT OF YOUR MEMBERSHIP.

www.CFA ca CFA MEMBERS ONLY AREA A password-protected area exclusively for members to access essential information, resources, tools, programs, blog posts, and communications.

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E-NEWSWORTHY CFA e-Newsworthy is a monthly e-publication designed to work in tandem with FranchiseVoice to keep members apprised of news and developments at CFA.

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FRANCHISECANADA MAGAZINE & ANNUAL DIRECTORY are award-winning national newsstand publications designed to engage and inform prospective franchisees and franchisors about specific franchise opportunities and the franchise business model.

THE FRANCHISE SHOW is our exclusive, franchise-only tradeshow bringing in thousands of attendees annually. That’s a lot of prospective franchisees – your target market.

LOOKFORAFRANCHISE.CA, CFA’s awardwinning official online franchise directory, puts your brand in front of qualified franchisee leads.

EDUCATIONAL EVENTS The CFA delivers leading-edge seminars on franchise best practices nationally, regionally, and online via webinar.

HOW TO FRANCHISE YOUR BUSINESS Led by a panel of experts, this full day seminar offers a step-by-step guide to building a strong franchise system.

CFA FRANCHISE LAW DAY is designed to help franchisors understand what they need to know to protect their businesses.

ZOR-2-ZOR: FRANCHISE COACH IN YOUR CORNER is a franchise mentoring program that partners emerging franchisors with an established franchisor, who will provide personalized mentoring, guidance, consultation, and support to address the participant’s self-identified challenges and concerns.

CFA MEMBER SAVINGS PROGRAM At CFA, we’re committed to helping our members grow their businesses and become more profitable. That’s why we’ve negotiated generous discounts for CFA members and their franchisees on essential products and services through an exclusive Member Savings Program.

Ombudsman PROGRAM

OMBUDSMAN PROGRAM The CFA Ombudsman Program facilitates the resolution of franchise complaints and problems. Any franchisee or franchisor operating in Canada can contract the Ombudsman if they wish to discuss an issue or concern regarding a franchise relationship with a neutral, objective person, free of charge.

FRANCHISEE-NEWS CFA’s bi-weekly e-newsletter for prospective franchisees keeps readers informed about the latest franchise opportunities, events and news in Canada.

MEMBER BULLETINS Member Bulletins provide timely updates with information on important issues, including legal and legislative, that may affect your business

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OPPORTUNITY KNOCKS alerts members to franchising focused publicity opportunities with media outlets as they arise.

THE FRANCHISEVOICE CFA’s quarterly member magazine features in-depth articles on franchise industry trends and best practices (written by experts from CFA’s membership) as well as the latest news and happenings at CFA.

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THANK YOU TO OUR ADVOCACY DONORS MOVING THE ADVOCACY AGENDA FORWARD –

CFA ADVOCACY DONORS:

WITH YOUR HELP

CFA thanks advocacy donors for championing CFA’s advocacy program and helping us drive our important advocacy agenda forward. From influencing the shape of proposed franchise legislation to securing meetings with key government officials to recommend changes to programs and policies that impact franchised businesses, your donations help make our strong, pro-active advocacy program possible.

Judy Sgro, MP of York West, Ontario (centre) meets with Erica Kelsey, CFA Director of Government Relations (left) and John Wissent, 1st Vice Chair of the CFA Board of Directors, in Ottawa about the importance of franchising to Canada’s economy.

Hon. Greg Dewar, Manitoba’s Minister of Finance (centre) meets with Lorraine McLachlan, CFA President & CEO (left), and Erica Kelsey, CFA Director of Government Relations (right), about Manitoba’s provincial budget.

SUPPORT CFA ADVOCACY & GOVERNMENT RELATIONS CFA is making great strides in our advocacy work but the resources needed to be dedicated to pro-active advocacy and government relations is beginning to stretch our limits. CFA membership dues are among the lowest of the major national franchise associations and across most strong trade associations in Canada. We want to ensure that membership in CFA is accessible to all businesses in franchising but our dues are currently not sufficient to ensure we have the resources to deliver the advocacy message and the protection you, our members, need and expect. We need your help and are asking all CFA members to contribute a minimum of $1 per day – only $365 a year – to help support advocacy for franchising. Help us protect your business and the legislative environment in which you do business. Please, make your pledge today through the Advocacy Support Pledge form on page 33.

