The Franchise Voice (Winter 2020)

MEMBER MAGAZINE

O f f ic ial Q u ar te r ly M e m b e r M a g azin e // WINTER 2020

THE CHANGING LANDSCAPE

PM AGREEMENT NO. 41043018

The growing diversity of Canadian franchising lifts the industry to new heights

Canadian Franchise Association 5399 Eglinton Avenue West, Suite 116, Toronto, ON M9C 5K6 800-665-4232 • www.cfa.ca • www.FranchiseCanada.Online For advertising information contact: Gwen Dunant at 1-877-254-0097 or gdunant@cfa.ca

Grow With Us!

Connect with your next franchisee or customer!

Speak with Gwen Dunant at gdunant@cfa.ca or 877-254-0097.

Contents // WINTER 2020

10 Features

Departments

10 The Changing Landscape

6

Chair’s Message

7

President’s Message

The growing diversity of Canadian franchising lifts the industry to new heights

15

2020 National Convention Growing Together™ at the 29th annual CFA National Convention in Montreal

21 Dismantling Departmental Barriers

3 ways your marketing and business development teams can work together to accelerate growth

24 Déjà Brew

Appealing to coffee aficionados in the Canadian market

8

CFA Headline News What is the CFA doing for you?

27

Advertisers’ Index American Express �����������������������������������������������46 & 47 AXIS Integrated �������������������������������������������������������������� 25 Beyond Digital Imaging �������������������������������������������� 35 Ceridian ������������������������������������������������������������������������������48 CIBC �������������������������������������������������������������������������������������� 35

Real Life Lessons: Franchising works best when everyone benefits

Fairhart Productions ��������������������������������������������������� 26

28

Insuranceland ������������������������������������������������������������������37

Franchise Legal

30 Essential Legal Update:

Arthur Wishart Act Updates to the “AWA” expected in 2020

33 Marketability

Simplifying Digital Strategy for Your Franchise System

Fishman Canada Inc. ������������������������������������������������� 45 Hoffer Adler ����������������������������������������������������������������������36 Moneris ���������������������������������������������������������������������������������14 Premier Printing ������������������������������������������������������������� 22 Vidyard �������������������������������������������������������������������������������� 23

To advertise in the Franchise Voice, contact Gwen Dunant at gdunant@cfa.ca

36 Hot Off the Press: CFA Member News 38 Raising the Profile of Franchising 39 Welcome New CFA Members 44

Canadian Franchise Association

A Bright Idea

The Franchise Voice // Winter 2020

3

MEMBER MAGAZINE

WINTER 2020

Credits PUBLISHER: Canadian Franchise Association

Purpose:

VP, CONTENT & MARKETING: Kenny Chan

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

Mission:

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

EDITOR: Andrew Schopp GRAPHIC DESIGNER: Andrea Lee

This document is printed on paper certified to the environmental and social standards of the Forest Stewardship Council® (FSC ®). www.fsccanada.org

CFA Board of Directors BOARD CHAIR

John DeHart* PRESIDENT & CEO

Sherry McNeil*, Canadian Franchise Association 1ST VICE CHAIR

Gerry Docherty*, Good Earth Coffeehouse 2ND VICE CHAIR

David Druker*, The UPS Store Canada TREASURER

Rick Chittley-Young*, MNP LLP SECRETARY & GENERAL COUNSEL

Larry Weinberg*, Cassels Brock & Blackwell LLP PAST CHAIR

John Wissent* CHAIR, LEGAL & LEGISLATIVE COMMITTEE

Darrell Jarvis*, Fasken

CHAIR, FRANCHISE SUPPORT SERVICES

Tony O’Brien*, TruShield Insurance *Executive Committee member

DIRECTORS

Hadi Chahin, Mary Brown’s Chicken & Taters Steve Collette, 3rd Degree Training/Actual Nutrition Lawrence Eade, Box Concepts Food Group Sebastian Fuschini, Pizza Pizza John Gilson, COBS Bread Terry Hould, ServiceMaster of Canada Limited Andrew Hrywnak, Print Three Franchising Corporation Rimma S. Jaciw, CFE, WSI Digital Marc Laurin, MTY Group Ryan Picklyk, A&W Food Services of Canada Inc. Gary Prenevost, FranNet Stephen Schober, Metal Supermarkets Family of Companies Frank Stanschus, Little Kickers Bob Tipple, Expedia CruiseShipCenters Laura Wittholz, THE TEN SPOT Beauty Bars

© 2020, 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. Publication Mail Agreement No. 41043018 Return undeliverable Canadian addresses to: 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.

The CFA wishes to acknowledge and thank these National Sponsors for their support throughout the year.

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

4 The Franchise Voice // Winter 2020

www.cfa.ca | www.FranchiseCanada.Online

REFER A MEMBER & GROW WITH US! Do you know a franchise system or supplier that should be a member of the Canadian Franchise Association (CFA)? If so, we want to hear from you!

What’s in it for you? For every system or supplier you refer to us that joins the CFA, you’ll receive 100 CFA Bucks, which can be applied towards your membership renewal!

All you have to do is: 1.

Identify a franchise system or supplier who you think should join the CFA

2.

Share with them the benefits of CFA membership

3.

Visit www.cfa.ca/refer-a-member and submit the CFA Membership Lead form

Or: 1.

Tell the member you’re referring to fill out a Membership Application form at www.cfa.ca/join

2.

Encourage them to mention you in the referral section of the form

It’s that easy!

As our CFA community continues to grow and get stronger, so does the franchise industry in Canada. So, what are you waiting for? Refer a member today and let’s work on Growing Together™.

For more information about the CFA’s Refer-A-Member program, contact Lou Gervasi at lgervasi@cfa.ca or 1-800-665-4232 ext. 243.

Thank you to the following referring CFA members: • Michelle Burton, Qozen Yoga & Wellbeing Studio • BUILD IT By Design • Steve Collette, 3rd Degree Training/ Actual Nutrition • John DeHart • Robert Wise, Wises Professional Corporation • Christine Kelly, Little Kickers • Blair Rebane, Borden Ladner Gervais

• Shelley Gable, Booster Juice • Chad Finkelstein, Dale & Lessmann LLP • Hand & Stone Massage and Facial Spa • Tom Anastopoulos, AllStar Wings & Ribs • Derek Massad, Eat It Brands!

• Hermann Delisle, Fix Auto As of January 2019 to January 27, 2020

Chair’s Message

Convention is Right Around the Corner!

I

t’s that time again, when the Canadian franchising community finds itself inching closer and closer to the industry’s biggest event of the year: the annual CFA National Convention! I’m wellseasoned in just how valuable this event can be for franchising professionals of all stripes. Whether you’re a franchising development rep for a new and emerging brand or a franchise system founder who has watched your system grow from the ground up, the value of getting together with the country’s greater franchising community for three days of learning cannot be understated.

While this isn’t my first rodeo when it comes to Convention, 2020 will be the first edition of the annual gathering of franchising industry titans since the CFA moved forward with a new strategic plan in the summer. As highlighted in previous Chair’s and President’s Messages, the CFA’s strategic vision for the Association focuses on four key priorities: Building the Community, Education, Advocacy, and Lead Generation.

Convention is the impetus of the strategic vision and the event’s upcoming programming will reflect that. At the 2020 convention in Montreal, we will be building the community by engaging all levels of franchising beyond the development executive office, including marketing, operations, finance, purchasing, human resources, and more. As always, the event will focus on engaging and relevant educational programs to equip attendees with the tools they need to be the best franchisors and franchise support service providers they can be. We’ll also be tackling the legal and governance issues impacting our industry head-on.

When I look at the value of CFA membership for me, after my years of franchise experience and serving as a CFA board member, it all comes down to Convention, where the Association’s mission of Growing Together™ is on full display. It’s where franchising professionals come to: • Learn through an engaging roster of experts who will inspire brand growth, selling more franchise units, and building firstclass company culture.

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• Network with more than 500 franchise leaders from across the country.

• Celebrate Canadian franchising and the best it has to offer at the Awards of Excellence Gala.

With the new strategic vision in place, Convention will be an exhibition of the strong network of people that can help us become better leaders and franchisors; more than 750 corporate members operating in over 50 different sectors, each bringing to the table comprehensive knowledge and insight. Convention is a demonstration of how our membership is comprised of the most authoritative voices in our industry, getting together for a threeday quest for franchising knowledge to grow our own individual concepts while at the same time propping up the industry as a whole through keynote speeches, power sessions and roundtable discussions, and endless networking opportunities.

Take a look at the brochure included with this issue of The Franchise Voice to see what we have lined up for this year’s Convention. Also, check out the Supplier Guide to learn more about some of the amazing franchise support service (FSS) suppliers that you’ll have access to at the event. It’s all designed to help you get the most out of your CFA membership. We look forward to seeing you at Convention!

John DeHart Chair, CFA Board of Directors

www.cfa.ca | www.FranchiseCanada.Online

President’s Message

Focusing on Women in Canadian Franchising

A

few months ago, I had the incredible honour of being featured in Global Franchise Magazine’s The Female Franchising Power List 2019. The list of 23 of the most inspiring women making their mark on the franchise industry is a testament to how far along the sector has come in terms of diversity.

According to the Wall Street Journal, as of May 2019, 35 per cent of franchise outlets in the U.S. are owned by women. Here in Canada, women are following suit, turning to franchising for the many benefits it provides, including work-life balance. As a seasoned professional in the Canadian franchising industry with more than 20 years of experience, it has been incredible to see the transformation first-hand. I’ve seen the once male-dominated board rooms of franchising’s corporate offices become increasingly diverse as more and more women are turning to franchising, whether it’s as franchisees, franchisors, or providing support services.

As Global Franchise Magazine’s Power List demonstrates, women are not only using the franchise model to pursue their business goals but are playing a massive role in driving the industry forward as decision-makers. They’re running corporate divisions, franchise development offices, franchise territories, becoming CEOs, and launching franchise systems of their own.

On page 10 of this Winter issue of The Franchise Voice, ahead of International Women’s Day on March 8, the Canadian Franchise Association (CFA) honours just some of the amazing women within our own community who are already making a difference.

There are so many more opportunities awaiting women in franchising, and the women featured in this issue are paving the way.

In this feature, we’ll hear from female CEOs, presidents, founders, and prominent franchising lawyers who share their thoughts on Canadian women in franchising: where they are, how they got there, and where they’re going.

As you may already know, the CFA’s strategic focus is creating a strong sense of community amongst our franchise system and support service supplier members. Moving forward into 2020, this will be one of the CFA’s top priorities. In the coming months, we’ll

Canadian Franchise Association

be looking to build not only a stronger sense of community within the Association, but also to grow it to attract new members and bring more people into Canadian franchising. I hope many of these new community members will be women like those featured in this magazine. I believe strongly that the more diverse companies are, the stronger they become, and our Association is no exception.

Ultimately, the CFA and franchising is about people. Everyday Canadians, working in partnership, sharing success, and Growing Together™. The diversity of the people in franchising is our strength. This issue celebrates that diversity as more women are getting involved in franchising and adding their perspectives, their voices, and their skills to our growing industry. They are seizing the many opportunities the franchise business model provides, working at the corporate level, helping franchise systems grow as support service suppliers, and as franchisees. By serving as pillars of both our Association and the greater franchising community, they are making franchising stronger. Their dedication as franchising professionals in franchise sales, marketing, law, finance, real estate, etc. is helping to make the dreams of everyday Canadians come true.

The women featured in this issue are already making a difference. There are so many opportunities available for women in franchising throughout the country, and I look forward to welcoming more female entrepreneurs into our community in 2020 and beyond.

Sherry McNeil President & CEO, Canadian Franchise Association

The Franchise Voice // Winter 2020

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CFA Headline News What is the CFA doing for you?

Now Open: Update Your Complimentary Member Listing Online Now that the 2020 Franchise Canada Directory is on newsstands, members can once again update their complimentary listing on the CFA’s Self-Serve Area.

Registration Open for 2020 CFA National Convention This spring, the franchising community will unite once again for the CFA National Convention at Le Westin hotel in Montreal. From April 4-6, franchise leaders will gather for three days of inspiring education sessions, one-of-a-kind networking opportunities, and celebrations of Canadian franchising and the best it has to offer.

To update your company listing, visit selfserve.cfa.ca. If you require access to the Self-Serve Area, please contact Alexandra Mann, Manager, Member Programs, at amann@cfa.ca.

For more information, please contact Meredith Lowry at mlowry@cfa.ca, or 416-695-2896, ext. 295. Learn more in our 2020 CFA National Convention preview on page 15 and in the enclosed registration brochure.

Flying to Convention? Get In On the CFA Group Rate (Limited Availability) As the airlines of the 2020 CFA National Convention, Air Canada and Porter Airlines are offering special discounts to Convention delegates flying to Montreal.

To take advantage of the CFA group rate, contact Janet O’Connell at 800-665-4232 ext. 251 or joconnell@cfa.ca for the promotion code and book your flight online at www.aircanada.com and www.flyporter.com. Availability is limited and offered on a first-come, first-serve basis so call or e-mail today to ensure you get in on the group rate.

Celebrating Franchising Excellence with the 2020 CFA Awards of Excellence in Franchising Program The CFA thanks all its members for submitting their entries for the 2020 Canadian Franchise Association Awards, which includes the CFA Awards of Excellence in Franchising and Franchisees’ Choice programs. This one-of-a-kind awards program recognizes excellence in franchising and celebrates the foundational relationship between a franchise system and its franchisees.

The winners of the 2020 CFA Recognition Awards, which include the Outstanding Corporate Citizen Award, Volunteer Leadership Excellence Award, Hall of Fame Award, the Diversity and Inclusion Award, the Distinguished FSS / Supplier Award, and the Lifetime Achievement Award, will be announced on Monday, April 6 at the 2020 CFA National Convention in Montreal.

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Upcoming CFA Events February 22-23, 2020 – Franchise Canada Show in Toronto Connect with franchise prospects in Ontario through our online tradeshow Canada’s ultimate franchise exhibiton and the offical show of the Canadian Franchise Associaton (CFA).

April 4-6, 2020 - CFA National Convention, Montreal, QC Connect with industry peers at Canada’s largest franchise conference.

