Issuu

FUNDAMENTALS OF FRANCHISING

FRANCHISEE SUCCESS STORIES

ADVICE FROM THE FRANCHISE PROS

MORE THAN 1,300 LISTINGS INSIDE

A Canadian Franchise Association Publication / www.FranchiseCanada.Online

DIRECTORY 2024 - YOUR COMPLETE SOURCE GUIDE TO FRANCHISING IN CANADA

FRANCHISE SOURCE GUIDE 2024 $9.99 PM 41043018

DISPLAY UNTIL JUNE 30, 2024

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CONTENTS FRANCHISE

DIRECTORY 2024

CANADA

THE CANADIAN FRANCHISE ASSOCIATION (CFA) 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 franchising

Why Choose a CFA Member? Investing in a franchise that’s committed to excellence

Due Diligence Checklist

Expanding Your Franchising Horizons Key legal considerations to help you grow to multiple franchise units

Franchising 101 An Introduction to Franchising

Multi-Unit Money Management Key accounting considerations to help you grow to multiple franchise units

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

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

www.cfa.ca | www.FranchiseCanada.Online

10 Questions to Ask Yourself Before Getting Started in Franchising Key considerations for entrepreneurs entering the franchise industry

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

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

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

5 Things to Consider Before Franchising Your Business An essential guide to making informed decisions and setting your franchise up for success

How to Franchise Your Business The CFA has resources to help entrepreneurs scale their businesses through franchising

Ask the Experts

DEPARTMENTS

Publisher’s Message

CFA Code of Ethics

How to Use This Directory

Franchise Brands Listings

217

CATCH UP ON SEASON 7 NOW! SEASON 8 COMING IN 2024!

Franchise Support Services/ Suppliers Listings

241

Franchise Brands Index

248

Franchise Support Services/ Suppliers Index

249

Advertisers’ Index

LISTEN & LEARN

Tune in to the Franchise Canada Chats Podcast!

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.

Available on Google Play, iTunes, SoundCloud, and Spotify.

FranchiseCanadaChats.ca

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. All information listed for both Franchise Brands and Franchise Support Services/Suppliers in the 2024 Franchise Canada Directory is current as of October 31, 2023.

Franchise Canada Directory 2024

PUBLISHER’S MESSAGE

THE RESILIENCE OF FRANCHISING IN CANADA’S EVER-EVOLVING BUSINESS LANDSCAPE

ith the pandemic in the rearview mirror, Canadian franchising remains strong. And, with more economic uncertainty on the horizon—rising interest rates, increased cost of living, talk of a recession—franchising remains an attractive choice for would-be business owners. Franchising is a powerful economic force in Canada, contributing almost $120 billion to the economy and employing almost two million Canadians. So, no matter the challenges ahead for business owners in 2024, a proven business model, and support from the franchisor means that franchisees are set up for success and longevity. In business for themselves, but not by themselves, franchisees can tap into shared resources and a network that helps them remain strong. So, are you ready find the right franchise fit? Consider the 2024 Franchise Canada Directory a guidebook for navigating all the exciting opportunities out there. On pages 12 through 56 you can explore the basics of franchising and go over some big questions to ask yourself before you get started. You can also review what’s involved in franchise due diligence before you sign your agreement and learn how to create a business plan so that you can get funding for your new business. If you’re considering opening more than one franchised business, we also cover money management basics for multi-unit owners. And, if you’re interested in taking over an established resale location, we take you through the opportunities and challenges of taking over an existing location. The Canadian Franchise Association (CFA) is the authoritative voice of franchising in Canada. For more than 50 years, it has equipped entrepreneurs with the knowledge and tools to be successful. This Directory is an essential index of our family of member brands. Here you’ll find over 1,300 listings from our almost 600 corporate members, including new systems and iconic brands, across 60 different categories. Each corporate member of the CFA has a CFA logo on their listing. As members of the Association, these companies voluntarily pledge to promote excellence in franchising by upholding the CFA Code of Ethics (page 10). Look for the CFA logo everywhere

you do your research, whether it be online searches, in print publications, or in person at tradeshows. The easy-to-use listings (starting on page 59) are arranged based on category and listed alphabetically. Within each listing, there’s information to help prospective franchisees evaluate an opportunity, including contact information, number of units, investment fees, territory availability, and more. The valuable information within these listings has been provided directly by the franchise systems. This Directory also includes listings for the CFA’s Franchise Support Service and Supplier members, who can play a vital role in your franchising journey as support for your franchised business. Starting on page 217, this section showcases the services you’ll need to carry out the proper due diligence and build your franchise business, from franchise consultants and accountants to bankers and lawyers, and more. Beyond the essential reading in this Directory, the CFA offers even more resources to help you become a successful franchisee. Find exclusive education articles, episodes of the Franchise Canada Chats podcast, and Franchise Canada TV learning videos on FranchiseCanada.Online. You can also sign up for Franchise Canada E-News, a bi-weekly newsletter filled with franchise opportunities, industry news, and more, which includes a digital subscription to Franchise Canada magazine. Franchising presents a strong opportunity for entrepreneurial Canadians to make their business ownership dreams come true. We encourage you to use this ultimate franchise resource to kick-start your own journey and find the right franchise for you.

Sherry McNeil President & CEO, Canadian Franchise Association

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

CFA BOARD OF DIRECTORS BOARD CHAIR David Druker*, The UPS Store PRESIDENT & CEO Sherry McNeil*, Canadian Franchise Association 1ST VICE CHAIR Ryan Picklyk, A&W Food Services of Canada Inc. 2ND VICE CHAIR Todd Wylie, Master Mechanic

PUBLISHER

PAST CHAIR Gerry Docherty*, Good Earth Coffeehouse

Canadian Franchise Association (CFA)

SECRETARY & GENERAL COUNSEL

SENIOR MANAGER, CONTENT & MARKETING

Darrell Jarvis*, Fasken

Lauren Huneault

TREASURER Lyn Little, BDO Canada LLP

EDITOR Karen Stevens

CHAIR, FRANCHISE SUPPORT SERVICES

GRAPHIC DESIGNER Andrea Lee

Kirk Allen, Reshift Media

LISTINGS MANAGER Andrew Schopp

CHAIR, LEGAL & LEGISLATIVE COMMITTEE

CONTENT PRODUCER Daniel McIntosh

Andraya Frith, Osler, Hoskin & Harcourt LLP DIRECTORS

Chuck Farrell, Pizza Pizza John Gilson, COBS Bread Andrew Hrywnak, Print Three Franchising Corporation Rimma S. Jaciw, CFE, WSI Digital Joel Levesque, McDonald’s Restaurants of Canada Ken Otto, Redberry Restaurants Gary Prenevost, FranNet John Prittie, TWO MEN AND A TRUCK Stephen Schober, Metal Supermarkets Family of Companies Thomas Wong, Chatime *Executive Committee member

ADVERTISING SALES

Dion Persaud, Stephanie Philbin AD COORDINATORS

Andrea Lee, Dion Persaud PRINTING Premier Printing FOR ADVERTISING INFORMATION:

Stephanie Philbin sphilbin@cfa.ca

Dion Persaud dpersaud@cfa.ca TO SUBSCRIBE TO Franchise Canada

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

visit www.FranchiseCanada.Online or call 1-800-665-4232 ext. 224. 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 1-800-665-4232.

© 2024, 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 FRANCHISES

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

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

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Over 30 years of unparalleled experience in Performing Arts education. We’re the best choice for extra-curricular performing arts classes in singing, dancing, and acting for ages 4 to 18. Proven business model Low-risk investment Comprehensive support

Run your own Performing Arts School Initial franchise fee from $20,000 Total investment required $40,000

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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. 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

CANADA’S FRESHEST FRANCHISE.

