The Franchise Voice (Summer 2023)

Official Member Magazine

SUMMER 2023

Insight into Franchise Agreements with Canada’s Premiere Franchise Law Firm

SEE PAGE 6-7

LLP

HOFFER ADLER

Lawyers Trademark Agents

We are proud to be recognized as one of the top franchise law firms in Canada, and proud of the recognition our partners have as leaders in their respective fields.

Our lawyers’ expertise is consistently recognized by peers and clients through repeat entries in International Who’s Who of Franchise Lawyers, Lexpert, Franchise Times, National Post’s Best Lawyers in Canada, Canadian Who’s Who, Martindale-Hubbell, & World Trademark Review 1000.

We’ve represented franchisors, franchisees and franchise associations of over 570 franchise brands, making us a firm that is deeply rooted and aware of franchising trends.

595 Bay Street, Suite 1102, Toronto, ON, M5G 2C2 416.977.2553

Official Member Magazine

SUMMER 2023

9

Features Up with 13 Keeping Millennials and Gen Z

FA Members provide C insight into the value these generations bring to franchise systems as employees, leaders, and franchise owners

Departments 4 Chair’s Message 5 President’s Message Headline News 8 CFA What is the CFA doing for you?

Legal 17 Franchise Social Media in Franchise

Systems – Legal Considerations for Franchisors

Celebrating Franchising Excellence Award-Winning Franchising Insight from EverLine Coatings and Services and Inspiration Learning Centers

S

ince 1992, the Canadian Franchise Association (CFA) has recognized its members with strong franchisor-franchisee relationships at its annual Awards of Excellence gala. Considered the pinnacle of franchise achievement in Canada, the CFA Awards of Excellence in Franchising are presented annually to franchise systems that demonstrate superior franchise relations, leadership, training, and communications.

Growth 20 Franchise Cutting Through All The NOISE 22 Management Unlocking Success in Franchise

Leadership: It’s Easier Than You Think!

24 Operations Going Rogue: How the

customer service decisions of one franchise can impact how customers see your brand

26 Legal Digest Off the Press: CFA 28 Hot Member News New CFA 30 Welcome Members 34 Upcoming Events

Full story pages 9-12

Canadian Franchise Association

The Franchise Voice // Summer 2023 1

Why You Should Download the CFA App The CFA Community App is here to revolutionize the way you connect with the Canadian franchise industry. Here are 4 major reasons why you should download the CFA app right away.

The Franchise Voice at Your Fingertips: The versatile CFA Community App offers a seamless user experience, allowing you to browse the latest issues of The Franchise Voice from the convenience of your phone. Stay up-to-date with industry news, trends, and expert insights wherever you are.

Knowledge is power, and now it fits right in your pocket.

Explore the Power of Member Savings: As a member of the CFA, you’re part of an incredible network of like-minded individuals and businesses. The CFA Community App takes that membership to the next level by granting you access to the Member Savings Program Offers.

You can now benefit from extraordinary discounts on a variety of essential products and services offered by fellow CFA Members. From office supplies to marketing services and everything in between, the CFA app has got you covered.

Connect with the CFA Community Instantly: Building connections is at the heart of every successful business venture. With the CFA Community App, connecting with the Canadian franchise community has never been easier. The app provides you with an extensive Member-toMember Contact Directory, giving you instant access to a repository of CFA Members categorized by name, company, and industry. Whether you’re seeking partnerships, advice, or simply want to expand your professional network, the app is the quickest way to connect with the CFA community.

Constantly Evolving and Improving: One of the most exciting aspects of the CFA Community App is that it’s a dynamic platform constantly evolving to cater to your needs. The CFA team is committed to enhancing the app’s features based on user feedback and emerging industry trends.

By downloading the app, you become an integral part of this community-driven improvement process. Your suggestions and ideas shape the future of the app, making it even more valuable for all CFA members.

The CFA Community App is your all-in-one solution for accessing The Franchise Voice, connecting with fellow CFA Members, and enjoying exclusive savings. Download the app today and unlock the full potential of your CFA membership. Stay connected, stay informed, and stay ahead of the game.

SUMMER 2023

Purpose

To help everyday Canadians realize the dream of building their own business.

Mission

Credits PUBLISHER:

Canadian Franchise Association VP, CONTENT & MARKETING: Kenny Chan EDITOR: Andrew Schopp

To amplify the understanding and power of franchising in Canada by: • Advocating on the issues that impact this dream; • Connecting people with opportunity; and • Delivering learning opportunities that make franchising stronger.

GRAPHIC DESIGNER: Andrea Lee EDITORIAL ASSISTANT: Daniel McIntosh EDITORIAL INTERNS: Hiru Batepola,

Raavya Bhattacharyya

FOR ADVERTISING INFORMATION:

Radhika Karve rkarve@cfa.ca

CFA Board of Directors DIRECTORS

BOARD CHAIR

David Druker*, The UPS Store Canada 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 TREASURER

Lyn Little, BDO Canada LLP SECRETARY & GENERAL COUNSEL

Darrell Jarvis*, Fasken PAST CHAIR

Steve Collette, 3rd Degree Training 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

Gerry Docherty*, Good Earth Coffeehouse CHAIR, LEGAL & LEGISLATIVE COMMITTEE

Andraya Frith, Osler, Hoskin & Harcourt LLP CHAIR, FRANCHISE SUPPORT SERVICES

Kirk Allen*, Reshift Media

© 2023, Canadian Franchise Association (CFA).

All rights reserved. Contents of this publication may not be reproduced either wholly or in part, without the consent of the CFA. Canadian Franchise Association 5399 Eglinton Avenue West, Suite 116 Toronto, Ontario M9C 5K6 Ph: 416-695-2896 or 800-665-4232 F: 416-695-1950 / W: www.cfa.ca / E: info@cfa.ca 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.

*Executive Committee member

Thank you to the following National Sponsors for their continued support throughout the year.

Advertisers’ Index LAW FIRMS:

Beyond Digital Imaging �����������������������������25 Hoffer Adler. ��������������������������������������������������� 6-7

SHOWCASED FRANCHISES:

Find out more about these companies at www.cfa.ca/sponsorship

Canadian Franchise Association

To advertise in The Franchise Voice, contact Radhika Karve at rkarve@cfa.ca

The Franchise Voice // Summer 2023 3

Chair’s Message

T

Leading Success and Growth in the Franchising World

he Summer Issue of The Franchise Voice focuses on the theme of leadership and the vital role it plays within the Canadian franchising industry. It’s a theme that resonates deeply within our industry and within Canadian Franchise Association (CFA) membership.

Leadership is the cornerstone of any thriving franchised business. It’s the driving force that propels brands forward, instilling a vision, and inspiring others to follow suit throughout the system from the head office, all the way to the franchisees and to the store-level employees.

True leaders understand the importance of taking charge, not only in steering their own brand to success but also in creating a nurturing environment that empowers others to excel. The franchising landscape is ever-evolving, and strong leadership is what guides us through the challenges and propels us toward new opportunities.

In line with our commitment to fostering strong leadership within the franchise community, the CFA is excited to announce a series of upcoming events that are designed to inspire franchise business owners across the country. On September 21, the CFA will host its annual Franchise Law Day. This event serves as a valuable resource for franchising leaders, providing insights into the legal aspects of franchising and addressing critical issues that impact our industry. By staying informed and up-to-date on legal matters, franchise leaders can navigate the complex landscape with confidence, ensuring the long-term success of their brands.

Then, on October 11, comes the CFA’s annual Franchising Meets the Money conference. Here, franchise owners and visionary leaders will be empowered with the knowledge, insights, and connections they need to unlock the full potential of their businesses. This event is designed to update franchisors and multi-unit franchisees on the state of the market and educates them on the things they can do now – and in the future – to ensure that they are in the best position to maximize the value of their business.

4 The Franchise Voice // Summer 2023

Through engaging sessions with the brightest minds of the Canadian franchising industry, Franchising Meets the Money provides insight into franchising and private equity domains to help position franchise owners to forge transformative deals, game-changing collaborations, and lucrative investments.

As we look ahead to these events and beyond, I encourage each and every one of you to embrace the power of leadership within your franchise. Take charge of your brand, inspire others, and create a culture of inclusion and empowerment. Together, we can build a thriving franchising community that paves the way for a brighter future.

The content featured in this issue of The Franchise Voice is just one example of how the CFA’s strong sense of community has helped franchise systems grow and thrive. While the CFA’s foundation is strong, the more franchises that join the Association, the stronger it becomes. We hope you’ll join us in ensuring the future success of our industry by renewing your CFA membership for the 2023/2024 membership year.

Thank you for your unwavering support of the CFA and your commitment to excellence in leadership. Let us continue to grow and evolve together as we navigate the challenges and embrace the opportunities that lie ahead.

David Druker Chair, Canadian Franchise Association President, The UPS Store Canada

www.cfa.ca | www.FranchiseCanada.Online

President’s Message

A

Franchise Leadership: Building Stronger Businesses Together

s we embark on this Summer Issue of The Franchise Voice, I would like to express my utmost gratitude to the entire Canadian Franchise Association (CFA) community. It is fitting that the theme of this issue is leadership as the strength and resilience demonstrated by our members have truly made a lasting impact on the franchising industry in Canada. Together, under the guidance of the tremendous leaders we have here in CFA membership, our industy has weathered the storms, overcome challenges, and emerged stronger than ever before.

In the dynamic world of franchising, leadership plays a pivotal role in shaping the destiny of franchise brands.

In this issue, we see this firsthand as we take an in-depth look at the leadership of Angel Kuang, CEO and co-founder of Inspiration Learning Center and John Evans, CEO and founder of EverLine Coatings and Services, the winners of this year’s CFA Awards of Excellence Grand Prize for Traditional Franchises and Non-Traditional Franchises, respectively. In our feature story (page 9), The Franchise Voice had the opportunity to sit down with Kuang and Evans to learn, from a leader’s perspective, what goes into building an award-winning franchise system.

Leaders are the driving force behind the success and growth of their businesses. They embody the vision, values, and mission that define their brand. Throughout this issue, we continue to celebrate the essence of leadership and the crucial role it plays in the franchising landscape.

This issue of The Franchise Voice delves into the multifaceted aspects of leadership. In our departmental feature, Unlocking Success in Franchise Leadership (page 22), Stephane Breault of Imagine Franchise Consultant Inc. shares insight into the essential qualities that define exceptional leaders. We also turn our attention to the topic of attracting younger Canadians to the franchise business model. In Keeping Up with Millennials and Gen Z (page 13), we shed light on strategies that can help leaders tap into this diverse and growing market, expanding their reach and impact amongst the next generation of franchising executives and franchise owners.

As franchising leaders, it is important to have a finger on the pulse of Canada’s quickly changing legal landscape. On page 30, we share valuable insights regarding Canadian Franchise Association

recent amendments to the Competition Act that aim to restrict non-solicitation (“no-poach”) and wage-fixing agreements. On September 21, we’ll dive deeper into the amendments and other important legal issues as we host our annual Franchise Law Day. This event serves as a valuable resource for franchising leaders, providing insights into the legal aspects of franchising and addressing critical issues that impact our industry.

Coming up on September 21, we have Franchise Law Day, an event that focuses on legal aspects within the franchising industry. Attendees will gain crucial knowledge and guidance on legal issues that impact franchises, ensuring compliance, and protecting their businesses.

This event serves as a valuable platform for franchise leaders to stay informed and make better decisions.