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BeaverTails Canada Inc. Bio Ped Franchising Inc. Boston Pizza International Charlwood International Chatters Salon Choice Hotels Canada Comfort Keepers Cora Franchise Group EDO Japan Expedia CruiseShipCenters Famous Laffa Fire-Alert Mobile Extinguishers Good Earth Cafes Great Canadian Dollar Store Hero Certified Burgers Hoffer Adler LLP Home Instead Senior Care Humpty’s Restaurants Jai-Mak Foods ltd Jani-King Canada JSF Franchising Group KKP Canada Lice Squad Canada Lunch Lady Group M&M Meat Shops Mary Brown’s Inc. MBEC Communications LP Metal Supermarkets Nandos Chickenland Ltd. Nurse Next Door Paul Davis Systems Canada Pizza Nova Take Out Ltd. PropertyGuys.com Inc. PuroClean Canada Restaurants Eggspectations Canada Retire-At-Home Services Right at Home Canada Sangster’s Health Canada Shoppers Drug Mart Smoke’s Poutinerie Speedpro Systems Spirit of Math Schools Sportball Systems Symposium Café Target Pharmacy Tiny Hoppers Watch It! WAXON WAXBAR Wiliams Fresh Café Wine Kitz

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CFA BOARD OF DIRECTORS 2015–2016 BOARD CHAIR

PRESIDENT & CEO

1ST VICE CHAIR

2ND VICE CHAIR

Ken LeBlanc PropertyGuys.com

Lorraine McLachlan Canadian Franchise Association

John Wissent

John DeHart Nurse Next Door

SECRETARY & GENERAL COUNSEL

PAST CHAIR

CHAIR, FRANCHISE SUPPORT SERVICES

CHAIR, LEGAL & LEGISLATIVE AFFAIRS COMMITTEE

Rajiv Mathur Deloitte LLP

Peter Snell Gowling Lafleur Henderson LLP

Ash Vasdani McDonald’s Restaurants Canada

Jennifer Tyrwhitt-Gory Insurance Portfolio Inc.

Larry Weinberg Cassels Brock & Blackwell LLP

DIRECTOR

Felix DeCata Boston Pizza International Inc.

Gerry Docherty Good Earth Cafes

David Druker The UPS Store

John Felice Expedia CruiseShipCenters

Joel Friedman Shamrock Burgers

Alexander Gerzon CARA Operations Ltd.

DIRECTOR

Sherry McNeil YUM! Restaurants International

Dawn Mucci Lice Squad

Rainer Mueller Williams Fresh Cafe

Gary Prenevost FRANNET

Peter Rakovalis Mary Brown’s Famous Chicken

Pierre Marc Tremblay Pacini

TREASURER

*Anticipated Board of Directors as nominated for election at the CFA Annual General Meeting, April 14, 2015. W W W.C FA .C A | W W W.LOOK FOR A F R A NC H I SE.C A

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CFA COMMITTEES CFA’s distinctive excellence is our unique ability to harness the energy and expertise of a diverse team of leaders and volunteers to provide excellent, indispensable products and services that contribute to member success while being the authoritative voice of franchising in Canada. Volunteers are vital to the excellence of CFA’s work and we are fortunate to have over 100 individuals volunteer their time, energy, and expertise in a number of ways to help CFA fulfill its mission and vision. CFA committees typically represent a cross-section of CFA members and are responsible for strengthening the programming and services provided by CFA. These committees allow CFA members to provide valuable input, feedback, and perspectives that help CFA programs and services succeed and meet the needs of the franchise community.

THANK YOU TO ALL OF OUR VOLUNTEERS!*

EDUCATION ADVISORY COMMITTEE CHAIR: Peter Drutz, Comfort Keepers COMMITTEE MEMBERS: Dan Belhassen, SmarterU.com Christian Collucci, Instant Imprints Michael Daou, Dalton Timmis Insurance Karen Dosen, White Spot Restaurants John Felice, Expedia CruiseshipCenters Sherry McNeil, YUM! Restaurants International Blair Rebane, Borden Ladner Gervais LLP Gillian Scott, Osler Hoskin Harcourt LLP Vin Tsui, Business Lawgix LLP

EDITORIAL SUB-COMMITTEE OF THE EDUCATION ADVISORY COMMITTEE CHAIR: Sherry McNeil, YUM! Restaurants International COMMITTEE MEMBERS: Angelee Brown, Tim Hortons Rick Chittley-Young, BDO Canada Chad Finkelstein, Dale & Lessmann LLP Michel Gagnon, Paramount Fine Foods Brian Leon, Choice Hotels