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NOW ACCEPTING FRANCHISEE APPLICATIONS.

edojapan.com/franchising or franchise@edojapan.com

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THE CANADIAN FRANCHISE ASSOCIATION (CFA) Helping everyday Canadians realize the dream of building their own business through 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, and McDonald’s Canada. Our purpose: To help everyday Canadians realize the dream of building their own business 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, about to embark on its eighth season; 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. The CFA’s wealth of knowledge flows, in part, from its prominent role in the nation’s business community. CFA

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

Now is the Time to Join the #1 Staffing Franchise Become a business owner today.

Express Employment Professionals is the #1 global staffing franchise with more than 860 locations in five countries. With more than 40 years of proven success in a $212.8B industry, Express puts more than 586,000 people to work each year.

FRANCHISE OPPORTUNITY

ExpressFranchising.com

THE CANADIAN FRANCHISE ASSOCIATION

Brand Awareness

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

Opportunity

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

members represent thousands of business outlets across the country. As a whole, the 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. Franchisors can become members only after they undergo a review process performed by a committee of their peers. 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.

Trust

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

Credibility

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.

We fulfill our mission through our four brand pillars— leadership, trust, credibility, and opportunity. Through these pillars, we create a unified force that represents different elements coming together to create and grow as a multifaceted whole. 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 13th largest contributor to the Canadian economy. The Canadian franchise industry is estimated to have almost 1,300 brands and more than 65,000 franchise locations across a variety of sectors. While franchise concepts operating in the food service 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’ day-to-day lives.

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

Voted THE HIGHEST IN FRANCHISEE SATISFACTION by the Canadian Franchise Association

We’re looking for more amazing franchisees to expand our footprint in British Columbia and New Brunswick. TWO MEN AND A TRUCK® is the largest franchise moving company in North America with an overwhelming 94% of our franchisees expressing their satisfaction and confidence in the brand, stating they would invest in it again. This demonstrates the exceptional support and resources we deliver to our franchisees. TWO MEN AND A TRUCK offers diversified revenue streams from our traditional home moving service to long-distance relocation, packing, storage, junk removal, and specialty moving options – we’re the one-stop-shop for all moving needs. With almost 40 years in business, over 400 locations worldwide, and an average of 96% customer referral rate, TWO MEN AND A TRUCK has firmly established itself as an industry leader. With TWO MEN AND A TRUCK’s proven track record, diversified revenue streams, global recognition, and high franchisee and customer satisfaction rates, you’ll be building on a solid foundation!

866.648.6448 | TWOMENFRANCHISING.CA

Each franchise is independently owned and operated.

Why Choose a CFA Member?

Investing 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 towards 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. Whether you’re interacting with brands at the Franchise Canada Show or flipping through the pages of the annual Franchise Canada Directory listings, 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. At the Canadian Franchise Association (CFA), we believe strongly 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 leadership, opportunity, trust, and credibility. 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

WHY CHOOSE A CFA MEMBER?

EMPLOYMENT RULES:

Employment Standards Tool Kit for Ontario Franchised Businesses

Published by

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 files impacting the industry across Canada to ensure the government works to support the growth of your business, not hinder it.

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Tools to grow your business As a franchise owner in a CFA-member system, you have at your disposal a wide range of tools 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. As a franchisee in Ontario, you also have access to the Employment Standards Training and Employment Program for Ontario Franchised Businesses program, which offers a Tool Kit, articles, webinars, presentations, and other materials to help make the employment standards and labour laws of Ontario easier to understand and navigate. 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 financial and time investment in purchasing your own franchised 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 13th largest industry in Canada and well on its way to becoming 12th. Collectively, franchising employs almost two million Canadians, spanning across the country in almost every community. We’re found in almost every sector and industry of business. 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 www. LookforaFranchise.ca

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

SCORE YOUR OWN FRANCHISE Are you looking for an opportunity to be your own boss and join a winning franchise system? Why Score Pizza? Expert training and operational systems developed and implemented by industry leaders Award winning products and simple operating procedures An authentically Canadian brand with a guest focused and community driven ethos

Franchising opportunities We are looking for motivated individuals who share our passion for community & pizza!

Single and multi-unit operators looking to grow with score pizza in:

Ontario GTA Downtown Toronto South West Central North

Alberta Nova Scotia

Score Pizza is re-inventing Canada’s favourite comfort which appeals to a large, but loyal customer base scorepizza.ca

contactus@scorepizza.ca

@scorepizza

FRANCHISING 101: AN INTRODUCTION TO FRANCHISING

ranchising is an attractive and powerful way for Canadians to make their business dreams become reality and achieve success as small business owners. Through the proven business concept and support provided by the franchisor, franchisees are able to be 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. 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. 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. 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.

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. 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. 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. 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. 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 the majority of franchisees.

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

FRANCHISING 101: AN INTRODUCTION TO FRANCHISING 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 (brand) and business system; • 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. 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 Step-by-Step Guide to Franchising resource article on FranchiseCanada.Online takes you through the path to making a franchise purchase, hitting the highlights of finding your franchise fit, building a business plan, understanding franchise finance fundamentals, and navigating the franchise disclosure document, as well as a handy checklist of questions to ask the franchisor and other franchisees.

Franchise Canada Directory 2024

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, prop-

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

THE BASICS OF CREATING A BUSINESS PLAN erty, 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.

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Your success is our legacy Passion; it’s what drives entrepreneurs, family businesses and fast-growing companies alike. It’s also what inspires KPMG Private Enterprise™ to help drive your success. Look to our trusted advisors to bring the clarity you need to help your business excel at every step of your journey. •

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FIND ADDITIONAL RESOURCES ON FRANCHISE CANADA ONLINE

Franchise Canada Online also has a world of digital resources for prospective franchisees to gain advice, information, and updates on the Canadian Franchise Association and our many members. This is a list of additional resources on the website to draw from throughout your franchise journey. FRANCHISEE CHECKLIST Investing in a franchise is a major investment decision, and not every franchise will be the right fit for you. The franchisee checklist has essential questions to ask when you’re considering the purchase of a franchise. https://cfa.ca/franchisecanada/checklistfor-franchisees/ FRANCHISE TUTORIALS The franchise tutorial series contains all the basics to set you on your franchising journey. From identifying a franchise, to dispute resolution, you can find 24 tutorials on topics to know before signing a franchise agreement. There’s also quizzes to test your knowledge after reading through the series. https://cfa.ca/franchisecanada/franchisetutorials/ THE CANADIAN FRANCHISE ASSOCIATION ON YOUTUBE The CFA’s YouTube channel is your one-stop shop for the Franchise Canada content you love in a video format. Dive into the world of Canadian franchising with our exclusive video content, including interviews with established franchisors, franchisee success stories, behind the scenes content during CFA events and much more! www.youtube.com/c/ CanadianFranchiseAssociation

FRANCHISE SUCCESS STORIES Struggling to see yourself in franchising? Our franchisee and franchisor success stories show prospective franchisees the friendly faces behind the brands while showcasing the range of paths that led other business owners toward franchising. https://cfa.ca/franchisecanada/franchiseesuccess-stories/ FRANCHISE CANADA E-NEWS Get the CFA delivered right to your inbox! The twice-monthly newsletter features new franchise opportunities, information about the CFA’s events, and updates on the latest issues in franchising. https://cfa.ca/franchisecanada/franchisecanada-e-news/ FRANCHISE CANADA CHATS The Franchise Canada Chats podcast introduces listeners to franchisees and franchisors from within the industry. Guests discuss their journeys into franchising, challenges and successes they faced, and give advice to prospective franchisees. https://cfa.ca/franchisecanada/listen/

ASK AN EXPERT Got a critical question about franchising? Franchise Canada turns your need to know questions to our suite of legal, finance, franchise, and accounting experts who provide expertise on franchise issues. https://cfa.ca/franchisecanada/ask-anexpert/

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

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 toler-

ance. 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

Franchise Canada Directory 2024

BUYING A FRANCHISE RESALE LOCATION VS. BUILDING A NEW LOCATION 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. • L imited 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 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.