Then, on October 11, comes the CFA’s annual Franchising Meets The Money conference. Here, franchise owners and visionary leaders will be empowered with the knowledge, insights, and connections they need to unlock the full potential of their businesses. This event is designed to update franchisors and multi-unit franchisees on the state of the market and educates them on the things they can do now – and in the future – to ensure that they are in the best position to maximize the value of their business.

The Franchise Voice serves as your gateway to constant knowledge and support from the CFA. As you dive into the articles and insights presented in this issue, I encourage you to embrace the spirit of leadership and the opportunities that lie ahead.

Thank you for your unwavering support of the CFA and The Franchise Voice. Your commitment and dedication inspire us all.

Sherry McNeil President & CEO, Canadian Franchise Association smcneil@cfa.ca

The Franchise Voice // Summer 2023 5

ADVERTORIAL

When Does a Franchise Agreement Become Binding?

BY IDAN EREZ & JOSEPH ADLER, HOFFER ADLER LLP

A

franchise relationship is created when the franchisee and the franchisor agree to be bound by the terms of a franchise contract. If a dispute arises between the franchisee and franchisor, it will not always be important to identify the date from which the franchise relationship began.

Sometimes, however, the date from which the relationship began will be a central issue in the dispute; for instance, franchise disclosure legislation (with the exception of Alberta’s Franchises Act) provides that a franchisee seeking to exercise its statutory right of rescission must do so no later than two years after “entering into the franchise agreement.”1 If a franchisee attempts to rescind its franchise agreement near that two-year mark, the franchisor may respond by alleging that the franchisee is out of time to do so because more than two years have elapsed since the franchise agreement was “entered into.”

In those circumstances, it becomes necessary to consider the question of when the franchise agreement was mutually agreed upon. The ingredients necessary for there to be an enforceable contract are mutual agreement as to the essential terms of the agreement and mutual “consideration,” meaning an exchange of promises to be performed under the contract.

In many cases, the exercise of identifying when a franchise agreement was “entered into” will be straightforward because the parties will have signed a franchise contact evidencing their mutual agreement to enter into a franchise relationship and what obligations they promise one another to perform under the contract. Typically, the parties will have signed the franchise agreement on a specific date, or on dates that are sufficiently close together such that there is little doubt as to when the franchise relationship began.

But complications do arise when there is disputed evidence about the parties’ agreement or the contents of their mutual promises. The following are some examples of such complications.

• No signed agreement, or only partly signed one: Occasionally, a franchisor will inadvertently neglect to obtain its franchisees’ signatures on its franchise agreements, yet the parties operate in accordance with the terms of the franchise agreement as if they were fully signed. In those circumstances, it can be challenging to identify the date upon which the parties had entered into the franchise agreement.

The challenge can be particularly vexing if there was a long gap between when the franchisee paid its initial consideration (the initial franchise fee, or a rent deposit) and when the franchisee began operating the franchised business—a not

See, for instance, the Arthur Wishart Act (Franchise Disclosure), 2000, SO 2000, c 3 at s.6(2). Alberta’s statute requires a rescinding franchisee to do so within two years “after the franchisee is granted the franchise”: Franchises Act, RSA 2000, c F-23, s.13(b).

1

ADVERTORIAL

uncommon occurrence as a consequence of the COVID-19 pandemic.

The stronger argument would seem to be that the franchise agreement was entered into when the franchisee made its first payment of consideration to its franchisor, because as of that date, all of the elements of a binding contract will have been in place;2 but what if an important term of the unsigned agreement changed after the payment of the initial fee?

The answer becomes more elusive.

In 256306 Ontario Inc. v. Dakin News Systems Inc.3, the parties had operated for some time in accordance with the terms of what appeared to be a franchise relationship but without having signed a franchise agreement. Eventually, the franchisor demanded that the franchisee sign a franchise agreement. The franchisee later brought a claim for rescission on the basis that the franchisor had not provided the required financial disclosure to the franchisee ahead of the execution of the written franchise agreement; the franchisor unsuccessfully argued that no disclosure was required ahead of the written franchise agreement because there was already a franchise agreement in place beforehand (and the franchisor was therefore exempt from disclosure under Ontario’s franchise statute). The Court of Appeal, agreeing with the lower court, held that “[h]aving chosen to require a franchise agreement with the respondents, the appellants cannot now argue that a franchise agreement was already in place.”4 Sometimes the parties sign a lease agreement concerning the premises out of which the franchised business operates without

first (or ever) signing a franchise agreement; in that example, can the franchise agreement be said to have been entered into upon the signing of the lease agreement even where no franchise agreement was ultimately signed? Again, the answer is unclear.

• Multiple versions of the franchise agreement: Sometimes the parties may enter into successive franchise agreements (intending perhaps to amend the initial agreement but not clearly giving effect to that intent in the written documents). This occurred in the 2212886 Ontario Inc. v. Obsidian Group Inc.5 decision. In that case, a few months after the parties had signed a franchise agreement, the franchisor asked the franchisee to sign a second franchise agreement that was substantially the same as the first.

The franchisee sought to rescind the franchise agreement more than two years after the date of the first agreement but less than two years after the date of the second. The Ontario Court of Appeal agreed with the lower court that the two-year rescission window ran from the date of the second agreement, not the first, such that the franchisee was within time to rescind.6 • Verbal franchise agreements: Though uncommon, a franchisor may enter into an oral franchise agreement with a franchisee, and in such case, it may be difficult to determine the effective date of the agreement; however, in a relationship or arrangement arising out of an oral agreement “where there is no writing which evidences any material term or aspect of the relationship

or arrangement,” such a franchisor would be exempt from the application of the franchise disclosure legislation in each of the franchise disclosure jurisdictions except for Alberta, so a rescission claim on this basis would not be an issue.

• No grant of a specific territory: It is not uncommon for franchisors Steven Vanloffeld and franchisees to sign franchise agreements that, whether by design or inadvertence, fail to define the specific territory or premises that are the subject of the grant. In the recent Premium Host Inc. v. Paramount Franchise Group decision, the parties had executed such a “generic” franchise agreement before executing a site-specific one months later. In defending against the franchisee’s rescission claim, the franchisor attempted to rely on the earlier generic agreement in asserting that the franchisee was out of time to rescind. The Ontario Superior Court of Justice found that the generic franchise agreement was not a “franchise agreement” at all within the meaning of the statute, because the agreement did not define the specific territory within which the franchisee would be licensed to operate; therefore, the generic agreement cannot be said to have granted a franchise.

Key Takeaways: To avoid future disputes, franchisors and franchisees alike are well-advised to ensure that their franchise agreements are memorialized in writing, clearly dated, and signed. The parties should also take steps to avoid significant delays between execution of franchise agreements and any performance under them. n

Connect with Hoffer Adler LLP at www.hofferadler.com.

2 But note that in the older decision, 287975 Canada Inc. v. Imvescor Restaurants Inc. 2009 ONCA 308, the Court of Appeal agreed with the lower court that the payment of a franchisee of an initial fee prior to the delivery by the franchisor of a disclosure document did not, in and of itself, create a franchise agreement: see para 33.

3 2016 ONCA 74.

Ibid at para 8.

2018 ONCA 670.

6 Ibid at paras 14 and 60-62.

7 Arthur Wishart Act (Franchise Disclosure), 2000, SO 2000, c 3 at s 2(3)7.

4 5

CFA Headline News What is the CFA doing for you?

The CFA Community Needs Your Voice!

CFA Members can tap into the incredible insight of the Canadian franchising community through The Franchise Voice. Published exclusively in the CFA.ca Member’s Only Area, The Franchise Voice empowers CFA Members to grow their franchise network and learn solutions to some of their biggest challenges. Share your insight as a franchising professional in marketing, operations, finance, legal, and more by contributing content!

Register Now for Franchise Law Day We are thrilled to invite you to Franchise Law Day on September 21, 2023, at the Old Mill Inn and Spa, Toronto. With plenaries, workshops, and sessions hosted by Canada’s foremost franchise lawyers, this conference is designed to help busy franchisors keep up to date with the latest franchise-related legislative developments.

Get in touch with Andrew Schopp at aschopp@cfa.ca to learn more about how you can get involved!

Franchise Your Business Webinar Series Do you have a business you’d like to grow? The CFA’s Franchise Your Business webinar, sponsored by Cassels Brock & Blackwell LLP, is for ALL business owners looking to expand their businesses quickly, cost-effectively, and successfully. Check out our upcoming dates below.

New Member Onboarding Webinars New to the CFA? Join us for our onboarding webinars where we’ll cover everything you need to know about being part of the CFA. Our Onboarding webinars run on the second Tuesday of every month.

Upcoming Webinars: Franchise Support Service Registration - 1pm ET Franchise System Registration - 3pm ET

Download the CFA Community App! The new CFA Community App provides CFA Franchise System and Franchise Support Service Supplier members with an easy way to engage with the Canadian franchising community on their mobile devices.

LEARN MORE

REGISTER NOW FOR SEPTEMBER 13, OCTOBER 25, AND JANUARY 17, 2024 SESSIONS

Franchising Meets the Money The CFA’s ‘Franchising Meets the Money: Growth & Exit Strategies’ seminar is an annual event that provides a powerful and time-effective opportunity to learn from the experiences of franchisors who have been through the process, as well as build contacts for the future.

REGISTER NOW

DOWNLOAD ON THE APP STORE GET IT ON GOOGLE PLAY

Pacific Meet & Greet The CFA’s Pacific Meet & Greet, sponsored by Boston Pizza, is a light and fun social event intended for all CFA Members to meet, network, and connect. After all, the CFA’s biggest strength comes from our community! Don’t wait, register now and join us on September 14th!

REGISTER NOW

What is the status of your CFE Designation?

The CFE Program is a leading resource that helps franchise executives, managers, and small business owners accelerate individual and organizational growth. Certification speaks to a higher standard of professionalism and raises the bar for franchise training.

LEARN MORE

8 The Franchise Voice // Summer 2023

www.cfa.ca | www.FranchiseCanada.Online

CELEBRATING FRANCHISING EXCELLENCE Award-Winning Franchising Insight from EverLine Coatings and Services and Inspiration Learning Centers

S

ince 1992, the Canadian Franchise Association (CFA) has recognized its members with strong franchisor-franchisee relationships at its annual Awards of Excellence gala. Considered the pinnacle of franchise achievement in Canada, the CFA Awards of Excellence in Franchising are presented annually to franchise systems that demonstrate superior franchise relations, leadership, training, and communications.

This year, more than 70 CFA-member franchise brands participated in the CFA Awards of Excellence in Franchising program. The winning franchise systems were determined based on the results of a survey sponsored by the CFA and administered by the Portage Group, a third-party research firm. The participating brands’ franchisees were asked about their experiences and levels of satisfaction with the system. Entries were separated into Traditional Franchises and Non-Traditional Franchises and then divided into categories based on their number of franchisees.

The Franchise Voice had the opportunity to sit down with Inspiration Learning Centers and EverLine Coatings and Services–the winners of this year’s Grand Prize for Traditional Franchises and Non-Traditional Franchises, respectively—to gain valuable insight into what goes into an award-winning franchise system.

Canadian Franchise Association

The Franchise Voice // Summer 2023 9

Celebrating Franchising Excellence

Genuine Care for Franchisee Success Drives Angel Kuang, CEO and Co-founder of Inspiration Learning Center

BY R A AV YA B H AT TAC H A RY YA

A

leader who not only understands the importance of comprehensive support but also embodies it is of paramount importance to the success of a franchise system. Angel Kuang, the CEO and co-founder of Inspiration Learning Center, stands out as an exceptional leader in the Canadian franchise community. With her unwavering dedication to her work and unique leadership style, Kuang built a thriving tutoring franchise brand that has positively impacted countless lives.

