The Franchise Voice (Winter 2021)

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 202 1

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MEMBER MAGAZINE

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Contents // WINTER 2021

18 Features 16

28 How Franchises Can Identify and

Advocacy Updates

Departments

18 A Brave New Virtual World!

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The Canadian Franchise Association supports CFA members through informative and innovative virtual events

22 The Strength of Franchising

23 Economic Recovery in 2021 Looks Promising Thanks to COVID-19 Vaccine

25 Shopping for the Future Five pandemic shopping habits that are here to stay

26

Notes on a Pandemic

Canadian Franchise Association

6

Chair’s Message

8

President’s Message

44 Welcome New CFA Members 48

A Bright Idea

The Canadian franchising community 12 CFA Headline News What“new is the CFA normal”, doing for you? together enters the

Why franchising will continue to be a strong option for Canadian entrepreneurs in 2021

43 Raising the Profile of Franchising

WEATHERING THE STORM Recruit Their Ideal Franchisees

30

Real Life Lessons: The Role of Technology in Business and Franchising

32

Franchise Legal

34 Legal Digest 38 Marketability

Advertisers’ Index American Express ������������������������������������������������������� 5, 7

AXIS Integrated �����������������������������������������������������������������2 BDO ����������������������������������������������������������������������������������10-11 CIBC �������������������������������������������������������������������������������������� 39 Fairhart Productions ���������������������������������������������������� 31 Fishman Canada Inc. ����������������������������������������������������9 Hoffer Adler ����������������������������������������������������������������������� 41

Using Dynamic Location Data for Marketing in the New Normal

Insuranceland ������������������������������������������������������������������ 13

40 Hot Off the Press: CFA Member News

To advertise in The Franchise Voice, contact Nav Matharu at nmatharu@cfa.ca

Moneris ���������������������������������������������������������������������������������14

The Franchise Voice // Winter 2021

3

MEMBER MAGAZINE

WINTER 2021

Credits PUBLISHER: Canadian Franchise Association

Purpose:

VP, CONTENT & MARKETING: Kenny Chan

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

EDITOR: Andrew Schopp

Mission:

EDITORIAL ASSISTANT: Stefanie Ucci

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.

GRAPHIC DESIGNER: Andrea Lee

FOR ADVERTISING INFORMATION:

Nav Matharu nmatharu@cfa.ca

CFA Board of Directors BOARD CHAIR

Gerry Docherty*, Good Earth Coffeehouse PRESIDENT & CEO

Sherry McNeil*, Canadian Franchise Association 1ST VICE CHAIR

David Druker*, The UPS Store Canada TREASURER

Lyn Little, BDO Canada LLP SECRETARY & GENERAL COUNSEL

Larry Weinberg*, Cassels Brock & Blackwell LLP PAST CHAIR

John DeHart*, Hartify Franchise Consulting CHAIR, LEGAL & LEGISLATIVE COMMITTEE

Darrell Jarvis*, Fasken

CHAIR, FRANCHISE SUPPORT SERVICES

Kirk Allen*, Reshift Media Inc. *Executive Committee member

DIRECTORS

Steve Collette, 3rd Degree Training/Affordable Canadian Movers John Gilson, COBS Bread Andrew Hrywnak, Print Three Franchising Corporation Rimma S. Jaciw, CFE, WSI Digital Ken Otto, Redberry Ryan Picklyk, A&W Food Services of Canada Inc. Gary Prenevost, FranNet Stephen Schober, Metal Supermarkets Family of Companies Frank Stanschus, Little Kickers

© 2021, Canadian Franchise Association (CFA).

All rights reserved. Contents of this publication may not be reproduced either wholly or in part, without the consent of the CFA. Canadian Franchise Association 5399 Eglinton Avenue West, Suite 116 Toronto, Ontario M9C 5K6 Ph: 416-695-2896 or 800-665-4232 F: 416-695-1950 / W: www.cfa.ca / E: info@cfa.ca Legal Disclaimer: The opinions or viewpoints expressed herein do not necessarily reflect those of the Canadian Franchise Association (CFA). Where materials and content were prepared by persons and/or entities other than the CFA, the said other persons and/or entities are solely responsible for their content. The information provided herein is intended only as general information that may or may not reflect the most current developments. The mention of particular companies or individuals does not represent an endorsement by the CFA. Information on legal matters should not be construed as legal advice. Although professionals may prepare these materials or be quoted in them, this information should not be used as a substitute for professional services. If legal or other professional advice is required, the services of a professional should be sought.

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 2021

www.cfa.ca | www.FranchiseCanada.Online

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Incoming Chair’s Message

Franchising Education in Trying Times

A

s CFA members, we have access to a key resource to help us navigate the increasingly challenging business landscape brought on by the COVID-19 pandemic: the most authoritative voices in the industry. Our membership, comprised of successful franchise systems and franchise support service supplier members, represents the core of the Canadian franchising community. In times like these, tapping into this great resource to equip your business with industry best practices is critical.

If you take a look at the CFA’s ongoing educational programming, you’ll notice a common thread. Whether it’s our Learn & Grow Webinars or the upcoming Franchise Development in the New Normal event, CFA educational programming is all about picking the brains of successful franchisors and franchise brands across the CFA membership base. Through our community-based programming, franchisors and suppliers alike can learn about the value of utilizing tried and proven practices and how they could be applied to their own systems.

For example, our upcoming Franchise Development in the New Normal event coming up on March 4 is led by a committee of seasoned franchising professionals from established brands: Joel Friedman (Inspiration Learning Center), Safiah Arooz (Mary Brown’s Chicken), Daniel Hopkins (Paul Davis Restoration), and Eric Steward (Pillar to Post Home Inspectors). The event will offer first-hand learnings from these and other inspiring and successful speakers about what they are doing and what tactics they have adopted to help ramp up franchise sales during the pandemic.

While you can adopt these tips and tricks to use today, you can likely continue to use them in the future as we move forward into a new normal in post-COVID-19 life.

6 The Franchise Voice // Winter 2021

As a community, the comprehensive knowledge and insight that CFA members bring to the table is invaluable during times like these.

This digital publication alone showcases why the CFA is looked at as the No. 1 authoritative voice of Canada’s franchising industry. Since becoming a CFA member, I have gained extensive insight into the industry that has proven invaluable. The voices of this incredible industry and what they offer in terms of best practices can be found in the digital pages of this very magazine.

From John Prittie of TWO MEN AND A TRUCK Canada’s “Real Life Lesson” (page 30) to Dani Bazely of Driverseat’s “Bright Idea” (page 48) featured in this issue of The Franchise Voice, to the CFA’s educational events, Virtual Franchise Canada Shows, Franchise Canada magazine, e-blasts, the LookForAFranchise.ca website, and a wide host of other offerings, it’s easy to see the benefits of membership.

Read the insightful articles contained within the pages of this publication with one simple question in mind: What can I learn from this issue that I can implement in my own franchise?

Gerry Docherty Chair, CFA Board of Directors

www.cfa.ca | www.FranchiseCanada.Online

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To learn more about the benefits of accepting American Express, and how we can support your marketing efforts, visit www.americanexpress.com/canada/becomeamerchant

1. American Express Maps features eligible American Express Card accepting small merchants and is intended for general reference purposes only. It does not represent a comprehensive list of all Card accepting merchants. Data is updated from time to time and may not be 100% accurate. For a list of eligibility criteria or to access Frequently Asked Questions please visit https://icm.aexp-static.com/content/dam/one-amex/merchant/en-ca/footer/default/CAFAQs.pdf.

President’s Message

I

Innovation to Meet Member Needs

t’s hard to believe it’s been almost a full year since COVID-19 was declared a global pandemic by the World Health Organization.

Throughout 2020, the pandemic presented a series of challenges unique to franchising. The pandemic has forced franchise systems to pivot their operations to address a wide range of unique challenges including issues with franchise agreements, commercial leases, supply chains, and technology, among many others.

At the CFA, we understand that the road to recovery is not without its challenges. Our Association, like our members, has faced many challenges and hurdles that we have had to overcome. But we forged ahead because we knew our members needed us to provide guidance, support, and resources to navigate these new challenges. As such, the CFA has adapted our programs and services so we can continue to provide our members with the community, education, lead generation, and advocacy work you need to protect and strengthen your business.

We created new opportunities for the CFA community to come together in a virtual environment: •L ead Generation: Our Franchisor Spotlight Series and Virtual Franchise Canada Shows have allowed members to continue showcasing their brand to prospective franchisees. We also relaunched LookForaFranchise.ca – the official online franchise directory of the CFA – to provide both users and advertisers with an improved experience.

• Education: We’ve revamped our Learn & Grow Webinars program, providing a platform for leading franchise experts to lead discussions on a variety of hot topics in franchising, such as the COVID-19 vaccine and what it means for franchising and the workplace. The Smart Growth for Emerging Franchisors event - the first of its kind for the CFA - was a great demonstration of the value of member-driven content and agendas. The upcoming Franchise Development in the New Normal event on March 4 will explore how systems can implement new technologies and techniques effectively to keep leads engaged and pipelines flowing.