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

BUYING A FRANCHISE RESALE LOCATION VS. BUILDING A NEW LOCATION •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. 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. •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!

Franchise Canada Directory 2024

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

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

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DUE DILIGENCE CHECKLIST 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 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. 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

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

DUE DILIGENCE CHECKLIST 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. • 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). 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.

Franchise Canada Directory 2024

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.

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

EXPANDING YOUR FRANCHISING HORIZONS 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 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,”

Franchise Canada Directory 2024

EXPANDING YOUR FRANCHISING HORIZONS 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. 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.

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FIND YOUR FRANCHISE AT FRANCHISE.ORG

Unleash your potential as a franchise business owner. At the International Franchise Association’s website, franchise.org, you can search, select and compare thousands of franchise businesses by industry, investment level and keywords. Check it out today and be in business for yourself, but not by yourself.

Multi-Unit Money Management Key accounting considerations to help you grow to multiple franchise units

hile most entrepreneurs choose to kick off their franchise careers with the purchase of a single franchise unit, there are many owners who further their franchise careers through multi-unit ownership. This can take different forms, from multiple units within the same system or across different brands, to master franchising and area development. We introduced these different formats in part one of our multiunit franchising series. While part one of this series explored multi-unit franchising from a legal perspective, this installment examines the accounting side of franchise expansion, with insights provided by Lyn Little, partner at BDO Canada LLP, which provides accounting services and support for the franchise industry. If you think you’re ready to take the plunge into multi-unit franchising, you’ll want to ensure you have the following framework in place to make a smooth transition. Read on to learn more! What are the benefits of multi-unit franchising? A major draw of franchise expansion, notes Little, is the ability to scale what you’ve already learned from the first business. “Skills and knowledge from one unit can translate into success in additional units,” she explains. “For example, an owner may be able to identify the underlying causes of success in one unit which can be applied to other locations, to improve overall operations.” At the same time, if one unit is facing challenges, you’re in a better position to ride out that tough period through the profits of a separate location.

From an investment standpoint, Little explains, “Canada has a multi-layered tax system, where a portion of taxes are paid on income in a corporation, and an additional layer of taxes is paid when the income is ultimately paid out to the shareholder. Thus, multi-unit franchisees can take advantage of the tax deferral by leaving funds in a corporation to invest in new units, rather than investing money where the personal tax has also been paid, leaving less funds available to invest.” Owners of multiple units can also build stronger relationships with the franchise head office team, which can correspond to more influence with both the franchisor and any suppliers. Strengthening those key relationships can put franchisees at the forefront of any future decisions made within the system. What are the challenges of expanding to multiple franchise units? First and foremost, franchise expansion is a costly endeavour, so you need to be prepared for a large cash investment. You can also expect changes to your operations. For example, once you’ve expanded beyond a single unit, you simply won’t be able to invest the same amount of time into all units. This means you’ll need to hire trusted operators and support staff to run the dayto-day operations. For those who invest in multiple units within the same brand, there’s also an increased risk if an issue arises with the system, whether it be a result of a regulatory change or overall industry downturn. Little also notes that you’ll need to “consider the available geographies and locations to see if they’re a fit with

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

MULTI-UNIT MONEY MANAGEMENT the current unit.” For example, if the only available territories aren’t in a nearby region, it’s going to be difficult to create an efficient operating path forward. What makes multi-unit financials unique? “Timely, consistent reporting is very important when managing multiple units,” says Little. “If reporting isn’t timely, this potentially means operations can go off the rails for a longer period of time, or that there’s more time for the misappropriation of assets.” It’s also important to review key performance indicators (KPIs), looking for outliers, trends, and opportunities for improvement, and to keep a close eye on cash flow. “Cash flow forecasting will be key to managing some of the large cash outflows when starting or acquiring new units,” explains Little. “A strong understanding of the current cash situation of the operations as a whole is very important.” Since a multi-unit owner can’t always be at each location, it’s important to note that there’s an increased risk of theft or fraud that comes with expansion. Keeping proper track of financials and comparing these numbers across units and over time can help to quickly identify any issues before they get out of hand. It’s important to have consistent information across all units, as issues can arise if there are different bookkeepers for different units, notes Little. It can also become overwhelming for a single bookkeeper to manage multiple units. That’s where outsourced help can be beneficial. “Franchisees can engage with outsourced bookkeeping providers that can scale up with franchisees, and provide timely, consistent, and comparable financial information,” says Little. She advises multi-unit franchisees to ensure they have the proper accounting structure in place. When establishing this framework, you should consider both long-term goals and short-term opportunities from a tax perspective. “Structuring can help with renumeration for multiple owners and make reporting to external users like banks, investors, and lenders more straightforward.” Am I ready for multi-unit expansion? While some owners may have lofty plans for multiple units before they even get started, Little suggests it’s a good idea to first find success with one franchise unit before embarking on an expansion plan. At the very

least, franchisees should have a strong understanding of the industry they’re looking to operate in. It’s also important, explains Little, to recognize the different approach required in shifting from an operations to an oversight role in managing multiple units. “The franchisee should examine what the change will mean to them and how they interact with their current unit. They should have a solid team around that they can rely on, as their attention will be pulled in various directions.” If a franchisee is currently experiencing success as a single-unit owner, understands the implications of expansion, and is ready to embrace a new challenge, they just might be ready to bring more units into the mix. Above all else, notes Little, “the franchisee should be excited about the brand, the industry, and its future.” It’s also crucial to consider the following traits that are required in multi-unit owners: According to Little, you should be able to plan ahead, with a vision for the next five years, and should be able to look at things from a high-level perspective. You’ll also need to have strong financial acumen (with a strong understanding of financials and KPIs of your current unit) and strong management skills. You also can’t be a micromanager, as you’ll need to trust others to operate key aspects of the day-to-day business without you present. Once you’ve considered the pros and cons, carried out your self-assessment, and are ready to bring your passion to an exciting new endeavour, you may just be ready to embrace franchise expansion!

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Franchise Canada Directory 2024

10 Questions to Ask Yourself Before Getting Started in Franchising

Key considerations for entrepreneurs entering the franchise industry

hen it comes to starting a franchise business, you know it’s important to undertake the proper due diligence and learn the ins and outs of the system you

plan to join. This is an important step, but it’s also important to take stock of yourself before you sign that franchise agreement, to ensure franchising is the best fit for you. Just as there’s a financial investment to successful franchising, franchisees must be emotionally and personally involved in the development and growth of their franchise. Here are 10 questions to ask yourself before starting on your franchise journey. These questions can serve as a guide to help you determine if you’re ready to launch and maintain a franchise business in your community. 1. Are you ready to follow a system? Joining a franchise means that the operational and managerial processes have been boiled down to a system of best practices that can be applied across all units and

markets. People who follow systems and processes are naturally going to thrive more in a franchise than those who prefer to try to reinvent the wheel. When you’re putting in hard work and long hours, it can be hard to remember that business success isn’t created overnight. A strong system will give you support from the start, but it still takes time for customers and clients to develop familiarity with your franchise, especially in new markets. If you can be patient and stick through the development period toward profitability, you could be well on your way to franchise success. 2. Are you financially prepared? You sought out and made connections with a proven concept, but it will take time to build loyalty among the clients in your new market. Ensure your budget accounts for upfront and start-up costs like the franchise fee, but also has enough working capital to float your business until it becomes profitable. It’s important to remember that this can take up to two years.