The Inspiration Learning Center system’s growth is partly due to Kuang’s exceptional leadership skills. As the director and founder of Inspiration Learning Center, she has overseen its expansion from a single center in 2003 to 14 centers across Ontario and Calgary today.

Combining her Canadian and Chinese teaching experiences, Kuang developed a winning tutoring formula that resonates with students and parents alike.

It’s no surprise then that Inspiration Learning Center was the recipient of the Grand Prize Award for a Traditional franchisein 2023. This prestigious award acknowledges the top achievers in the Canadian franchising industry who focus on strong franchisor-franchisee relationships.

Unwavering support to franchisees through thick and thin Kuang’s commitment to her franchisees is rooted in her genuine care for their success. Recognizing that many franchisees may lack prior business ownership experience, Kuang understands the crucial role of ongoing franchisor support.

“I make sure they feel like they are not alone in this journey and have me to rely on,” she emphasizes. To Kuang, every franchisee is a cherished family member, and she provides support whenever needed.

10 The Franchise Voice // Summer 2023

Owned and operated by individuals from diverse backgrounds, the brand represents a tapestry of cultures. Ten out of 14 franchisees are women, and the majority are newcomers to Canada or second-generation newcomers. and Kuang has cultivated an environment that celebrates diversity and empowers individuals to thrive.

With a fervent passion for helping others and an infectious passion for success, Kuang’s leadership style is based on motivation and encouragement. She says that franchisors should treat their franchisees like they treat their children. Furthermore, the franchisors should “Love them, support them, and encourage them to understand the importance of both business and education.” Kuang firmly believes that equipping franchisees with the necessary business skills is vital for their growth and the overall prosperity of the brand.

“I make sure they (franchisees) feel like they are not alone in this journey and they have me to rely on.”

Teamwork is the key to success Kuang’s emphasis on teamwork is one of the reasons Inspiration Learning Center is successful. Having established internal rules and systems, Kuang ensures that franchisees have a clear roadmap for their work.

On that note, Kuang created a Whatsapp group with all her franchisees to ensure their queries and concerns get addressed. Though Kuang herself may not always be available, the group allows franchisees to interact with each other.

This approach builds a sense of community and promotes teamwork. “The group is an attempt to highlight that I am an honest and transparent leader, who is always here for her franchisees,” Kuang notes.

(Continued on page 12) www.cfa.ca | www.FranchiseCanada.Online

Celebrating Franchising Excellence

Built to Last

How John Evans, CEO of EverLine Coatings and Services, went from franchisee to award-winning franchisor

BY H I R U B AT E P O L A

W

hen John Evans walked into a franchise show over a decade ago, he thought he would walk out owning an established franchise in the premium juice and smoothie space.

What he ended up buying, however, was a license for a more durable traffic-marking product—the seed of his 11-year-old franchise system, EverLine Coatings and Services.

EverLine Coatings and Services is a parking lot line painting and pavement maintenance company serving property managers, building owners, and individual store managers. Its services include seal coating, crack filling, line stripping, asphalt repair, parking lot accessory installation, and much more. The franchise has seen some significant growth in the last year.

In 2022, EverLine Coatings and Services brought on 51 new U.S. franchise agreements. By the end of Q2 this year, the company expects to add 65 more franchise units in the U.S. and 22 in Canada.

This growth in franchise agreements is complemented by an exponential increase in system-wide sales year-overyear. It is no wonder that EverLine Coatings and Services was the winner of the Grand Prize for Non-Traditional Franchises at this year’s Awards of Excellence in Franchising. Clearly, franchisees are singing high praises for EverLine Coatings and Services.

In the wake of the win, we asked John Evans, the CEO of EverLine Coatings and Services about how he keeps his franchisees satisfied and his journey from franchisee to franchisor.

Evans created an award-winning brand around a single product. Of course, as he jokes, “A straight yellow line is a straight yellow line.” So, what makes EverLine Coatings and Services stand out as a pavement maintenance company and as a franchise?

Canadian Franchise Association

From franchisor to franchisee When he graduated from university, Evans already had experience working as a franchisee under College Pro Painters.

Through its one-year contracts, College Pro Painters provides university students the opportunity to run a small business while continuing their studies. When he left the program, Evans took with him the ability to present himself as “communicative, professional, and credible,” and brought his experience with him to that fateful day at the trade show.

As Evans was shopping around, looking for an investment opportunity, he came across a parking lot painting unit that looked like a paint sprayer on wheels.

Coming from the painting industry with College Pro Painters, the product caught his attention immediately.

“I thought it was going to be a really interesting differentiator for me,” Evans says. “To have a durable type of traffic marketing paint product that they were licensing out at the time.”

Evans made the decision to buy the license for the parking lot painter, and with the lessons and experience from his past as a franchisee, Evans created the EverLine Coatings and Services franchise concept around three things: a durable product, industry knowledge, and most importantly, the franchisees themselves.

“You must ask yourself, why are you franchising? Is it to kick back and collect royalties?

That’s not how it works. You can start doing that once you get over 100 units or so. But in order to get to 100 units successfully, there’s a lot of water to go through to get to that bridge.”

The “fran man” As Evans watched EverLine Coatings and Services expand, he found himself grappling with the unexpected challenges that come with fast growth. He quickly had to learn how to help franchisees manage shortages of different resources, whether that was people, cash, or work, on his own.

“For years it was just me. They called me the ‘fran man’ because I was doing all The Franchise Voice // Summer 2023 11

Celebrating Franchising Excellence

the support, training, all that sort of stuff,” Evans recalls.

“Now, I have a team of 20 people in the organization that we put together to deal with the obstacles that come with opening up so many locations.”

That team allowed the franchise system to anticipate challenges and tackle issues proactively. The decision ultimately allowed Evans to support his franchisees more effectively.

“Franchisees must be just as successful or more successful than you were,” says Evans. “That’s what’s going to make a great franchise system. That’s where most early franchisors have a challenge—they underestimate the amount of support all of these people coming into their world need.”

Evans advises new franchisors to be prepared to support their franchisees—something that looks different for everyone. For EverLine, that means building a franchisor-franchisee relationship where the franchisee feels they can voice the struggles they are facing with full transparency. With a foundation of communication, the franchisor can provide the necessary guidance and advice to tackle the problem at hand.

As a former franchisee, Evans’ experience informs the way he approaches the franchisor-franchisee relationship and how he handles any conflict that arises.

“If there is ever some sort of tension or challenge that pops up, we will always come to the table and work with them as a partner,” he explains.

When asked what other advice he’d give to new franchisors, Evans advises that you need to know why you’re in business and where you want your company to go.

“You must ask yourself, why are you franchising? Is it to kick back and collect royalties? That’s not how it works. You can start doing that once you get over 100 units or so. But in order to get to 100 units successfully, there’s a lot of water to go through to get to that bridge.”

(Continued from page 10) Overcoming challenges while scaling a brand Despite the tremendous success and growth of Inspiration Learning Center, Kuang’s journey has not been without its challenges. Overcoming franchising hurdles requires innovative approaches and personalized attention. “We hold frequent one-on-ones with franchisees to provide holistic support,” Kuang says. By creating comprehensive calendars and step-by-step plans, she empowers franchisees to take control of their path to success. Through these measures, Kuang ensures

12 The Franchise Voice // Summer 2023

Paving the path forward In the 11 years he’s spent growing EverLine Coatings and Services, Evans finds himself equally astonished and excited by the growth of his longtime franchisees.

“Some of our first franchisees have started to hit their five-year mark in business; they’re doing remarkable numbers, they’re achieving so many incredible things,” he says.

The personal successes of franchisees have created a foundation for the expanding number of franchisees joining the company and growing EverLine Coatings and Services across Canada and the U.S. It seems only a matter of time before newcomers begin to hit their own milestones and major achievements.

With a whopping 80 franchise units coming to North America, Evans isn’t planning on slowing down anytime soon. His next directive is to get his new franchisees off the ground.

EverLine Coatings and Services continues its journey toward becoming the largest self-performing commercial property manager in North America, and Evans continues to pave the path forward with good franchisee relations and a strong concept.

that every franchisee feels supported and motivated to put in the consistent hard work that defines a thriving franchise.

Kuang’s unique approach to leadership has guided Inspiration Learning Center to new heights and empowered franchisees to realize their potential. As a franchisee, working alongside Kuang means embarking on a journey that nurtures personal and professional growth.

By providing comprehensive support and fostering teamwork, Kuang has not only built a successful tutoring franchise brand but also become an inspiration for aspiring leaders in the education industry. www.cfa.ca | www.FranchiseCanada.Online

Keeping Up with Millennials and Gen Z

CFA Members provide insight into the value these generations bring to franchise systems as employees, leaders, and franchise owners

I

n today’s rapidly evolving workplace, the rise of Gen Z and Millennials is reshaping the dynamics of leadership within the Canadian franchising industry. With their unique perspectives, technological prowess, and a desire for purpose-driven careers, these generations are bringing a fresh approach to the industry.

Gen Z, referring to those born roughly between the mid-1990s and early 2010s, are digital natives who grew up with smartphones and social media. Millennials, born between the early 1980s and mid-1990s, experienced the rise of the internet even earlier.

Recent studies and surveys shed light on the contrasting characteristics and preferences exhibited by Gen Z and Millennials when it comes to leadership and work environments. Notably, an overwhelming 88 per cent of these cohorts consider work-life balance as a critical factor in selecting employers, as revealed by a survey conducted by Deloitte.

Read on as two CFA Members: Fuzz Wax Bar and Real Property Management provide insight into working with Millennials and Gen Z in the world of franchising.

Canadian Franchise Association

The Franchise Voice // Summer 2023 13

KEEPING UP WITH MILLENNIALS AND GEN Z

Franchising for Millennials and the two other groups we should all be thinking about

BY F L O R E N C E G AV E N R O S S AV I K , C O - F O U N D E R O F F U Z Z WA X B A R

A

s we settle into the post-pandemic world in early 2023, the Millennial generation is now between 26 and 40 years old. This is the generation that’s currently pushing the baby boomers out and taking over the business world.

Most millennials grew up during the 80s and early 90s, a decade of abundance, opportunity, and rapid technological changes. It was a time of crisis as well, but these tended to find finite resolution (for bad or good) thanks to material and societal tools, like money, political changes, or revolutionary technology.

The Millennial generation’s appetite for business ownership is well documented and will soon surpass their predecessors. There are a few key points that explain why they are the perfect generation for entrepreneurship in the world of franchising.

• They believe in optimistic outcomes. They grew up during a semi-worry-free time which has helped create a sense of optimism in the future regardless of what the world is currently encountering. Whether it’s a pandemic or an economic recession, this generation remembers that there was a time when things were OK and believe it’s bound to happen again.

• They are tech-savvy, but they remember the world before the internet. They understand the gaps that technology closed and are amazed by it because they remember the daily habits pre-internet. They embrace this technology and manipulate it to create growth without fear of it.

• They thrive in groups. They grew up in environments where most communications had to happen faceto-face. They enjoy teamwork, whether it’s working within a team or leading one. Building something as a collective is very attractive to them and understand that taking risks is less scary when you are not alone.

When we are looking at franchising, Millennials are a bit less obvious candidates than other generations because they are such entrepreneurial spirits and have a hard time letting go of their own creative designs. They believe they have a lot to offer to the world, whether it is in their corporate jobs or their craft, and embracing a system with limited flexibility is not very appealing.