FRANCHISE LAW DAY COMMITTEE 2015 CO-CHAIRS: Gillian Scott, Osler Hoskin & Harcourt LLP Daniel So, McKenzie Lake Lawyers COMMITTEE MEMBERS: Chad Finkelstein, Dale & Lessmann LLP Susan Friedman, Davis LLP Andraya Frith, Osler Hoskin & Harcourt LLP Lloyd Hoffer, Hoffer Adler LLP Edward Levitt, Dickinson Wright LLP Derek Ronde, Cassels Brock & Blackwell LLP Geoffrey Shaw, Cassels Brock & Blackwell LLP

FRANCHISE SUPPORT SERVICES/SUPPLIER (FSS) COMMITTEE CHAIR: Jennifer Tyrwhitt-Gory, Insurance Portfolio COMMITTEE MEMBERS: Peter DaSilva, Cornerstone Insurance Patti Hone, As You Like it Marketing George Kinzie, Franchise Recruiters Marietta Snetsinger, Ascend Franchise Solutions

GOVERNMENT RELATIONS COMMITTEE CHAIR: Scott Bryk, The Grounds Guys COMMITTEE MEMBERS: Harold Druxerman, Druxy’s Famous Deli Sebastian Fuschini, Pizza Pizza John Gilson, COBS Bread Phyllis Hegstrom, Home Instead Senior Care John Felice, Expedia CruiseshipCenters Jessica Oliver, McDonalds Restaurants Canada Ltd Murray Oxford, Jani-King Canada Inc. John Rogers, Clark Wilson LLP Julie May Rogers, McDonalds Restaurants Canada Ltd Geoffrey Shaw, Cassels Brock & Blackwell LLP Peter Snell, Gowling Lafleur Henderson LLP Rick Villalpando, RAMMP Hospitality Brands Inc.

MEMBERSHIP COMMITTEE CHAIR: Terry Hould, ServiceMaster of Canada COMMITTEE MEMBERS: Chantal D’Aoust Hermann Delisle, Active Green + Ross Rimma Jaciw, WSI Martha Lawrence, The Lice Squad Walter Melanson, PropertyGuys.com Inc. Abhi Sehdev

*From April 2014 to March 2015

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VETERAN’S PROGRAM COMMITTEE CHAIR: David Druker, The UPS Store COMMITTEE MEMBERS: Joseph Adler, Hoffer Adler LLP Jeffrey Cooke, Bark Busters Joel Friedman, Shamrock Burgers Ken LeBlanc, PropertyGuys.com Inc. Dawn Mucci, The Lice Squad Gary Prenevost, FraNet Peter Van Stralen, The Grounds Guys John Wissent

LEGAL & LEGISLATIVE AFFAIRS COMMITTEE CHAIR: Peter Snell, Gowling Lafleur Henderson LLP VICE-CHAIR & SECRETARY: Larry Weinberg, Cassels Brock & Blackwell LLP COMMITTEE MEMBERS: Joseph Adler, Hoffer Adler LLP Dan Caldarone, Second Cup Pascale Cloutier, Miller Thomson LLP Sheldon Disenhouse, Dentons Canada LLP Chad Finkelstein, McCarthy Tetrault LLP Helen Fotinos, Dale & Lessmann LLP Robert Glass, McMillan LLP Pablo Guzman, Davis LLP Clark Harrop, McDonalds Restaurants Canada Ltd Darrell Jarvis, Fasken Martineau Dumoulin LLP Paul Jones, Jones & Co. David Kornhauser, MacDonald Sager Manis LLP Richard Leblanc, Miller Thomson LLP Edward Levitt, Dickinson Wright LLP Ellery Lew, Witten LLP Michael Melvin, McInnes Cooper Dominic Mochrie, Osler Hoskin Harcourt LLP Frank Pedinelli, Shoppers Drug Mart Blair Rebane, Borden Ladner Gervais LLP John Rogers, Clark Wilson LLP David Shaw, Blake Cassels & Graydon LLP Geoffrey Shaw, Cassels Brock & Blackwell LLP Adam Ship, McCarthy Tétrault LLP Daniel So, McKenzie Lake Lawyers LLP Debi Sutin, Gowling Lafleur Henderson LLP Jean-Philippe Turgeon, Lavery, de Billy LLP Derwin Wong, Morrison Brown Sosnovitch LLP George Wowk, Burnet, Duckworth & Palmer LLP John Yiokaris, Sotos LLP Frank Zaid, Frank Zaid FRANlegal Support Services Jonathan Zepp, Robins Appleby & Taub LLP