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ASK YOURSELF BEFORE GETTING STARTED IN FRANCHISING 3. Do you possess the spirit of entrepreneurship? So, what happens if you realize your franchise idea isn’t taking to a certain territory or lacks the resources to maintain growth? Do you stubbornly keep trying the same processes while expecting different results? Of course not. Although franchisors should offer guidance and support in best practices, no one knows the community like someone who lives in it—you! You’re going to need to rely on your sense of entrepreneurship and get creative in growing your business. Part of that means being adaptable, whether that means planning new advertising/marketing campaigns, developing new programs, or integrating new sales strategies. You should also be prepared to work with your franchisor as you look to make any changes, as they can offer valuable resources and tools. Your franchisor may also look to carry out system-wide changes, such as rebranding or renovations. 4. Do you possess key leadership skills? While you rely on the franchise system for support, your managers and team members will look to you for guidance as they carry out the day-to-day operations. At the same time, you’ll need to rely on managers and other key people to provide a consistent brand experience for customers, as you can’t do it all on your own. It’s essential to delegate and trust the team, while creating a buy-in experience so team members feel valued. It’s up to you to motivate team members, provide guidance, and solve any issues as they arise. 5. Have you developed a sense of grit? To help your franchise business thrive, you’ll need to put in the time and effort to make it a success, especially in the first three months of learning the system and laying the foundation for a strong business. Between the long hours, getting used to a new concept, and being financially invested, it’s easy to get overwhelmed as a new franchisee. But remember: you went through the due diligence of verifying this opportunity; now it’s time to dig in and make it work for you. 6. Are you sales-oriented? This is a key trait! Franchising may be turnkey, but that doesn’t mean that the sales are built in. Any existing business experience will provide you with transferrable skills that can apply to running a franchise business. Many franchises call for business acumen as an asset for new franchisees, as you’ll play a key role in generating sales for your business. You’ll need to generate leads by being proactive in finding customers: be prepared to engage with your community through networking initiatives, supporting social endeavours, and more.

7. Is your family on board and supportive? Starting a new business can bring on a lot of changes for your family and internal network. The long days, financial burden, and pressure to perform will impact you, as well as your family. The most successful franchisees are those who have family members supporting them through the ups and downs of being a business owner. 8. Are you community-oriented? Franchising is a people-focused business. As a franchisee, you’ll regularly interact with members of your own team, franchise head office, and other franchisees, but it’s also important to spend time with members of your community. Owners who are comfortable getting out into their community and engaging with local residents typically do a better job of maximizing their opportunities. This can be anything from calling in favours with media connections, attending networking events, and developing partnerships. Whichever position you’re in along the franchise journey, building your network is integral to your success. 9. Are you passionate about this brand/opportunity? As they say, when you’ve found the career that you’re truly passionate about, it doesn’t feel like work at all. If you don’t absolutely love the brand or the people behind it, that will make it hard for you to build and grow the franchise. You need to be excited about waking up every day and putting your primary attention on the business. Can you see yourself working in this franchise for years or decades to come? Does the idea of physical and emotional investment in the franchise inspire you, or make you feel wary? These are important questions you need to ask yourself as you settle on the right franchise path for you. 10. Are you a collaborative/team-oriented individual? As previously mentioned, you can’t successfully run a franchise on your own; trusting your staff and collaborating on solutions is often the best way forward. This can also help you solve any problems that may arise—by turning to the franchisor or fellow franchisees for advice, you can solve common issues with help from those who have the relevant experience. It’s also important to lean on your franchisor for continuous support, taking advantage of any available resources and tools. If you’ve answered ‘yes’ to these 10 important questions, you might be ready to make your business ownership dreams a reality through franchising. Visit FranchiseCanada.Online for more resources to help you along your franchise journey.

Franchise Canada Directory 2024

FACES OF FRANCHISING Manjinder Bal Jani-King

anjinder Bal joined Jani-King as a franchise owner in 2010 and has made it a mission to find new and exciting ways to improve the efficiency of the business in the Vancouver-Fraser Valley territory. Bal got his start with Jani-King shortly after starting his post-secondary education. The commercial cleaning franchise presented an opportunity for the young entrepreneur to earn a little bit of money while attending school. “I wasn’t actually aware of the franchise system or the business side of things here,” Bal reflects. “It was more of just doing some extra work, earning money to pay tuition.” Upon seeing the moving parts of the franchise, he realized that he could excel in the business. “I took it on as a full-time role and never looked back,” says Bal. After acquiring his franchise, he became one of JaniKing’s top performing franchise owners in Canada. For most of his 12 years as a unit franchise owner with JaniKing, Bal maintained between 15 and 20 contracts, overseeing commercial cleaning services for brands like Vancouver Coastal Health, Toyota Canada, and Schneider Electric. Within his first year of business, Bal was able to pay off his initial investment and become a revenue-earning franchisee. “The primary expenses we have are labour, cleaning supplies, and equipment,” says Bal. “It’s a very profitable business.” In addition, commercial cleaning services are always in demand and Bal says it’s a pandemic-tested and recession-resistant business. Like many businesses, the pandemic impacted Jani-King’s services, especially as more and more people were working from home. Demand for disinfecting services increased and Jani-King was able to adapt to ensure its clients received the services they needed to stay open, and its franchise owners were able to continue working. As the former owners of the Jani-King Vancouver-Fraser Valley Region began looking toward retirement, Bal expressed interest in purchasing the territory. In April of 2022, Bal officially became the master franchise owner for the Jani-King Vancouver-Fraser Valley region.

In his new role, Bal is committed to supporting the 64 active franchisees in his territory and growing the region. Being part of a franchise network means that he can reach out to other Jani-King regions for support and advice. “I’ve been to other Jani-King regions across the country, and I’ve seen what they’ve been able to do,” says Bal. “I try to emulate that here. We have a great team and I see a lot of growth potential in the Vancouver territory.” Along with Jani-King’s reputation, Bal says that franchise owners have the flexibility to run their businesses full-time or part-time and at their own pace. “How well you can do with it is totally up to you and your skills and hard work.” The Regional Office supports franchise owners with administration, operations, and business development so franchisees can focus their efforts on the day-to-day operations and growing their business. As for advice for younger people looking to get into franchising, Bal doesn’t have to look far for positive examples. “All I can say is, it’s worked for me. I was a young guy who had no experience in business coming into it. I followed the system and believed in the system. I believe in Jani-King, and I’ve done well for myself, and there’s no reason why any young person coming in can’t do that.”

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Nicky Gillam Allegra Marketing Print Mail

icky Gillam was looking for a career change, so she asked a business broker to find her some appropriate options. She shared the skills she picked up as an experienced corporate manager involved in the technology and manufacturing sectors, and her interest in a business that was small but established, and customer facing. But when he came up with a franchised print shop, her first reaction was “Oh, God, no.” Fortunately, he convinced her to take a closer look, giving this story a happy ending from the start: in September 2019, Gillam took over ownership of an Allegra Marketing Print Mail location, a full-service marketing and print communications shop in Oakville, Ontario. Reflecting on what finally convinced her to take on the business and this new industry, Gillam said she saw that the 30-year-old print shop was a good operation, and still viable despite being in a changing industry. “It provides huge value to other businesses. I really liked that,” she says. She had some hesitations about franchising, as well, but those were quashed when she learned about the franchise’s support process. “From day one, I was super impressed with the team. Everybody was really professional. When you were talking about business planning, they have people that understood financials and understood how to create business plans. When you were in the sales or the marketing meeting, they were marketing and sales professionals. So, I really thought that Alliance Franchise Brands had a really great story, [and] some really good brands,” says Gillam about Allegra, which is under the brand umbrella of Alliance (with some print shops, including hers, recently rebranded from past name KKP). Gillam was particularly impressed with the franchise’s Right Start program, which guides new owners through their first three years of business. Connected with a performance group and a handful of fellow franchisees across Canada, she enjoys the community of other owners. “We meet regularly, share our financial information, support each other, and we hold each other accountable. I’ve had a very positive experience with them overall,” says Gillam.