So, how do we sell to Millennials? We adapt our systems and processes to their mentality and bank on that creative mindset instead of fearing it.

14 The Franchise Voice // Summer 2023

• Millennials want to have a say. The main difference between them and previous generations is their infinite access to knowledge and the ease at which they utilize technology. The franchisor no longer must do all the research on its own or look for the next best technology for the business. Empowering franchise partners to be the front runners for part of the research and development process is essential to retain trust and interest in the brand.

• By offering a brand that is recognized for its positive impact. Let’s say you are in the cupcakes or window cleaning business. People could argue that those are offers that while being largely used, the world could arguably do without. But start using only fair-trade cane sugar that benefits impoverished farmers or focus on hiring cleaners within marginalized communities, and suddenly your business proposition has a secondary purpose that might make the difference for a candidate.

• Offer work-life balance. This might sound basic nowadays, but there truly is no better argument for a franchise candidate than being offered flexibility and wellbeing. The one caveat: it must be real! If your brand hasn’t yet figured out how to transition from a Baby Boomer “work work work” system to a “work from the beach” possibility, you have some work to do. And be reassured, despite misguided beliefs, Millennials are not lazy. They are not unwilling to work; they will not prefer seating on the couch or take that “work from the beach” possibility to the letter. They just need to be offered the choice to operate with their own priorities in mind and put their well-being first, and they will do the hard work needed to get them there.

Millennials are the main subject of conversation these days, but there are two other groups we need to pay close attention to when we talk about selling franchises.

The Empowered Mature Woman A growing number of candidates are coming from the tailgate of Generation X, currently the 45-55-year-old, and a larger percentage of women than ever before. This mature female group is an amazing opportunity for franchise systems as they generally tick all the boxes.

• They are often investigating the franchise world because of a new life circumstance, such as exiting a corporate job, going through a personal separation, www.cfa.ca | www.FranchiseCanada.Online

KEEPING UP WITH MILLENNIALS AND GEN Z

grown kids leaving the nest, or selling some property.

They are ready to do something for themselves and feel a sense of purpose that had been put on the back burner for the first part of their life.

• This is the first female generation that is truly financially and spiritually independent, but they still had to fight for it. From wage gaps to gender harassment, they have come into their own in a time that was neither fair nor easy. This fuels a desire for personal achievement which can finally be considered now that they have the time and finances required.

• They are looking for less risky solutions. It seems true that women are generally less inclined to take risks than men (as demonstrated for example by brain waves medical studies, or societal studies reflecting the fact that women bear the consequences of risktaking actions more than men) It’s possibly why that group is seen approaching the idea of franchising with great interest. And why franchisors should learn to target that specific candidate well.

The elephant in the room: Gen Z The question mark generation. They are just about to hit 25 years of age and are entering the corporate world as well as the business ownership world. This is the generation we need to be ready for.

Gen Z, unlike their predecessors, didn’t get to go through their formative years during abundant times.

Things are much more black and white, good and bad, trustworthy or evil to them. Unlike the Millennials, Gen Z is struggling with the idea that the world will ever be OK again. It is coming of age through an undeniable environmental crisis, a global pandemic, and the disappearance of the middle class.

Perhaps that is why they are at odds with the world and want to be loud about it. Being “woke” is no longer a trend as Gen Z is distilling this way of life into all the parts of society that they touch. They can be quite forceful about it, but that’s because they can’t fathom looking at the world differently. It is messed up and it must be fixed. Now. It’s also important to note that technology is of course part of their norm, but it is something that has taken over so entirely that they rely on it to help them form opinions about the world and often about themselves (through the voice of bloggers, streamers and Tik Tokers with millions of followers). As that generation gets older, those habits might change, but for now, it is a key element that will need to be fully embraced (and well-managed) by any business that wants to attract this group.

Why is Gen Z the perfect franchise partner, but will be even harder to attract than previous generations?

It’s not immediately obvious, but Gen Z will be a great franchise partner. Here is why: Canadian Franchise Association

• They want to be independent, but they will be less inclined to take risks than the previous generation.

This is a group that will look towards safety and will be happy to follow a system if it aligns with their values. They have grown up looking up to others (mainly on social media) to tell them what to eat, how to dress, and how to address other people. It’s not to say they don’t have their own personality, but they understand the impact that others (or businesses) can make and are not afraid to follow the right leader.

Those principles apply well to franchising, which is a less risky endeavor than starting an enterprise from scratch, and when well-led can be an aspiration for young entrepreneurs.

• Gen Z are multitaskers – and that’s good for franchising. Most franchise businesses offer the flexibility of semi-absentee ownership or even part-time franchise.

This generation has a hard time understanding the limitation of singularity, whether it be in jobs, hobbies, or partners. Building a business generally requires 100 per cent of attention and time, but franchising doesn’t always have to, they can still pursue other things while opening a franchise and that will be extremely appealing to them.

The caveat: If you think it’s hard to attract a Millennial to be a franchise partner, wait for Gen Z to come around.

They might be a great franchise generation on paper, but they will still be very difficult to convince. Here are some thoughts on how to bridge that gap: • Up your Purpose game. Brands that have done a good job at catering to their Millennial franchisees will have an easier transition but will need to push the envelope.

The main difference is that it won’t be enough anymore to be vocally supportive of great causes. Brands will need to be truly engaged and spend some real money on giving back, all the while being modest about it.

• Tech will be key. Embracing how technology can evolve your business and most importantly the bothersome parts of administration, operations, training, or HR will be fundamental to giving Gen Z piece of mind and keeping your brand on their list of top opportunities. This generation will not forgive outdated processes (like not using AI, instant communication, or social media) • Flexibility will be the most appealing sales argument.

This generation needs to be mobile and to be able to change their mind. By putting processes in place for easy transfers, exits, turnkey management, and remote operations, you will be able to attract people who have fundamentally rejected the idea of doing one thing only for the rest of their lives.

It might seem overwhelming to think about catering to new generations when it comes to well-established The Franchise Voice // Summer 2023 15

KEEPING UP WITH MILLENNIALS AND GEN Z

franchise systems. The older the business, the bigger the evolution will need to be. But if there is one fact about these new generations is that doing things genuinely and purposefully is what will matter, so time is

of the essence to engage on that path. Imagine a world where cupcake making and window cleaning help save the world… Maybe these new generations are on to something after all.

Generation Z: Embracing change, innovation, and redefining the future of franchising

BY C A R L A B R OW N E - P R E S I D E N T, R E A L P R O P E R T Y M A N AG E M E N T L P

G

eneration Z, the tech-savvy demographic born between 1997 and 2012, is making their mark on the franchising landscape, driven by their pursuit of financial independence, their desire for a balanced work-life ratio, and a collective ambition to leave a legacy beyond traditional careers.

At Real Property Management, we are witnessing first hand how Gen Z franchisees are transforming our industry. They’re embracing our tech stack and AI initiatives with enthusiasm, leveraging their inherent digital familiarity to maximize operational efficiency and drive business growth. Gen Z’s proactive communication style also fosters a culture of transparency in the workplace, helping us to address issues promptly and improve our systems. Furthermore, Gen Z franchisees are leveraging their social media savvy to innovate in customer outreach, often spearheading initiatives on platforms like Instagram and TikTok. Gen Z values their autonomy and has a distaste for rigid, traditional working structures, making them wellsuited to franchising, where they can chart their own course while having the safety net of an established brand. They see franchising as a way to control their financial destiny without the uncertainties of a start-up.

The flexibility that comes with owning a franchise aligns perfectly with their desire for a balanced work-life.

Moreover, the flexibility inherent in franchising aligns with Gen Z’s emphasis on mental health and work-life balance. Able to set their own schedules, they can maintain productivity while fostering well-being. As franchisees, they can shape their work culture to prioritize mental health, creating an environment that doesn’t just offer financial freedom, but supports their holistic vision for a fulfilling professional life.

16 The Franchise Voice // Summer 2023

Beyond financial success, Gen Z franchisees aspire to create lasting legacies through their businesses. They’re using franchising to create ventures that reflect their values and vision, contributing to their communities in meaningful ways. This shift marks a new era in franchising, opening avenues for franchisors that cater to this desire for impactful entrepreneurship.

At Real Property Management, our diverse home office team, which includes Gen Z members, puts us in a unique position to understand and cater to this dynamic generation. This diversity allows us to create an inclusive and adaptable franchise model that resonates with Gen Z’s values and aspirations.

As Gen Z enters the franchising world, we’re not just witnessing a demographic shift but a transformative wave that will redefine the industry. Their quest for financial freedom, work-life balance, and a lasting legacy, coupled with their tech savviness and innovative outlook, are perfectly aligned with the flexibility and potential for impact that franchising provides.

The rise of Gen Z in franchising is not merely about keeping up with trends; it’s about investing in the future of the industry. As this generation is expected to account for a significant portion of global consumers and have substantial spending power, businesses that fail to acknowledge their influence risk falling behind.

As we continue to navigate this transformation, we at Real Property Management welcome this change and are looking forward to adapting and learning from these young entrepreneurs. Their perspectives enrich our franchise systems and help us better serve our customers in an increasingly digital world.

Here’s to the future of franchising, shaped by the energy and vision of Gen Z. www.cfa.ca | www.FranchiseCanada.Online

FRANCHISE LEGAL

Social Media in Franchise Systems – Legal Considerations for Franchisors

BY B L A I R A . R E B A N E A N D E R I C C . L I T T L E

S

ocial media is a powerful and, arguably, essential marketing tool for many businesses today.

Effective use of social media platforms such as Instagram, TikTok, Twitter, Facebook, and LinkedIn can enable businesses to directly connect, communicate, and interact with existing and potential customers, enhance customer relationships, and distribute marketing or promotional messages and other content instantly and often. For franchise systems, the effective use and management of social media can raise unique challenges. Ensuring consistent messaging, look and feel for a franchise system’s social media activity is important for brand protection, as is ensuring alignment with the franchisor’s brand standards. Coordinating all of this across a network of franchised businesses can be challenging and there is no “one size fits all” approach that will work for every system. Each franchisor must look at its own system and determine which approach to social media and social networking fits best, given the nature of its business and brand, its customers, expectations and prevailing practices within its industry, and the needs of its franchisees.

One of the key questions for franchisors is whether all social media and social networking for their franchise Canadian Franchise Association

system will be managed centrally and controlled entirely by the franchisor, or if franchisees will be given the ability to manage their own social media and social networking for their respective franchised businesses. While some franchisors may prefer the former approach, there is increasing desire and pressure in some areas of business or certain product or service categories for more localized content and a more direct connection between businesses and their customers. For franchise systems whose customers are demanding a more localized approach or immediate connection, restricting control of all social media for the system to the franchisor may not be an option.

If franchisees will be given the ability to manage some or all of the social media for their respective franchised businesses, the franchisor will need to ensure that appropriate legal controls and protections are put in place to protect the interests of the brand and the franchise system. This article discusses some of the key legal items that franchisors should consider to ensure that the use of social media and social networking within their franchise system is managed appropriately and in accordance with system standards and that the franchisor has the necessary tools to deal with any problems that might arise.

The Franchise Voice // Summer 2023 17

FRANCHISE LEGAL

What is Permitted?

If franchisees will be permitted to manage some or all of the social media for their own franchised businesses, the franchise agreement should clearly set out what they are permitted to do and what they are not permitted to do. For example, will a franchisee be permitted to establish their own social media accounts in relation to their franchised business or will they simply be given the right to access and use an account established for them by the franchisor? Will they be able to post their own content? Is there a social media policy or standards and specifications that must be adhered to with respect to the franchisee’s use of social media and any content they propose to post? Is franchisee content subject to the franchisor’s prior review and approval before it can be posted or published? The grant of rights in the franchise agreement should address these matters explicitly, and any rights the franchisor intends to retain for itself should be clearly and expressly reserved.