•A dvocacy: During times like these, advocating for the franchise industry is of the utmost importance. On that front, we continue to meet with the government to stay on top of the many laws, regulations, and emerging issues that affect your business in a challenging environment. We work with all levels of government to protect franchising and ensure the best possible outcome for all stakeholders.

8 The Franchise Voice // Winter 2021

There are more engaging programs and services to come in 2021, including new virtual events focused on franchise development and women in franchising and a revamped Members Only Area and Supplier Directory on cfa.ca.

Despite the challenges of 2020 and into 2021, franchising continues to be a powerful element of the Canadian economy. Franchises continue to play a vital role in the everyday lives of Canadians in the “new normal.” From food delivery to home improvement to child care, Canadians continue to rely on franchised businesses to serve them. As far as prospective franchisees are concerned, they’ve taken notice. Website traffic on LookForaFranchise.ca indicates that interest in franchising is growing. As a CFA member, you play a vital part in making this possible and your CFA membership demonstrates your commitment to enhancing Canadian franchising at this critical time.

The CFA believes in the power of Growing Together™ because franchising is ultimately about people working together and sharing success. At the CFA, we work with you to help you reach your goals by providing support, learning resources, and growth opportunities. If you have any questions about any CFA programs, we invite you to reach out to Alexandra Mann, Manager of Member Engagement, at amann@cfa.ca. Remember that your CFA membership is corporate, which means everyone in your franchise system – from head office staff to your franchisees and their staff - can access CFA member benefits.

Thank you again for your continued CFA membership. We are proud to have you as a member and look forward to serving you, your corporate team, and all your franchisees.

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

www.cfa.ca | www.FranchiseCanada.Online

ADVERTORIAL

A sign of franchise excellence SpeedPro’s Joanne Ruston makes winning look easy W R I T T E N BY J E F F L A K E

W

hat does it take to be a five-time Franchise of the Year Award Winner and Franchisee of the Decade award?

“That’s an easy one,” says Joanne Ruston. “You have to have amazing customer service, quality products, competitive pricing, professionalism, and great communication.”

As a female franchise leader, she has raised the bar for those trying to emulate her success in franchising. Joanne left a successful career in the travel industry in 2001 to launch her new career as the owner of SpeedPro Signs Calgary Northeast location.

“Originally I wanted to buy an existing franchise, then I researched SpeedPro and felt it was an even better opportunity then buying from an existing owner. I had no previous experience. I knew nothing about signs and I had worked for 20 years before buying a franchise,” she said.

The odds were against her. The first week she Joanne Ruston with her Franchisee of the Decade award. opened was the week of September 11, 2001. As a new owner it took courage, a positive attitude and Asked how she has adapted her business during the pandemic, an open mind. “During 911, Calgary was a ghost town. I can tell she said they had to take precautions to ensure employee and you I had major doubts the first year. It took awhile, but I was so customer safety, installing new signage and curbside pickup and determined, I didn’t look twice.” from there it shifted to installing a light-activated self-cleaning What made it more challenging was her approach to selling. film product that kills Covid 19 on high touch areas and making “I’m a relationship seller, not a knock-on door type. My peracrylic sneezeguards and distance and directional signage for sonality is not to be pushy, but I became a good networker and her customers. focused on constantly learning, which SpeedPro really helped She has adapted to the changes in technology over the past 20 me,” Joanne added. years by joining the trade associations for sign retailers, attendCalgary was growing fast and competition in the print business ing annual sign trade shows and receiving the ongoing assistance was fierce. Yet despite these challenges, Joanne started to gain from SpeedPro’s corporate office. Even after 20 years, she says traction, earning her first Franchise of the Year award after four she is constantly learning, which is why she tells new SpeedPro years in business. franchise owners to call her any time.

She credits her networking, enthusiasm, giving back to the comAs for what she would tell a woman considering purchasing a munity and building loyalty and systems she developed for confranchise, Joanne offers her insights: “It takes courage and hard tributing to her success. work. You have to have a positive attitude. Ensure your staff pro“Our vision is to be known as the solutions centre. I laugh vides excellent customer service. Always work to keep your conbecause we’ve talked customers out of expensive signs, even fidence and enthusiasm up and concentrating on ways you can when they asked for them because that wasn’t the right solution bring a smile to customer’s face.” for them,” she said.

What does future hold for this franchise leader? “I would love She worked with her business coach to ensure consistency to be a little more hands-off but also keep in touch for a few years in customer approach. This resulted in implementing a 5-step before retiring. I want to make sure the new owner has same valREACH assessment for every customer: ues as mine.”

Maybe that explains the 125 5-star Google reviews her franchise R – reason for sign? has earned.

E – effect of sign?

A – audience who is the sign targeting?

C – context – optimal location Jeff Lake is President of Fishman Canada, which specializes in H – hardware – what medium best suits your needs? providing PR excellence for franchises. Visit: fishmancanada.com.

ADVERTORIAL

Embracing System-Wide Bookkeeping and Compliance Expert Lyn Little, BDO Canada LLP, encourages franchise systems to introduce a system-wide bookkeeping solution

T

he comfort of being a franchisee means you always have the support of a franchise system behind you.

As the saying goes, you’re in business for yourself, but not by yourself. There’s a wide variety of obligations that a franchisee must be well equipped for, and many responsibilities the franchisor must maintain to support their franchise partners.

Among the day-to-day work that goes into owning a franchise is the system-wide bookkeeping and compliance as part of the brand’s business model. Both franchisees and franchisors are responsible for upholding this relationship.

Lyn Little, partner at BDO Canada LLP, advises franchisors to consider the idea of a common bookkeeping affiliation as part of the franchise agreement, to support transparent, beneficial working relationships with franchisees and improved reporting.

There are a variety of factors that go into establishing a consistent and successful bookkeeping arrangement that you should consider.

Easy access to data is key Having access to accurate financial data is the responsibility of both the franchisor and franchisees in a system. Little explains the individual reasons that each party should play a role in the ongoing reporting process.

For franchisees, she says that access to financial data allows them to understand their current financial position as a whole, rather than just looking at it from the perspective of the current cash position.

“Quality internal reporting will allow franchisees to make better decisions, understand where their cash will be going over the upcoming period, and to know whether they are actually making money in any given period,” says Little.

As for franchisors, access to consistent franchisee financial data enables them to assess their franchisees and determine if there are any risk factors. Franchisors can also evaluate which franchisees may be a good fit for additional units, and if the submitted financial statements make sense

from the perspective of royalties, ad fees, or any other fees.

Additionally, Little adds that franchisors can assist those franchisees that may be struggling, and gain a better understanding of those franchisees that are doing very well, in order to assist the system as a whole to perform better.

Types of financial data to provide In our fast-paced and ever-changing society, it’s vital that franchise brands can respond quickly and effectively to any market changes. Franchisors obtaining internal monthly financial information from franchisees can help them understand and adapt to these persistent fluctuations.

Little explains that the type of documents that franchisees should provide includes monthly financial statements featuring consistent categorization of data, which can further help franchisors assess their financial performance. “Franchisors should also have access to more detailed breakdowns of relevant revenue and costs,

ADVERTORIAL

either directly from the POS system or from franchisees directly, so they can understand the market for products, in order to utilize this information in pricing, benchmarking franchisees, and guiding franchisees to improved profitability,” says Little.

But franchisors can provide value from the franchisee financial information as well. She recommends that franchisors consider providing aggregated financial data either for the whole franchise brand or just franchisees according to a specific size or market type. This allows those franchisees to evaluate their own financial position benchmarked to other franchise partners in the system, in order to get an understanding of what other franchisees in the brand are currently experiencing. Plus, this information helps franchisees identify key areas they need to work on to improve their profitability and overall success.

Little says that having access to specific financial data should be included within the franchise agreement, where possible, since support from the top down encourages continued success. “There should also be follow-up from the start to ensure that this information is being prepared and received by the franchisor, to reduce potential compliance issues down the road,” she says.

“By including this requirement as part of the agreement, the franchisees understand that this is an inherent part of being a franchisee. Then, even if not used regularly, the franchisor has access to the historical franchisee information if a franchisee should run into financial issues, or if there is concern about misstatement of royalties down the road.”

The benefits of a bookkeeping agreement Franchisors may worry that having reporting or bookkeeping included in the franchise agreement may cause “over-stepping” of the lines within the franchisor and franchisee relationship. These concerns can be alleviated by understanding that forming this relationship will help the brand succeed in the long run, especially as the franchise system grows.

According to Little, the easiest time to include reporting/bookkeeping requirement is at the beginning of a franchise brand’s journey, when their system is still small and franchise partners are beginning to join the team. This means adoption of a reporting and bookkeeping system is part of the process of becoming a franchi-

“Quality internal reporting will allow franchisees to make better decisions, understand where their cash will be going over the upcoming period, and to know whether they are actually making money in any given period.” see, rather than requiring existing franchisees to change their reporting processes and relationships with current providers, which may be difficult to adopt later on.