Gillam says staffing was the main challenge to start with, and she had to make some tough decisions to let some people go and switch others around. “Having the right people is critical; it’s a cliché, but the team are everything,” she says. Just as she strives to have her clients see her as a partner, Gillam also appreciates that sense of partnership with other franchisees. “There’s a very successful Allegra out in Pickering, Ontario, and I found the owner of that operation, and he came down and offered to be my business mentor. He has toured our plant and made suggestions about operational changes,” says Gillam. All that support has helped Gillam to grow quickly and confidently, something that she plans to continue in the near term as she works on developing her team and getting closer to her customer base. By 2024, she may look to expand again, but for now she’s content in a phase of solidifying her business, one that she says has been a really good fit. “The franchise is exceptional. I can’t think of one reason I wouldn’t be a part of this franchise. They’re just a really good group of professionals. At any point you reach out and you’ve got somebody there who is willing to dive in on any topic. I would say to anyone that’s going to enter into the world of print or signage, who doesn’t have experience and is not taking over a well-established business, these are the people you should be talking to.”

Franchise Canada Directory 2024

Nathan Dautovich PropertyGuys.com

fter more than 13 years as a PropertyGuys.com franchise owner, Nathan Dautovich still keeps prospecting for new clients on his daily to-do list. Over time, the franchisee started outsourcing some tasks instead of juggling everything himself, but he knows that to avoid the downturn of revenue that is typical in any sales work, he needs to keep filling the client list from the front end to maintain a steady revenue stream. Dautovich, who also became a licensed agent in 2014, helped prove out a concept that has now been introduced across much of the franchise system. He notes that although franchise owners aren’t required to be an agent themselves, they can instead partner with agents who are able to deliver a wide variety of services, such as helping users set their asking price, assisting with offers and negotiations (including help with the required paperwork), and help with showings too. Buyers can also benefit from a unique program offered through PG Direct Realty Ltd Brokerage, where they can receive commission rebates when they use the brokerage to buy their next property. “I love working with buyers too. Working with both sides—buyers and sellers—has really helped us appeal to a much larger audience. Not only that, having more services to offer has also contributed to higher client satisfaction rates and even higher revenues,” says Dautovich. It has also impacted what a day in the life of a PropertyGuys.com franchisee looks like. “One thing I love about my job is that there is no ‘typical’ day,” says Dautovich. “I could be meeting with sellers, doing showings with buyers, or negotiating offers. I could also be doing market research or preparing pricing reports. Just about every day, I am out in the community meeting with people. I might be handling the logistics of listings, scheduling social media or a home staging or photography services, or making arrangements to have signs installed or removed. Having such a great variety of tasks is great!” From the very beginning, he believed in the company’s unique value proposition, he had a passion for real estate, and he was willing to work hard—these are many of the qualities and attributes necessary to own a suc-

cessful PropertyGuys.com location, says Dautovich. PropertyGuys.com’s model combines a high-tech/ high-touch approach that helps attract a large pool of buyers and sellers. “Those who chose us love our approach because it offers them real choice and the options that we can provide cost only a fraction of the price they’d likely pay elsewhere. In fact, my location has been consistently recognized as a top-performing location over the past years—having already helped over 1,200 buyers and sellers. The sheer number of people I’ve been able to help so far is something that I’m truly proud of,” adds Dautovich. Dautovich isn’t the only one who understands the magic of PropertyGuys.com. He says that more and more real estate agents are now recognizing that PropertyGuys.com represents one of the few franchise opportunities within real estate that offers a fresh new approach that is significantly different than anything else out there. “Our unique set-up, which comes with exclusive and protected franchise territories, really helps us appeal to a much wider, broader, and more savvy audience,” says Dautovich. “Sellers who choose PropertyGuys.com are able to choose as much or as little help as they need for only a fraction of what they’d expect to pay. That’s why I’m so confident that owning a PropertyGuys.com franchise is the way to go,” adds Dautovich.

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Cadence Allen Crawley Stagecoach Performing Arts

hey say all the world’s a stage, and that’s especially true for Stagecoach Performing Arts franchisees like Cadence Allen Crawley, who use their dramatic expertise to train the next generation of thespians in acting, singing, and dancing. Before joining Stagecoach, Allen Crawley spent much of her life immersed in the world of drama and theatre, which makes her well-versed for her position as a Stagecoach franchisee. As the owner and principal of two Stagecoach territories — with five (and soon to be six) locations throughout Toronto East and Hamilton East — she fills her time nurturing a love of performing arts in the children and teens she works with now. Stagecoach Performing Arts offers weekly classes and camp options for kids from four to 16 years old. Allen Crawley began researching Stagecoach franchising while she was pregnant with her first son in 2011. Her acting career was on hiatus, and she was making ends meet by bartending and waiting tables, although she still felt the call of the stage. “I felt like I’d done all this training, and it was going to waste because I wasn’t working in my field,” says Allen Crawley. She found herself at an impasse, wanting to return to performing while securing a job that would provide her with flexibility and control. She found that through franchising with Stagecoach. Allen Crawley’s days take several forms. Sometimes she’s on location during Stagecoach classes in Hamilton or in Toronto’s Scarborough, Danforth Village, and Leaside neighbourhoods, checking in with parents and students, while other times she focuses on office duties. “I try to work during the day when my kids are in school — 10 a.m. to 3 p.m.” Naturally, managing locations in different cities can be challenging but it does have its benefits, namely the ability to travel. “I’ve gathered and trained a strong management team, so I no longer have to be on site at every location at all times,” says Allen Crawley. “I have multiple schools running simultaneously on Saturdays, all managed by people I trust and so I can float and be where I’m needed.”

Faced with pandemic restrictions, Stagecoach moved to providing virtual lessons. Allen Crawley uses existing venues like churches and rec rooms for her classes, so paying rent on a space was out of the question. “We got really creative and luckily, I work with all creative people,” she says of the Zoom-led lessons. The feedback from parents and students added to the feeling of success. “Their parents would say, ‘this saved my kid.’ They finally had someone to talk to, they had an outlet and something to do. It kept some people sane. It kept me sane,” says Allen Crawley. For prospective franchisees looking to start their own Stagecoach franchise, Allen Crawley says adaptability is key. “You’ve got a lot of things that you must keep organized and on track, but also if something comes up that sends you off on a different track, you need to be flexible.” Personability is another much-needed asset. “You have to chat with a lot of parents, you have to be patient, as well.” Allen Crawley adds the importance of maintaining a fun demeanour to keep kids comfortable. “You get so busy with the day-to-day and of course when you’re a business owner … but it doesn’t really matter because it’s doing what I love.”

Franchise Canada Directory 2024

Neil Turkington Triple O’s

t all started with a man and his truck. In the roaring ’20s, the era of business innovation, moody jazz, and rousing flappers, entrepreneur Nat Bailey converted his Model T into a travelling lunch counter and set up at a Vancouver lookout point. He went on to open White Spot, Canada’s first drive-in restaurant. The chain eventually expanded to include dine-in services, and in 1997, it opened its first quick service restaurant, Triple O’s, named after White Spot’s legendary secret Triple “O” sauce. Today, with more than 90 years in the food industry, the franchise serves 17 million guests per year at over 129 locations. Franchisee Neil Turkington was working as a national food services manager for Parkland Fuel when he first encountered Triple O’s at a Chevron station. Turkington, who’d been exposed to a variety of quick service brands at stations across the country, was intrigued. “I just kind of fell in love with the brand,” he says. When the company began strategizing about expanding the brand to Ontario, things fell into place and Turkington became one of the first Triple O’s franchisees in the province. Before committing, Turkington’s wife insisted they taste the product. Still living in Montreal, Quebec at the time, they ventured to the closest location in Mississauga, Ontario when pandemic restrictions began to lift. “We ordered one of everything and sat in the parking lot and had a dashboard buffet,” he says with a laugh. By the end of the meal, she was sold. Though opening a restaurant at the tail-end of the global crisis raised a few eyebrows, Turkington was undeterred. “It was a bold move, and obviously, I didn’t have a crystal ball,” he says. His first location in Colborne, Ontario opened on April 1, 2022, and is conveniently located off the highway near the ‘Big Apple,’ a famous roadside attraction. Despite being well known on the west coast, one of the brand’s challenges is garnering brand recognition in Ontario. “It’s non-stop, explaining what we are all about and what is special about us. It makes us brand ambassadors, me and my team. We’re helping build the brand