May 13, 2020 – Growth & Exit Strategies Conference, Toronto, ON Maximize the value of your business after years of hard work with the CFA’s first-ever, not-to-be-missed, Growth & Exit Strategies: Where Franchising Meets the Money event.

Visit www.cfa.ca/growthandexit to learn more and to RSVP.

www.cfa.ca | www.FranchiseCanada.Online

Advocacy Alert Public Consultation on Changes to the Arthur Wishart Act (Ontario) The Ontario government is consulting on changes to the Arthur Wishart Act and its regulations. The CFA’s Legal and Legislative Affairs Committee (LLAC) drafted a comprehensive response and we have been meeting with public servants and political staff to ensure the government understands our recommendations.

Single-Use Plastic Bans A Canada-wide ban on many single-use plastics is on track to be implemented in 2021. The federal ban was a pre-election commitment made by PM Trudeau. In late January, a scientific report was released that concluded that there is sufficient evidence proving plastic pollution is harmful to the environment and wildlife.

This follows a recent ban by Vancouver City Council that was approved in November 2019.

The CFA’s Government Relations Committee will be working with other industry associations and governments across Canada to ensure that franchised businesses are treated fairly.

Ontario Opening Cannabis Retail Market Ontario is removing the temporary cap on private cannabis stores in the province and eliminating the pre-qualification requirements for prospective retailers. Under the new plan they will be increasing the ability of licensed producers to participate in the retail market.

The government believes that these changes will “enable more capital, experience and capacity to enter the market and will help more legal stores open faster.” The government also believes that phasing in limits the number of authorized stores a licence holder can have, to ensure fair access for retailers.

The Alcohol and Gaming Commission of Ontario (AGCO) began accepting operator licence applications on January 6, 2020. They expect to issue new licences in April, at a rate of 20 per month.

The province continues to have strict rules for private cannabis stores to help keep kids safe and ensure retailers behave with integrity.

Federal Tax Changes Starting January 1, 2020, the basic amount most Canadians can earn tax-free is going up on Jan. 1, 2020 to $13,229. The increase is being phased in over four years until it reaches $15,000 in 2023.

For Canadians in the lower income brackets, the changes could result in tax savings of up to $140 in 2020. For those earning more than $150,473 annually, those savings will be clawed back or not offered at all.

Employment insurance premiums for individual workers and employees will slightly decrease. The maximum annual EI contribution for a worker will fall by $3.86 to $856.36 and employers’ maximum contribution will fall $5.41 to $1,198.90 per employee.

Ontario Reduces Taxes for Small Businesses Effective January 1, 2020, Ontario reduced the small business Corporate Income Tax (CIT) rate by 8.7 per cent to 3.2 per cent. This will deliver up to $1,500 in annual savings to more than 275,000 businesses - from family-owned shops to innovative start-ups.

Small businesses also benefit from accelerated write-offs of capital investments, as well as the government’s decision to not parallel a federal measure that would have increased taxes on some small businesses earning passive investment income.

U.S. News –Major Win for Franchises on Joint Employer Rule In a major win for America’s franchises, the U.S. Department of Labor (DOL) issued its final joint employer rule to update the regulations interpreting joint employer status under the Fair Labor Standards Act (FLSA). This major rulemaking is the culmination of years of advocacy from the International Franchise Association (IFA) and its members and allies.

In an op-ed in The Wall Street Journal, Administration officials said “The new rule also gives companies in traditional contracting and franchising relationships confidence that they can demand certain basic standards from suppliers or franchisees – like effective anti-harassment policies and compliance with employment laws – without themselves being deemed the employer of the other company’s workers. That will help companies promote fair working conditions without facing unwarranted regulatory costs.”

Do you know of any issue impacting franchising of which the CFA should be made aware?

Let us know by contacting David Black, Director, Government Relations & Public Policy, at dblack@cfa.ca or 416-695-2896 ext. 297.

Canadian Franchise Association

The Franchise Voice // Winter 2020

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THE CHANGING LANDSCAPE

The growing diversity of Canadian franchising lifts the industry to new heights

Sherry McNeil

President & CEO, Canadian Franchise Associaton (CFA)

A

t one point in my career, franchising appeared to be a very male-dominated industry. Here in 2020, things have changed drastically.

Canada’s female workforce continues to grow exponentially.

Given the flexibility and favourable work-life balance the franchise business model provides, it should be no surprise that an unprecedented number of women are entering the franchising industry.

According to The Wall Street Journal, as of May 2019, women own or co-own 35 per cent of the franchise locations in the U.S., representing a growth of 24 per cent from a decade earlier. Here in Canada, women are following suit, turning to franchising for the many benefits it provides.

This growth isn’t being seen solely at the franchise ownership level. It’s also happening in the corporate offices. Boardrooms are becoming more-and-more diverse as franchising offers women

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of all backgrounds incredible career opportunities not only as franchisees, but in franchise development, real estate, sales, marketing, operations, legal, and beyond. This is a benefit to not only women, but the entire industry. I truly believe that the more diverse companies are, the more collaborative they are, and the stronger they become. Franchising provides women with great opportunities to either own their own business or grow their career; they can be a franchisee for a brand they are passionate about, they can take a leadership role at a franchise corporate office, or they can help franchise concepts thrive and grow as a support service supplier.

We can see the growth right here in our very own Canadian Franchise Association (CFA) community. The women featured here have all grabbed the franchise business model by the horns and have harnessed it to find tremendous success as key decision-makers shaping the industry itself.

Here, The Franchise Voice highlights a group of CFA Members who share what being a woman in the franchise industry means to them and why they think so many women are turning to franchising to meet their career goals. With this feature, we celebrate the growing diversity of franchising as more women are getting into the sector and adding their perspectives, their voices, and their skills. Their dedication is making the dreams of everyday Canadians come true. All of which results in making franchising stronger as we Grow Together.

www.cfa.ca | www.FranchiseCanada.Online

The Changing Landscape

Jen Hamilton CEO of Oxygen Yoga & Fitness

A

veteran of the fitness industry with more than 18 years of experience, Jen Hamilton was the founder of CardioCore Bootcamp, a national fitness franchise company that boasted 59 locations at the time that Jen decided to move on to other endeavours. From there, she moved on to purchase Oxygen Yoga, growing the Oxygen Yoga & Fitness brand into a thriving system of more than 70 franchise units across Canada.

Q: Why do you believe the franchise industry is well-suited to women?

can achieve your dreams, you are already on the road to getting there. Then create the path, goals, and steps required to achieve that visualization. Mapping things out, having specific goals and timelines, and creating a team around you to help support you in achieving that visionary goal is essential.

Q: What does the future hold for women in franchising in Canada?

A: The future of franchising is female. There are so many women leading the way and creating incredible businesses that are mindful, conscious, and on-trend with the market. According to a report released by the International Franchise Association (IFA), female-owned franchise businesses account for approximately 30 per cent of the market. Five years ago, female franchise-owners accounted for only 20 per cent of the market. Women are embracing their new role in the business world and franchising gives them a platform to do just that. With Oxygen Yoga & Fitness, my passion is to empower women to follow their dreams, realize what they have visualized for themselves, and help them create a team and a timeline in order to achieve those goals.

A: Franchises offer prebuilt systems, best practices, and business models already in place that are easy to adopt.

This provides women with the tools and the infrastructure; which in turn, allows them to be emotionally engaged, passionate, and focused on their choices. I also believe, that in today’s world, with women having numerous and varied roles, having the infrastructure in place allows them to be successful while still attending to family and community responsibilities. The return on investment is faster and they don’t see the same kind of gender bias as they get from the corporate world.

Q: What are some of the specific challenges women face in franchising and how have you overcome those challenges?

A: One of the challenges we face is that there can sometimes be a perception that women make decisions based on emotion as opposed to logic; that they somehow lack the ability to look at the black and white. There is still a “glass ceiling” and the misconception that women are not able to hold upper management and CEO roles. According to Forbes magazine, women hold just 20 per cent of board seats at Fortune 500 companies, only 10 per cent of the world’s nations currently have a female leader, and only six per cent of S&P 500 companies have a female CEO. But this is changing.

Women are changing the face of business. We are offering a different paradigm for communication and operations within a business model. What most people don’t realize is that having a more emotional approach is an asset. Women can see both sides of situations which creates the opportunity for effective negotiation.

Women use their passion and drive to achieve monumental successes. Women, generally speaking, are more effective communicators, and demonstrate the ability to listen and problem solve.

Women are more likely to practice self-development and take the time to inspire and motivate others.

Q: What advice can you give young women in the franchising world who aspire to start their own franchise or become a leader within their current system?

My biggest piece of advice is to always take a step back from what you are wanting to achieve, and visualize it, believe it is already yours. If you can visualize something and truly believe that you

Canadian Franchise Association

Deanna Loychuk

President of 30 Minute Hit

W

hen Jackson and Deanna Loychuk founded 30 Minute Hit in 2004, their goal was simple yet inspiring. The husband-and-wife power duo aimed to establish a fitness centre devoted to empowering women both physically and in their daily lives, using a unique workout regime.

The result was a 30-minute circuit combining boxing and kickboxing techniques, enabling women across the country to get their hearts pumping, with the added benefit of joining a fitness centre run by supportive franchisees.

Q: Why do you believe the franchise industry is well-suited to women?

A: Women are often naturally talented in developing community and working as a team. These skills are essential in effectively leading or working well within a franchise. We also hear frequently from our female team members how much they value the support system that exists in our franchise. They say they never feel alone and that confidence plays a huge role in their success.

Q: What are some specific challenges that women face in franchising and how have you overcome these challenges?

A: Balancing business and family life can be a significant challenge for many women in franchising, especially mothers. I recommend finding or starting a franchise that values family and understands the importance of negotiating a balanced life. When I first chose to franchise my business, I had two young boys so I understand first-hand the challenges many women face. I now know how to

The Franchise Voice // Winter 2020

11

The Changing Landscape find success in business and happiness in family life and I make it my mission to facilitate that for other women in franchising.

Q: What advice can you give young women in franchising, who aspire to start their own franchise or become a leader within their current system?

A: If you’re looking to start your own franchise, ensure that the product is something you are passionate about and truly believe in.

And be sure to educate yourself on franchising, especially if you’re considering starting your own! Franchising is not just ‘business.’

The franchise industry is looking for people with specific interest and experience in franchising, not just general business expertise.

Q: What does the future hold for women in franchising in Canada?

There are more and more opportunities opening up; the franchise industry is booming! Over three-fourths of our corporate team is made up of women. Many women innately possess strengths that are vital to leading, growing, and sustaining a healthy franchise.

Their ability to develop relationships, build connections, and provide support makes many women the perfect fit.

Ritou Maloni

Co-Founder, President, and COO of Eat It Brands Inc.

R

itou started working in her parent’s women’s retail clothing company at the age of 13. She began packing boxes in the warehouse, moved to a sales associate in the stores to eventually become Chief Operating Officer. She learned every facet of the business, operated it with her parents, and built the company to a 50-store chain. In 2006, Ritou co-founded Electric Pixel, a marketing agency specializing in branding and design, where she worked on many exciting projects including many restaurant brands. She developed the corporate identity and branding for Ben & Florentine and fell in love with the restaurant franchising business. She went on to join the executive team at Ben & Florentine and worked with the team to grow the chain to 30+ restaurants.

In 2016, together with her partner Derek Massad, she cofounded Pür & Simple and Eat it Brands. In just over three years, Ritou and the team at Pür & Simple and Eat it Brands have opened over 30 restaurants across Canada.

Q: Why do you believe the franchise industry is well-suited to women?

A: I don’t necessarily believe that there is a difference between men and women being suited for the franchise industry or any industry for that matter. Women leaders are strong at building connections, fostering relationships, and have the ability to build trust, which is the cornerstone of the franchising business when working with franchise partners, employees, and customers. Women also tend to value work-life balance, team work and

12 The Franchise Voice // Winter 2020

are good at multitasking which makes them great bosses who are respected, driven as well as empathetic and nurturing of their businesses. Women leaders are passionate about their work, intuitive, and in tune with what drives and motivates those around them to perform at their best. They lead by example, are able to quickly respond to changing environments, and have the ability to use creative problem-solving skills. Women make strong leaders because they can take big ideas and have the ability to turn them into concrete results. Their voices and perspectives can be influential in helping any business grow.

Q: What are some specific challenges that women face in franchising and how have you overcome these challenges?

A: The challenges that women face in franchising are the same as in many other leadership positions. The biggest being the balance between work and home which often causes women to neglect themselves as they prioritize their business and their families.

Another challenge that I have experienced in the restaurant franchise niche is that women have to work much harder and smarter to gain the respect of men. I have had to develop “thick skin” because to be heard and respected from industry professionals and from franchise partners (who in my industry are mostly men) was and still is a challenge. I would say another major challenge is the lack of access to role models and mentors to be able to support women, which can impact confidence and lead to feeling overwhelmed and unsure if some big decisions are the right ones.

In the end, as a woman in franchising, in order to overcome these challenges, you must have tremendous confidence in yourself and your brand. I also suggest staying fit, active, and healthy. Keep a good support system around you and stay true to your values and don’t forget that you matter.

Q: What advice can you give young women in franchising who aspire to start their own franchise or become a leader within their current system?

A: Believe in yourself and believe in your brand. Work harder than everybody else, embrace challenges, and don’t take no for an answer. Keep building equity and value in your franchise, promote it authentically, and have fun doing it! We will all face things that are challenging. The very act of stepping outside your comfort zone is critical to your success and will shape your future.

Embracing challenges is important because only in the challenge do we grow. Tom Hanks said it best: “It’s supposed to be hard, if it was easy, everyone would do it.”

Q: What does the future hold for women in franchising in Canada?

A: Today’s women are striving to balance family, profession, social obligations, as well as health and wellness in order to have fulfilling careers. Due to having multiple roles, women have learned to work smarter, more efficiently and they are forward thinkers as they are able to manage multiple priorities at one time. I believe that Canada needs to promote women in leadership roles as women continue to be underrepresented in professional leadership positions. As more women adopt empowering leadership roles, they will empower other women, especially our new generation of young women. They will then become mentors for each other and challenge gender stereotypes and pave the path for gender equity.

www.cfa.ca | www.FranchiseCanada.Online

The Changing Landscape

Helen Fotinos

Dawn Mucci

Partner and Lead of National Franchising & Distribution Group, Dentons Canada LLP

Founder, Lice Squad.com

A

fter finding head lice on her son, Dawn Mucci discovered there were few, if any, options in the market to help mothers like herself deal with the pesky critters. From there, Lice Squad.com was born. The franchise is now 36 franchise and corporate locations strong with over 250 service providers from coast to coast.