EDITORIAL SUB-COMMITTEE OF THE LEGAL & LEGISLATIVE AFFAIRS COMMITTEE CHAIR: Michael Melvin, McInnes Cooper COMMITTEE MEMBERS: Joseph Adler, Hoffer Adler LLP Chad Finkelstein, Dale & Lessmann LLP Daniel So, McKenzie Lake Lawyers LLP Jonathan Zepp, Robins Appleby & Taub LLP

LEGSLATION & REGULATIONS REVIEW SUB-COMMITTEE OF THE LEGAL & LEGISLATIVE AFFAIRS COMMITTEE CHAIR: Peter Snell, Gowling Lafleur Henderson LLP VICE-CHAIR & SECRETARY: Larry Weinberg, Cassels Brock & Blackwell LLP COMMITTEE MEMBERS: Clark Harrop, McDonald’s Restaurants Canada Ltd Darrell Jarvis, Fasken Martineau DuMolin LLP Ellery Lew, Witten LLP Michael Melvin, McInnes Cooper John Rogers, Clark Wilson LLP David Shaw, Blake Cassels & Graydon LLP

NATIONAL CONVENTION COMMITTEE CHAIR: Darryl Sangster, Sangster’s Health Centres VICE-CHAIR: Joel Friedman, Shamrock Burgers COMMITTEE MEMBERS: Andrew Arminen, Metal Supermarkets Brian Bazely, Driverseat Steve Buors, Reshift Media Inc. Stacey Burgess, M&M Meat Shops Ltd. Marc Choy, Quiznos Canada Corporation Jeremy Demont, PropertyGuys.com Inc. Pino Di Ioia, BeaverTails Canada Inc Chad Finkelstein, Dale & Lessmann LLP Keenan Fisher, Chatters Salon Lafleche Francoeur, Pacini Yvan Houle, Fire-Alert Mobile Extinguishers Patti Laine, tag franchise Karen Mandryk, Vin Bon Blair Rebane, Borden Ladner Gervais LLP Rod Roberts, Home Instead Senior Care Frank Robinson, Cassels Brock & Blackwell LLP Marietta Snetsinger, Ascend Franchise Solutions Jo-Ann Vautour, Practicar Systems Inc.

TO VOLUNTEER WITH CFA, PLEASE CONTACT JANET DONNELLY, EXECUTIVE ASSISTANT TO THE PRESIDENT AND CEO, AT JDONNELLY@CFA.CA OR CALL 1-800-665-4232 EXT. 226.

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C A N A DI A N F R A NC H I SE A S SOC I AT ION | 2015 ACCOMPLISHMENTS REPORT

THANK YOU CFA SPONSORS NATIONAL SPONSORS

EVENT SPONSORS

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CFA THANKS THE COMPANIES THAT SPONSOR CFA AND ITS PROGRAMS AND EVENTS THROUGHOUT THE YEAR.

From April 2014 to March 2015

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CFA STAFF RESOURCES

CANADIAN FRANCHISE ASSOCIATION STAFF ARE DEDICATED TO SUPPORTING THE MISSION AND VISION OF THE CFA. MEMBERS ARE INVITED TO REACH OUT TO STAFF WITH QUESTIONS, FEEDBACK, AND REQUESTS TOLL-FREE AT 1-800-665-4232.