“Many of the large franchise systems require regular reporting of financial information, while it is still not common to include a bookkeeping provider in the agreement,” says Little. “The reason for this often relates to change management, as many franchisors do not consider the issues that they would experience with being able to obtain timely, consistent, and accurate financial information from franchisees until their system gets larger.”

Meanwhile, franchisors that introduce a common bookkeeping affiliation later into their franchise journey and after developing many franchisees, need to manage the change in an approachable and easily adoptable way. “Some ways to do so would be to have some friendly franchisees with strong relationships in the system early adopt the bookkeeping provider in question,” explains Little. “Should the adoption be successful, these franchisees can help sell the change to the remainder of the system. The franchisor could support the bookkeeping provider as an approved supplier and/or could provide opportunities

for the supplier to speak at franchise conventions or shows to any new franchisees, allowing some moderate adoption within the system before considering implementing system wide.”

She adds that franchisors may also consider providing financial support for a period of time during this transition to compensate and reward franchisees for making the bookkeeping transition, which they may be reluctant to adopt after they’ve already established their own system and processes for their business.

Examining the moving parts Little explains that including reporting within the agreement will generally cover the supplier/system and the processes for a franchise.

The agreement may reference to an approved supplier and accounting system, though the supplier generally would not be disclosed, to allow for flexibility should changes be required down the road, says Little.

Meanwhile, the processes deliver a reference to “a standard chart of accounts” that are developed outside of the franchise agreement. Little adds, “Standard timelines should be outlined, including monthly and annual financial information required.”

While franchisors may be reluctant to adopt reporting into their new or existing franchise system overall, Little welcomes a reporting or bookkeeping inclusion in all franchise agreements as a key step during the onboarding process for new franchisees.

Lyn Little, CPA, CA Partner, National Franchise Industry Leader Direct: 905-633-4942 llittle@bdo.ca

CFA Headline News What is the CFA doing for you?

The 2021 Franchise Canada Directory Is Available Now In January, the CFA published the 2021 Franchise Canada Directory as a digital flipbook available for purchase by prospective franchisees and the general public, and distributed for free to all CFA members. The annual directory is the most comprehensive guide to franchise opportunities available across Canada. Inside are listings for more than 1,300 franchise brands, including more than 150 pages of listings for franchise brands and franchise support services/suppliers.

The print Franchise Canada Directory is coming soon to your mailbox and will be available on newsstands in March 2021. To ensure you receive a print copy, please email editor@cfa.ca.

Check out the 2021 Franchise Canada Directory here: https://issuu.com/franchisecanada/docs/dir2021

The 2021 FSS Directory is Now Available As a franchise system grows, franchisors will inevitably look for support suppliers to help build their business. The 2021 Franchise Support Services/Supplier Directory features dozens of CFA members including accountants and bookkeepers, banks and financial services, franchise consulting services, digital marketing and website development, franchise lawyers, and more.

View the 2021 FSS Directory: https://issuu.com/franchisecanada/docs/dir21_fss_v14_jan14_forweb

CFE Program Launches in July 2021 The Canadian Franchise Association (CFA) has partnered with the International Franchise Association (IFA) to establish the Certified Franchise Executive (CFE) Certification Program which provides diverse franchise education for individuals and organizations across Canada.

Through the CFE program, participants will be offered the highest standards of education that helps small business owners, managers, and franchise executives.

The diverse range of course offerings include franchise management, leadership, and small business insights into franchise strategy and operations. Individuals at emerging companies will learn how to run a small business and established leaders will learn how to successfully grow their enterprise.

We are currently in the process of finalizing the CFE educational program which will officially launch this july. Stay tuned for additional information!

Visit www.cfa.ca/cfe-program to learn more.

New CFA.ca and LookForaFranchise.ca websites!

In January, the CFA launched new-and-improved websites for the Association on CFA.ca and LookForaFranchise.ca, our official online franchise directory.

12 The Franchise Voice // Winter 2021

LookForaFranchise.ca is a key resource for Canadians who are serious about buying a franchise and our new websites provides users with a faster, more user-friendly experience.

The CFA Goes Across Canada with Virtual Franchise Canada Shows In 2020, the CFA took Franchise Canada Shows virtual to protect Canadians while still offering the same educational resources and franchise opportunities for prospective franchisees. The event helps prospective franchisees prepare for franchise ownership success so they can make their entrepreneurial dreams come true. This winter, Canadians from coast to coast attended Virtual Franchise Canada Shows in Toronto on January 23 and the Prairies on February 4.

Stay tuned for the following Virtual Franchise Canada Shows coming up soon: • Atlantic – Thursday, March 25 • Quebec – Thursday, April 15 • Pacific – Saturday, May 15 Visit https://cfa.ca/virtual-franchise-show/ to learn more!

CFA Hosts Virtual Franchise Your Business On February 2, the CFA welcomed members and non-members to attend the Virtual Franchise Your Business seminar to gain the knowledge and tools needed to grow their business. The seminar is a one-stop shop for all business owners looking to expand their businesses quickly, cost-effectively, and successfully.

The event featured consultant expert Stephane Breault, Imagine Franchise Consultant Inc.; legal expert Larry Weinberg, Cassels; finance expert Adam Vollering, Bank of Montreal; marketing expert Patti Hone, As You Like It Marketing & Communications; operations manual expert Daniel Levy, iFranchise Group; and a franchisor success story from Thomas Wong, Chatime Group.

On-demand videos from Virtual Franchise Your Business are available for purchase here: https://cfa.swoogo.com/franchiseyourbusinessfebruary/begin

Network with Fellow CFA Members at Monthly CFA Franchise Socials!

With Canadians spending more time apart over the past year, the CFA has introduced Franchise Socials to strengthen our community and help CFA members network with each other. Each month, members are invited to sit down for a relaxed virtual get-together to discuss various topics about how to better both our personal lives and the franchising community.

On November 26, we discussed How to Create/Enhance Virtual Experiences to Match In-Person Experiences; December 9 featured an Ugly Sweater Holiday Social; January 21 discussed how to be

www.cfa.ca | www.FranchiseCanada.Online

CFA Headline News successful on LinkedIn; and on February 11, we talked about Wellness for Performance, both at home and at work.

The Virtual Franchise Social is open to ALL CFA members and is a great way to expand your network and celebrate being part of a wonderful community!

Save the date and grab a drink of your choice for our next CFA Franchise Social on March 11! Join us for a cozy Thursday afternoon as we chat about our various offerings and how you can use these resources to maximize your CFA membership and grow your system during these uncertain and difficult times.

$5K GIVEAWAY

Register here: https://bit.ly/3qVkGuq

CFA Introduces New Membership Committees The CFA recently transformed the Membership Committee into three subcommittees: Acquisition Committee, Onboarding Committee, and Renewal Committee. The first two Committees launched in January 2021, and are focused on recruiting and onboarding, respectively, new members to the CFA. The onboarding subcommittee is comprised of the following CFA members: Ryan Picklyk, A&W (Chair), Viraf Balliwalla, Transition Squad; Shawn Campbell, BMO; Maureen Catania, ServiceMaster; Amy Delisle, KMB Law; Peter Drutz, Comfort Keepers; Andrea Mackey, Wise Cracks Concrete; Frank Stanschus, Little Kickers; Charmaine Tavares, SilverChef; and Frank Zaid, FRANlegal.

The acquisition sub-committee is comprised of the following CFA members: Steve Collette, 3rd Degree Training (Chair); Joel Friedman, Inspiration Learning Center; Alex Grudkin, Brioche Dorée; Doug Warren, Trade Secrets; and Bruce Winstanley, NFI. Through this transformed initiative, CFA hosts monthly Membership Onboarding Webinars as part of the onboarding process where new CFA members are invited to join for an informative warm welcome about what the CFA does and how to participate in upcoming opportunities. The next webinars will take place on March 9, April 13, and May 11.

If you are interested in participating, please email Alexandra Mann at amann@cfa.ca.

The CFA Hosts Ask an Expert Roundtable Mentorships for Franchisors Each month, The CFA holds Ask an Expert Roundtables featuring guided discussions facilitated by an expert on a certain relevant topic, while encouraging peer-to-peer discussion on the topic at hand. The roundtables are currently exclusive to franchisors and invite a maximum of 10 people to participate.

The next Ask an Expert Roundtable will be facilitated by Frank Zaid of FRANlegal on March 23 and will focus on how to resolve disputes with your franchisees without litigation.

Starting September 1, 2020, get a quote on car or home insurance through Insuranceland and you’ll be entered to win a cash prize of $5,000 in the $5K Giveaway.

26 prizes of $5,000 will be awarded between November 2020 and April 2021!

CONTEST CLOSES MARCH 31, 2021.

Don't Delay, Call Today!

905-238-0668 ext. 2338 1-800-243-9379 ext. 2338 www.insuranceland.ca insurancelandinc

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If you are interested in participating, please email Alexandra Mann at amann@cfa.ca.