Q: Why do you believe the franchise industry is well-suited to women?

A: Franchising is a collaborative and mutually beneficial relationship between like-minded people who are passionate about a product and service. Women are very good at collaboration, communication, and fostering relationships. Women are also well-suited to performing multiple tasks while keeping things organized along the way. One of the main reasons women are well-suited for franchising is their ability to navigate complex situations and pivot when required.

Q: What are some of the specific challenges women face in franchising and how have you overcome those challenges?

A: One of the most challenging things, at least personally, in the beginning, was learning all of the laws and legislation associated with franchising. Franchising is quite complex and keeping up with changes in the industry can also be challenging. This is why having a good franchise lawyer who works hand-in-hand with your franchise development team is critical. Another challenge was getting financing. Not only for myself but for prospective franchisees. If you’re a smaller boutique type operation, banks and lenders don’t look at you as a low-risk borrower. Historically, women have had greater barriers when it comes to getting financing. I’ve always overcome this by bootstrapping and reinvesting in my business with profits to keep growing without having to rely on financing.

Q: What advice can you give young women in the franchising world who aspire to start their own franchise or become a leader within their current system?

A: I would tell her to never stop learning, be open to opportunity, and to collaborate and network with people in the industry as much as possible. Volunteer on boards and committees and get as much mentorship as you can. Surround yourself with supportive and skilled people because these people will help you get to where you need to go.

Q: What does the future hold for women in franchising in Canada?

A: The future is wide open, bright and rich with opportunities.

There are many problems that still need solving out there and with the ever-changing technology and the environment we live in, new problems will need to be solved. I am excited to see what the next generation of women is able to achieve.

Canadian Franchise Association

H

elen Fotinos joined Dentons Canada LLP as a partner in its corporate group and leads the firm’s national franchising and distribution practice in Canada. She writes and speaks regularly on franchise law issues and trends, sits on the board of the Ontario Bar Association’s Franchise Law Section, the Canadian Franchise Association’s Legal and Legislative Affairs Committee and is an active member of the International Franchise Association and the American Bar Association’s franchise forum.

Q: Why do you believe the franchise industry is well-suited to women?

A: Let me start by saying, I believe all industries are well-suited to women. Having said that, franchising may be particularly well-suited because it draws on skills and qualities women often naturally possess or easily cultivate when given the opportunity, including sharp business acumen, which is required to establish and successfully operate a franchise system; attuned EQ to strategically manage the many relationships that exist within a franchise network; and finally an ability to multi-task in order to execute both immediate and long-term goals. Given the many roles and responsibilities women are accustomed to juggling, I believe franchising is an industry that allows us to showcase our many talents, while also keeping us challenged, engaged, and learning new things every day.

Q: What are some of the specific challenges women face in franchising and how have you overcome those challenges?

A: Some of the most common challenges are probably access to the opportunities, positions, and platforms we seek, and the selfconfidence to actively pursue them. The first problem is often external to us, the second is entirely within our control. In both instances, however, the only way I know to overcome such challenges is to have a clear understanding of who you are, what you offer, and to be able to articulate that value proposition to your target audience in a way that instills confidence in your abilities and generates enthusiasm around what can be accomplished.

Spend time cultivating your brand. If you don’t believe in yourself, no one else will. And if you’re not quite there yet, that’s ok, it’s a journey, but seek out mentors and champions who can help you figure things out and help you find your voice. There is no shame in asking for help; we all need it.

Q: What advice can you give young women in the franchising world who aspire to start their own franchise or become a leader within their current system?

A: Step 1: Start with asking yourself the basic questions – Who am I? What are my strengths/weaknesses? What interests me? What do I enjoy doing? How do I enjoy working? What type of lifestyle do I want?

The Franchise Voice // Winter 2020

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The Changing Landscape Step 2: Do your homework. Once you’ve got the answers to Step 1, study the market, consumer preferences, emerging technologies, etc. Is there an opportunity you can exploit, a product/service you can develop, a problem you can solve, or a need you can service that aligns with your identified strengths, interests, and vision for your future? Find or create a career where BEING YOU IS AN ASSET. If you can do that, you will never fail, and it will never feel like work.

Step 3: Trust yourself. Once you’ve completed Steps 1 and 2 above, be relentless in the pursuit of your dream. Be bold, be tenacious, work hard, and take risks.

Q: What does the future hold for women in franchising in Canada?

A: The future is bright and absolutely limitless. Traditional ideologies around “male” / “female” roles in franchising, and the workplace generally, are eroding, and there is nothing women cannot do. Further, the rate of innovation, evolving consumer preferences, and the emergence of new sectors within franchising such as health and fitness, wellness, aesthetics, cannabis, teaching, home care/elder care, and the growing number of virtual/online-only franchise models exponentially expand the types of opportunities available to women interested in a career in franchising.

MORE FEMALE FRANCHISING SUCCESS STORIES Beyond the five women featured in this article, there are so many more women contributing to the Canadian franchise community. If you want to hear from more women in franchising, head to www.FranchiseCanada.Online.

Here, you can find an all-new exclusive look at successful female entrepreneurs from around the country in a range of different sectors, including food service, the performing arts, education, and more.

And, if you’re seeking further inspiration, you can also find previous profiles of successful female franchisees on www.FranchiseCanada.Online by searching “Women in Franchising.”

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14 The Franchise Voice // Winter 2020

2020-01-21 10:41 AM

www.cfa.ca | www.FranchiseCanada.Online

2020 CFA National Convention HOW TO REGISTER:

Complete the registration form included with this issue of The Franchise Voice, download a registration form at www.cfa.ca/convention or contact Janet O’Connell at joconnell@cfa.ca, or 416-695-2896, ext. 251.

Growing Together™ at the 29th annual CFA National Convention in Montreal From April 4 to 6, the cultural centre of Quebec will serve as host of the 29th annual CFA National Convention as franchising professionals from across the country converge on Montreal. Canada’s premier franchise education and networking event, the CFA National Convention is where the brightest minds from the franchise community come together for three days of non-stop learning, collaboration, and most importantly, Growing Together™.

Hosted at Le Westin hotel in the heart of downtown Montreal, this year’s Convention will bring together franchisors and franchise support services suppliers for an engaging roster of inspiring education sessions and one-of-a-kind networking opportunities. At the event, our members will equip themselves with the tools they need to grow their businesses through keynote presentations, concurrent sessions, and roundtable discussions led by some of the most authoritative voices of the Canadian franchising industry. They’ll also network with their peers in an open exchange of ideas and perspectives to lift franchising to new heights.

And finally, they’ll celebrate the very best that Canadian franchising has to offer at the always exciting Awards of Excellence gala.

We’ve got an incredible lineup of engaging events scheduled for this year’s Convention: •P ower Sessions: Led by some of the most

authoritative voices of the Canadian franchising industry, power sessions in sales, marketing, business development, management, and other key areas will help you attract the right franchise prospects, boost sales, and more.

•K eynote Presentations: An inspiring roster of industry leaders will speak on a comprehensive range of topics to inspire you to lift your franchise system to new heights.

•C oncurrent Sessions: Addressing the key franchising areas of operations, business development, management, and legal, concurrent sessions led by leading authorities in franchising will help you meet your business needs for ultimate success.

•R oundtable Discussions: Your chance to have your franchising questions answered by an industry expert, 40-minute roundtable discussions on topics ranging from lead nurturing to enhancing franchise agreements will help you develop new strategies in a group setting.

• Celebrate the Best of Canadian Franchising: The CFA Awards Gala is like the Oscars of franchising! Don’t miss out on all of the excitement as we celebrate the awardwinning franchises of 2020!

Canadian Franchise Association

The Franchise Voice // Winter 2020

15

2020 CFA National Convention

KEYNOTE SPEAKERS

Shift your thinking and transform your business as you hear from an inspiring roster of top industry leaders. Whether you’re a new or established business, these exceptional speakers will galvanize your entire organization towards reaching your franchise goals.

From A to Gen Z – How the next generation of consumers is changing the game Presented by: Suzie Finch, American Express Canada Saturday, April 4, 2020 5:00 PM–6:00 PM While millennials have been top of mind in recent years, a new generation of consumers continues to take on more buying power and influence. Franchises need to prepare for the rise of Gen Z and their unique habits as consumers.

Join American Express Canada for a look into what’s driving Gen Z when it comes to how they spend, who they give their loyalty to, and what they expect from their favourite brands. This session will explore American Express Canada research about Gen Z purchasing trends, preferences, and expectations, and include a discussion with franchises and industry experts on the strategies and mindsets of Canadian businesses seeking to win over this generation.

Presented by: Vincenzo Guzzo, Cinemas Guzzo & Dragon on CBC’s Dragons’ Den Sunday, April 5, 2020 9:00 AM–10:00 AM Vincenzo Guzzo (aka Mr. Sunshine) is a movie industry titan based in Montreal, where he lives with his wife and five children.

The brash businessman recently became a central Canadian media figure as the newest Dragon on CBC’s Dragons’ Den. His eccentric style and quirky demeanour have made the popular show must-watch television since its 13th season. When he’s not moonlighting as a Dragon, Guzzo is the formidable President and CEO of Cinemas Guzzo, Québec’s largest chain of independent movie theatres. A naturally savvy entrepreneur, he’s played a pivotal role in expanding Cinemas Guzzo into a business empire that includes offshoots in the construction, real estate, and hospitality sectors.

In addition to cinema expansion, Guzzo and his wife are renowned philanthropists, giving generously to numerous hospitals and culminating in the establishment of the Guzzo Family Foundation in 2007, which is aggressively invested in cancer nanotechnology research at Montreal’s Jewish Hospital Foundation and McGill University.

Unleash the LEADER in You! Presented by: Erik Therwanger, ThinkGREAT Monday, April 6, 2020 9:00 AM–10:00 AM Discover your greater purpose as a leader and unlock your potential, inspiring your team to set and accomplish important goals.

Participate in this session to discover the leadership strategies and techniques necessary to inspire, motivate, and influence your entire team. With an emphasis on creating an empowering culture, leaders will learn new ways to encourage their team members, achieve exponential growth, and experience unparalleled results. Learn strategies to increase engagement and understand techniques to embrace change, all while discovering new ways to unify culture and build teams. Today’s leaders will unleash the leadership potential in their teams!

16 The Franchise Voice // Winter 2020

CLOSED DOOR CEO SESSIONS Presented by: Vincenzo Guzzo, Cinemas Guzzo & Dragon on CBC’s Dragons’ Den Sunday, April 5, 2020 10:30 AM–11:30 AM A mogul in the entertainment industry, Vincenzo Guzzo first made his mark as the President and CEO of his family’s business, Cinemas Guzzo, Québec’s largest chain of independent movie theatres.

Today, he’s helping others achieve their entrepreneurial goals as a judge on CBC’s Dragons’ Den. Learn what it takes to be an innovator, gain his advice and insights on your questions, and definitely don’t miss out on this exclusive chance to get up close and personal with a Dragon!

Planning for SUCCESS! Presented by: Erik Therwanger, ThinkGREAT Monday, April 6, 2020 11:00 AM–12:00 PM Learn the techniques required to develop the leaders needed to set and accomplish the goals in your strategic plan. In this session, you will discover the leadership strategies and techniques necessary to define leadership, identify the traits expected of every leader, and learn how to communicate more dynamically.

With an emphasis on identifying the goals necessary for success, leaders will learn new ways to empower their people to support the shortterm and long-term goals required for unparalleled growth. From this presentation, you will learn strategies to define leadership, receive techniques to establish leadership traits, discover new ways to communicate effectively, and develop the skills to create your plan.

www.cfa.ca | www.FranchiseCanada.Online

2020 CFA National Convention

POWER SESSIONS

Start your Convention off right with these in-depth sessions guaranteed to pack a powerful punch! From making your franchise more profitable to attracting the right franchise prospects, world-class experts will share an extensive range of insights to help you bolster your business!

SALES

MARKETING

Presented by: Jania Bailey, FranNet, LLC; Frank Milner, Tutor Doctor; Gordon Gamble, PuroClean Canada

Presented by: Steve Buors & Kirk Allen, Reshift Media

Keys to Successful Franchise Development

Is your current development process aligned to grow your franchise successfully?

Starting with being clear about “Who” you are looking for and ending with a successful Discovery Day, this session will outline the keys to successful franchise development.

It will also address the critical issues in the process, each of which can make a tremendous difference in the success or failure of your development plans. The panel will explore various lead channels and their effectiveness and cost. If you want to improve franchisee acquisition, this session is for you.

CFE SESSION

PROFIT MASTERY: Financial Bootcamp Part 1 – Driving Network Profitability & Performance

Today’s Consumer is Tech Savvy. Are You?

BUSINESS DEVELOPMENT

Chairman’s Choice: 0 to 100 Overcoming the Road Blocks in Building a System to 100+ Units

Technology innovations such as voice and image search, chatbots, wearables, and machine learning are having a profound effect on how potential customers – particularly millennials and Gen Z – find and interact with your organization.

Forward-looking companies are already making major changes to their websites, apps, marketing strategies, and communication methods in order to stay relevant in 2020 and beyond.

This session is ideal for franchise executives and marketing professionals who are interested in learning about major digital media trends impacting Canada over the next 18–24 months. We will walk through examples of what leading organizations are doing to remain current, and we’ll also discuss specific actions your franchise organization can take to stay ahead of competitors.

Presented by: John DeHart, LIVE WELL Excercise Clinic; Ken LeBlanc, PropertyGuys.com; Steve Gill, Quesada Franchising of Canada Corp.

ESSENTIAL LEGAL UPDATE

GOVERNMENT RELATIONS

Saturday 3:30 PM–4:30 PM

Sunday 3:30 PM–4:30 PM

U.S. data shows that after two years in business, 65 per cent of franchisors had ZERO locations; 27 per cent had 1 to 10 (so 92 per cent of all systems have less than 10 units) and fewer than 5 per cent of franchisors reach 100 units within a 10-year time frame.