In addition to clearly describing the rights that are granted (and not granted) to the franchisee in relation to managing its own social media, the franchise agreement should also expressly require the franchisee to ensure that its use of social media and all content that it posts to its accounts complies with all applicable laws, the terms and conditions of the franchise agreement and any other standards or specifications of the franchisor, and any terms or conditions imposed by the administrators of the respective social media platforms. It should be clearly stated that the franchisee is solely responsible and liable for its own actions in relation to its social media accounts and any content it posts, re-posts or shares.

A well drafted social media policy can work hand-inhand with the franchise agreement to address the more detailed aspects of managing franchisees’ use of social media and social networking in relation to their respective franchised businesses. For example, a franchisor’s social media policy may address which social media or social networking platforms are approved for use by franchisees of the system, any specific guidelines, standards or specifications that franchisees are required to adhere to with respect to their own content, or whether franchisees are required to post or re-post any franchisor-generated content on their own social media platforms. Like an operations manual, a social media policy typically exists outside the franchise agreement and is updated or amended from time to time as the needs of the system, operations, technology or business practices change. Accordingly, a social media policy can address issues relating to franchisees’ use of social media in much more detail than the franchisor would ordinarily be able or inclined to do in the franchise agreement.

One of the specific items that a franchisor should consider addressing in its social media policy is whether there will be any restrictions on the username, domain

18 The Franchise Voice // Summer 2023

name or “handle” that a franchisee can use in relation to its social media accounts. In the interest of ensuring brand consistency and avoiding confusion among customers, franchisors might want to require franchisees to use a specific format for their usernames. An example of this is a username format which begins with the name of the brand or system and ends with the city or street address where the franchised business is located (e.g.

“BurgerCoVancouver” or “BurgerCoRobsonSt”). In the absence of such restrictions, there is a risk that franchisees could adopt usernames involving a multitude of different variations on the franchisor’s brand name, potentially making it confusing for a customer who is browsing or searching on a particular social media platform to determine which is the official account of the franchisor, which accounts belong to franchisees, and which account relates to a particular franchised location.

Another specific item that a franchisor might wish to address in its social media policy is any specific restrictions or guidelines regarding the content that franchisees may post, re-post or share from their social media accounts. For example, the social media policy might restrict franchisees to only posting content relating to their specific franchised business and only re-posting or sharing content provided or approved in advance by the franchisor in relation to the brand or franchise system. Restrictions such as these can assist in managing the risk of franchisees posting, re-posting or sharing content relating to matters which are not connected with the brand or franchise system and which might be controversial or not aligned with the values or views of the franchisor or the system.

The social media policy should also clearly prohibit franchisees from posting or sharing any confidential or proprietary information relating to the franchise system on their respective social media accounts. While this restriction might seem obvious and potentially repetitive of the franchisee’s obligations under the franchise agreement, given the speed and the frequency with which information can be shared on social media, it is a good idea to explicitly remind franchisees that the same obligations of confidentiality apply to their activities on social media and that they need to be mindful of those obligations at all times when posting or sharing pictures, videos, stories, reels or other content on their social media accounts. This can include information about customers or suppliers of the franchised business or system, which franchisees might not always think of as confidential when posting or communicating through their social media accounts.

To be effective, restrictions on franchisee content such as the ones discussed above need to be paired with appropriate remedial provisions in the franchise agreement which enable the franchisor to quickly address any non-compliance by a franchisee with the www.cfa.ca | www.FranchiseCanada.Online

FRANCHISE LEGAL

requirements of the social media policy. This topic is discussed in further detail below.

Ownership of Domain Names, Accounts, and Content If franchisees are permitted to manage some or all of their own social media for their respective franchised businesses, the franchise agreement should clearly provide that the franchisor owns all rights to every social media account used in connection with the franchised business, the usernames, domain names or handles associated with such accounts, and all content posted to such accounts by the franchisee. The franchise agreement should also provide that upon expiration or termination of the franchise agreement, all rights the franchisee has to access and use such social media accounts will automatically come to an end and the franchisee must take all steps reasonably required to transfer the rights, permissions and access to such accounts to the franchisor, including providing all passwords and other information required to log into or administer such accounts. This way, the franchisor can ensure that if a franchisee leaves the system, the social media accounts relating to their specific franchised business or location will remain with the system and can be transferred to a new franchisee if the business or location is refranchised.

In connection with this, if the franchisor has authorized its franchisees to use any specific social media platforms in relation to their franchised businesses, it is a good idea for the franchisor to review the administrator’s terms and conditions for those platforms on an ongoing basis to ensure that it is aware of the administrator’s latest requirements and procedures relating to the transfer of rights and access to accounts. In the event that the franchisor needs to take over a franchisee’s account, working knowledge of the administrator’s requirements for this can assist in making this change as quickly as possible. If a particular platform does not allow accounts to be transferred between users or has particularly onerous requirements in relation to this, this may be a consideration for the franchisor in determining whether that platform should be approved for use by franchisees of the system.

Remedial Provisions to Address Non-Compliance As noted above, in order to ensure that the restrictions contained in the franchise agreement and the social media policy with respect to franchisees’ use of social media and the content they may post or share are effective, a franchisor must ensure that it has appropriate remedial provisions in the franchise agreement to address any noncompliance with such restrictions by franchisees. Information can be posted to and shared on social media very quickly and can reach a large number of viewers in a short amount of time. The risk of Canadian Franchise Association

brand damage in these circumstances can be significant.

Accordingly, if a franchisee posts, re-posts or shares any content via their social media accounts which is offside of the franchisor’s standards and specifications or the terms of the franchise agreement or social media policy, the franchisor must be able to address or correct that noncompliance immediately.

The franchise agreement should explicitly give the franchisor the right to remove, or require the franchisee to remove, any content from the franchisee’s social media accounts which is contrary to the franchisor’s standards and specifications or which otherwise creates a risk for the reputation or image of the brand or the franchise system. The franchisor should have the right to make this determination in its sole and absolute discretion and there should also be a covenant by the franchisee to cause each of its principals, employees, contractors or other representatives who are involved in posting any content to the franchisee’s social media accounts to comply with any demands or directives of the franchisor in this regard.

It is also a good idea to ensure that a failure by a franchisee to adhere to the terms of the franchisor’s social media policy will give the franchisor recourse to the default provisions under the franchise agreement and the remedies available to the franchisor in the event of a default Key Takeaways Social media can be an excellent way for franchise systems to promote their brand and business and engage with their customers. It also presents certain challenges when franchisees are allowed to manage some or all of their own social media, which if not managed appropriately can expose the franchise system to risk. A welldrafted franchise agreement and social media policy can assist a franchisor in reducing the risks associated with allowing franchisees to manage their own social media and ensuring that the franchisor has appropriate contractual protections to address any problems that might arise.

ABOUT THE AUTHOR Blair A. Rebane is a partner at Borden Ladner Gervais LLP (“BLG”) and the National Leader of the firm’s Franchise and Distribution Group. Eric C. Little is a partner in the Corporate and Capital Markets Group at BLG, who practices corporate commercial law with an emphasis on franchising, licensing and distribution.

The Franchise Voice // Summer 2023 19

FRANCHISE GROWTH

Cutting Through All The NOISE:

Building Lead Generation Campaigns that Actually Resonate

BY M A R T Y M E N A R D - P R E S I D E N T, G I A N T C R E AT I V E

W

ith close to 1,200 franchise brands and over 76,000 franchise locations that represent almost 50 different industry sectors, it’s abundantly clear that Canada loves franchising. Whether it’s owning them, working at them, or buying from them, it’s no accident that franchised businesses contribute over $100 billion to the Canadian economy each year, creating nearly two million jobs and making it the 12th largest industry sector in Canada.

As exciting and encouraging as this is for the future of Canadian franchising, the flip side of that shiny coin means there are literally over 1,000 unique franchise brands, all vying for the same franchise leads that you are.

And when you factor in the 1,000+ brokers, online portals, trade shows, and a digital publishing landscape that changes algorithms and the rules of engagement faster than you can say ‘WhatsApp,’ how does your franchise brand stay relevant? How do your lead generation campaigns cut through all that noise to locate, target, and generate quality franchise leads that are genuinely interested in joining your franchise family?

Over the past decade, I have worked with emerging and established brands alike, and one of the things I see constantly is the disconnect between their overarching marketing strategy and their tactical execution. An uninformed tactical campaign can and will negatively impact your franchise lead generation efforts and in some cases, can even hurt your brand equity in new and existing territories.

20 The Franchise Voice // Summer 2023

Gone should be the days of casting wide nets through generic lead generation campaigns that target the masses, designed for high volume, low quality, and aimed at letting the franchise sales team sort through the deluge of low-to-no-quality leads.

Successful franchise lead generation should no longer be an afterthought that receives the dregs of the marketing budget. Instead, it must be a meaningful allocation of resources to maximize engagement that helps create a real connection with your franchise prospects.

Today’s franchising landscape is a buyer’s market, plain and simple. The most successful organizations are the ones doing their homework and ensuring that their franchise lead generation campaigns are given the same level of resource commitment as the brand’s overarching marketing strategy.

So, how do winning brands elevate their digital lead generation marketing? Well, like everything else in the world of business and marketing, it starts with significant planning.

Targeting the Right Audiences And I do mean plural. Canada is one of the most diverse nations in the world, as it’s home to 400 unique ethnicities split off into unique age groups. From millennials to Gen X, new Canadians to multi-generational families, Canada’s population is as diverse as their unique motivations for purchasing a franchisee.

But here’s the good news: there’s a good chance your franchise organization has already done (some of) the www.cfa.ca | www.FranchiseCanada.Online

FRANCHISE GROWTH

work when developing your marketing vision and defining your target audiences. And this is a great foundation to start with.

Fleshing out your Buyer Personas Defining target audiences is only the beginning of assembling the skeleton of your ideal customer if you will.

When you build out detailed buyer personas, you’re now putting the meat on those bones, and to keep the metaphor going, creating a fully fleshed-out person that your creative team can now work with to build out messaging that connects with your prospects on a more meaningful level, increasing your chances of real engagement.

Yes, platforms like Google and Meta provide us all with excellent demographic targeting tools, but doing the deeper, research-based development of buyer personas will help you connect to your prospective franchise buyer’s personal experiences and build creative narratives that resonate emotionally with them. When your target audience associates those feelings with your specific brand, that bond becomes real, making them 10 time more likely to take those next steps from interview to application, to closed deal.

To help demonstrate, below are two buyer personas that our strategy team developed for one of our franchise clients. You can begin to see how these well-researched personas can begin informing your ad creative.

Canadian Franchise Association

Research-informed Ad Creative In addition to the paid-media specialists, robust, wellresearched buyer personas help everyone on your creative team from copywriters to designers. A good buyer persona not only tells you where you’re targeting, but who you’re trying to communicate with. What interests them? What are their goals? What’s important to them?

From headlines to ad copy, to iconography, the more specific your franchise-lead campaign creativity can be, the more deeply it will resonate.

Lead generation marketing without proper research is literally like driving with your eyes closed. I don’t recommend it.

By doing this deeper dive into fleshing out your target customers, you can provide your entire marketing team with the tools they need to develop campaigns that resonate, showcase how and where exactly to execute those campaigns, and ensure your franchise lead campaigns can cut through the noise.