Canadian Franchise Association

The Franchise Voice // Winter 2021

13

CFA Headline News Franchise Canada Chats Podcast Season 4 Premieres this Spring Season 4 of the Franchise Canada Chats Podcast will premiere on March 19! In this season, we take listeners through an educational and inspiring journey into the stories of franchisors, franchisees, and industry leaders who have successfully navigated the uncertain times of the COVID-19 pandemic. Stay tuned for new episodes debuting every Friday.

to attract the right leads and grow your franchise system in this “new normal” of the COVID-19 pandemic.

Register here: https://cfa.swoogo.com/franchisedevnewnormal/begin

Share Your News with the CFA’s Prospective Franchisee Audience!

You can listen to past seasons at https://cfa.ca/franchisecanada/listen/. You can also subscribe to the Franchise Canada Chats Podcast on SoundCloud, iTunes, Stitcher, Spotify, or GooglePlay.

Save the Date for the Following CFA Events this Spring: Franchise Development in the New Normal Join the CFA on March 4 for the virtual Franchise Development in the New Normal seminar to gain practical tips and data-backed insights from the experts to guide your decisions and successfully grow your franchise in today’s landscape.

This seminar aimed at franchisors will provide learning opportunities from experts in a variety of areas and will feature concurrent sessions on How to Find New Franchisees Using Digital Marketing; Practical Tips for Frontline Salespeople; Financial Support and Funding for Franchises; and Tricks of the Trades from Actual Salespeople. Presenters will also host roundtable sessions to connect directly with attendees as they provide advice on how

Keep prospective franchisees up to date about what’s happening with your brand by submitting any news items/press releases today!

News items are published in the Industry News section of FranchiseCanada.

Online, and promoted through email and social marketing.

Send your news items to editor@cfa.ca

Preferred payment processing rates for CFA members, just like you.

Accept payments with Moneris® and get preferred rates through your CFA membership. From secure payment processing products to helpful business management tools, Moneris has the right solution to meet your unique franchise needs.

To sign up with Moneris and take advantage of the CFA Member Savings Program, please call 1-888-552-0341 or visit moneris.com/associations.

14 The Franchise Voice // Winter 2021

www.cfa.ca | www.FranchiseCanada.Online

CERTIFIED FRANCHISE EXECUTIVE™ PROGRAM

The Canadian Franchise Association (CFA) has partnered with the International Franchise Association (IFA) to licence their Certified Franchise Executive (CFE) Certification Program for Canada.

CFA’s CFE Program The goal of the CFE Program is to educate individuals and organizations to the highest standards. This program is a leading resource to help franchise executives, managers, and small business owners accelerate individual and organizational growth.

Certification speaks to a higher standard of professionalism and raises the bar for franchise training as a whole.

Due to unforeseen circumstances brought about by the COVID-19 pandemic, the CFA’s CFE Program launch has been pushed back to July 2021.

“For me, the CFE program represents a turning point in my involvement in the franchising world. I had been attending a few franchising conferences in the past, but when I decided to participate in the program I significantly increased my conference attendance to receive training in person. Why? I had learned that although the content is good, the personal connections you can make with like-minded peers during the process is exceptional. Through this, I made several important connections which continue to pay off even today, several years later. I went from having a small circle to a large network in franchising via my CFE training.

Obviously, the pandemic limits face-to-face opportunities for learning, so I will mention I also did several online courses which I thoroughly enjoyed. For example, going deeper into understanding the drivers of unit-level economics during one of my courses not only enhanced my knowledge of the subject matter, it shifted how our business produces marketing material for people in franchising. The CFE program helps ensure everyone speaks the same language and aligns individuals on the key elements everyone should know in franchising.”

“Education, networking, professional and personal growth are vital for any franchise executive to continuously build credibility and expertise in an ever-changing industry. Being part of the Certified Franchise Executive (CFE) program has allowed me opportunities I might not have noticed ... but even more than that, the chance to build meaningful (and some lifetime) relationships with extraordinary and generous individuals.”

- Lori L. Kiser, CFE member since 2003

Watch our member testimonial

- Jason Kealey, President, FranchiseBlast

LEARN MORE AT www.cfa.ca/cfe-faq Questions about the CFE Program? Contact Meredith Lowry at mlowry@cfa.ca.

Advocacy Alert Common Employer: it’s a constant game of Whack-A-Mole Common employer or joint employer hits at the heart of the franchise business model. It can leave franchisors exposed to claims by franchisee employees for unpaid wages, overtime, vacation pay, benefits, termination notice, pay in lieu of notice, severance pay, wrongful and constructive dismissal, human rights violations, and payroll taxes.

In the United States, the expansion of common/joint employer has led to increased costs, less equity, and less support for franchisees.

There are several bills in several states across America that could have a serious impact on franchising and franchised business.

While there is no legislation in Canada, there is a very concerning case at the BC Labour Relations Board that the CFA is monitoring closely.

You need to be engaged The CFA needs your support – be active, be engaged because this is an issue that is always just under the surface.

We are constantly looking out for issues that could negatively affect franchising in Canada. It’s a constant game of Whack-AMole to protect you and your business.

Pushing for improvements to the Canada Small Business Finance Program The CFA continues to work with the federal government to improve the Canada Small Business Finance Program (CSBFP).

Many franchisors and franchisees use this program to finance new businesses in communities across Canada.

While the program works very well and has helped finance thousands of franchised businesses, there are a few areas that need improvement so that it can work even more effectively.

Increase maximum loan amount Under the current program criteria, the maximum loan amount a borrower can access under the CSBFP program is $1 million with $350,000 for equipment and leasehold improvements.

The CFA is advocating that the maximum loan, which has been unchanged for almost a decade, be increased to at least $1.5 million, with borrowers being allowed to use up to $1 million for equipment and leasehold improvements.

Allow working capital to be financed One of the largest concerns for a franchise is working capital, especially as they get started. Government statistics show that thousands of companies fail in Canada every year because they have no access to additional working capital.

In boom times, access to working capital was a challenge for many businesses, and COVID-19 has exacerbated this. During COVID-19, cash reserves have become more important than ever before and many companies are now taking longer to pay for goods and services to preserve cash. This has put more pressure on franchised and non-franchised businesses who must finance their day-to-day operations.

This is why we are pushing government to allow a portion of the CSBFP to be used for working capital. This move would help franchises to solve temporary cash flow issues and fund investments.

Allow soft costs such as franchise fees to be eligible expenses under the CSBFP In franchising, brands are the foundation for economic development and job creation. A franchise brand is more than its name; it is the entire experience that customers receive at each location, from the products or services received, to the interaction with the employees.

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.

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.

16 The Franchise Voice // Winter 2021

www.cfa.ca | www.FranchiseCanada.Online

Advocacy Alert Franchise fees are an intrinsic part of the franchise system.

These fees helps fund the training and support to new franchisees, which help get the new franchised location up and running.

The CFA is urging government to expand the CSBFP to include soft costs such as training, franchise fees, and some working capital to be considered eligible expenses under the program, which will allow traditional business, bricks and mortar franchised businesses, and non-traditional/homebased/service-based franchises to benefit from the program.

These changes will help with the recovery The changes we are proposing will help more businesses to take advantage of the program, helping spur economic growth as we recover from COVID-19.

The Canadian Franchise Association’s (CFA)

mission is to help everyday Canadians realize the dream of building their own business through the power of franchising and, as part of that help, advocating for the franchise model is essential.

Part of what makes CFA’s advocacy work successful is the commitment that leaders like you have made to support our government relations program. It is voluntary donations from CFA members that help fund our nationwide activities and get the word out about the power and importance of franchising to everyday Canadians.

Government must continue to use 2019 as the baseline for support programs It’s been just over a year since the first case of COVID-19 was detected in Canada. Since then, it has impacted every aspect of our lives.

Franchised businesses across the country have faced unprecedented challenges and many have benefited from the support programs put in place by the federal and provincial governments.

Many of these programs are based on a business comparing their revenues between this month and the same month the year before or by comparing this month to an average of January and February.

When these programs were created, none of us would have expected that almost 12 months later, we would be in different stages of lockdown and stay-at-home orders across the country.

The CFA and other business organizations are actively lobbying governments to ensure that the baseline for qualifying for these programs should be a comparison between this month and the same month of 2019.

That means, if your business was down in March 2021 compared to March 2019, then you would continue to qualify for the Canada Emergency Wage Subsidy (CEWS), Canada Emergency Rent Subsidy (CERS), etc.

Trying to help new businesses qualify One major flaw in the federal and provincial support programs is that new business do not qualify for support.

Many franchised and non-franchised businesses started businesses, signed leases, took out loans, and made plans long before COVID-19 landed in Canada and no one could have foreseen how severe and long the pandemic has lasted.

The CFA is lobbying government to try and get a change that would allow these new businesses to qualify for some of the government support programs such as the CEWS and CERS to help them stay in businesses as the stay-at-home orders end and the economy recovers.

Canadian Franchise Association

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A Brave New Virtual World!