This will be a two-hour “power” session devoted to sharing the best practices that emerging franchisors need to know to break through these barriers and grow to 100 units and beyond. This session will dig into the successes and failures of some of the most successful franchisors in the country, all of whom have built systems in the 100+ unit category, with a specific focus on how they scaled up in the early days of building their systems.

Saturday 8:00 AM–12:00 PM

Imagine leaving a four-hour session with a complete set of financial tools guaranteed to improve network profitability and cash flow. That’s exactly what you’ll get at internationally-acclaimed CFE session “Profit Mastery: Financial Boot Camp Part 1 – Driving Network Unit Profitability and Performance.”

Profit Mastery turns standard financial statements into powerful financial intelligence, and you will find the Financial Report Card – combined with the unique Financial Performance Road Map – to be unusually effective in pinpointing and quantifying the dollar impact of improved efficiency.

Over the last two decades, Profit Mastery has become the “Gold Standard” in financial performance management. This is stuff that virtually NONE of your franchisees know – and they absolutely need to. This is also stuff that every franchisor needs to know – regardless of their role in the network.

Canadian Franchise Association

The Hottest Legal Issues in Canada Whether you’re a new or established franchisor, your franchise success largely hinges on your compliance with the law.

That’s why a solid understanding of the Canadian legal issues that affect your business is imperative. Get up to speed in this information session!

Hosted by a panel of top franchise lawyers, this interactive presentation will provide an update on the latest developments in Canadian franchise law, while allowing for lively discussion and debate. Catching up on the latest judicial decisions, legislative updates, and practical legal matters has never been more fun! Franchisors of all levels will benefit from this comprehensive discussion that will help ensure your business ventures are protected and liability risks are minimized.

Essential Government Relations Update

It’s a full time job to stay on top of the laws, regulations, and emerging issues that could affect franchised businesses. This is why the Canadian Franchise Association (CFA) works with all levels of government to protect franchising and ensure the best possible outcome for all stakeholders.

The Government Relations Update is an opportunity to learn about the most relevant and up-to-date information regarding issues and developments affecting the Canadian franchise community. David Black, the CFA’s Director of Government Relations & Public Policy and Larry Weinberg, who is a partner at Cassels Brock & Blackwell LLP and General Counsel of the CFA, will address advocacy goals and discuss a number of key issues concerning the franchising industry.

The Franchise Voice // Winter 2020

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2020 CFA National Convention

CONCURRENT SESSIONS ROUNDTABLE SESSIONS Gain in-depth knowledge from leading authorities on franchising in these sessions.

Divided into four tracks, easily attend the sessions which will meet your business needs for ultimate success.

OPERATIONS

• Avoid the 5 Most Common Franchise Fails • How Franchisors Can Set Up Multi-Unit Owners for Success • Ultimate Franchise Alignment – Harness the Power of Unity

BUSINESS DEVELOPMENT

• Empowering Women to Lead in Franchising • Engage and Convert More Qualified Franchise Leads • Just BRAND It! Become a Brand Master

LEGAL

• Making the Most of the Relationship Between Franchisor and Legal Counsel • Expanding and Operating in Québec – What you need to know • Coast to Coast – How to Expand Nationwide

MANAGEMENT

• Growth & Exit Strategies…a Preview • Build Your Community Through Charitable Partnerships • Understanding & Working with Millennials

FSS/SUPPLIER FORUM

How to Be a Successful Supplier to the Franchise Community Sunday 2:00 PM–3:00 PM

Many businesses focus on attracting and engaging new customers and forget to nurture their current ones. By consistently maintaining an engagement plan, businesses secure repeat business and unlike for new clients, it doesn’t require the large capital investment to attract new customers.

In this session, learn the best practices for retaining franchise systems as customers and the importance of building and maintaining those relationships.

18 The Franchise Voice // Winter 2020

With more than 20 discussions to choose from, share challenges and opportunities with solutions-oriented individuals and unveil new strategies for your business.

Benefit from having your questions answered by an industry expert in these 40-minute sessions.

Topics Include:

1. Make Working Capital Work Harder: Finding Hidden Value in Payments 2. Increasing Franchise System Profitability Through Monitoring 3. Survival Tips for Franchise Owners from Ceridian, Your Payroll and Human Capital 4. Changing Your Communications Strategy from Good to Great!

5. Keeping Your Franchise Protected from Fraud 6. Off Sheet Balance Funding 7. Drive Explosive Franchise Growth by Intelligently Nurturing Your Leads 8. Understanding How to Work Within the Broker Network 9. Expanding to the US 10. Are Your Franchisees Really Independent Contractors or are They Your Dependant Contractors or Employees?

11. Strategies for Selecting Reputable and Financially Competent Franchisees 12. Digital Payments & Rewards 13. Sales Tax and the Franchise: What’s Bugging You 14. Planning for Restaurant Construction 15. Leveraging the Power of the Group Media Buy for ALL! 16. Seeing Through the Smoke – How the Legalization of Cannabis is Impacting Franchising 17. Accommodation of Mental Disability: Understanding an Employer’s Rights and Responsibilities 18. Is YOUR Brand Aligned with Your Franchise Brand 19. How to Attract and Retain Employees by Delivering a Better Employee Experience 20. Franchise Lead Generation 21. International Payments 22. 12 Surprising Things You Can Do on Your Next Franchisee Visit 23. Essential Banking for Smaller Franchisors 24. Stop Overthinking Social Media 25. Virtual Kitchens 26. How Many Locations to Grow in a Year 27. Digital Brand Strategy 28. Critical Prospect Engagement 29. Cyber Security

REMINDER TO New Members!

New CFA members receive one complimentary registration to CFA National Convention.

Contact membership@cfa.ca 416-695-2896 ext. 290 for details.

www.cfa.ca | www.FranchiseCanada.Online

2020 CFA National Convention

AGENDA Saturday, April 4, 2020 7:30 AM-6:00 PM

CFA Registration

8:00 AM-12:00 PM

CFE Session

1:00 PM-3:00 PM

Power Sessions

3:00 PM-3:30 PM

PM Break

3:30 PM-4:30 PM

Essential Legal Update

5:00 PM-6:00 PM

Opening Keynote

6:00 PM-7:30 PM

New Member Reception

Sunday, April 5, 2020 7:30 AM-8:30 AM

Breakfast in the Marketplace

8:30 AM-9:00 AM

CFA Chair & President’s Address

9:00 AM-10:00 AM

Keynote Presentation

10:00 AM-10:30 AM

AM Break

10:30 AM-11:30 AM

Closed Door CEO Session

10:30 AM-12:00 PM

Roundtables

11:30 AM-12:30 PM

CEO Break Out Sessions

12:30 PM-2:00 PM

Recognition Awards Luncheon

2:00 PM-3:00 PM

FSS/Supplier Forum

2:00 PM-3:00 PM

Concurrent Sessions

3:00 PM-3:30 PM

PM Break

3:30 PM-4:30 PM

Essential Government Relations Update

5:00 PM-6:30 PM

Marketplace Reception

Monday, April 6, 2020 8:00 AM-9:00 AM

Breakfast in the Marketplace

9:00 AM-10:00 AM

Keynote Presentation

10:00 AM-10:30 AM

CFA Chair – New Chair Intro

10:30 AM-11:00 AM

AM Break

11:00 AM-12:00 PM

Closed Door CEO Session

11:00 AM-12:30 PM

Roundtables

12:30 PM-2:00 PM

Lunch

2:00 PM-3:00 PM

Concurrent Sessions

3:00 PM-3:30 PM

PM Break

3:30 PM-4:30 PM

Concurrent Sessions

5:30 PM-6:30 PM

Marketplace Cocktail Reception

6:30 PM-9:00 PM

Gala Awards Dinner & Closing Remarks

10:00 PM-2:00 AM

After Party

GET IN ON THE CFA GROUP RATE!

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AFTER PARTY

RECOGNITION AWARDS

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CFA NATIONAL SPONSORS

Book your accommodations at Le Westin Montréal ASAP to get in on the CFA group rate.

Visit www.cfa.ca/convention for full details.

REGISTER NOW

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*at the time of printing

Canadian Franchise Association

The Franchise Voice // Winter 2020

19

GROWTH & EXIT STRATEGIES CONFERENCE Where Franchising Meets the Money Maximize the value of your business after years of hard work with the Canadian Franchise Association’s first-ever, not-to-be-missed Growth and Exit Strategies: Where Franchising Meets the Money event. This one-day conference is designed for Canadian small and large franchisors, multi-unit franchisees, CEOs and CFOs who want to sell some or all of their business to strategic investors or buyers, private equity firms, go public, or secure their royalty streams.

Network with the finance and franchise community and get fundamental knowledge on exit strategies through a series of panel discussions and keynote addresses.

Limited Spots Available. Reserve Your Name For Priority Access to Registration!

RSVP: www.cfa.ca/growthandexit DATE: May 13, 2020 LOCATION: CIBC Head Office Commerce Court West 199 Bay Street, 56th Floor, Toronto, ON

Dismantling Departmental Barriers

3 ways your marketing and business development teams can work together to accelerate growth

BY M A R T Y M E N A R D

H

ow do your marketing and business development departments work together? You likely wouldn’t be alone in thinking that these two departments are unlikely collaborators.

In traditional business models, these two departments typically function as separate entities with disparate focus and directives.

But in an evolving marketplace where current, past, and future customers can make purchasing decisions with the ease of a few keyboard strokes, traditional approaches are an anchor to outdated processes; franchise and multi-unit organizations draw a hard line between marketing and business development at their own peril.

From my marketing students to my business clients, an all-toocommon misconception about marketing is it’s all logos and slogans, fancy branding and eye-catching design. There is no denying that these are very important elements for supporting any brand, but your franchise organization’s marketing efforts must integrate and work together with your business development strategies to not only grow your customer base, but to also create deeper, more meaningful customer relationships.

Beautiful branding and flashy content alone will not stimulate growth or stave off attrition.

So, let us first define the differences between business development and marketing.

Business development is about working at the front line of new business acquisition, cultivating client relationships for both the short and long term, networking, and most often, working on behalf of your clients and customers to drive growth and profitability.

This is clearly what the entrepreneurial franchisee signed on for

Canadian Franchise Association

when purchasing their first franchise location! That being said, it’s important to keep in mind that business development is just one of many hats franchise owners must wear, from bookkeeper to HR manager to team builder, and in many cases, service providers.

For this reason, franchisees often require tangible support from their marketing team when it comes to providing the tools they need to be successful in their new role as business developers for an established franchise brand.

I think it’s important to mention that though the scope of each unique franchise organization’s business development strategies can be wide-ranging and vary significantly from organization to organization, it should never vary from franchise to franchise within a single organization. This is where an interconnected marketing and business development strategy can ensure cohesion and consistency.

Marketing is about identifying, reaching, and staying connected with the target audiences best suited to your products and services. Marketing is most successful when it addresses how you position the brand, the company, and your offerings in the competitive marketplace. Success is then measured by how successful your efforts were in increasing awareness amongst your target audience and in theory, creating a stronger flow of qualified leads and opportunities for, you guessed it, your business developers!

And this is clearly what the industrious franchisee is expecting from their head office when purchasing their franchise!

And though it should be clear to us all that marketing and business development are different in how they’re executed, they can no longer remain siloed in any organization that wants to fully

The Franchise Voice // Winter 2020

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Dismantling Departmental Barriers realize their long-term goals for growth and brand loyalty. Business development and marketing are two sides of the same coin.

strategies are cutting through the noise and ensuring your message is reaching your audience! This leads me to my second point.

Here are my top three ways for your organization to begin aligning your marketing and business development strategies to work together and support one another’s efforts for increased growth and market share.

2. Marketing Campaigns Must Be Agile For many franchise organizations, it’s too often the norm to have long lead-time marketing campaigns where both head office and the individual franchisees will not receive the real results of their campaign’s effectiveness until many months later.

I cannot stress enough that drawing up a year-long marketing plan in early November, only to have to wait until April to see whether any of the initial campaigns worked (or not), is a recipe for throwing away money and opportunities.

The marketing landscape is diverse, complex, ever-changing, and it gets more challenging to effectively make lasting impressions with savvy consumers. This is why marketing teams and their strategies must be flexible if they want to generate more meaningful data.

One of the best strategies to put this agility into action is ongoing test campaigns. By launching a brand-new marketing campaign and buying some pay-per-click (PPC) traffic to test your message, you can get volumes of actionable data within a few days … even hours! If this data passes your benchmarks, you can more confidently and responsibly move forward with launching it at scale.

This will generate faster results, stronger leads, and consistently valuable feedback from both consumers and individual franchisees! Which leads me to my third point.

1. Your Marketing Strategy Should Have a ‘Leads Quota’ A huge part of the success of any franchise location simply comes down to the total number of inbound calls, online inquiries, and inperson visits they receive. The more of these ‘leads’ that can be created via strategic marketing efforts, the more opportunities for new business development and ultimately, closed business are created.

Once both franchisees and head office agree on a definition of a qualified lead, the marketing team can be held responsible for a lead’s quota with well-defined qualification metrics for all involved.

Each business and organization will have unique characteristics; for one organization 20 leads a month might be necessary to stimulate consistent growth, while another might only need 10.

This is a great example of both the franchisor and franchisee committing to one another and sharing skin in the game, so to speak. Further, and this might be the business developer in me talking (of course it is), but experience has demonstrated that another wonderful by-product of setting a leads quota is that it really helps the marketing team hone in and better identify what

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Dismantling Departmental Barriers 3. Franchisor and Franchisee Must Regularly Stay in Touch Gone should be the days where the franchisee and head office only meet annually to discuss ‘the year in review,’ providing lots of fancy slides, slightly-exaggerated stats, and maybe some decent catering.

The marketing team needs to be involved in the entire sales and business development process on a regular basis, producing informational material and helping their franchisees on the front lines address and respond to real consumer needs.

Three things are forever: death, taxes, and prospects having endless questions, objections, or concerns throughout the course of the sales process.

Traditionally, the individual franchisees and their teams handle direct objections and concerns. But in my experience, franchisees can increase closing rates tenfold by involving their marketing teams early on in the sales process.