here, and we’re excited to tell the story of Triple O’s,” explains Turkington. Turkington says despite the company’s larger size, he enjoys the collaborative, family-friendly feel. “You know everyone at head office by name and they know who you are. It’s a little easier when you’re taking such a big risk, bringing an unknown brand into the market. They really try to help you build that brand, so it feels like a partnership.” He adds that feeling supported and included really resonates and creates a sense of pride in the product they’re serving. Turkington adds that it’s a hands-on job to build a team, and that good hospitality leads by example. “You have to push that kind of over-the-top service, or you know you’ll get what you get, so being present and just being involved is important.”

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

Abiahjit Kular Driverseat

r anchise Canada has always sought out stories of inspiring entrepreneurs who made their dreams come true with franchising. Most find themselves at pivotal moments along their journey: the first year, multi-unit expansion, milestone moments, and more happy success stories. But for new Driverseat franchisee Abiahjit Kular, the success story starts at the very beginning of franchise ownership: in the first months before a franchisee officially opens their doors, when excitement is high and opportunities are fresh. As a 20-year-old, Kular is firmly a member of Gen Z, and he certainly fits the profile for the next generation in franchising. But don’t let his age fool you—he recently secured nine Driverseat territories across B.C. and is ready to take on any challenges that come with franchise ownership. “Driverseat’s goal is to become the household name in transportation,” Kular explains. “We’re looking to provide for people that need group transportation from events and locations such as winery tours, airport shuttles, wedding transportation, and Care+ for the vulnerable sector, including the elderly and children. This is a service that is needed extensively in our region. There’s absolutely no private shuttle services here and there’s been a large demand for them.” Each of Kular’s nine territories has about 100,000 people within it, which is how Driverseat determines its distribution. He owns one territory each in Abbotsford, Mission, and Chilliwack, with two in Langley, and four in Surrey. He’s starting with opening Abbotsford, Mission, and Chilliwack, followed by the other six locations in the coming year, focusing on servicing these smaller markets and growing the business steadily over the next 12 months. When it comes to why he chose franchising over going into business alone, Kular says, “the main reason is just for all the guidance and resources I’m able to access. They have an established recipe that’s worked in multiple locations. Plus, they have great coaching and are able to help me whenever I need assistance. Having such a

supportive team and great resources really intrigued me to go into franchising. I don’t think that if I went into business by myself, I would achieve as much success. They know what to do, and how to help me do it.” With Kular being new to both the franchising and transportation industries, he knows he’s one of the youngest of the bunch and may have some obstacles to overcome along the way. “[Based on a] first impression, you may see that I’m a younger kid, and don’t really know if I have it in me to be able to persuade you to like the concept of Driverseat,” he explains. “So it’s been a challenge for me to mature a lot quicker [than my peers].” Kular notes that franchising inspires him by allowing him to provide people with the opportunity to make a living through his business. Driverseat’s shuttle buses are driven by qualified chauffeurs who must adhere to high standards, and it’s a great job to be employed in. “Something that I’m really eager to do is provide more jobs in an industry that’s very limited in our area,” he says. “I’m super excited about this unique franchise I’m going to bring to my hometown.” At the end of the day, Kular’s up-and-coming franchise journey is all about being bold—hence the nine territories under his belt.

Franchise Canada Directory 2024

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

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

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.

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.

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.

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.

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 TREND REPORT: WHAT TO EXPECT IN 2023

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THINKING ABOUT FRANCHISING YOUR BUSINESS?

5 Things to Consider Before Franchising Your Business

An essential guide to making informed decisions and setting your franchise up for success BY DANIEL MCINTOSH

s a business owner, you probably spent a lot of time preparing the tools you need to build a successful business. The same goes for converting your business into a franchise. Although the gears of your business are already turning, franchising involves some additional parameters that make it different from simply managing a small business. Here are five examples of things business owners should consider before franchising their business. 1. Is this business scalable? One of the fundamental traits that separates a franchise from the average small business is its ability to be duplicated in different markets. The ability to replicate results needs to be established before the business is offered as a franchise investment to others. In addition to being replicated, the business should also have established and clearly defined standard operating procedures. The system should be able to adapt its outlets to several locations, sectors, and perhaps even store types, while maintaining profitability. Moreover, if prospective franchisees have more touchpoints with your brand—inside a mall, on a street corner, or even as a smaller kiosk location—it makes it more recognizable and familiar. It also demonstrates the adaptability that’s a crucial factor in long-term growth. 2. Do you have the finances available to franchise? As franchising requires significant investments, from both the franchisor and the franchisee, understanding where the investment is going is as important as knowing where the funding is coming from. Although franchisees provide investment fees, there’s a significant contribution that potential franchisors must make before they even think about signing someone on. On average, the expenses can run from $25,000 to $100,000, covering everything from registering trademarks, developing manuals, and hiring lawyers, accountants, and other franchise professionals to make sure your franchise is starting on the right foot.

Business owners can research lines of credit or traditional loans to fund the development of their franchise systems but should be prepared to closely monitor their cash flow to ensure that the system has a fallback in case of decreased profitability. Resources must go toward supplying marketing materials, developing training procedures, and hiring support staff. For example, if your business requires you to act as a dispatcher, like in some home- or mobile-based businesses, how do you intend to hire and pay staff when the number of calls coming in becomes too overwhelming to handle on your own? While franchisors must cover the costs of the development of the system, the franchise fees and royalties that come from franchisees can go back into the business. In addition, pooled money from franchisees, such as in the case of an advertising fund, gets cycled back into developing new marketing materials. It traditionally takes new franchises two years to become profitable which can lead to stress in the early stages of franchising. Potential franchisors should have the leadership abilities to keep franchisees focused on the right goals through any issues in these early stages. 3. Are you aware of regional legal requirements? As a business owner, you probably have big visions for the future of your franchise system, with plans of expanding far beyond your own city, or even country. Regardless of how grand your ambitions are, every region has its own legal and regulatory rules that you as a business owner need to adhere to. In Canada, six provinces—Alberta, British Columbia, Manitoba, New Brunswick, Ontario, and Prince Edward Island—have their own franchise disclosure legislation. Quebec does not have franchise-specific legislation, but the Civil Code of Quebec governs many aspects of the franchise relationship including contracts and the duty of good faith. The remaining provinces and territories must abide by traditional federal business laws and any