The Canadian Franchise Association supports CFA members through informative and innovative virtual events As highlighted by RBC in their Macroeconomic Outlook (page 25), the roll-out of COVID19 vaccines across the world shines a positive light on 2021. Throughout the course of this unprecedented pandemic, the CFA has been focused on helping our members conquer the hurdles presented by COVID-19. Taking bookkeeping to the cloud, managing franchisee on-boarding in a virtual world, and accessing government programs are just some of the topics the CFA has covered through our wide range of virtual events such as the Business Recovery Summit Series, Smart Growth for Emerging Franchisors, and Learn & Grow Webinars.

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www.cfa.ca | www.FranchiseCanada.Online

A Brave New Virtual World!

Coming Up Next: The Road to Recovery

Moving forward into the “new normal”, the CFA’s upcoming events are aimed at getting our members prepared for the road ahead as we enter a post-COVID-19 world. The CFA is proud to offer a wide range of educational programs and networking events to all our members to help them become best-in-class franchisors providing critical support to their franchisees during these tough times. This results in happy and thriving franchises, propping up the Canadian franchising industry as a whole.

Whether it’s our Learn & Grow Webinars or the upcoming Franchise Development in the New Normal event, CFA educational programming is all about picking the brains of successful franchisors and franchise brands across the CFA membership base. Through our communitybased programming, franchisors and suppliers alike can learn about the value of utilizing tried and proven practices and how they could be applied to their own systems as we continue along on the road to recovery.

Franchise Development in the New Normal Join the CFA on March 4 for the virtual Franchise Development in the New Normal seminar to gain practical tips and data-backed insights from the experts to guide your decisions and successfully grow your franchise in today’s landscape.

This seminar aimed at franchisors will provide learning opportunities from experts in a variety of areas and will feature concurrent sessions on How to Find New Franchisees Using Digital Marketing; Practical Tips to Close Sales Today; Financial Support and Funding for Franchises; and Tricks of the Trades from Actual Salespeople. Presenters will also host roundtable sessions to connect directly with attendees as they provide advice on how to attract the right leads and grow your franchise system in this “new normal” of the COVID-19 pandemic.

Register here: https://cfa.swoogo.com/franchisedevnewnormal/begin

Canadian Franchise Association

Learn & Grow Webinars Join the CFA each week for Learn & Grow Webinars that are available for free to all CFA members. These hour-long sessions are hosted by leading franchise experts who discuss a variety of hot topics to keep you up to date on what’s happening in your industry.

On March 17, attend the session “The COVID-19 Vaccine and its Implications in the Workplace” featuring speakers Peter Drutz, president of Comfort Keepers; Matthew Badrov, partner at Sherrard Kuzz LLP; Lenka Whitehead, president of Oxford Learning Centres; and John Platz, senior executive and consultant at HR/ IR. This session will address issues and concerns surrounding the COVID-19 vaccine, while providing information about employee vaccinations so you can reopen quicker while protecting your business, customers, and employees.

Stay tuned for more webinars taking place on March 10, March 24, and March 31. Register for the Learn & Grow Webinars here: https://cfa.swoogo.com/cfawebinars/begin

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A Brave New Virtual World!

You May Have Missed…

Here, you’ll find recaps on events the CFA hosted this winter:

Smart Growth for Emerging Franchisors On January 28, the CFA hosted the virtual Smart Growth for Emerging Franchisors – Key Practices You Need to Get to 50 Units event. Featuring a full-day schedule of keynote and plenary sessions, along with roundtables, this unique virtual event was aimed at growing franchise brands looking to take their development to the next level.

Attendees of Smart Growth for Emerging Franchisors set themselves up for success by getting equipped with the best practices needed to grow their systems to 50 units and beyond. They learned how to avoid costly mistakes and how to put themselves in the best position for their franchise system to experience rapid, successful, and sustainable growth.

Following a keynote presentation by John Dehart of Hartify Franchise Consulting, If I Only Knew Then, What I Know Now, the event moved on to plenary sessions and roundtable discussions tackling such topics as Lead Generation & Franchise Sales, Franchise Operations and Unit Economics, Franchise Relationships, and more.

On-demand videos from Smart Growth for Emerging Franchisors are available for purchase at www.cfa.swoogo.com/virtualsmartgrowth/

20 The Franchise Voice // Winter 2021

Virtual Franchise Canada Show The shift to the virtual world continues for the Franchise Canada Show! Since last year, the events have moved online, and the Virtual Franchise Canada Show focuses on a different part of Canada each month.

Stay tuned for more Virtual Franchise Canada Shows coming in 2021!

Learn & Grow Webinars Hosted by leading franchise experts on a variety of hot topics, the CFA’s Learn & Grow Webinars help keep CFA members up to speed on what’s happening in the franchise industry.

Since January, the CFA has hosted numerous Learn & Grow Webinars tackling a wide range of topics including performance coaching, joint/common employer, advisory boards, marketing, and more.

On-demand videos from previous Learn & Grow Webinars that you may have missed are available for viewing at www. cfa.swoogo.com/cfawebinars

Franchisor Spotlight Webinar Franchisor Spotlight Webinars Each week, the CFA hosts Franchisor Spotlight Webinars, where franchisors in a variety of industries present their franchise opportunity to prospective franchisees. Recent webinar sessions featured Transition Squad, 30 Minute Hit, Mr. Taxes, TWO MEN AND A TRUCK Canada, and Konz Pizza… in a Cone ®.

www.cfa.ca | www.FranchiseCanada.Online

A Brave New Virtual World!

Engaging Content from Franchising’s Thought Leaders!

Whether it’s our Learn & Grow Webinars or the upcoming Franchise Development in the New Normal event, CFA educational programming is all about picking the brains of successful franchisors and franchise brands across the CFA membership base. Through our communitybased programming, franchisors and suppliers alike can learn about the value of utilizing tried and proven practices and how they could be applied to their own systems.

Check out some of these amazing keynotes from some of franchising’s major influencers:

Nickolas Badminton – The Future of Franchising: Energized Franchisees Nikolas Badminton is one of the most sought-after futurists in the world by trillion-dollar companies, progressive governments, and 200+ billion dollar investment funds. Nikolas works with these leaders to help them shift their mindset from what is to ‘WHAT IF..?’ and into brighter futures.

Canadian Franchise Association

John Dehart – If I Only Knew Then, What I Know Now In this keynote presentation with John DeHart, co-founder and chief strategist of Hartify Franchise Consulting, he shares the knowledge and expertise gained through years of experience with building franchise brands from the bottom up.

Using wisdom obtained along the way, he distills his successes and failures down to three key takeaways that are most important for franchise members to consider.

DeHart addresses the vital foundational pieces that go into building a successful brand to 100 franchise units and beyond.

Demetre Elipoulos - Consumer Insights Today: Understanding the Perceptions and Needs of Canadians in a COVID-19 Environment With over 15 years in the market research industry, Demetre Elipoulos serves as Angus Reid’s Senior Vice President & Managing Director of Public Affairs. In this keynote presentation, Demetre guides you through the narrative that Canadians have been experiencing since COVID-19 hit our country in early March. Demetre talks about the ways that Canadians have changed their lives and will also take a deep dive on the ways Canadians want to be communicated to.

Listen to Demetre’s presentation as an episode of the Franchise Canada Chats Podcast: https://cfa.ca/franchisecanada/season3 - episode - 8 - demetre - eliopoulos- consumer-insights-today/

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The Strength of Franchising

The Strength of Franchising Franchise support service suppliers Moneris, RBC Royal Bank, and Angus Reid Institute weigh in on why franchising will continue to be a strong option for Canadian entrepreneurs in 2021

While the COVID-19 pandemic has certainly taken a toll on the Canadian economy, franchising remains a viable option for entrepreneurs looking to find success as a business owner. With so many challenges impacting the business landscape in Canada and throughout the world, it’s easy to understand why entering into a proven system backed by the support of a strong head office team – which franchising provides - is a great option for starting a business, even in the late stages of a global pandemic that has turned our world upside down.

Although these are turbulent times, franchising has stood tall in the face of COVID-19’s challenges. As you’ll read from some of the CFA’s franchise support service suppliers below, there are many reasons to be optimistic about the future of franchising. As Moneris (page 23) points out, the pandemic has changed our lives, but Canadians are still shopping, while RBC’s Macroeconomic Outlook (page 25) indicates that COVID-19 vaccines will help pave the way for economic improvements in 2021. Meanwhile, Angus Reid (page 26) shares five things to think about as you navigate the pandemic in 2021.

Read on to learn more about what the franchise industry can expect as we start on the path toward recovery in the “new normal.”

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The Strength of Franchising

Economic Recovery in 2021 Looks Promising Thanks to COVID-19 Vaccine RBC Economics releases a Macroeconomic Outlook outlining what to expect for the economy this year

BY S T E FA N I E U C C I

A

s we enter 2021, many people may be looking forward to a brighter year as the world rolls out the COVID-19 vaccine and slowly starts recovering from the pandemic.

According to the Macroeconomic Outlook report released in December 2020 by RBC Economics, the exact timing of the economic recovery isn’t certain as there are logistical challenges from the manufacturer based on the distribution of the vaccine.