When franchisee and head office have an open channel of communication, through a centralized advisory council or a MIS/CRM software platform, the marketing team can collaborate closely with the franchisees and create a list of common customer objections. They then can create targeted material for each meaningful query, so any time a franchisee encounters a similar objection, he or she has the informational material at their fingertips to move customers further along the sales cycle.

It should go without saying that a professionally produced marketing document will work much better than a quickly drafted

email from a franchisee in answering prospects’ questions. Not to mention the added benefit of saving your franchisees valuable time, since a vast majority of them spend up to 30 hours a month producing their own, perhaps less experienced, sales material.

Yes, there are unique responsibilities and machinations of the marketer vs. the business developer, but in today’s business landscape, true scalable success happens only when an organization’s marketing and business development tactics are integrated in a way that support the other’s efforts every step of the way.

ABOUT THE AUTHOR Marty Menard is the Director of Business Development of Kre’Adiv House, a full-service marketing agency serving franchise and multiunit-based organizations. Kre’Adiv House has earned numerous advertising and marketing awards for strategically unifying large-scope organizations, with an emphasis on growth and expansion. A proud educator, Marty is a part-time Marketing Professor at Fanshawe College’s Lawrence Kinlin School of Business in London, ON, and serves as a mentor for the Ontario Centres of Excellence Young Entrepreneurs Initiative. A nationally published writer, speaker, and media consultant, Marty is a passionate advocate for creating stronger and mutually successful partnerships.

You can reach Marty at marty@kreadivhouse.com | 519.694.9622 | linkedin.com/in/martymenard

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Canadian Franchise Association

The Franchise Voice // Winter 2020

23

Déjà Brew

Appealing to coffee aficionados in the Canadian market

BY R O B E R T P H E L P S

C

anada’s relationship with coffee stretches back to the 17th century and a morning brew has now become synonymous with the Canadian lifestyle - whether it be an Americano from Tim Hortons, a filter coffee brewed at home, or a to-go double shot hazelnut latte with oat milk from an independent coffee shop.

While consumers have benefited from this endless array of coffee shops and drink choices, an increasingly saturated marketplace poses a challenge for independent store owners and franchisees. Added to this, as consumers’ purchasing habits evolve with social media trends, owners are often left racing against their competitors to keep up with fluctuating customer demands. Setting your business apart from the crowd has, therefore, become the name of the game as owners seek to differentiate their offer from the competition, and this requires a robust understanding of customers’ coffee drinking habits.

Franchise owners need to understand exactly what their consumers want and ensure they are providing this as part of their service. In conjunction with Angus Reid, SilverChef’s report Coffee in Canada: An Unfiltered Look takes a deep dive into what’s making Canadians tick when it comes to coffee.

millennials are spearheading this trend. In fact, 55 per cent of millennials now consider access to reusable coffee cups when deciding where to purchase their brew. The origin of coffee beans and milk choices are also factors for 27 per cent and 22 per cent of millennials respectively when picking up their regular drink.

With sustainability now at the forefront of consumers’ minds, franchises need to signal that their business values are aligned with their customer’s values in an effort to encourage repeat visits. For example, some stores have begun offering discounted drinks to consumers that bring in reusable coffee cups, and national independent store, JJ Bean, recently switched to compostable coffee cup containers. Similarly, Air New Zealand has partnered with edible coffee cup company Twiice, meaning flyers now have a tasty, zero-waste option when enjoying a midflight brew. It’s only a matter of time before a Canadian airline follows suit, presenting exciting opportunities for the industry and the hospitality sector in Canada. By showing customers that your business cares about sustainability, and is working to improve its environmental footprint, buyers will become loyal to the brand, clocking up repeat visits.

The “Greta Effect” The climate crisis is now on the national agenda like never before – in part thanks to vocal environmental activist, Greta Thunberg – and while this has kickstarted a widespread public conversation about how to become more sustainable, millennials have been the most influenced demographic.

Our research shows that over half of the population considers the environment when choosing where to purchase a coffee, and

Helping consumers make ethical decisions It’s well known that franchises need to stay nimble and flexible to changes in consumer trends, and show that they are willing to adapt their product to fit evolving customer preferences. However, sometimes the product isn’t the coffee on offer, but the franchise’s business systems.

Sustainability goes beyond to-go coffee cups – it’s about giving consumers the opportunity to make ethical purchasing decisions

24 The Franchise Voice // Winter 2020

www.cfa.ca | www.FranchiseCanada.Online

Déjà Brew that are good for the triple (social, environmental, and financial) bottom line. The introduction of blockchain technology is offering consumers transparent insight into the coffee supply chain, something that has been unprecedented up until now. By integrating blockchain technology into their systems, business’ accountability to the consumer has increased tenfold as customers are able to trace the origin of their product from source to checkout.

While the upfront cost could be a challenge for some franchises, many businesses have benefited from heightened trust and renewed consumer brand loyalty. Ethical Bean - a Canadian coffee manufacturer - uses traceable software, including a mobile app and product QR codes, to help consumers track their coffee beans’ supply chain journey, communicating to potential shoppers from the get-go that its coffee is ethically sourced.

Recognize provincial differences In an effort to maintain a distinct brand identity, franchises often choose to prioritize consistency of product and menus rather than catering to regional disparities. However, SilverChef’s national research identified significant provincial differences in coffee taste preferences.

For example, Ontarians are most likely to enjoy a cappuccino with 23 per cent of consumers in that province choosing it as their drink of choice. Albertans and Quebecers are the most likely to enjoy a morning latte, at 31 per cent and 20 per cent respectively., People from Atlantic Canada are the most likely to limit their caffeine intake and enjoy a decaf coffee instead at 16 per cent.

Coffee franchises typically offer a wide range of coffee choices on their menus, but more attention should be given to how advertising and marketing choices are impacting customers, both new and returning. People from Manitoba and Saskatchewan are the biggest coffee drinkers, enjoying approximately three cups of coffee a day, however, they are also the least likely to choose iced coffees, espressos or cappuccinos. Reflecting on regional disparities and altering a Manitoban coffee advert from a focus on espresso to drip coffee would directly target consumers and drive business.

Each provincial market is unique and it is important to recognize that a focus on brand cohesion should not be to the detriment of a tailored provincial marketing campaign.

Déjà brew Though the quality of coffee is still the most important factor to consumers, 90 per cent of respondents consider price when choosing where to purchase their coffee. As a result, over twothirds of coffee drinkers chose to buy their coffee from supermarkets rather than from a barista, and brew at home. While lower price point options should form part of a franchise’s menu, owners should also consider meeting this demand by offering packs of coffee beans and instant coffee sachets (sustainably made or compostable/recyclable) from their suppliers to help redirect market share from supermarkets to their own cash register.

Adopting a loyalty program is another simple way for franchises to attract repeat shoppers, redirecting market share from grocers to coffee shops. Waves Coffee recently introduced a loyalty card offer rewarding repeat visits with store points that add up to free products. With competitive pricing so important to Canadian

Canadian Franchise Association

shoppers, incentives in the form of loyalty programs are a strong way for franchises to appeal to the more money-savvy shoppers, while not compromising on lowering their coffee price point.

To be successful, it’s important for franchises to recognize that Canadians are creatures of habit. They continue to drink roughly the same number of coffees a day every year, averaging out at 2.3 cups. The message from Canadians is clear: our coffee should be of good quality, sustainably sourced and there should be a variety of products on offer to suit their varied tastes and budgets.

To remain competitive, franchises should keep an ear to the ground for the latest trends and concentrate on consumer preferences regionally, while maintaining a high standard of customer service, competitive pricing and the basic options. Coffee in Canada: An Unfiltered Look shows that the majority of coffee franchise sales will come from drip coffee sales, so offering the best quality coffee at the most competitive price is key to success. Keeping ahead of the curve with new technological and environmental innovations will drive consumer loyalty, but should not come at the expense of a simple cup of coffee, brewed to perfection.

ABOUT THE AUTHOR Robert Phelps has been the leader of SilverChef’s Canadian business since 2017. He has 25 years of experience in the financial sector, having previously worked with RemServ, St George Banking Group and the National Australia Bank. He is passionate and committed to building a strong and mutually rewarding relationship with partners and clients.

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The Franchise Voice // Winter 2020

25

Real Life Lessons

Real Life Lessons:

Life is too dynamic to learn from books RUTHIE BURD, founder of the Lunch Lady, was the recipient of the CFA’s first Diversity and Inclusion Champion Award in 2018. Her company prepares and delivers good hot lunches to kids in over 140 Canadian communities.

She created the Lunch Lady Foundation in 2018 to provide operational support to not-for-profit food programs, increase support for healthier choices, and advocate for more inclusive workplaces.

Franchising works best when everyone benefits

O

ften, necessity is, as they say, the mother of invention. So it was in 1993, when I sat quietly with my husband and our angelic little three-year-old at Sick Kids Hospital. Our lives changed forever with one word: AUTISM. Everything I read painted a rather bleak picture of the future, so I just stopped reading and focused on what we could do to navigate through this new reality.

Our decision for me to start a little business to help offset the cost of anticipated therapies is what led to the creation of the Lunch Lady. I had neither a background in nutrition nor a love of cooking, but the timing worked and fit in with our son’s schedule.

In reality, I was not much of a cook (had a bit of a phobia about the kitchen, in fact), but I thought the idea of helping other parents with a task they seemed to hate might be a big win for both of us.

After a rough start, the idea of being able to order hot lunches for delivery to school kids caught on and I was faced with another decision – Should I expand and if so, HOW? I did not know much about franchising and to be honest, I did not read much. There was not a lot to read in 1999, but I still had to answer that burning question. Should I pick: • Door No. 1 - keep growing as is • Door No. 2 – trade my experience for a paycheck • Door No. 3 – franchise my concept When I found out that the franchise model could be applied to almost any idea and was not just for big brands, I made the decision that you have made. I chose Door No. 3.

My dad taught me that “money works best when everybody has some.” Franchising at its best is a wonderful way to share a good idea with others, who get to be in business for themselves but not by themselves. And it allows a brand to achieve success for many participants, including its founder.

I am so lucky to have been the face of the Lunch Lady for over 25 years, but the journey has been very much a joint effort. I have partners.

I realize that many books advise hiring out the skills you do not possess (a very long list in my case) and not sharing equity, but I completely ignored that advice. I chose the camaraderie of partners over having complete control and I have never regretted it.

Canadian Franchise Association

Without their support and encouragement, we would not be who we are now as a brand and there would be no time for collaboration with public health agencies or a Lunch Lady Foundation serving healthier hot meals to kids in less advantaged school communities. Without them, I could not be ME. Because reflection is part of my role at the Lunch Lady, I’ve been thinking recently about the way current trends in the workplace may be changing the face of franchising. I believe small to medium brands need to be prepared for a new type of franchisee who may be more transient and not necessarily looking for a forever home under our umbrella.

The rise of non-traditional systems has opened up our industry and made it easier than ever to own a business. This is good. But a smaller investment also means less to lose, less risk, and potentially less commitment - perhaps not as good.

Consider our brands - with their ongoing support and training.

They are really like business apprenticeships where you “earn as you learn.” Our systems provide awesome and practical business education for individuals looking for multiple experiences in a lifetime. Is this a millennial thing? Is it a personal resilience thing?

Who can say! But it is important to account for it.

Managing both the beginning and the end of a franchise relationship upfront may just be the new reality. Regardless, at the Lunch Lady, we are taking this seriously and ensuring the process is entrenched in our franchise agreements. And maybe we should all become business coaches. Why not!?

Overall, I have found that books are not a substitute for experience and that trial and error is typically the best teacher. What works on paper may not always translate into real life, but that being said, the input of others is always worth considering.

Regardless, the execution is always on you and that is where you are sure to learn the most.

The Franchise Voice // Winter 2020

27

Franchise Legal

Women in Franchising:

Employment and Labour Law Concerns Arising in the Franchise World Due to Non-Standard Employment

BY P E T E R S N E L L

T

his article looks at the employment and labour law concerns that arise due to non-standard employment (“NSE”) in the franchise world. In particular, this article looks at the concerns that arise for the new female franchisee as she starts up her franchised business.

In today’s economy, many people are engaged in NSE. Different phrases describe the changing economy, for example “Alternative Work Platform” or “Gig-Economy”. Franchising’s flexible model can also fit under the umbrella of NSE arrangements, new concerns are raised concerning labour standards that have been designed to apply to workers in traditional employment relationships.

These concerns are especially pertinent to the increasing number of women who are entering the world of franchising. Many women are attracted to franchising due to its potentially flexible model, because some franchises allows women to have careers outside of the traditional nine-to-five role. As such, the flexible model allows women to build a career around their other commitments, and to have the support of the franchisor.

While the flexibility of NSE in the franchise world can be a huge draw for potential female franchisees, both franchisors and potential franchisees must first understand how NSE arrangements can work for and against them. These arrangements are not always successful, and the concept that the franchisor and franchisee chooses must make sense in their circumstances.

General Pros and Cons: On the one hand, NSE can offer flexibility, enabling women who become franchisees to meet personal and family obligations and contribute to an improved work-life balance. It can also help franchisors remain competitive and increase profits by allowing them to build a flexible and agile business model, which in turn incentivizes women to become franchisees.

On the other hand, NSE can create legal, financial, scheduling, overtime pay, efficiency, work environment, and other types of challenges for workers. For example, the British Columbia Employment Standards Act (“ESA”) was designed to protect the average British Columbian in a standard work arrangement, but that, as fewer workers are engaged in this type of work arrangement, a growing number of people may not be entitled to legislative protections. This means that there are a rising number of workers not protected by the ESA or other federal programs like the Canada Pension Plan (“CPP”) and Employment Insurance (“EI”). Those not covered could include the new franchisee starting up her franchised business, and the workers that she may hire.

Luckily, the franchise model allows potential franchisees to shop around and see which NSE works for them. Some franchise systems allow the franchisee to operate from a home office, and do not require spending long hours at a specific location. Each franchisor places their own restrictions, which could be anything from hours of operation, to products and services, to location. By looking indepth at what the franchisor is offering, the potential franchisee is able to make informed decisions on employment and labour protection, as well as what kind of workers she may need to hire.

Common Employment and Labour Legal Issues that Arise Due to NSE: Franchisees are usually the sole employer of those working for the franchised business, which includes the franchisee herself.1 As legislation has had a hard time keeping up with the increasing prevalence of NSE, many workers are calling for more minimum statutory standards for their protection, because they cannot look to a trade union or legislation to protect their interests. This means that franchisees must be aware of the employment and labour legal issues surrounding their own circumstances, as well as her employee’s circumstances.