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

5 THINGS TO CONSIDER BEFORE FRANCHISING YOUR BUSINESS fair dealing or ethical regulations in their respective region. Failure to regard the laws can result in legal challenges, extra litigation costs, or even tarnish your reputation as a business owner. Franchisors are required to provide franchise disclosure documents (containing necessary information for potential franchisees) which detail the financial performance of your franchise system. This transparency is crucial, not only to ensure a harmonious relationship between franchisor and franchisee, but to keep you legally protected. The franchise agreement—a legally binding contract—is similarly important as it outlines the rights and responsibilities of each party. These documents are vital to protecting your interests and avoiding potential disputes down the road. When it comes to legal issues, consulting with experienced franchise attorneys and professionals will help ensure that your franchise operations are fully compliant with relevant laws and regulations. 4. Can you provide effective training materials to new franchisees and their staff? Maintaining a cohesive brand image and consistent service across units and locations is an essential part of growing a franchise system. That relies on having welltrained staff at all levels that can effectively promote the brand and fulfill its promises. Effective support and training are essential for ensuring that your franchisees can operate their businesses efficiently, maintain brand standards, and deliver a consistent customer experience. Make sure the training materials you provide to your franchisees emphasize your brand’s values, mission, and standards. Training in quality control ensures that customers will have similar positive experiences in every

franchise location they visit. Franchisors should create operations manuals to standardize training processes. 5. Is there strong demand for your product/service in other regions? You should determine whether your concept will thrive in new locations and if there is a sufficient audience to consume your products and services. Before franchising, business owners should evaluate whether the concept is suitable for the target market you plan to enter. Does your product fit with the local audience’s preferences and cultural dynamics? Entrepreneurs need to be aware of potential challenges and competition for their business. Investigating these measures before starting your franchise can reduce your risk of failure in the long run. While this may seem like a daunting list, the reality of franchising is that you are not alone, and there have been many successful franchisors who started in the very same position as you. Before diving into the world of franchising, consider seeking guidance from experienced franchise consultants or professionals to ensure that you’re making informed decisions and setting your franchisees up for success. Additionally, remember that franchising requires effective communication from you to your franchisees. Communication, in the form of sharing best practices and regularly gathering feedback, is the cornerstone of maintaining a strong relationship with your franchise network. The CFA’s Franchise Your Business hub is an essential starting point for any business owner looking to expand. Get all the information you need to scale your business concept to new heights at cfa.ca/ franchiseyourbusiness.

Franchise Canada Directory 2024

How to Franchise Your Business

The CFA has resources to help entrepreneurs scale their businesses through franchising

urning your business into a franchise can be an exciting but daunting experience, and there are many moving parts to consider before initiating the process. From financial aspects to legal compliance, down to the marketing of your brand to attract both franchisees and customers, you should be well equipped and educated before deciding to embark on this adventure. Franchise Canada’s Franchise Your Business program offers insightful articles and videos about franchising and live sessions to get advice from successful franchise professionals. 2024 Franchise Your Business Sessions: • Thursday, April 18, 2024, 11:00 AM - 4:00 PM (EDT) • Wednesday, June 19, 2024, 11:00 AM - 4:00 PM (EDT) • Wednesday, September 11, 2024, 11:00 AM - 4:00 PM (EDT) • Tuesday, October 22, 2024, 11:00 AM - 4:00 PM (EDT)

WATCH: Get all Franchise Your Business content in a brief video format at cfa.ca/blog/tag/watch-fyb. When it comes to the franchise business model itself, there are a wide range of key benefits to adapting the model to lift your concept to new heights and obtain scalable growth: • Benefit from partnering with independent franchisees in local markets who have invested in the system and have a strong motivation to make their franchise location successful. • Achieve accelerated growth by expanding through franchisee investment (compared to corporate expansion with company capital). • Attain further market share by expanding points of sale. • Share in the revenue generated by the system through royalties collected from franchisees (typically either a standard set fee or calculated as a percentage of gross sales volume). Ready to take your business journey to the next level? Learn all there is to know from seasoned pros at cfa.ca/franchiseyourbusiness.

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

Q A

ASK AN ACCOUNTING EXPERT

I want to purchase a franchise with strong ESG credentials. As a prospective franchisee, how do I ensure the ESG credentials of the franchisor are more than just skin deep? ENVIRONMENTAL, SOCIAL, AND GOVERNANCE PRINCIPLES (ESG), along with sustainability, have become hot topics in the past couple years. Throughout 2023, the competition for customers, employees, and franchisees to prove their credentials was even more intense. Surveys show that each generation is becoming more conscious of sustainable development, which is defined as the intersection of environmental stewardship, social responsibility, and fiduciary responsibilities that meets the needs of the present, without compromising the ability of future generations to meet their own needs. And each generation is increasingly voting with their dollars to ensure that their values align with the brands they’re working for, investing in, and spending their money with. Every brand is expected to have sustainability commitments and ESG metrics in place to woo the public and certainly, to win over your dollar as consumers and prospective franchisees. However, the risk of “greenwashing” or “green PR” is real. If you check news headlines, more companies are getting caught mistreating their labour force, the environment, and even throwing out returns after touting a circular economy model. Franchisees should take note of their brand’s ESG practices as a matter of protecting their investment, and to mitigate risk in case your franchise becomes the target of a boycott, negative press, or other public action. To ensure that the franchisor’s ESG credentials are more than just skin deep, you must ask questions, and then ask follow-up questions. The art of asking questions is something we advise members of Boards of Directors to do; to question their company and ask sufficient follow-up questions to adequately discharge their governance duties. It’s not enough to accept information presented at face value. Be sure to reiterate such questions as: • “ How do you know?” • “ How did you ascertain that?” • “ What is the source of this information?” • “ What assurance do you rely on that is correct and has been validated?” The ability to keep drilling down may seem uncomfortable at first, but you must act like your own Board of Directors; ask the questions to get a sense of whether the franchisor is prepared, informed, and authentic. Ask questions about the systems, processes, and people in place to have good controls over ESG reporting. Prepare yourself with foundational knowledge about ESG and sustainability issues. For example,

understanding the difference between terms like “carbon neutral” and “net-zero” may be deciding factors in an organization’s climate change efforts. One buys enough “carbon credits” to offset greenhouse gas emissions, and one is to reduce greenhouse gas emissions. If human rights or labour issues are important to you, get a sense of which regulatory standards the franchisors are adhering to, if any, by reading up on some of the globally recognized benchmarks, like the UN Sustainable Development Goals. Understand that a company’s Supplier Code of Conduct is often not sufficient in preventing or detecting forced labour or child labour in the supply chains. The ability to ask questions is important but it’s also critically important that you’re prepared with parameters to assess whether the information passes the sniff test. Be wary if franchisors don’t have the answers readily available or seem surprised about the follow-up questions. Remember, ESG metrics shouldn’t be held to any lower standard than financial statement results and disclosures. If the organization doesn’t have the verifiable, audited, and consistently reported data to back up any ESG claims, buyer beware. This would be true for all information but is especially true when it comes to ESG metrics because it’s become a catchy new branding lever. And unfortunately, the ESG metrics that are available may not have the maturity of controls and auditor assurance that traditional financial statement reports do. While that’s slowly changing, your franchise investment should be governed with the due care and due diligence of any large public organization. And you should discharge your governance duties with as much care as the chairperson of any board. Finally, when in doubt, consult a professional. More and more companies are engaging help with acquisitions and mergers when it comes ESG metrics simply because the information is so inconsistently reported. And if this is true of large public companies, then it’s certainly true of the franchise with your hard-earned investment.

Y Nguyen, CPA, CA, CIA, CSSCP Head of Sustainability Risk Advisory and North America Sustainable Supply Chains BDO Canada www.bdo.ca

Franchise Canada Directory 2024

Q A

ASK A FRANCHISE EXPERT How do I know if franchising is right for me? FRANCHISING CAN BE AN EXCELLENT WAY to start a business. Not only does it allow you to choose from a variety of options, but it also allows you to scale your business efficiently, as a franchise has a proven model, system, and infrastructure to support you. Instead of spending months or years learning how to successfully build, market, and manage your business, a healthy franchise system has these processes in place, and many other resources available. If you’re interested in franchising but aren’t sure if it’s right for you, consider the following questions: 1. Are you comfortable with the idea of being part of an organization? 2. Is franchising a good fit for you personally? For example, do you prefer to reinvent the wheel or follow a methodology? 3. Do you want to work with other like-minded individuals who share your passion? 4. Are you willing to commit some time and effort (e.g., mornings, afternoons, weekends) to the success of the business? These are just some of the questions that can help determine whether franchising is right for you. So why choose a franchise? One reason may be convenience. By purchasing a franchise from a trusted source, you can access products and services from a wide range of providers without having to find each one individually. Another reason could be cost efficiency—many franchises are established businesses with economies of scale that allow them to offer lower prices than similar, independently run businesses. And finally, franchising may be right for someone who wants extensive support and resources as they grow their business. With all these benefits, it’s easy to see why franchising is such a popular business model! So, is franchising right for you? The answer to that lies in self-assessment and conversations with franchise experts and your family. Use the checklist below to weigh the benefits associated with becoming a franchisee versus the time, energy, and investment needed to maintain a business and the franchise model itself.