“The surge in infections in recent months and re-imposition of containment measures sets up for a soft start to 2021 to be followed by a healthy rebound as the vaccine becomes widely available,” says RBC. “On net, we look for the U.S. and Canadian economies to post gains of 4.4 per cent and five per cent, respectively.”

RBC expects that Canada and the U.S. will finish off the year 2020 with gains, while the Euro-area and U.K. are “projected to contract” due to their stricter lockdowns. “Substantial monetary and fiscal policy support will underpin modest growth in all four economies in early 2021 with the momentum building as more people are vaccinated, restrictions ease and confidence improves,” says the RBC Macroeconomic Outlook.

Due to a rapid increase in COVID-19 infections throughout late 2020, the labour market recovery slowed down following rapid gains that took place throughout the summer when infections were at their lowest point. During this time, the unemployment rate also inched lower as workers became concerned about the long-term impact of the pandemic. The restrictions and nonessential service closures towards the end of 2020 are also expected to place the U.S. economy on a slower growth trajectory in early 2021.

The RBC Macroeconomics Outlook forecasts that the COVID19 vaccine will substantially reduce restrictions in summer 2021.

“Low interest rates, elevated savings, and job creation will support consumer spending and housing. Business spending is also forecasted to rise as companies restock inventories and invest to

Canadian Franchise Association

expand their capacity,” says RBC. “By year-end 2021, we expect the U.S. economy will be operating with little economic slack and expect inflation to be running around two per cent.”

Canadian economy expected to recover to pre-COVID-19 levels in 2021 According to the RBC Macroeconomic Outlook, the big increase in COVID-19 infections during the fall created restrictions and closures, however it “didn’t lead to a full retrenchment.” Areas of the economy that are still under pressure include hospitality, recreation, and travel. Meanwhile, the manufacturing sector is near pre-pandemic levels and the housing industry has more than fully recovered.

“Retail sales also bounced back quickly, although the closure of non-essential retailers in some regions late in the year likely tempered sales. While lockdowns will restrain the economy’s growth in late 2020 and early 2021, our forecast assumes a stronger and sustained recovery in activity once the vaccine is more widely distributed. By the end of 2021, we project the GDP will be back to pre-shock levels,” says the RBC Macroeconomic Outlook.

As for the Canadian dollar, it has recovered all losses related to the pandemic against the U.S. dollar, due to an improvement in risk appetite. “The rebound in equity and non-energy commodity prices supported the Canadian dollar’s rise,” says RBC. “The currency is expected to hold onto its gains in the first half of 2021.”

Due to a great amount of savings by Canadian households throughout the pandemic, this will be a key driver to help the economy recover to pre-COVID-19 levels in 2021. The RBC Macroeconomic Outlook estimates that these savings surpassed $160 billion, since most Canadians weren’t able to spend money on regular services and items, on top of their financial aid from government support programs. “As the economy fully reopens, we look for consumer spending to remain strong as they pare down savings and return to work,” says RBC.

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The Strength of Franchising

Businesses should go into 2021 with caution Though the economy is expected to see increases and improvements throughout 2021, there is still a need to be cautious about business recovery.

The RBC Macroeconomic Outlook says that “Investment and inventory rebuilding are expected to begin in 2021 although given the uncertain global backdrop and changes to consumer demand, the recovery may be slow. This is particularly true in the energy sector with oil prices likely to remain below pre-pandemic levels.

Purchases of machinery and equipment and intellectual property are projected to return to pre-crisis levels by the end of 2021 as businesses increase capacity and upgrade their processes to align with shifts in demand that evolved during the pandemic.”

Additionally, government support programs that were introduced to help households and businesses battle the economic impact of the pandemic will remain in place for the first half of 2021. However, RBC says that those supportive measures will likely not be enough to save every business, causing “the nearterm economic backdrop” to be “very challenging.”

Businesses can benefit from extended wage subsidies, rent relief, and loans to help them through the crisis.

“A variety of income supports are underwriting household incomes. In sum, the federal government’s COVID economic

response plan is slated at $282 billion with an additional $50 billion planned for next fiscal year,” says the RBC Macroeconomic Outlook. “The Bank of Canada’s substantial support also remains in place. We expect the bank to maintain a policy rate of 0.25 per cent throughout 2021 and continue to purchase securities, albeit at a gradually reduced pace, to keep longer-term rates low for borrowers. These measures have already supported a historically rapid rebound in the housing market.”

The overall takeaway from the RBC Macroeconomic Outlook is that individuals and businesses can remain hopeful for what comes following the COVID-19 vaccine rollout. This will lead to a promising recovery for Canada’s economic in 2021, but individuals and businesses are advised to tread lightly and enter the new year with caution and a realistic economic position.

AUTHORS OF THE RBC MACROECONOMIC OUTLOOK Craig Wright - SVP & Chief Economist Dawn Desjardins - VP & Deputy Chief Economist Nathan Janzen - Senior Economist Source: https://thoughtleadership.rbc.com/vaccine-clears-path-forrecovery-but-not-out-of-the-woods-yet/

Franchisor Spotlight Webinar Franchisor Spotlight is a 45-minute Zoom webinar where you, the franchisor, can speak about your brand.

Through a “101” introductory presentation to your system and the benefits of becoming a franchisee of your brand, your Franchisor Spotlight webinar will be all about you!

YOUR BRAND

Contact Lou Gervasi at lgervasi@cfa.ca for more information, or submit an application here.

24 The Franchise Voice // Winter 2021

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The Strength of Franchising

Shopping for the Future Five pandemic shopping habits that are here to stay C O N T R I B U T E D BY M O N E R I S

T

here’s no doubt the pandemic has changed our way of life.

The way we shop, spend money, and interact with each other has drastically changed, but will these trends continue after the pandemic has ended? All signs point to yes, as a global survey from Ernst & Young found that 42 per cent of consumers believe the way they shop will fundamentally change due to COVID-19.

Here are five pandemic shopping habits that we think are here to stay after we’ve put COVID-19 behind us. Taking advantage of these insights will help you grow your franchise system today and tomorrow.

1. Shopping online Not surprisingly, many consumers are flocking to the internet to do all of their shopping online, with consumer spending up 30.1 per cent from 2019. This trend was already starting to develop before the pandemic, with marketplace websites making it easy to purchase everything you need in one place.

The need for socially distanced shopping has accelerated this trend, and we don’t see it slowing down anytime soon. Online shopping for over-the-counter (OTC) medicine, groceries, household supplies, and personal-care products has grown by 35 per cent. Even discretionary categories such as skincare and makeup, apparel, jewelry, and accessories show expected growth of more than 15 per cent.

2. Shopping small and local The pandemic has brought small communities together in a way that nobody saw coming, and the idea of “we’re all in this together” has permeated through our neighbourhoods. This has resulted in 76 per cent of shoppers saying they’re more determined to shop locally than ever before. In fact, 34 per cent of consumers indicate that they would pay more for local products.

The shop local trend will stick around beyond the pandemic as consumers seek out more unique and curated options.

3. Curbside pickup Another trend that was accelerated by the pandemic is the availability of curbside pickup. By allowing customers to “click-andcollect,” small franchise owners can save on shipping costs, leverage in-store inventory, and increase overall sales by an average of 23 per cent. Providing curbside pickup also makes shopping easier by allowing customers to safely browse products whenever and wherever they want. Offering this sort of flexibility ensures your franchise doesn’t get left behind in a world where omnichannel retail is rapidly growing.

Canadian Franchise Association

4. Contactless payment processing Many Canadians prefer contactless payment options during the pandemic, with 68 per cent claiming they plan on paying this way moving forward, which suggests a permanent shift in Canadian mindset and behaviours.

Coinciding with this shift, major credit card companies raised their tap payment limits from $100 to $250 in April. A recent study we conducted shows Canadians have gotten used to the change as roughly 62 per cent are using less cash, and 42 per cent say they avoid shopping where contactless payment options aren’t available.

Being able to pay with your phone’s mobile wallet – or even your watch – also means never having to worry about forgetting your physical wallet at home. With cash payments in decline and contactless payment technology advancing the way it is, you can expect this trend to continue.

5. Hygiene habits With a heightened focus on germs and sanitization, many businesses are implementing more thorough health and hygiene practices around their locations. Looking back, it’s hard to imagine that most businesses rarely sanitized their POS devices before the pandemic.

Moving forward, you can expect a greater level of focus on what businesses are doing to keep their locations clean and safe.

Whenever the pandemic ends, you better believe we’ll all be more conscious of our personal space, our hand-washing tendencies, and what we feel comfortable touching (door handles, handrails, countertops, etc.)

They say necessity is the mother of invention, and it’s never been truer than now. By creating workarounds and increasing customer convenience, we’ve created a variety of new trends that will make life easier for consumers and franchise owners everywhere. From easier ways to shop, to increasing support for local businesses, we think these trends are here to stay.

ABOUT MONERIS: With a full suite of business management and payment processing solutions, Moneris offers everything you need to manage your business.