The question of whether a Franchisor is the employer of their Franchisee is a hotly litigated topic. While this discussion is outside of the scope of this article, it is worth mentioning that traditionally Franchisors are NOT employers of the Franchisee. However, in certain circumstances, the Franchisor CAN be deemed to be the employer of the Franchisee if the actions of the Franchisor have led to a joint employer relationship. This can happen if the Franchisor is involved with the day-to-day management of the business in a way that steps over the line set by the courts (York Condominium Corp., [1955] OLRB Rep. Oct. 645).

1

28 The Franchise Voice // Winter 2020

www.cfa.ca | www.FranchiseCanada.Online

Franchise Legal Problem 1: The scope of an “employee” is hard to define.

One common problem with NSE is that it is hard to identify the scope of an “employee” as defined by the ESA. Some NSE arrangements involve varying degrees of worker autonomy, some of which are within the scope of the ESA, and others that may be outside of it.

As franchisees are generally the employer, they do not have to be concerned if their scope of work falls within the definition of “employee”.

However, if the franchisee hires workers, she must be aware if the worker’s NSE arrangement falls outside of the scope of the ESA. For example, if the arrangement is for task-based work, or part-time work on an as-need basis, then the worker may not be an “employee” under the ESA and is not entitled to employment and labour protections.

Accordingly, franchisees must be aware of the employment and labour protections they are offering under the chosen NSE arrangement, if any.

Problem 2: Flexibility often goes hand-in-hand with accessibility, leading to difficulties in tracking hours worked.

While the flexible hours in the franchising world are appealing, the other side is that flexibility often goes hand-in-hand with accessibility, which means that the franchisee and her workers may feel like they are always on-call.

For both the franchisee and her workers, accessibility could mean working more than 8 hours a day; and those “on-call” hours may not be paid or accounted for. For the franchisee’s own hours, this is less of an issue because she is the employer and starting up and running a business commonly requires long hours. However, it is a concern for her workers’ hours because they may feel entitled to overtime pay due to the “on-call” hours, or for hours worked over statutory holidays.

Additionally, keeping track of hours worked outside of the standard 9-5 office setting can be difficult. On the one hand, a common concern for franchisees with allowing her workers to work at home is that it is hard to police if the worker is actually working. On the other hand, a common concern for workers is that they are always accessible to their employers, and therefore feel as though they are always working. Taken together, the total hours worked can look very different depending on which lens you are looking through.

Problem 3: A home office can lead to occupational health and safety concerns.

Working from home can trigger occupational health and safety concerns that WorkSafeBC governs. Every employer has a general duty to ensure that the workplace is safe. Therefore, if WorkSafeBC determines that the franchisee is operating an office out of her home, then her home office must comply with WorkSafe BC standards. Additionally, franchisors sometimes delineate in the franchise agreements that the franchisor is not responsible for the home office creation or maintenance. Therefore, for franchisees who operate out of their home, it is good practice to comply with WorkSafeBC standards.

Canadian Franchise Association

If the franchisee hires workers and they fall under the ESA definition of “employee”, then the franchisee must ensure that the workers have a workplace that complies with WorkSafeBC standards. However, if the worker does not fall under the definition of “employee”, then the franchisee may not have a duty to ensure a safe workplace for the worker. For workers, this is a definite concern.

How to Make NSE More Attractive For Franchises: Both franchisors and franchisees have the ability to choose which concept of NSE works for them. Franchisors are able to place restrictions on how the franchise operates. This means that franchisors can structure their agreements to suit the needs of women who are increasingly entering the franchise world. Potential female franchisees are then able to shop around and see which concept best suits their needs.

Franchisors can make their franchise business more attractive for potential female franchisees by advertising the unique way their franchise is flexible, as well as how their concept will still provide her with the support she needs.

Potential female franchisees are often looking for a way to start a business while receiving support along the way. Therefore, franchisors can also make their franchise business attractive by creating a reputation for providing support. This includes support in areas such as hiring, scheduling, training, marketing, brand awareness, and being available for consulting.

Finally, potential female franchisees are also looking for networking opportunities as another avenue of support when starting their franchise business. As such, franchisors should provide her with networking and peer-to-peer mentorship opportunities.

For example, informing her of the Women’s Franchise Network (WFN); the Canadian Women’s Business Network (“CWBN”); the Canadian Association of Women Executives and Entrepreneurs (CAWEE); and financial initiatives, such as Bank of Montreal’s commitment to advancing $3 billion in capital to women-owned businesses across Canada over the next 3 years.

Concluding Thoughts: Women who are looking to enter the franchise world have many reasons to do so, with the flexibility of NSE being just one of many.

However, with this flexibility comes a few concerns regarding employment and labour compliance in today’s NSE economy This article is just the tip of the iceberg of informing women of the employment and labour considerations they should make before they choose the franchise business that best suits their goals and needs.

ABOUT THE AUTHOR Peter V. Snell is a partner at Gowling WLG. He is based in Gowling WLG’s Vancouver office and is called to the bar in British Columbia and Ontario. Peter is the National Co-Chair of Gowling WLG’s franchise practice. Peter acted as General Counsel to the Canadian Franchise Association (CFA) from 2015 to 2019. Peter also served as the Chair of the CFA’s Legal and Legislative Affairs Committee from 2011 to 2015 and was on the Board of Directors of the CFA from 2011 to 2019.

The Franchise Voice // Winter 2020

29

Essential Legal Update: Arthur Wishart Act

Essential Legal Update: Arthur Wishart Act Updates to the “AWA” expected in 2020

BY C L A R K H A R R O P, PA R T N E R AT DA L E & L E S S M A N N L L P

W

ith their "Open for Business" motto, Ontario's Conservative government has announced ambitious plans to reduce red tape and improve the environment for business in Ontario. Earlier in 2019, the government formed the Business Law Modernization and Burden Reduction Council (the “Council”) as a short-term advisory body comprised of lawyers and a former Justice of the Ontario Superior Court of Justice. The Council is the successor to the earlier Business Law Advisory Council and shares a similar mandate: to make recommendations to the Government on how to modernize Ontario's corporate and commercial statutes to support the Government's commitment to reduce the burden on business and foster a good business climate in Ontario.

Amongst the first recommendations made by the Council to the Ministry of Government and Consumer Services (the "Ministry") were changes to the regulations under the Arthur Wishart Act (Franchise Disclosure), 2000, SO 2000, c 3 (the “AWA”). Changes to the regulations under the AWA are expected to happen in 2020, following the recent completion of a public consultation process by the Ministry. For those of us who follow these matters closely, the AWA was last amended in 2017 when the previous Liberal government passed the Cutting Unnecessary Red Tape Act (“CURT”), which received royal assent in November of 2017. Many will recall those changes were welcomed at the time, but remain ineffective because they were pending the enactment of enabling regulations. The Ministry now looks set to bring forward the enabling regulations.

So what can we expect to see when the new regulations are released to the public for comment? The Ministry's stakeholder consultation process gives us a good indication of the changes we are likely to see. In November of 2019, the Ministry sought input from stakeholders and the public on the following items: 1. the manner of determining the “Total Initial Investment” for the purposes of the minimum and large investment thresholds;

30 The Franchise Voice // Winter 2020

2. w hether there should be changes to the minimum and large investment threshold amounts for exemptions from disclosure; 3. t he amount of the deposit payment under which fully refundable and non-binding deposit agreements would be exempt from disclosure; 4. the content requirements for a Statement of Material Change; and 5. the accounting standards for financial statements that franchisors must include in a disclosure document provided under the AWA. It now appears likely that we will see the enabling regulations this year. As a result, we may expect clarity on both the minimum investment exemption (sometimes referred to as the de minimis exemption) and the large investment exemption (sometimes referred to as the substantial investment or sophisticated franchisee exemption).

For instance, we are likely to see regulations that prescribe the manner of determining the total initial investment, which may include an open-ended list of expenditures similar to the required disclosure pertaining to the franchisee's costs of establishing (or acquiring) the franchise.

More importantly, many hope that the regulations will clearly provide that the exemption will be based on the total initial investment contemplated by the parties prior to entering into the franchise, and not the amount actually invested. For either, the minimum investment exemption or the large investment exemption to be useful, there must be certainty prior to entering into the franchise that the exemption will be available. Moreover, the exemption cannot be "lost" in the event the actual total initial investment turns is different from that contemplated by the franchisor and franchisee at the time the franchise is granted or acquired. The Ministry is aware of these practical concerns and may respond to them with the new regulations.

www.cfa.ca | www.FranchiseCanada.Online

Essential Legal Update: Arthur Wishart Act We may also see changes to the minimum investment threshold (currently $5,000) and the large investment threshold (currently $5 million). It is also possible that we may see some clarification that the large investment exemption is available for multi-unit or multi-franchise transactions where: (1) a single transaction encompasses multiple locations or territories; and (2) the total purchase price across all locations or territories is in excess of the large investment threshold. As there are few single-unit or territory franchises that trade for valuations in excess of $5 million (or such other threshold as the government may choose to include in the regulations), this clarification will assist parties in confirming their ability to rely upon the exemption in multi-unit transactions.

We expect the new regulations will prescribe the maximum refundable deposit that can be received by a franchisor from a prospective franchisee in advance of the disclosure document being delivered. The AWA was amended to permit pre-disclosure refundable deposits as part of the CURT amendments in 2017, but without the enabling regulations, it has not been permissible to collect refundable deposits from prospective franchisees in Ontario. This change would bring Ontario in line with other provinces that permit the collection of pre-disclosure refundable deposits. Presently, those include British Columbia, Alberta, and Manitoba, along with the non-disclosure provinces (Saskatchewan, Quebec, Nova Scotia, and Newfoundland & Labrador).

With respect to Statements of Material Change (“SOMC”) it is uncertain whether the regulations will provide for use of a prescribed form or whether Ontario will simply prescribe content (as done in B.C.). The latter approach would permit the development of multi-jurisdictional forms of SOMC. Either change is likely to be an improvement over the current uncertainty that results from there being no prescribed form, but many will be disappointed if the approach taken by the Ministry results in another prescribed form with only minor differences from the prescribed forms required in other jurisdictions.

The Ministry also sought input from stakeholders with respect to the accounting standards for financial statements that are included in disclosure documents delivered pursuant to the AWA. The regulations under the AWA currently require audited or review engagement financial statements prepared in accordance with Canadian generally accepted accounted standards ("GAAP") and audited or reviewed under Canadian generally accepted auditing standards, or those that are "at least equivalent". While the idea of an equivalency standard is theoretically helpful to those franchisors whose financial statements are prepared in accordance with U.S. GAAP but has practical challenges. There is considerable uncertainty whether U.S. GAAP financial statements meet the “at least equivalent” threshold, as there are a number of differences between Canadian GAAP - either International Financial Reporting Standards (IFRS) or Accounting Standards for Private Enterprises (ASPE) - and U.S. GAAP, which in practice means that franchisors with U.S. GAAP financial statements are typically advised to include supplemental reports from Canadian accounting/audit firms that provide commentary and additional information necessary to make the U.S. GAAP statements equivalent to those prepared under Canadian GAAP. The Ministry is expected to consider changing the regulations under the AWA to permit the use of financial statements prepared in accordance with U.S. GAAP and the corresponding auditing standards. Such a change would bring clarity and would make it easier for U.S.-based franchisors to enter the Ontario market.

While these changes to the AWA’s regulations may be seen as "mere" housekeeping changes, they will – if implemented – provide some much-needed clarity on the large investment and minimum investment exemptions. In addition, a significant hurdle to using U.S. GAAP financial statements will be removed.

ABOUT THE AUTHOR Clark Harrop is a Partner with the firm of Dale & Lessmann LLP in Toronto.

If you’re a franchisor operating in or expanding to Canada, you need to be familiar with provincial franchise legislation or your business and reputation could be at risk.

To help our members stay current on the latest laws and legislative developments in each province, the CFA has compiled all provincial franchise legislation, regulations, and consultation papers in one convenient portal.

Don’t put your business at risk – get up to speed on Canada’s franchise laws now. Head to www.cfa.ca/our-services/advocacy/franchise-legislation/ to bring yourself up to speed with vital franchising legislation from province to province.

Canadian Franchise Association

The Franchise Voice // Winter 2020

31

LISTEN & LEARN: Tune in to the Franchise Canada Chats Podcast!

Catch up on Seasons 1 and 2!

Stay tuned for special bonus episodes, coming this summer!

Available on Google Play, iTunes, SoundCloud, Spotify, and Stitcher Radio

www.FranchiseCanadaChats.ca

Marketability

Simplifying Digital Strategy for Your Franchise System

BY L U K E AU L I N

G

etting consistent, measurable return on investment for your marketing dollars is hard enough for the one-off home services, restaurant or retail store, never mind your multi-location franchise business.

As a franchisor or franchisee in a new or established system, today’s digital marketing landscape can be difficult to navigate.

This often results in traditional thinking, status quo operations, and seeing misplaced investments between marketing, sales, and customer success. Questions often asked by franchise owners include: • Is digital marketing a fit for my franchise?

• W hich digital channels should I pursue and with what content?

• W ho pays for what inside an effective digital strategy in my franchise system and who should perform what functions?

The caveat being that every business is unique, including specific franchise agreements that often define the marketing spend between Head Office and Franchise Partner and, as such, a tailored strategy for yours is recommended above everything that follows here.

If you are lost in the haze of questions, there is a way out! And in that sea of complexity, as always, it’s the simple solutions that often make the most sense.

With rationale for why digital is a must for your franchise along with some clarity around functional responsibilities, the aim of this article is to reveal a possible path to an effective digital marketing and sales strategy for your franchised business.

To put the above stats into context, before the internet age, car buyers would visit an average of roughly six car lots before making what is one of their largest personal purchases. Today, they visit roughly 1.5 car lots before making that same decision. We live in the age of the educated consumer. Simply put, your online presence is essential to deliver on the journey your customers now expect when buying from you.

Canadian Franchise Association

Why Digital?