ABOUT THE AUTHOR Marty Menard is the President of GIANT Creative, a resultsdriven marketing agency serving franchise organizations across North America, whose clients include McDonald’s Canada, 241 Pizza, Coffee Time, Eggsmart, Sola Salons, to name a few. A proud CFA Member, Marty recently spoke at CFA’s Marketing Day Event.

The Franchise Voice // Summer 2023 21

MANAGEMENT

Unlocking Success in Franchise Leadership: It’s Easier Than You Think!

Stephane Breault of Imagine Franchise Consultant Inc. shares insight into how the “permarevolution” is changing the face of franchise leadership

BY S T E P H A N E B R E AU LT, I M AG I N E F R A N C H I S E C O N S U LTA N T I N C .

T

here is an infallible secret formula for success as a leader in franchising, and believe me, it’s easier than you think.

Yet, the franchising world is often hindered by outdated leadership that promotes adversity rather than collaboration. This leads to financial losses, legal fees, wasted time and energy, loss of value, and much more.

But it’s time to change all that! You need to evolve your franchising leadership practices and collaborate without barriers to adapt to a new era.

Brand adherence is increasingly difficult to achieve due to the vastly different viewpoints and cultures that make up our networks today.

The Permarevolution is a Game Changer for Franchisors This “permarevolution,” fueled by technology, limitless access to knowledge, changing personal and social values, and the emergence of increasingly diverse societies, changes the game for franchisors.

How Can You Develop the Full Potential of Your Franchisees and Your Network?

By using the secret formula of leadership in franchising.

The “secret” formula is based on the exercise of influence rather than power. By influence, I mean the set of leadership behaviors exhibited by the franchisor that have an impact on franchisees. These behaviors fall into three themes that form the basis of the formula: 1. Behaviour demonstrating competence in franchising, 2. Behaviour that fosters mutual trust between franchisees and franchisors, 3. Behaviour that creates a positive and connected work environment that promotes engagement.

Complexity is rapidly increasing The profitability of the business model is under pressure due to rapid changes in the market. Franchisors are no longer the only ones with the right answers; franchisees are also generators of solutions and expect to be heard and see profitable solutions emerge quickly.

The needs of franchisees, both in terms of support and personal development, are becoming increasingly sophisticated, and they want more from the franchisor.

Reinventing Leadership in Franchising: The Plan for Unprecedented Success Is leadership in franchising complex? Absolutely not! In fact, I am certain that this secret formula applies to all franchise and distribution networks. It ensures leadership that has a lasting impact, simpler than you can imagine.

It’s time to adapt our franchising leadership practices, foster a culture of synergy, and thrive in this new era. Ultimately, the performance of franchisees, not the franchisor,

22 The Franchise Voice // Summer 2023

www.cfa.ca | www.FranchiseCanada.Online

MANAGEMENT

becomes the determining factor. Success relies on three essential elements that we can group into three transformative themes within the “secret” formula model.

Of course, these examples are simplistic and lack context, but they illustrate the fundamentals of the secret formula of leadership in franchising.

The Model By executing leadership behaviors that have an impact on franchisees, synergy is created, increasing the shaded area. The larger the shaded area, the more assured the success of the network.

What Results are Within your Reach?

Thanks to impactful leadership behaviors, optimal results become achievable. Franchisees feel supported and inspired, resulting in improved performance, increased productivity, and heightened brand loyalty. In turn, franchise owners benefit from a network of highly motivated and engaged franchisees, driving the growth of the business, enhancing the brand’s reputation, and achieving overall success.

To achieve this unification, franchise owners must be resolute in their commitment to integrating these pillars of the “secret” formula into their overall practices and daily leadership behaviors.

Unifying the Three Pillars of Leadership in Franchising for Optimal Results It is undeniable that all franchisors posses different degrees of the three essential aspects mentioned earlier.

The “Secret” Formula While each pillar is important in itself, it is when franchisors resolutely unify their competences, their efforts to establish trust, and focus on creating a positive and connected work environment that powerful synergy emerges. This synergy createsa multiplier effect, amplifying the impact of each aspect, creating a cohesive and unstoppable force within the franchise network. This is the essence of the “secret” formula. % competences X % trust X % connection= % success of leaders in franchising to better understand the formula, let’s examine some concrete examples. Improving overall franchisor competence: Steps

Competence

Connexion

Trust

Success

1

50%

60%

60%

18%

2

75%

60%

60%

27%

3

85%

60%

60%

31%

4

100%

60%

60%

36%

Conclusion: By doubling the competence variable, you can double your success score. Similarly, by improving the “connection” with franchisees, you can enhance the overall success of your franchise network.

How to Achieve Optimal Results Confidently unifying the three pillars of the secret formula is the key to achieving optimal results. Franchise owners must recognize the importance of harmonizing these aspects and actively work towards their integration. When these pillars are unified, franchise networks thrive, franchisees excel, and the brand’s potential is maximized. It is through this resolute unification that franchise leadership transcends ordinary accomplishments and reaches extraordinary heights.

By embracing this secret formula, you can transform your franchise network into a flourishing and dynamic ecosystem. Together, you can navigate the ever-evolving market challenges, skillfully adapt to emerging trends, and seize every opportunity for exponential growth.

All in all, franchise leadership doesn’t have to be a complex labyrinth. By wholeheartedly embracing the transformative power of “connected” leadership and maximizing the secret formula, you can achieve it!

ABOUT THE AUTHOR Stéphane Breault has been a CEO of Canadian franchise networks for two decades and a franchise expert for over 15 years. He has extensive franchise management experience, and his vision of franchising is clearly different. Unlike many franchise consultants who focus on the technical and tactical aspects of the business, Stephane works with CEOs

Example illustrating the improvement of connection with franchisees: Steps

Competence

Connexion

Trust

Success

1

100%

60%

60%

36%

2

100%

75%

60%

45%

3

100%

85%

60%

51%

4

100%

100%

60%

60%

Canadian Franchise Association

and executives to become exceptional franchisors who value connected partnerships with franchisees. Stéphane has served as Chairman of the Canadian Franchise Association and the Association des MBA du Québec. In January 2018, he was elected to the Conseil québécois de la franchise Hall of Fame. He also serves as a member of the board of directors of Panda Shoes and the Conseil québécois de la franchise.

The Franchise Voice // Summer 2023 23

OPERATIONS

Going Rogue: How the customer service decisions of one franchise can impact how customers see your brand Three simple customer experiences strategies that will benefit every franchisee and strengthen your entire organization.

BY M A R C G O R D O N A N D A L L I S O N TAY L O R , M A R C G O R D O N .C A

S

ome would argue that the only thing better than a sub, is saving money on a sub. So, when Jeremy Haber visited his local franchised sub shop with a coupon in hand, he was in a pretty good mood until he was notified by the staff that this specific location did not accept coupons.

How could this be? The coupon was for the franchise brand, not a specific location. “I got the coupons in the mail and assumed I could take them to any location,” says Jeremy. “When I got there, they said it was up to each location to decide if they wanted to accept the coupons.”

Not willing to leave empty handed, Jeremy still ordered his sub, paying full price. But it could be said that the money the franchise saved by not honouring the coupon could end up costing them more in the long run.

“I now know this location doesn’t accept coupons,” says Jeremy. “So there’s not as much of an incentive to go there anymore. Will I go back? Maybe. Either way, I’m more open to trying other places around me.”

Marc Gordon, a customer experience consultant, and speaker, has seen this situation before. And he believes one reason is that franchises too often see themselves as members of a team instead of members of a tribe.

“Team members share a common brand and desire to succeed,” says Marc. “But like with any professional

24 The Franchise Voice // Summer 2023

team, each player still looks out for themselves. Their value is impacted more by their individual performance than that of their team. But in a tribe, the survival and success of each member depends on the success and survival of every other member. Weak tribe members make everyone else weaker.”

When it comes to creating value for the customer while building a strong brand for the franchise, each individual franchisee must understand how their actions affect the entire organization. Whether it’s how products and services are delivered or whether to accept coupons, the actions of one impact the reputation of the many.

This is because the customer does not see a franchise as an independent business but as one of the multiple locations of a single brand. Much like any non-franchised chain, they expect certain standards to be common across the entire organization.

While some franchises will claim that the buying public understands the concept that franchises are independently owned, and therefore free to do things differently, the fact is that customers not only should not care, it’s really none of their business.

“Customers should not be expected to understand or care about the inner workings of any company they do business with,” says Marc. “The very core of franchising www.cfa.ca | www.FranchiseCanada.Online

OPERATIONS

is standardization. Not just in products and services, but in every facet of the business. This helps with both internal processes such as costing and training, but also externally with branding and marketing.”

Marc explains that when a customer sees a disconnect between a specific location and their perception of the franchise, it results in a decrease in trust toward the entire brand. After all, if one location doesn’t accept coupons, perhaps other locations don’t either.

Beyond coupons, various traits ranging from how friendly the staff are to the cleanliness of the bathrooms can all impact the entire franchise. And it’s not limited to negative traits. A well-known bakery-café franchise includes a free bagel with the order of a salad. But this is not common amongst the other locations. Should a free bagel be included for every location, or is this one location choosing to do something beyond that?

The fact is that it doesn’t matter. A franchise that offers a negative experience ruins the positive efforts of the other locations. At the same time, a franchise that offers a positive experience beyond the customer’s expectations, makes the other locations look bad.

Is there a solution? Marc believes that standardization is often overlooked when it comes to policies that are viewed as being “minor”.

“While products, branding, interior design, and training are usually clearly defined by the franchisor, many items can slip through the cracks,” says Marc. “Either because the franchisor doesn’t see them as being important, or because they don’t have the resources to oversee every detail.”

But for the customer, these little details can have the biggest impact on the experience. From a free bagel, to accepting coupons, these small details impact what Marc refers to as the golden traits for a perfect customer experience.

“The golden traits are very simple,” says Marc. “Every interaction a customer has with a business should be easy, convenient, and stress free. Using these traits in designing customer service processes will always lead to a positive experience. And one that can be carried over from one location to another.”

Easy, the first trait, means that a minimal amount of effort should be needed by the customer to accomplish a task, such as making a purchase or reaching customer support. Anyone who’s been stuck on an endless, automated phone menu system knows the importance of things being easy.

Convenience is the ability for any customer to interact with a business in a way that works for them. Using an app, in store automated ordering, web-based e-commerce, or dealing with a human being are all viable options that appeal to different people. The trick is to make them all available and let each customer use what they are most comfortable with.

Canadian Franchise Association

Stress free is what can make or break the customer relationship. Essentially, stress is caused by either not knowing what the outcome will be or being unsure about how to reach that outcome. For example, walking into a location with a coupon in hand, wondering if it will be accepted or not is a source of stress. As we are naturally inclined to avoid stress, we will likely just avoid the location—or the entire chain—altogether.

Marc knows winning over customers can seem overwhelming. But he also believes it doesn’t have to be.

“Many businesses feel they have to over-deliver or wow a customer,” he says. “But that’s not true. It’s really about trust. And trust comes from doing the same thing, the same way, every time, across the entire organization.

And appreciating that it’s the little things like courtesy and professionalism that can have the biggest impact.”

When a franchise understands and embraces this concept, they will quickly realize how much that fifty-cent coupon is truly worth.

ABOUT THE AUTHOR Marc Gordon is an internationally recognized Customer Experience expert, speaker, consultant, and media personality.

He has been referred to as Canada’s marketing superstar by the Oprah Winfrey Network. Learn more at marcgordon.ca.