Whether you run a pop-up shop, online store, bricks-and-mortar location, or offer curb-side pickup, we have a solution that fits your needs.

For more information, please visit www.moneris.com and follow @ moneris on social media.

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The Strength of Franchising

NOTES ON A

PANDEMIC

BY D E M E T R E E L I O P O U L O S

I

’ve spent the better part of the last two decades in the market research/public opinion industry and on March 12, 2020, when the COVID-19 pandemic came to Canada, one thing quickly became clear: a lot of what we knew just went out the window.

Our job at Angus Reid Group is to help our clients truly understand their audience (and the market at large) so that they can create an offering and communicate in a way that truly connects them to others. To do that, we spend all our time engaging with Canadians on their behaviours, perceptions, values, and outlooks on broader society.

No other event in the last hundred years (with perhaps the exception of the great wars) has disrupted the lives of Canadians and those around the world so completely. Canadians were no longer acting the same way, as their daily habits had altered, and the shadow of the pandemic encouraged everyone to re-evaluate their priorities.

Many of our clients came to us asking, “what do we do now?”

Overnight, the information they obtained about their audience was out of date. Out of this question emerged the bi-weekly Angus Reid COVID-19 Monitor. The sole purpose of this monitor is to help Canadian businesses understand Canadians in this new environment and how they are changing as the situation evolves.

We are living in highly sensitive and unstable times. At a time when businesses need to bring their ‘A’ game due to all this economic uncertainty, those that are tone deaf to the current climate will encounter setbacks.

26 The Franchise Voice // Winter 2021

Here are five things to think about as you navigate the pandemic in 2021: A life on hold On the whole, Canadians are handling the pandemic well. In the face of a volatile environment where cases fluctuate, we’ve been stable in our stress levels, as most of us are doing our part in embracing preventative measures, and we are generally supporting our scientists and government leaders. This is a stark contrast to our neighbours to the south, who are very stressed and everything from masks to science to heeding medical direction is highly politicized and controversial.

However, things are not entirely alright with us. Beneath our stoic approach to this crisis is an emotional underbelly. Half of Canadians (52 per cent) classify their lives as “on hold” as opposed to “moving forward.” We know a lot of this is related to lockdowns and the life disruptions that occur because of precautionary measures. But there are a whole host of reasons behind this general malaise.

Three-in-five Canadians consider precautions to be fatiguing and believe that the confidence in our collective ability to bring cases down is on the decline. Adding to this, almost one-half of our working force has been negatively impacted over the course of the year (either through layoffs, company closures, pay cuts, or shortening hours). Almost one-in-three say their personal finances worsened as a result of the pandemic. One-in-five describe their

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The Strength of Franchising

mental health as “poor” or “very poor.” From mental well-being to financial well-being, there’s a wide variety of ways that Canadians have felt the effects of the pandemic.

Handle with care With the personal toll in mind, Canadian companies are asking themselves if they should be reaching out or whether they should stay silent for the time being. The short answer is: this isn’t business as usual, but you can still do business. Reach out to your customers and just be aware of the variety of situations they may find themselves in. Four-in-five Canadians say that “it’s reassuring to hear from Canadian companies at this time.” They also want engagement. A similar proportion say that “Canadian companies that take an active role during this crisis will have gained a loyal customer in me.” In fact, one-half say, “Canadian companies that do nothing during this crisis will lose a customer in me.”

The trick is to find the right way to do it. A great deal of research in the communications space this year yields a few answers. For starters, as long as you’ve addressed your efforts related to the crisis at some point, then you can continue to communicate about products and services. Secondly, context matters. A beer commercial showing a fun night at the club may have rated highly at some point, but now it comes across as being tone deaf, or even worse, irrelevant to our lives. Thirdly, now more than ever, we’re looking for content that moves us emotionally. We’re looking to break free of the monotonous day-to-day and feel something that’s real.

My home is my castle With nowhere to go and limited ability to have visitors, Canadians turned their attention to their homes. They cooked at home and tried more recipes than usual. Restaurant outings were replaced with take-out nights in the kitchen. Social outings were replaced with “Zoom dates.” As a result of all this time at home, Canadians began investing in their home environment. Home renovations and decorating projects became the norm across the country. So, while Canadians are itching to get out again, they’ve also spent the last year making a better nest.

Case in point – over the last year almost one-half of Canada’s workforce started working from home. These individuals report high levels of satisfaction with the experience (specifically with their overall work productivity and their ability to maintain that coveted work/life balance). In fact, only one-in-five indicate that they want to go back to the office full time, and two-in-five say they don’t want to go back to the office at all. Aside from COVID-19 concerns, they are less eager to return so that they don’t have to commute, will have fewer expenses as a result of being at home, and have a better lifestyle. Employers may have a difficult time coaxing their employees back to the office.

NO OTHER EVENT IN THE LAST HUNDRED YEARS (WITH PERHAPS THE EXCEPTION OF THE GREAT WARS) HAS DISRUPTED THE LIVES OF CANADIANS AND THOSE AROUND THE WORLD SO COMPLETELY. increases to three-quarters for retailer services. And while there were definitely some kinks in the process early on (and some companies that continue to have problems incorporating the new system), generally speaking, Canadians are quite happy with the services they receive. Naturally, online-only retailers like Amazon.ca get the highest ratings, but the rest are not too far behind.

What does this spell for the future? Many Canadians are yearning for more in-store experiences these days, but they still want the best of both worlds. About one-quarter of Canadians say that they’ll continue to use online grocery services from time to time after the pandemic. This proportion increases to almost one-half among large retailers in Canada.

What does “back to normal” even mean?

Getting back to normal has been on our minds since the pandemic started. But when will it happen? We don’t yet know the exact timing, but according to most Canadians, we’ll be spending the bulk of 2021 getting there. Few people think that back to normal means things will go back to the way it was before. In fact, half think that there will be some major permanent changes. But what will they be?

We’ve already described how working from home and online services are here to stay, but Canadians report a few more things as well: more urgency for having financial nest-eggs for occasions like these, fewer handshakes, more video calls for business reasons and less business travel, and fewer outings where there are large masses (like concerts and bars).

For now, Canadians are still fixated on “back to normal” and all companies have a role to play in getting us there.

ABOUT THE AUTHOR Demetre Eliopoulos is a senior vice president and managing director of public affairs at the Angus Reid Group.

Online shopping is here to stay Retailers and grocers who think that online services are a pandemic-only situation better think again. Before March, curbside pick-up or online delivery was a niche offering among grocers and relatively non-existent among retailers. Now, almost half of Canadians have tried online grocery services and that proportion

Canadian Franchise Association

The Franchise Voice // Winter 2021

27

How Franchises Can Identify and Recruit Their Ideal Franchisees

BY J O S H R O B I N S O N

F

inding and signing the right franchisees has never been more important. As you look toward your goals for new franchise owners in 2021, it’s important to know exactly who you are looking for so that you can grow your system with the right people.

Franchisors often say the most important consideration is finding franchise owners who are the right “fit.” How you determine that depends heavily on your business model and the values that are most important to your company.

So, where do you begin to find your ideal franchisees?

Do they fit into your industry?

A good place to start is to think about your business model and what kind of people generally are attracted to your industry and your franchise system.

Pearle Vision, for instance, is an optical franchise that operates at the intersection of healthcare and retail. Having eye doctors under the same roof as the retail operation has been a cornerstone of our business model since the first Pearle Vision opened in 1961. Eye doctors and opticians – the technicians who fit and dispense glasses – are natural candidates to become franchisees. Because of their training and chosen careers, we know that optometrists, ophthalmologists, and opticians are knowledgeable about and invested in the vision care industry. They most likely are familiar with the Pearle Vision brand, too.

We also market our franchise opportunity to an investor persona. Investors interested in the healthcare industry seek franchises that have scalable business models so that they can quickly grow their business. For example, our systems and processes make it possible for franchise owners to successfully run their business without a background in the optical industry.

Investors are likely contenders for multi-unit agreements, which are attractive because they offer reduced fees and exclusive territory rights. Additionally, multi-unit agreements in strategic markets are important vehicles of growth for the franchise system.

28 The Franchise Voice // Winter 2021

Do they share your values?

Another key consideration for signing a franchisee who is the right fit is whether they share your values. Whether your company has articulated core values or you operate according to principles and priorities established by your founder, a franchise’s values system is an important component in identifying your ideal franchisee.

At Pearle Vision, we know our ideal franchisees are people who embody the same values that our founder, Dr. Stanley Pearle, had when he opened the first Pearle Vision. We look for entrepreneurs who share our passions for expert care, trust, and personal service. Successful franchise candidates are those who are dedicated to building strong businesses that provide genuine eye care.

If a candidate cannot commit to upholding your company’s values, that should make it easy to determine whether they are the right fit for your franchise. Disagreement about values is a deal-breaker.

It would be easy to award a franchise to every candidate who meets the most basic financial requirements, but it’s not always the best thing for your system. Knowing who your ideal franchisee is and ensuring that a candidate is a perfect fit are essential to growing your franchise the right way. If a candidate does not meet your standards, it’s much better for you and the candidate to realize that before they join your system.