EXECUTIVE & ADMINISTRATION

MEMBERSHIP

Lorraine McLachlan ext. 222 President & Chief Executive Officer

Peter Jacobs ext. 224 Director, Membership

Janet Donnelly ext. 226 Executive Assistant to the President & CEO

Rose Ficco ext. 245 Assistant Manager, Membership

Gary Martini-Wong ext. 227 Director, Finance & Administration

Ruth Stuart Moore ext. 296 Membership Sales

Peter Lam ext. 233 Accounting Coordinator

Trevor Payne ext. 247 Membership Sales

ADVOCACY & GOVERNMENT RELATIONS

Lina Lepone ext. 235 Receptionist/Membership Support

Erica Kelsey ext. 297 Director, Government Relations

EVENTS & EDUCATION

Samantha Sheppard ext. 230 Coordinator, Government Relations

Suzy Sanford ext. 225 Director, Operations

COMMUNICATIONS & PUBLICATIONS

Meredith Lowry ext. 295 Assistant Manager, Operations

Kenny Chan ext. 232 Director, Communications

Lou Gervasi ext. 243 Manager, Events & Education

Lauren dâ&#x20AC;&#x2122;Entremont ext. 238 Editor, CFA Publications

Dianna Merlocco ext. 242 Coordinator, Events & Education

Christine Elstub ext. 251 Assistant Manager, Communications

Joanne Capano ext. 228 Coordinator, Events & Education

Karen Stevens ext. 292 Communications Coordinator

Jill Todd ext. 223 Sales Manager, Trade Show & Website

Andrea Lee ext. 229 Graphic Design/Ad Production

Kim Bryant 705-797-8480 Manager, Advertising

Jennifer Joseph ext. 241 Graphic Design & Web Gwen Dunant 877-254-0097 Publications Advertising Sales

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✁

CFA ADVOCACY SUPPORT PLEDGE ❒ YES, WE SUPPORT CFA’S CONTINUED ADVOCACY WORK AND PLEDGE A DONATION TO SUPPORT CFA ADVOCACY WORK. COMPANY NAME: AUTHORIZED BY:

(please print)

SIGNATURE:

OUR PLEDGE FOR 2015 IS: ❒ $365 ❒ $750 ❒ $1,000 ❒ $2,500 ❒ $5,000 ❒ Other $

PAYMENT OPTIONS: ❒ Cheque is attached. ❒ Please charge credit card: Card type: ❒ Visa ❒ MasterCard ❒ American Express CARD NUMBER: EXPIRY DATE: NAME ON CARD: SIGNATURE: ❒ Please invoice: SEND INVOICE TO THE ATTENTION OF: EMAIL ADDRESS:

THANK YOU FOR YOUR SUPPORT OF THE GROWTH AND DEVELOPMENT OF ESSENTIAL ADVOCACY BY CFA. Please fax your completed form to 416-695-1950, or scan and email to Samantha Sheppard, Coordinator, Government Relations, at ssheppard@cfa.ca

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C A N A DI A N F R A NC H I SE A S SOC I AT ION | 2015 ACCOMPLISHMENTS REPORT

Dear CEOs, Presidents, and Founders of Franchise Systems: • Did the breadth and depth of CFA’s accomplishments surprise you? • Have you and your business been getting the most out of your CFA membership? • Do you know all the dangers in legislation – existing and emerging – and how your CFA membership helps protect your franchise through ongoing advocacy and government relations work? It happens to almost every business as it grows. Initially, the “C-Suite” is one person or a couple of people who have a great idea and start a business. You are involved with everything. Over time, there are too many demands and the staff begins to grow. Your CFA membership gets focused in the key urgent area of franchise development. Then the Founder hires a President or a Chief Operating Officer who doesn’t really know about CFA, what we do, and the full value it brings to your business. Our Member Bulletins and communications on critical advocacy and government relations issues fail to reach the right people in your company. CFA programs and services that could be of great value to you and your franchisees are not accessed… it’s a problem for all of us. You and your senior management team are uniquely positioned to fully appreciate the comprehensive range, importance, and significance CFA member benefits, programs, and services can bring to your business – if the right people in your business know about them. We can help you maximize your CFA membership by meeting with you personally, but I recognize that you are tight for time. Therefore, I am asking for only 45 minutes of your time to meet with you and your C-Suite team – preferably in-person at your offices. I realize that a message in an Accomplishments Report may seem to be an impersonal way of reaching out, but I am using every opportunity to ensure that each and every one of our members knows that I am committed to working with you to understand your needs and to find effective ways to get critical information to the right people in your business. Over the next few months, I will be reaching out to CFA members to set up meetings across Canada to deepen and strengthen our relationships. I look forward to meeting with you soon. Sincerely,

Lorraine McLachlan President and Chief Executive Officer, Canadian Franchise Association P.S. You are always welcome to call me at 1-800-665-4232 ext. 222 or e-mail me at lmclachlan@cfa.ca if there is anything CFA can do for you.

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THE CFA ACCO M PL ISH M ENT S R EP O R T H A S B EEN PR INTE D COURTESY OF PREMIER PRINTING. W W W.PR EMIER PR INTING.C A

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