The Franchise Voice // Summer 2023 25

Legal Digest

On behalf of the CFA Legal & Legislative Affairs Committee

Legal Digest: Competition Act Amendments No-Poach No-Problem?

BY C O L I N P E N D R I T H , C A S S E L S

F

ranchised business and businesses across Canada in general have been grappling with recent amendments to the Competition Act that aim to restrict nonsolicitation (“no-poach”) and wage-fixing agreements.

These amendments, which are set out in section 45 of the Competition Act, came into force on June 23, 2023.

After a period of consultation, on May 30, 2023, the Competition Bureau provided final enforcement guidelines in relation to wage-fixing and no-poach agreements. While these guidelines are not binding, they do provide guidance (and some comfort) concerning the anticipated application of the amendments in the franchise context.

New offence created The amendment added section 45(1.1) to the Competition Act. This section makes both no-poach and wage-fixing agreements (or covenants) per se illegal, and creates an offence, as follows: 45 (1.1) Every person who is an employer commits an offence who, with another employer who is not affiliated with that person, conspires, agrees, or arranges a.

To fix, maintain, decrease, or control salaries, wages or terms and conditions of employment; or b. to not solicit or hire each other’s employees.

The offence carries serious consequences. A person found guilty of this offence may be imprisoned for up to 14 years, subject to a fine, or both.

26 The Franchise Voice // Summer 2023

Application – New agreements and pre-existing agreements that are reaffirmed The amendments apply to new agreements made on or after June 23, 2023, but may also be applied to prior agreements in certain circumstances.

The guidelines note that “[w]ith respect to pre-existing agreements, the Bureau is unlikely to find a wage-fixing or no-poaching agreement problematic when the parties take no steps to reaffirm or implement the restraint on or after June 23, 2023.” Footnote 9 to the guidelines further explains that “[p]arties who do not reaffirm the restraint will not be considered to have reached a “meeting of the minds” with respect to that contractual clause.”

Application – Only bilateral no-poach agreements are at issue The no-poach offence set out in section 45(1.1)(b) requires a reciprocal obligation. A unilateral covenant by one party does not create an offence. For example, a franchisee’s covenant not to poach a franchisor’s employees does not create an offence unless there is a reciprocal covenant given by the franchisor.

Wage-fixing – how broad is it?

The wage-fixing offence created by 45(1.1)(a) has the potential to be applied in an overbroad manner, as it not only captures agreements to fix wages, but can be www.cfa.ca | www.FranchiseCanada.Online

On behalf of the CFA Legal & Legislative Affairs Committee

triggered when an agreement controls the “terms and conditions of employment.”

The guidelines provide somewhat vague direction on this point, including an open-ended definition of “terms and conditions” that “may include job descriptions, allowances such as per diem and mileage reimbursements, non-monetary compensation, working hours, location and non-compete clauses, or other directives that may restrict an individual’s job opportunities.”

Offering little comfort, the guidelines suggest that “[t] he Bureau’s enforcement generally is limited to those ‘terms and conditions’ that could affect a person’s decision to enter into or remain in an employment contract.”

Until jurisprudence develops or the guidelines are refined, the precise boundaries of the wage-fixing offence are unclear.

The ancillary restraints defence Restraints that appear to be prohibited by circumstances by section 45(1.1) may be excused where the “ancillary restrains defence” is available.

Section 45(4) provides a defence to a charge under section 45(1.1) where the restraint is “ancillary to, or flows from a broader or separate agreement that includes the same parties,” with certain qualifications. In order for the defence to be available, the restraint must be “directly related to and reasonably necessary for achieving the objective” of the broader or separate agreement; and that agreement, when considered without the restraint, must not violate section 45(1.1).

As clarified by the guidelines, the Competition Bureau will consider various surrounding circumstances in assessing whether the restraint is “reasonably necessary,” including: i) whether the parties could have achieved an equivalent or comparable arrangement through practical, significantly less restrictive means that were reasonably available; ii) the subject matter of the restraint, as well as its temporal and geographic scope; and iii) whether, without the restraint, the agreement would only be possible under more uncertain conditions or at a substantially higher cost or over a significantly longer period.

Franchise considerations The guidelines have expressly recognized “that certain restraints can play an important role in the franchise model and agreements between franchisors and each franchisee.” This suggests that the Competition Bureau may be less likely to scrutinize such restraints when they are part of a franchise relationship, and supports an argument that the ancillary restraints defence ought to be more broadly available in the franchise context.

Despite this important language, the guidelines do not Canadian Franchise Association

Legal Digest

explicitly permit restraints in the franchise context. The guidelines clarify that, despite the acknowledgment that restraints may be important in franchise agreements, “the Bureau may initiate an investigation under subsection 45(1.1) if those restraints are clearly broader than necessary” (emphasis added). It remains to be seen how the Competition Bureau will apply this “clearly broader” standard.

The guidelines also provide guidance in particular scenarios involving no-poach covenants in franchise agreements. In particular, the guidelines note that a mutual (two-way) covenant between a franchisor and each of its franchisees not to poach one another’s employees would “likely raise a concern under section 45(1.1)(b)”.

Another circumstance considered in the guidelines is the case of parallel covenants granted by different franchisees. The guidelines state that “a franchisee’s mere awareness of parallel standard franchise agreements, which include no-poaching restraints, ordinarily will not raise concerns under subsection 45(1.1), unless there is evidence of an intention between franchisees to enter into a no-poaching agreement with each other.” However, where there is collusion amongst franchisees evidencing an intention to rely on parallel covenants, there is risk of prosecution.

Takeaways Franchisors should ensure than any no-poach covenants are unilateral, taking such restrictions outside the ambit of section 45(1.1)(b).

Where the granting of a bilateral no-poach covenant is unavoidable, the covenant should be carefully tailored to ensure that the ancillary restrains defence in Section 45(4) is available to the parties. This will include ensuring that the restraint (i) accords with and supports the broader purposes of the agreement containing the covenant; and (ii) is no more invasive than is necessary to achieve the objects of the agreement.

Due to the potentially overbroad application of the wage-fixing offence, contracting parties should err on the side of caution when agreeing to terms that could possibly be construed as exercising control over “terms and conditions of employment.”

In all cases, parties considering agreeing to new covenants or enforcing covenants in pre-existing covenants should consult with legal counsel to assess the risk.

The Franchise Voice // Summer 2023 27

Hot Off the Press Member News

Mary Brown’s Chicken Celebrates Fifth Consecutive Win on Canada’s Best Managed Companies List Mary Brown’s Chicken today announced it has been recognized as one of the 2023 Canada’s Best Managed Companies, winning the award for the fifth consecutive year.

The brand holds the exclusive Gold Standard designation, given to companies earning the designation for four to six consecutive years.

Canada’s Best Managed Companies program spotlights the top privately-owned Canadian companies. The program involves a meticulous evaluation process that examines a company’s management skills and practices.

Canada’s Best Managed Companies demonstrate leadership in areas such as adaptability, strategic planning, employee wellbeing and customer relationships.

Mary Brown’s was also recently named Foodservice & Hospitality Magazine’s Company of the Year for 2022. The award goes to an organization demonstrating significant innovations and accomplishments, meaningful impact on the industry and community spirit. Considered the Academy Awards of the dynamic $90-billion foodservice and hospitality industry, Mary Brown’s was selected from among hundreds of nominees.

Both awards acknowledge Mary Brown’s remarkable growth trajectory, opening over 50 stores across Canada in 2021/2022 with another 40 planned in the next twelve months. They also highlight the brand’s unflinching commitment to diversity and inclusion in the workplace, demonstrated through mandating the hiring of women, young adults and visible minorities, including in director and executive roles. In addition, Mary Brown’s makes corporate culture and employee engagement a top priority, fostering a warm, family atmosphere, holding frequent social events, and maintaining an open concept/open door approach. The brand is equally committed to supporting its Canadian vendors, Canadian farmers and the Canadian communities Mary Brown’s stores call home.

Mary Brown’s Chicken was also chosen as the 2023 Canadian Franchise Association’s Outstanding Corporate Citizen Award recipient, based on its community involvement. The victory acknowledges Mary Brown’s many philanthropic initiatives including its sponsorship of BGC Canada (formerly Boys and Girls Clubs), providing $335,000 in relief support for Hurricane Fiona victims as well as hundreds of food drops to front-line workers during the COVID-19 pandemic.

28 The Franchise Voice // Summer 2023

“As a proud Canadian company that cares deeply about its employees, franchisees, vendors and the communities in which we operate, it is incredibly rewarding to be recognized with these awards,” says Hadi Chahin, CEO of MBI Brands, parent company of Mary Brown’s Chicken. “Our priority is and always will be, not only producing an incredibly delicious menu, but also operating our business with integrity and respect for all.”

COBS Bread Celebrates 20 years of Baking and Community Action in Canada It’s a moment 20 years in the baking! 2023 marks the 20th anniversary of COBS Bread in Canada, and to commemorate this milestone all of its 160 bakeries are doubling down on their commitment to COBS Bread’s End of Day Giving program, with the mission to ensure that no leftover product goes to waste.

“With the cost of food and groceries continuing to rise, many Canadians from coast to coast to coast are struggling more than ever to feed their families,” says Aaron Gillespie, president of COBS Bread. “This is why, at the end of each day, every bakery continues to donate leftover bread to local charitable programs in their respective communities.”

To help other companies, restaurants and bakeries get started on a food donation plan, COBS Bread is sharing 20 years of learnings, insights and expertise in a neverbefore-released downloadable step-by-step food donation guide.

“Our End of Day Giving program has been part of COBS Bread’s DNA since the very beginning,” says Gillespie.

“It’s the fabric of who we are as a brand. We hope this guide inspires others to get started.”

The impact of a successful food donation plan can be substantial.

Since the first COBS Bread bakery opened in Vancouver back in 2003, and thanks to 100 per cent franchisee participation, over 500 local charities have received an estimated $560 million worth of product, which goes to help Canadians struggling with food insecurity. Last year alone, more than $60 million in retail value was donated.

On average, each franchise is providing an approximate retail value of $1,000 of baked goods daily. Recipient charities include food banks, school breakfast programs, after school programs, youth charities, and community groups.

As the fastest-growing bakery concept in Canada, Gillespie wants COBS Bread to be an example of how www.cfa.ca | www.FranchiseCanada.Online

Member News

sustainable growth, combined with an equal effort on serving communities, has been a recipe for success.

“We recognize the immense commitment it takes to implement a food donation program, and we would like to acknowledge the tremendous efforts of all the volunteers, local community organizations and our franchisees for making this happen every single day,” says Gillespie.

In-bakery, guests can pick-up a special 20th COBSiversary scone—a double chocolate scone with cream cheese icing and sprinkles, available at all bakeries for a limited time from July 24-30th.

Pizza Nova’s “That’s Amore Pizza for Kids” Campaign Raises $206,847 for Variety, The Children’s Charity of Ontario Pizza Nova presented a cheque of $206,847 to Variety, the Children’s Charity of Ontario, as a result of the company’s annual “That’s Amore Pizza for Kids Campaign.”

This year marks the 24th anniversary of the partnership between the two organizations which has raised over $2.5 million to date.

“We could not be happier with the results,” says Domenic Primucci, president of Pizza Nova. “Each year, the campaign receives outstanding support from our franchisees, employees, and guests. It’s a great source of joy for all of us and showcases the extent to which we are all connected, especially through a common care for our youth. We look forward to continuing our partnership with Variety and appreciate all they do.”