For the majority of businesses today, having a digital strategy isn’t optional. Consider: • 70 - 90 per cent of a buyer’s decision is made by the time they contact you or visit your website (Newman, 2014) • The average person spends four hours a day on their smartphones and nearly half of that on social media (Curtin, 2018)

The Franchise Voice // Winter 2020

33

Marketability Here’s a funnel view of your customer’s journey to make the point:

Content falls into two broad categories: “Branding”, which drives top of mind awareness and “Direct Response”, which drives actions such as page likes, phone calls, form submissions, etc.

For the most part, Head Office (HO) handles “branding” and Franchise Partners (FPs) are “direct response.” That being said, in digital, things get fuzzy as there are areas of perceived overlap.

And where there are grey areas in accountability, it’s the job of leadership to clarify, as when two people are accountable for the same function, no one is.

The ultimate question here is: “who is responsible for funding which marketing initiatives?” Note: funding is different from “doing” - work can be outsourced or in-sourced. But the money flow is where decision-making starts.

Here’s a proposed way to look at this:

This is not to say that the “sales” function doesn’t play a large role. Sales, particularly in franchise development (and most B2B scenarios), is still a huge part of the buyer’s journey. The last mile, so to speak, is sometimes the most important, depending on the complexity, depth, and longevity of the expected relationship.

But it is to say that marketing, more than ever - and even for established brands who have an easier time attracting franchisees - plays a larger role in finding and educating buyers of all kinds throughout the entire life of a business and throughout the journey their customers take.

A Framework for Digital Marketing and Sales Success Building the proper framework for a successful digital marketing and sales strategy requires addressing three basic questions: 1. Where does marketing end and sales begin?

2. What marketing activities should be executed?

3. W ho in your organization, whether at head office, at the franchise level or outsourced agency, is best to deliver on marketing activities and be functionally accountable for satisfying the customer during their journey?

At a high level, marketing’s function serves all functions in the business. That said, a safe “cut off” for where marketing ends and sales begins in the customer’s journey is when a person has shown enough interest to buy, but requires deeper connection and understanding before making a final decision. In KPI terms, a Marketing Qualified Lead (MQL) is a person defined as ready to speak to someone in sales.

Marketing’s function is to deliver brand awareness, reach, eyeballs, clicks, traffic, etc. Ultimately, a marketing conversion is an MQL. The sales function is to take those leads and convert them into ideal fit, long-term customers.

To determine the mix of marketing activities, work back from your buyer personas’ demographic (age, gender, etc.) and psychographic (interests, passions, etc.) traits. Then work back from where they spend their media time. This helps answer “where are they?” and “what makes them tick?”

From there your customers are the heroes of the marketing stories you tell. Not you.

Marketing then becomes a game of content creation (what) and distribution (where).

34 The Franchise Voice // Winter 2020

Social Media (HO) - Content that provides value to FPs (Facebook) and develops leads for future FP prospects (LinkedIn Ads), brand level customer stories (Facebook, LinkedIn, etc), and employees (Facebook, Instagram, etc.). Overall branded content is funded, created, and supplied by HO. Facebook pages can be set up at the local FP level, but we advise that HO own the admin rights and have a way to leverage Facebook’s “Locations” set up. This means that HO can distribute content from the HO Facebook page that is automatically distributed to the local FP Facebook pages.

Search Engine Optimization (HO) - Keyword-rich branded content for the corporate website and the company blog as well as offpage backlinks from high domain authority sites to create authority in the market (and in the eyes of Google).

Website (HO) - Ownership of the corporate website including location pages for the Franchise Partners. Invested in and maintained by HO with connectivity to top of funnel marketing that’s funded and driven by the FPs. Social Media (FPs) - Content inspired by day-to-day customer engagements - including FP’s customers generating their own organic content - to better resonate with potential customers in the local community. Localized content and local ad targeting should be leveraged by the FP to drive direct response marketing and local lead generation for the FPs. Search Engine Marketing & Landing Pages (FPs) - Google Ads, Retargeting Ads, and location-specific landing pages based on relevant keywords and geographic targeting funded by FPs, managed by HO or an outsourced agency, will help ensure marketing dollars are directed at the audience most likely to become customers for FPs.

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Marketability Local SEO (FPs) - Localized SEO is ideally funded from the FPs opting in and then managed by HO or an outsourced agency to drive relevant website traffic from local communities on behalf of FPs for geographic specific searches.

It’s worth noting that free organic traffic is waiting for the FPs that have Google My Business information accurately locked-in.

Some Future Considerations Voice search will gain popularity as time goes on, making position “0” the desired location for your website’s organic search rankings. Technical SEO set up becomes more and more important as time goes on.

Private channels such as Facebook Messenger and WhatsApp are gaining popularity as ways to engage with businesses.

Recent rumblings around Facebook suggest that ads may find their way into these platforms soon. Early adopters stand to benefit as businesses learn to engage customers and craft ad messaging that fits the conversational flow of these channels.

In Summary Your franchise system can be successful online. Growth awaits your brand there.

Defining basic roles and responsibilities and clarifying the funding source for your digital marketing and sales functions will create harmony between HO and FPs and create alignment to effectively execute on specific marketing initiatives that will power your organization’s growth.

ABOUT THE AUTHOR Luke Aulin is the co-founder and CEO of RTOWN, a full-service digital agency focused on helping franchise & multi-location businesses grow.

Luke is the recipient of BiV’s Top 40 Under 40 and has grown RTOWN to be named by BC Business as one of the largest digital agencies growing in BC. Luke delivered the keynote speech at CIMC, one of Canada’s largest marketing conferences. He is a people-first leader and deeply passionate about helping other entrepreneurs create growing companies that serve all stakeholders. Through serving franchises, he sees a way in partnership to make every town our town. Luke can be reached at luke@rtown.ca or 604-418-8146 and welcomes contact from any entrepreneur looking to grow their business.

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The Franchise Voice // Winter 2020

35

Hot Off the Press Member News

Nick Titus Named President of Minuteman Press International Minuteman Press International is proud to announce the promotion of Nick Titus to President. Nick is the third-generation President of Minuteman Press, which remains a family-owned and operated franchisor with World Headquarters in Long Island, NY and nearly 1,000 independently owned and operated franchises worldwide. Previously, Nick was Vice President of Marketing. Bob Titus will remain the Company’s CEO. “We have a tremendous company with incredible people who care about its success,” says Nick. “Most importantly, the foundation and strength of our organization relies on having dedicated franchise owners. I believe that our company is strong and we are in a very good position for continued growth.”

Growing up in the family business, Nick started working at Minuteman Press International World Headquarters during summer and winter breaks throughout high school and college. After graduating from Quinnipiac University in 2007 with a degree in Business Management, he joined the Minuteman Press team full-time.

CEO Bob Titus, who founded Minuteman Press International with his father Roy in 1973, issued the following statement: “In 1995, my father Roy Titus moved aside and named me President of the Company. It was the coming of the second generation taking us through the next 25 years concentrating on our Minuteman Press franchise support system. Growing with all of our franchisees along the way. Seeing over 100 centers being passed down to the second generation. Seeing hundreds of successful owners sell their business and retire. Seeing our $1 million stores grow from 13 in 1996 to nearly 100 in 2019. In the last 25 years, we have added so many products and services that even Roy could not have imagined back in 1975.

After serving as President of Minuteman Press for 25 years, I

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36 The Franchise Voice // Winter 2020

feel it is time for another change. It is time for the third generation to take the helm. I am so proud and honoured to promote my son, Nicholas Roy Titus, as the third generation President of Minuteman Press International. Nick has grown up at Minuteman Press like a lot of us and our kids. He also grew up with his grandfather Roy who taught him so much; the work ethic that Roy taught all of us and most important, knowing that our company is only as good as the people we have in business.”

Entrepreneur Magazine Ranks Pearle Vision No. 1 Eye Care Franchise on Franchise 500® List Pearle Vision has been ranked as the United States’ top Eye Care franchise on Entrepreneur magazine’s highly competitive Franchise 500 ® list. The magazine’s annual rankings are based on outstanding performance in areas such as unit growth, financial strength and stability, and brand power.

Pearle Vision was ranked No. 1 in the new Eye Care category and No. 58 overall, placing the brand in the Top 12 per cent of all franchises on the list. 2020 marks the 12th consecutive year that Pearle Vision has been ranked among the Franchise 500 and the 36th time in the 41 years that the annual list has been published. Entrepreneur received more than 1,100 applications for the 2020 ranking, making it one of the most competitive rankings in Franchise 500 history. The list is considered an invaluable tool for potential franchisees.

“Pearle Vision’s position at the top of the Eye Care category demonstrates the strength of the premium optical brand’s franchise opportunity for entrepreneurs interested in the healthcare industry,” said Alex Wilkes, general manager of Pearle Vision.

“The durability of our national, legacy brand speaks to the commitment by the company and individual licensed owners to provide genuine eye care to our patients. We are proud to lead the way in the optical industry by remaining focused on quality of care and innovation and keeping abreast of industry trends.”

The prestigious ranking comes as Pearle Vision opened new franchise locations throughout the U.S. over the past year and announced newly signed area development agreements in strategic markets in Florida, North Carolina and most recently, California. The brand also partnered with the Navy Exchange Service Command (NEXCOM) to bring national optical retail centers to at least three U.S. naval bases. And last summer, Pearle Vision launched a revamped franchise development website.

The key factors considered in the Franchise 500 are costs and fees, size and growth, support, brand strength, financial strength and stability. Each franchise is given a cumulative score based on an analysis of more than 150 data points, and the 500 franchises with the highest cumulative scores become the Franchise 500 in ranking order.

www.cfa.ca | www.FranchiseCanada.Online

Member News Aegis Brands to Acquire Ottawa’s Bridgehead Coffee The Second Cup Ltd. announced in December 2019 that Aegis Brands has agreed to acquire Ottawa-based Bridgehead Coffee, the company’s first acquisition since it announced its new operating structure and strategy last month. Aegis Brands also owns Canadian specialty coffee retailer Second Cup Coffee Co. “We created Aegis with the vision of building a portfolio of amazing brands that can grow and flourish with access to our resources and expertise,” said Steven Pelton, CEO of Aegis Brands.

“Bridgehead is the quintessential ‘amazing brand’ – a company with a deep sense of purpose, strong roots in its community and incredible potential for growth. We’re so excited to work with the team at Bridgehead to help fuel that growth in the months and years to come.”

Bridgehead has 19 coffeehouses in Ottawa, including its landmark roastery. All Bridgehead coffeehouses serve food made daily from scratch in the company’s kitchen and bakery, using local and seasonal ingredients. All 19 locations are corporately-owned and have consistently delivered strong financial results in a competitive coffee market. All coffeehouses will continue to operate under the Bridgehead name following the acquisition.

“We have long had a goal of being the biggest little coffee company,” explained Tracey Clark, who has led Bridgehead as its President and CEO since 2000. “Joining Aegis gives us access to the resources to expand our footprint without needing to change who we are or what we do best: advocating for small scale farmers, offering coffee that is well-sourced, well-roasted and well-served, creating a sense of belonging for our customers and employees, and fostering community connections.”

Kate Burnett, Bridgehead’s COO, will assume executive leadership of the company while Tracey Clark will continue to lead the Bridgehead brand in a new role as Chief Culture Officer. Ian Clark, Director of Coffee, and Cliff Hansen, the company’s Roastmaster, will continue in their roles, working closely with small-scale farmers to continue to deliver an exceptional coffee experience to Bridgehead customers. Bridgehead’s head office will remain in Ottawa. Upon closing of the transaction, Bridgehead will enter into new employment agreements with key employees.

“Aegis Brands will offer Bridgehead opportunities in real estate and capital that we would not have been able to access on our own, and give us the autonomy to grow our business according to our values,” concluded Clark. “This partnership also presents incredible opportunities for our team, who are as excited as I am to serve new communities here in Canada, and to expand upon Bridgehead’s positive impacts in coffee-growing communities.”

TWO MEN AND A TRUCK® Launches Junk Removal Pilot Program in Ontario With a commitment to continually exceeding customer’s expectations, TWO MEN AND A TRUCK® – CANADA is expanding its services to include junk removal.

Two Canadian franchisees (Kitchener-Cambridge-Waterloo and St. Catharines-Niagara Region) are the first to pilot this program.

Owner/ President of the award-winning Kitchener/Cambridge/ Waterloo franchise, Justin Prittie said, “The decision to haul junk is a logical one. Consumers planning a move inevitably have to

Canadian Franchise Association

dispose of stuff. By including this service, we can offer a single solution from beginning to end.”

According to Chuck Resnick, Vice-President of Marketing and Operations for TWO MEN AND A TRUCK® – CANADA, “In addition to providing our customers with value-added services, adding junk removal to our service menu becomes a sound business move. Junk removal and moving are complimentary services, providing a convenient, one-stop-shop solution.”

Known internationally as the Movers Who Care ®, TWO MEN AND A TRUCK’s junk removal services are environmentally friendly.

Said St. Catharines-Niagara Region franchisee Cotie Drinkwater, “We recycle, repurpose, reuse, and donate as much of the junk as we can, so we avoid taking items to the dump. We save residential and business clients time and hassle. The junk removal service can be part of a move, or a separate service.”

The new junk removal program covers furniture, garage items, appliance and mattress disposal, hot tub removal, exercise equipment, seasonal items such as patio furnishings, office remodels, and old unwanted electronics and construction debris. Exceptions include hazardous materials such as propane tanks, gasoline, paint, chemicals, motor oil, biological or medical waste, and firearms.

“Whether consumers are cleaning out their garage, attic, shed or basement,” Resnick added, “our professionally-trained junk removal team knows what’s required to get the job done right.”

CFA Discount is 15% off your Home & Auto Insurance

Interest Free Payment Plan

Call 1-800-243-9379 x 2338 You qualify for this exclusive discount if you are:  Head Office Executives & Staff  Franchise Owners & Full Time Employees

The Franchise Voice // Winter 2020

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Raising the Profile of Franchising

M

oving forward with the mindset of Growing Together™, one of CFA’s strategic imperatives is to raise the profile of franchising in Canada by promoting the franchise business model as one that helps everyday Canadians realize the dream of building their own business. Our social media strategy throughout the 2018-2019 calendar year reflected this strategic direction. Utilizing a strategy designed to drive more brand exposure and prospective franchisees to both our franchise system (FS) and franchise support supplier (FSS) members, the CFA saw significant growth on social media.