❑ Examine the success rate of the franchise ❑ Compare to other business opportunities ❑ Analyze your business network ❑ Consider the lifestyle changes that come with owning a franchise ❑ Understand the legal aspects of franchising ❑ Get advice from experienced franchisees ❑ Speak to industry experts for guidance ❑ Make sure you’re financially ready ❑ Research the franchisor and industry ❑ Understand the franchise agreement and fees ❑ Analyze the market conditions ❑ Consider the financial implications of franchising ❑ Understand the operational requirements for success ❑ Get advice from legal and financial professionals ❑ Take your time to make an informed decision ❑ Attend a Canadian Franchise Association tradeshow, seminar, or other event Making the decision to become a franchisee can be a tough choice. It’s important to do your research and assess whether franchising is the best fit for you. Consider your goals, strengths, and weaknesses, as well as the sector you’d like to enter. Speak to existing franchisees and review their experiences to gain an understanding of what franchising entails. By weighing all the pros and cons, you’ll be able to make an informed decision about whether franchising is right for you.

The Pre-Franchisee Checklist: ❑ Evaluate your skill set and interests ❑ Consider your personal goals and lifestyle—now and for the future ❑ Research the different types of franchises ❑ Understand the associated costs ❑ Assess the risks and rewards

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

Angelee Brown CEO and founder FranOvation angelee@franovation.com

Q A

ASK A LEGAL EXPERT

What are my franchisor’s obligations at the beginning and throughout my franchise career? FRANCHISING IS A GREAT WAY to expand your company into new markets and increase your brand awareness. When entering a franchise agreement, there are three primary obligations to abide by: the contract, franchise legislation, and the common law. The contract The day-to-day relationship between franchise parties is governed by a contract called the franchise agreement. A franchise agreement will typically set out the parameters of the business model, including: • the operating standards; • the territory that will be covered by the franchise; • fees, terms, and renewal timelines; • protocols for selling or transferring the franchised business; • the franchisor’s obligations; • the rights of the franchisee; • restrictive covenants; and • dispute resolution procedures, among other things. Most franchise agreements contain a section specifically identifying the franchisor’s obligations to the franchisee, which may include providing training, access to goods and services, customer referral networks, and other obligations unique to the franchise system. These obligations are often defined carefully and precisely by the franchisor, and franchisees should carefully review what is and is not included. Franchise legislation Franchising is a matter of provincial jurisdiction and, currently, six out of the 13 provinces and territories across Canada have enacted franchise legislation: Alberta, British Columbia, Manitoba, New Brunswick, Ontario, and Prince Edward Island. Four key features common to each statute are: 1. Requiring franchisors to provide a pre-sale disclosure document to prospective franchisees, with prescribed content and delivery requirements, including the obligation to disclose all “material facts” relevant to the franchise being acquired; 2. Imposing a duty to act in good faith and with fair dealing on both the franchisor and franchisee; 3. Establishing a franchisee’s right to associate with other franchisees, free of interference from the franchisor; and 4. Mandating compliance with certain legal requirements in all franchise agreements, including restrictions on venue and the governing law of the contract, and prohibitions on waivers of statutory rights.

Disclosure document Franchisors are required to provide prospective franchisees with a disclosure document (often called a franchise disclosure document or “FDD”) at least 14 days before they sign a franchise agreement or make any payment of consideration for the franchise. The FDD must include certain prescribed information about the franchisor such as business background, litigation history, bankruptcy or insolvency information, and financial statements, in addition to “all material facts” which may have an impact on the price or the franchisee’s decision to acquire the franchise. Before a prospective franchisee signs a franchise agreement or makes any payment, the franchisor is obliged to disclose whether there have been any material adverse changes since the franchisee first received the FDD by providing a “statement of material change.” A franchisor’s failure to provide a disclosure document or meet the statutory disclosure requirements grants the franchisee the right to rescind the agreement without penalty or obligation either 60 days after receiving disclosure (where disclosure is late or deficient) or up to two years after signing the franchise agreement (where no disclosure is provided). Courts have interpreted various deficiencies in disclosure documents to be so fatal as to render the disclosure the equivalent of no disclosure and have allowed franchisees to rescind within two years in such circumstances. Franchisors have a responsibility to update the franchise disclosure document regularly to immediately reflect any material facts that change during a franchise operation. If a franchisee suffers a loss because of a misrepresentation contained in a disclosure document, the franchisee has a right of action against the franchisor. Fair dealing Pursuant to franchise legislation, franchisors and franchisees owe each other a duty of fair dealing in the performance and enforcement of their franchise agreements. This statutory duty of fair dealing is a codification of the common law duty of good faith, which requires

Kayla Smith Associate Cassels ksmith@cassels.com

Franchise Canada Directory 2024

ASK A LEGAL EXPERT both parties to act honestly in their performance of the franchise agreement and to comply with reasonable commercial standards. Breach of the duty allows either party to take legal action for damages suffered as a result. Freedom of association Franchisees have a statutory right to associate with other franchisees. This means that franchisors can’t interfere with a franchisee’s decision to form or join an organization of franchisees. The right of association also prevents franchisors from interfering in their franchisees’ participation in class actions. Any such interference may expose franchisors to liability for damages.

Choice of law and forum Each of Canada’s provincial franchise statutes mandate that franchise agreements can’t restrict the application of provincial law to the agreement and the venue for certain disputes arising under the agreement to a forum outside of that province. Non-waiver agreement Franchisors’ statutory obligations and rights given to franchisees by law can’t be waived. The only exception to this is with respect to releases of known, existing claims granted in the context of a dispute settlement with the benefit of independent legal advice.

Everything you need to create your franchise future! Buying a franchise can be an overwhelming process. The good news is you don’t have to do it alone. Franchise Canada is here to guide you through the franchise process, with everything you need in one spot: FranchiseCanada.Online

Franchising 101: Easy-to-read resource articles and tutorials can help kick-start your franchise success! LookforaFranchise.ca: Explore the wide range of available franchise opportunities in our online directory Ask the Expert: Hear firsthand from franchise professionals as they answer common questions from prospective franchisees

Franchise Canada TV: Find interviews, tutorials and guides, information about key franchising topics, and more! Franchise Canada Chats: Listen to inspiring franchisees, franchisors, and industry experts who are building their businesses and connecting with their communities Franchise Canada E-News: Get the latest Canadian franchise opportunities and updates delivered to your inbox through our FREE e-newsletter

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HOW TO USE THIS DIRECTORY Franchise Canada Directory 2024 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. n T he listings information is provided by Franchise Brands and

Support Services/Supplier specialists n Organized for easy reference into Franchise Brands listings and Franchise Support Services/Suppliers listings n 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

217

Convenient tabs help identify categories.

We Print, Ship & More! 1-1115 North Service Rd W Oakville, ON L6M 2V9 Phone: (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 & parcel receiving and other business services. The UPS Store franchisees enjoy the training and ongoing support of experienced home office and in-field teams, from grand opening and beyond. Single centre, traditional concepts are currently available as well as multi centre, store-instore concepts, across most of Canada. Proud to have been designated as an Essential Service. Franchise units in Canada: 370 In business since: 1990 Franchise fee: $40K Start-up capital required: $100K Investment required: $199.25K-$218.5K 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.

2023

Franchise Canada Directory 2024