“Pizza Nova has shown ongoing dedication and commitment to Variety since 1999,” says Karen Stintz, president of Variety. “This donation means Variety can help more kids have a chance to play and build life skills and get the support they need.”

The partnership began in 1999. Philanthropy and giving back to the community have been core values of Pizza Nova since the pizza restaurant’s beginnings in Scarborough, Ontario. This year, the funds raised from the campaign will help support the children of Variety by funding programs and resources to create the right and supportive environment for young children to develop confidence and leadership skills.

Through its programs, Variety helps enrich the lives of thousands of children living with physical and mental disabilities by providing an accessible facility at Variety Village, specialized programs, dedicated staff, and a community in which everyone is equal and welcome.

Canadian Franchise Association

The Franchise Voice // Summer 2023 29

New CFA Members FRANCHISE SYSTEM MEMBERS

Visit www.LookforaFranchise.ca for Franchise System Member information.

ClaClaws

24-7 Car Wash

R2-6154 Fresh Meadow Ln New York, NY 11365 USA Sam Lau, Founder T (917) 689-5357 E laudaep@gmail.com W www.24-7carwash.net

7030 Woodbine Ave Markham, ON L3R 6G2 Farnoush Shirazian, Business Management T (437) 429-8950 E info@clawclaws.com W https://claclaws.com/

Delish Pizza

Coder Sports

1002 Beaverbrook Rd Ottawa, ON K2K 1L1 John Downing, General Manager T (613) 509-0460 E john@codersports.com W www.Codersports.com

3 Brasseurs

1255A Cres Montreal, QC H3G 2B1 Jean Marc Zerbib, Project Manager T (514) 788-7888 E jeanmarc.zerbib@3brasseurs.ca W www.3brasseurs.ca

Autobox Garage Interiors

880-60th St E Saskatoon, SK S7K 8G8 Tate Bell, Vice President T (306) 933-9262 E tate.bell@autoboxinteriors.com W www.autoboxinteriors.com

30 The Franchise Voice // Summer 2023

10517 Cityscape Dr Calgary, AB T3N 0W7 Jitender Kumar, Director T (587) 889-9600 E royaljeetu_20@yahoo.co.in W www.delishpizza.ca

Eggless cake shop Debrodniks Donuts

8-700 Strasburg Rd Kitchener, ON N2E 2M2 Stella Haddad, President T (519) 748-5156 E info@debrodniks.ca W www.debrodniks.ca

3960 Eglinton Ave W Mississauga, ON L5M 2R9 Bill Aulak, CEO T (647) 937-8792 E bill@egglesscakeshop.com W www.egglesscakeshop.ca

Fantastic Sam

4680-300 Tradecenter Dr Woburn, MA 01801 USA Scot Hobert, Chief Development Officer T (781) 305-0848 E shobert@fantasticsams.com W www.Fantasticsams.com

www.cfa.ca | www.FranchiseCanada.Online

New CFA Members The Pepper Tree Spice Box

223A Colborne St Port Stanley, ON N5L 1C2 Debbie Kussmann, Founder/CEO T (519) 281-4372 E deb@peppertreespice.com W www.peppertreespice.com

Foot Solutions Canada

765 Crozier Ave Kelowna, BC V1W 5B2 Adam Janke, President T (604) 616-2734 E adam.janke@footsolutions.com W www.footsolutions.com

Heavenly Desserts

23 Brunel Pkwy, Pride Park Derby, Derbyshire, DE24 8HR UK Mohammed Imran, Director T +44(0)7466695999 E imran@heavenlydesserts.co.uk W www.heavenly-desserts.ca

Pokerrito

350 West 8th Ave Vancouver, BC V5Y 3X2 Paul Chun, Director of Operations T (604) 836-0780 E paul@pokerrito.com W www.pokerrito.com

PoolZenia Inc

1-25 Hart Dr Barrie, ON L4N 5R8 Adrian Griffith, COO T (888) 766-5779 E adrian.griffith@poolzenia.com W www.poolzenia.com

Canadian Franchise Association

Scooter’s Coffee

11808 Miracle Hills Dr Omaha, NE 68154 USA Patrick Coelho, Head of International T (305) 458-3486 E patrick.coelho@scooterscoffee.com W www.scooterscoffee.com

VIP Hairlines - Hair Replacement

248 1/2 Millen Rd Stoney Creek, ON L8E 2G9 Erika Alvarez Hunt, CEO T (905) 520-8897 E viphairlines@gmail.com W www.viphairlines.com

STOR-X Organizing Systems

150-11120 Hammersmith Gate, Richmond, BC V7A 5J1 Tessa Bohn, Director of Franchising T (604) 275-6868 ext. 226 E tessa.bohn@stor-x.com W www.stor-x.com

Studio Pilates International

246 Hawthorne Rd, Hawthorne, Brisbane, Queensland 4171 AU John L. Scott, Director of Franchising T +61 431178272 E john@studiopilates.com W www.studiopilates.com

The Franchise Voice // Summer 2023 31

FSS/SUPPLIER MEMBERS

Visit www.cfa.ca/supplier-directory for FSS Member information.

Brand 22 Consulting

4403-300 Front St W Toronto, ON M5V 0E9 Andy O’Brien, President T (416) 357-6387 E obrienandy0@gmail.com

Canadian Business Consultancy Inc. 135 Hampstead Green NW Calgary, AB T3A 6H1 Abdultawab Sayed, Director T (403) 803-9392 E ats@cbc-inc.ca W cbc-inc.ca

Giant Creative

224 Central Ave London, ON N6A 1M8 Marty Menard, President T (519) 858-7495 E marty@giantcreative.ca W www.giantcreative.ca

300-700 St-Antoine Est Montréal, QC H2Y 1A6 Nick Calvert, Director, Partner Growth T (866) 932-1801 ext. 7993 E nick.calvert@lightspeedhq.com W www.lightspeedhq.com

32 The Franchise Voice // Summer 2023

Peninsula

200-123 Front St W Toronto, ON M5J 2M2 Christopher Wareing, Digital Growth & Marketing Director T (437) 339-1673 E chris.wareing@peninsula-ca.com W www.peninsulacanada.com

Maria da Silva, Chartered Professional Accountant

196 Wembley Rd Oakville, ON L6H 6B6 Maria da Silva, Chartered Professional Accountant T (416) 910-0806 E maria@eyevalue.ca W www.eyevalue.ca

Design TWG Inc

2-2660 Meadowvale Blvd Mississauga, ON L5N 6M6 Hemen Modi, Owner, Principal Designer T (416) 828-9439 E hemen@designtwg.com W www.designtwg.com

133 Boston Post Rd Weston, MA 02493 USA Pietro Manenti, Director - Business Development T +393-(348) 756-1635 E pietro.manenti@monster.it W www.monster.com

Lightspeed

Davida Groisman

111 Richmond St W Toronto, ON M5H 2G4 Davida Groisman, Head of Industry T (416) 906-0722 E dpetroff@google.com W www.google.com

Monster.ca

ProfitKeeper by PrimePay

1487 Dunwoody Dr W Chester, PA 19380 USA Kyle McEuen, Senior Vice President T (480) 381-2902 E kyle@profitkeeper.com W www.profitkeeper.com

Marksmen

200-25 West Main St Crt Alpine, UT 84004 USA Jeff Crapo, CEO T 801-368-3655 E jeff@marksmen.com W www.marksmen.com

www.cfa.ca | www.FranchiseCanada.Online

New CFA Members

RadioMogul

8-113 Lakeshore Rd W Mississauga, ON L5H 1E9 Greg Nisbet, Managing Director T (647) 294-0153 E gregn@radiomogul.com W www.RadioMogul.com

Whirl Insights Inc.

Summa Franchise Consulting

104-1400 St-Louis Gatineau, QC J8T 2N1 Jason Kealey, CEO T (877) 944-7555 ext. 700 E jkealey@anotherwhirl.com W anotherwhirl.com

200-8585 E Hartford Dr Scottsdale, AZ 85255 USA Richard Davies, Vice President of international Business Development T +44 07583 133469 E richard.davies@summafranchise.com W www.summafranchise.com

SEND YOUR MESSAGE DIRECTLY TO CANADA’S LEADING FRANCHISORS IN CFA’S OFFICIAL MEMBER MAGAZINE Reach your target audience and position yourself as a key service provider to the franchise community – book your ad space in The FranchiseVoice!

Official Member Magaz ine

WINTER 2023 Official Member Magaz ine

Modern Franchise Recruitmen t

WINTER 2023

Features Creating excep sales experiencetional 31st CFA Nationa 12 Conven s l that convert tion in Niagara Falls: Future Forward entre

preneurs

The Changing into franchisees 14 Landsc ape

Meet the passionate founders of

The growing diversity Canadian franchisin of g lifts the industry to new heights

9

Celebrating Div and Inclusion ersity in Canadian Fra nchising Two CFA Memb er brand

s and Divers Inclusion “Cham ity and the impor tance pions” share their insigh t into workplace withinof creating a welcoming a franchised business n Septemb

I

er of 2022, Statistics Canada’s released a set Centre for Demogra of detailed demogra and ethnocul phy phic projectio tural diversity ns for immigrat in the projectio ion ns based on ongoing Canada and its regions.

According to will be made trends, half of up of immigran the ts and their Canadian Canadian population By 2041, one in four Canadian -born children s will have been by 2041. and about two born in either in five Canadian Asia or Africa s will be part Full story pages of a racialized 9-11 group.

Canadian Franchise

TO RESERVE YOUR AD SPACE CONTACT: Radhika Karve

.

Cadence Departments Franchising.

4 Chair’s MessageSEE PAGE 6-7 5 President’s Message CFA Headlin 8 What e News is the CFA doing for you?

Franchise Growth 18 How to Get Press for Your Franchise

Franchise Legal 20 Resolving

Disagreements is the Hallmark of Successful Franchise Systems

Management 22 Why Clarity Who Lead

Creates Leaders

Operations 24 Preparing

Your Franchise Website and Videos for Accessibility Requirements

26 Legal Digest Hot Off the 29 Membe Press: CFA r News Welcome New 32 Membe CFA rs 34 Upcoming events

Association The Franchise

Voice // Winter

2023

1

rkarve@cfa.ca | www.cfa.ca

Canadian Franchise Association

The Franchise Voice // Summer 2023 33

ndar!

Mark Your Cale

Upcoming CFA Events

UPCOMING EVENTS October 21-22, 2023

Important CFA Dates and Deadlines

TORONTO CONGRESS CENTRE

September 13, 2023 October 25, 2023 January 17, 2024 November 4-5, 2023

VIRTUAL EVENT

VANCOUVER CONVENTION CENTRE

Franchise Canada November/December 2023 issue Ad sales close: September 29, 2023 Franchise Canada Annual Directory 2024 issue Ad sales close: October 27, 2023 Contact Radhika Karve at rkarve@cfa.ca

September 21, 2023

OLD MILLS INN & SPA, TORONTO

February 3-4, 2024 INTERNATIONAL CENTRE, TORONTO

Important CFA Dates and Deadlines

To book tradeshow space, contact: Jill Todd at (647) 988-4545 or jtodd@cfa.ca

The Franchise Voice Fall 2023 Ad sales close: September 8, 2023

September 28, 2023 VIRTUAL EVENT

The Franchise Voice Winter 2024 Ad sales close: January 19, 2024 Contact Radhika Karve at rkarve@cfa.ca

October 11, 2023 CIBC SQUARE

April 6-8, 2024

LE WESTIN, MONTREAL

34 The Franchise Voice // Summer 2023

www.cfa.ca | www.FranchiseCanada.Online