In 2019, the CFA’s social media platforms (Facebook, Twitter, Instagram, and YouTube), drove close to 11,000 new users to the Association's digital properties: cfa.ca, FranchiseCanada.Online, and LookForaFranchise.ca. The CFA saw 3,000 of these users visit LookforaFranchise.ca to learn more about franchise opportunities with our members (an increase of 219% from 2018).

Connect with us on social media: www.twitter.com/cfafranchise www.facebook.com/ canadianfranchiseassociation www.instagram.com/ cfafranchise www.linkedin.com/company/ canadian-franchise-association

158% INCREASE IN WEB TRAFFIC FROM SOCIAL MEDIA FROM 2018 TO 2019!

38 The Franchise Voice // Winter 2020

www.cfa.ca | www.FranchiseCanada.Online

New CFA Members FRANCHISE SYSTEM MEMBERS

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

Modern PURAIR Caffe Artigiano

#105-2999 Underhill Avenue Burnaby, BC V5A 3C2 Dean Shillington, Owner T (604) 420-4447 E dean@kbcapital.ca W www.caffeartigiano.com

Canadas Best Value Inn (Additional brand of Red Lion Hotels Canada Franchising, Inc.) 1550 Market St., Suite 350 Denver, CO 80202 Kris Crundwell, AVP Canada T (902) 401-4122 E Kris.Crundwell@rlhco.com W www.franchise.rlhco.com/brands/canadas-best-value-inn

GuestHouse (Additional brand of Red Lion Hotels Canada Franchising, Inc.) 1550 Market St., Suite 350 Denver, CO 80202 Kris Crundwell, AVP Canada T (902) 401-4122 E Kris.Crundwell@rlhco.com W franchise.rlhco.com/brands/guesthouse

ONESource Moving Solutions for Seniors, Professionals and Families Hotel RL (Canada) (Additional brand of Red Lion Hotels Canada Franchising, Inc.) 1550 Market St, Suite 350 Denver, CO 80202 Kris Crundwell, AVP Canada T (902) 401-4122 E Kris.Crundwell@rlhco.com W franchise.rlhco.com/brands/hotel-rl

Knights Inn (Additional brand of Red Lion Hotels Canada Franchising, Inc.) 1550 Market St., Suite 350 Denver, CO 80202 Kris Crundwell, AVP Canada T (902) 401-4122 E Kris.Crundwell@rlhco.com W franchise.rlhco.com/brands/knights-inn

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425 Leffler Dr. Tecumseh, ON N8N4Y2 Danielle Carriere, Owner T (519) 984-2111 E danielle@onesourcemoving.ca W www.onesourceforseniors.ca/

Red Lion Hotel (Canada) (Additional brand of Red Lion Hotels Canada Franchising, Inc.)

DermaEnvy Skincare

264 Bedford Highway, Suite 202 Halifax, NS B3M 2K7 Cohen MacInnis, President E franchise@dermaenvy.com W www.dermaenvy.com

112-3677 Hwy 97 N Kelowna, BC V1X 5C3 Neil Grant, Director of Franchise Development T (250) 469-0307 E neil.grant@modernpurair.com W www.modernpurair.com

1550 Market St., Suite 350 Denver, CO 80202 Kris Crundwell, AVP Canada T (902) 401-4122 E Kris.Crundwell@rlhco.com W franchise.rlhco.com/brands/red-lion-hotels

The Franchise Voice // Winter 2020

39

New CFA Members

Red Lion Inn & Suites (Canada) (Additional brand of Red Lion Hotels Canada Franchising, Inc.)

1550 Market St., Suite 350 Denver, CO 80202 Kris Crundwell, AVP Canada T (902) 401-4122 E Kris.Crundwell@rlhco.com W franchise.rlhco.com/brands/red-lion-innsuites

Starks Barber Company

6 Campbell Street, Unit 3 Whitby, ON L1M 2J6 Steve Tallis, CEO T (416) 836-0953 E steve@starksbarbercompany.com W www.starksbarbercompany.com

Super Shopper Club

3220 McMahon Rd. West Kelowna, BC V4T 1E9 JC Rathwell, President T (250) 899-8133 E jc@jcrathwell.com W www.SuperShopper.Club

Stick Fix

Signature Inn (Additional brand of Red Lion Hotels Canada Franchising, Inc.)

159 Douglasbank Mews SE Calgary, AB T2Z 2J5 Ken Worthing T 250-808-3911 E stickfixokanagan@gmail.com W www.stickfix.com

1550 Market St., Suite 350 Denver, CO 80202 Kris Crundwell, AVP Canada T (902) 401-4122 E Kris.Crundwell@rlhco.com W franchise.rlhco.com/brands/signature-inn

The Shutter Professionals

1965 Salem Road North #7 Ajax, ON L1T 0J9 P. Varj, Director T (905) 239-9990 E franchising@theshutterprofessionals.com W www.TheShutterProfessionals.com

FSS/SUPPLIER MEMBERS

Visit www.cfa.ca/support-services for FSS Member information.

Angela Cote Inc

3540 Uptown Blvd., #301 Victoria, BC V8Z 0B9 Angela Cote, Franchise Growth Catalyst T (250) 213-7277 E angela@angelacote.com W www.angelacote.com

40 The Franchise Voice // Winter 2020

Canbuild Immigration Services 15-4731 Terwillegar Common NW Edmonton, AB T6R 3L4 Manuel Iligan, President/RCIC T (780) 729-8927 E manuel.iligan@icloud.com W www.canbuildimmigration.ca

Contours Interior Solutions 1250 Ormont Dr. North York, ON M9L 2V4 Johnpaul Cesario, President T (416) 503-1234 E Paul@contours.org W www.contours.solutions/

www.cfa.ca | www.FranchiseCanada.Online

New CFA Members

Edge Food Equipment & Rental (Affiliate brand of Contours Interior Solutions) 110 Arrow Rd. Toronto, ON M9M 2M1 Johnpaul Cesario, President T (416) 744-9995 E Jpcesario@edgefoodequipment.com W www.edgeusedandrental.com

Halo Advisory

3250 Bloor Street West, Suite 600 Toronto, ON M8X 2X9 Stephen Thomas, Founder T (416) 995-2082 E info@haloadvisory.ca W www.haloadvisory.ca

It’s a big job to stay on top of the many laws, regulations, and emerging issues that affect your business.

The Canadian Franchise Association works with all levels of government to protect franchising and ensure the best possible outcome for all stakeholders.

Text Request

1601 Gulf Street, Suite 300 Chattanooga, TN 37408 Brian Elrod, CEO T (423) 218-0111 E brian.elrod@textrequest.com W www.textrequest.com

Verona Building Partners Ltd 55 Village Centre Place, Suite 200 Mississauga, ON L4Z 1V9 Andre Henriques, Director T (905) 608-3717 E Andre@veronabp.ca W www.veronabp.ca

Do you know of any issue impacting franchising of which CFA should be made aware?

Let us know by contacting David Black, Director, Government Relations & Public Policy, at dblack@cfa.ca or 416-695-2896 ext. 297.

Canadian Franchise Association

The Franchise Voice // Winter 2020

41

Upcoming CFA Events

February 22 & 23, 2020 Exhibition Place Toronto, ON

Fall, 2020 Montreal, QC

October 24 & 25, 2020 Exhibition Place Toronto, ON

To book tradeshow space, contact: Jill Todd 1-800-665-4232, Ext. 223 jtodd@cfa.ca

ndar!

Mark Your Cale

NOW FREE FOR CFA MEMBERS. For busy franchise professionals who don’t always have time to attend off-site events but still wish to take advantage of CFA’s exceptional educational programming, CFA has redeveloped its online educational offering to bring you an expanded lineup of Learn & Grow Webinars. Please visit www.cfa.ca/events/webinars/ for more information and to view our full calendar of webinars.

Important CFA Dates and Deadlines

March 4, 2020

Contact Gwen Dunant at gdunant@cfa.ca or 1-877-254-0097

What You Should Know Before Expanding Into Quebec

Franchise Canada July/August 2020 issue Ad sales close: April 17, 2020 Franchise Canada September/October 2020 issue Ad sales close: June 19, 2020 Franchise Voice Spring issue Ad sales close: March 30, 2020

April 15, 2020

How to Avoid Workplace Burnout – Finding Balance in the Workplace

February 23, 2020 Toronto, ON

September, 2020 Montreal, QC

October 25, 2020 Toronto, ON

April 4-6, 2020 Le Westin in Montreal Montreal, QC CENTRAL

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Lionhead Golf Club & Conference Centre MISSISSAUGA, ON

Mayfair Lakes Golf & Country Club RICHMOND, BC

Tuesday, June 2, 2020

Thursday, June 11, 2020

May 13, 2020 CIBC Offices – Commerce Court West 199 Bay Street, 56th Floor Toronto, ON

42 The Franchise Voice // Winter 2020

For more information contact Janet O’Connell, Senior Manager, Events, at joconnell@cfa.ca or 416-695-2896 ext. 251.

www.cfa.ca | www.FranchiseCanada.Online

CFA’S VALUE MEMBER PROGRAMS Don’t miss out!

Registration for 2020 opens November 2019.

The CFA Awards Program recognizes excellence in franchise operations and celebrates the mutuallyrewarding relationship between a franchise system and its franchisees.

Please visit our website at: https://www.cfa.ca/ cfa-programs-publications/cfa-awards-program/

Connecting Military Personnel with Franchise Opportunities Become a member of CFA’s Military Veterans Program and encourage Military Veterans Reservists, Members of the Regular Force, Retired Members and their Spouses to become franchisees by offering them a discount or special incentive.

Please visit our website at: lookforafranchise.ca/cfa-military-veterans-program/

Connecting you with Communities across Canada Find your next franchise location with the help of CFA’s Regional Economic Development Directory.

Please visit our website at: www.cfa.ca/members-only-area/REDD

Don’t go at it alone when you don’t have to.

Become a mentee or mentor with CFA’s Zor-2-Zor Program and gain/provide valuable business advice and support!

Please visit our website at: www.cfa.ca/members-only-area/ cfa-member-savings-program-details/

Get Ready.

Get Set. Get Saving!

Boost your bottom line with CFA’s Member Savings Program!

Please visit our website at: www.cfa.ca/members-only-area/ cfa-member-savings-program-details/

To learn more about CFA’s Member Programs, contact Alexandra Mann, Manager, Member Programs at amann@cfa.ca or call 1-800-695-4232 ext. 290.

A Bright Idea In this feature, we bring you a bright idea from a CFA member – a simple tip, piece of advice, or business / life hack that you might want to adopt. If you have a ‘Bright Idea’ you’d like to share with CFA members, please send an email to editor@cfa.ca highlighting your idea.

Matt’s Bright Idea:

Make instilling culture amongst franchisees a key objective Matt Crowell, Founder and CEO, GetintheLoop www.getinthelooplocal.com/lovethegrind

W

e talk about the culture we’ve built at GetintheLoop a fair bit. We’ve grown from a small team of three or four to over 140 “Loopers” across the country and finding ways to instill our culture has been a key objective.

Of course, a strong culture helps keep turnover down, but we’ve found that a strong culture also fosters greater innovation, problem-solving, and teamwork.

I think it’s been a really unique process. We always talk about how our culture is built by the team growing together and everybody inside the team builds on it. Culture grows from within and our small original team built the template or pillars of our culture that exists today.

To start, for us it was all about being a company that truly cares about its mission: giving small businesses a local voice and inspiring consumers to shop local. When dollars are spent with locally owned businesses or even businesses that just hire local employees and pay local taxes, much of that money stays local and supports a thriving community.

The second pillar that’s particularly important to us when hiring new team members is a high level of dedication, commitment, and teamwork skills. We actually call ourselves the Wolf Pack and I think that speaks to how we support each other and how persistent we are at working toward our mission.

While not exactly a formula, there are a few things we do that foster our culture: • Create transparency in a super flat organization: Every single member of our team and every single franchise owner across the country has direct access to me or any member of our team and vice versa. We’re all working together to grow GetintheLoop. Creating transparency and an open environment helps create a culture of innovation. There’s

44 The Franchise Voice // Winter 2020

no such thing as a wrong question when we’re all pushing forward together.

• Over-communication: We are always thinking about how to improve communication with our franchise owners and home office team members. We host webinars where everybody can call in and ask questions and learn from each other.

Our local owners and franchise support teams communicate and chat through Slack regularly and the executive team holds video ‘open house’ fireside chats where anyone can ask a question. Anybody on the team can ask a question, call a meeting, and push forward a project at any time. So, it’s a really open mindset where there’s a lot of communication.

• Having a lot of fun together: We just held our first Wolfpack Summit, where our local franchise owners came to Kelowna for three days of learning and excitement. It was a great opportunity for our local owners to meet and network with like-minded counterparts and entrepreneurs from across our group. It was amazing as everyone was “cheersing”, having a coffee together, and getting to know each other.

We try and make sure that when we get together and facilitate these events, that it’s a good time and that it helps build the culture.

We really believe the whole mantra here at GetintheLoop is ‘you gotta love what you do’. That’s what Love the Grind - my personal blog - is all about. Again, it’s another way we are learning and communicating to benefit the entire group.

We are launching a podcast this quarter as a way to connect with entrepreneurs considering buying a GetintheLoop franchise while at the same time, we are creating an internal podcast exclusively for our team. It’s another way we are innovating our approach to communication and culture.

The one thing we’ve known from very early on is that culture builds from within, and together. It’s something that continues to evolve, and it builds like a snowball.

www.cfa.ca | www.FranchiseCanada.Online

CONTACT LISA RAFFAELE e: lisa@fishmancanada.com / p: 416.304.9087 ext.239 www.fishmancanada.com 179 JOHN STREET SUITE 101 TORONTO ON FISHMAN CANADA INC.

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1. American Express® Maps is intended for general reference purposes only and does not represent a comprehensive list of all Card accepting merchants. Recommendations and other information included on the map are derived from internal American Express and third party data. Data is updated from time to time and may not be 100% accurate. American Express does not accept any responsibility or liability arising from any inaccuracies. You understand and agree that your use of the map is your choice and at your sole risk and that the map is provided to you ‘as is’ and ‘as available’. List of Card accepting merchants is updated monthly.

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