ABOUT THE AUTHOR Josh Robinson is vice president of licensing & development at Pearle Vision and is responsible for defining and developing business strategies to grow the Pearle Vision franchise system. He has more than 20 years of experience supporting franchisees and helping them optimize the performance of their businesses.

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Real Life Lessons:

Life is too dynamic to learn from books JOHN PRITTIE has been involved in franchising for over 40 years as a recognized industry veteran with a passion for service-based businesses and has developed over a dozen franchise brands in Canada, the United States, and internationally. He is the president and & CEO of Heron Capital Corporation, a franchise management company that has developed such brands as Mini-Tankers® onsite diesel refueling (now rebranded as 4Refuel), PROSHRED ®onsite paper shredding and recycling, and TWO MEN AND A TRUCK® a full-service moving, storage, and junk removal company. To learn more about Heron Capital Corporation, visit www.herity.com/capital or call John at 416-204-7553.

The Role of Technology in Business and Franchising

W

hen I began my franchising career in the mid-70s, there was no internet, nor were there cell phones, personal computers, or fax machines.

As I reflect on this statement it is hard to believe, but it’s very true! Few, if any, post-secondary institutions had franchising as part of their core curriculum. While I learned much from books when completing my undergraduate and post-graduate degrees in economics, sociology, finance, and marketing, I was never officially introduced to the concept of franchising until my first “real” job at Dominion Food Stores. I never returned to school after completing my MBA; however, my education continued at an accelerated pace during a very exciting and rewarding career in franchising. Through the world of franchising, I came to understand the importance of embracing technology in business. Technology has developed at such an explosive rate and franchising has evolved and benefited as a result. I couldn’t imagine operating any business today without software, computers, the internet, the cloud, data warehouses, VOIP, and smartphones.

When asked to share some ‘Real Life Lessons’, I can speak to the relevance of technology in business today and the importance of using technology to create a sustainable business and competitive advantage. Technology in business is a growing necessity and as time passes, the business world will continue to become more advanced.

Are you and your organization keeping pace?

As president and CEO of TWO MEN AND A TRUCK® Canada, our organization welcomes and openly embraces technology. Technology has helped us deliver on our customer-centric mission statement which states that we “continuously strive to exceed our customers’ expectations in value and high standard of satisfaction.” Technology provides us with a new and more efficient approach to manage the business, making transactions faster and more convenient for our customers and employees. Operating improvements and efficiencies justify the investment. Technology helps us understand where we have challenges and where new opportunities exist. Our company is committed to being an industry leader and technology has helped us achieve that goal.

30 The Franchise Voice // Winter 2021

Like moving, the implementation of new technology can be very stressful for all involved including IT team members, users, management, and suppliers. Preparation, planning, communications, and genuine commitment from senior management are the keys to successful implementation.

At TWO MEN AND A TRUCK®, we understand the importance of ongoing training to ensure smooth implementation of these new technologies. We understand that after we implement a new technology, we’re not done. We need to keep reviewing features and functionality to help streamline processes and the user experience.

Technology has changed almost every aspect of our business in the last decade. This includes the way we interact with our customers, employees, and suppliers. Our proprietary MOVERS WHO CARE 2® operating system is the backbone of our technology infrastructure. Through MWC2, we capture and track every phone and web lead, create estimates, book moves and removals, generate digital work orders, close jobs, and assign trucks, packers, movers, and drivers with the goal of ensuring we arrive on time, with the proper supplies and equipment. MWC2 allows us to transfer important data to our accounting and payroll platforms and our data warehouse where we can analyze almost every aspect of our business.

In 2020, we implemented several new technologies as a result of COVID-19 concerns and our need to evolve. Using state-of-theart software programs customized for our needs, we are able to complete virtual tours of customers’ homes to create accurate estimates without our in-home consultants ever leaving their offices. Options are now available for customers across Canada to book their own moves 24/7, eliminating, if they prefer, the need to speak with a customer service representative during business hours. Additionally, we have implemented several new platforms allowing us to communicate more effectively with our customers using their preferred method of contact whether by phone, email, text, or chat.

While TWO MEN AND A TRUCK® is known as a professional full service moving, storage, and junk removal business, I often think of us as a technology-focused company.

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Franchise Legal

Franchise Disclosure In Uncertain Times: Best Practices for Franchisors

BY B L A I R A . R E B A N E A N D E R I C C . L I T T L E , B O R D E N L A D N E R G E RVA I S L L P

T

he COVID-19 pandemic has had a significant impact on businesses in almost every sector. For franchisors, managing the effects of the pandemic on franchise systems – which in many cases have been pervasive, complex, and multifaceted – has been challenging. On top of this, the effects of the pandemic and the steps that franchisors and governmental authorities have taken to address them raise disclosure implications which franchisors must consider carefully to ensure they are providing compliant disclosure to prospective or renewing franchisees.

For the majority of franchise systems, the effects of the pandemic have been mostly negative. Decreased revenues, mandatory or voluntary closures, changes to supplier and customer relationships and standard operating procedures have all taken a toll on franchise systems and made doing business more difficult. That said, there are some franchise systems that have experienced positive results in connection with the pandemic, due to increased demand for the products or services they offer. In either case, franchisors must consider whether the effects of the pandemic on their system have impacted any of the information contained in their current form of franchise disclosure document (“FDD”) or raise any new “material facts” that must be disclosed to prospective or renewing franchisees.

This article discusses some of the key items that franchisors should consider to ensure that their FDDs and disclosure practices address the effects of the pandemic on their franchise systems.

Reviewing and Updating Current Form of FDD In many cases, the pandemic is likely to have implications for the accuracy and completeness of the prescribed information contained in a franchisor’s current form of FDD. Accordingly, franchisors should carefully review their current form of FDD to determine whether any of the information it contains has been rendered incorrect, is out-of-date, or is potentially misleading as a result of the effects the pandemic has had on their system. Franchisors should also consider whether any additional information needs to be added to their current form of FDD in order to completely and accurately disclose such effects. Below are examples of some of the key areas of the FDD that may need to be updated: • Any information given regarding earnings and operating costs – If the FDD provides any information regarding earnings or operating costs, that information must be carefully reviewed to ensure that it is complete, accurate, and up to date. Franchisors should take extra care in explaining the impacts the pandemic has had on the information provided – whether positive or negative – and how that information differs from the franchi-

32 The Franchise Voice // Winter 2021

sor’s pre-pandemic experience. Franchisors should also review the bases and assumptions underlying the information provided and ensure that they are accurately disclosed in accordance with the requirements of applicable franchise legislation.

• Details of current locations and closures – The FDD should provide details of any mandatory or voluntary closures that were implemented in response to the pandemic. Franchisors should also ensure that the information provided regarding current franchisees and locations, and franchisees who have left the system, is up to date and reflects any changes in the network arising from or in connection with the pandemic.

• Any changes to fees and payments collected by the franchisor – If franchisors have temporarily reduced, waived or deferred the collection of any fees or other payments from franchisees in response to the pandemic, details of those arrangements should be provided in the FDD. • Any changes to costs of establishing the franchise – For some franchise systems, the pandemic has had an impact on the costs that a franchisee is likely to incur in establishing the franchise. For example, some businesses have had to change their typical store layout or design requirements in order to accommodate social distancing requirements and implement protective barriers. Many businesses have also had to purchase personal protective equipment for their employees, which previously would not have been a required expense, and have incurred higher costs for hand sanitizer and cleaning products than they would have in the past. Franchisors should consider carefully how the pandemic and the steps they have taken to address it within their franchise system might have impacted the costs that a franchisee is likely to incur in establishing and operating their franchised business, and ensure that all such costs are accurately reflected in the FDD. • Any changes to required products, services, and suppliers – The pandemic has created disruptions in many supply chains, as some suppliers have folded, others have been unable to meet the demand for their products or services, and shipping and delivery arrangements have been challenged and forced to adapt. The FDD should address any changes to the products and services that a franchisee is required or permitted to use in connection with operating their franchised business, as well as any changes to the suppliers they are required or permitted to obtain those products or services from.

• Any changes to training or assistance offered by the franchisor and how it is provided – If the pandemic has caused any material changes in the training or assistance offered by

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Franchise Legal the franchisor and how it is provided to franchisees, those changes should be disclosed in the FDD. For example, if any new training is offered or required to be completed in connection with the pandemic or the measures the franchise system has adopted to address it, if any in-person training has been changed to virtual or online training, or if the locations or costs for any training have changed, franchisors should consider whether those changes need to be reflected in the FDD in order for the information provided to be complete, accurate, and up to date.

• Changes to the terms of any financing offered by the franchisor – If the franchisor has modified the terms on which it offers any financing to prospective franchisees, or changed whether it offers financing at all, the details of these changes should be disclosed in the FDD. Of course, the specific items that may need to be updated will vary from one franchise system to another, based on the experience of that system and its own response to the pandemic. Franchisors will need to think critically about their own FDD, and where updates may be needed to any of the information it contains.

Disclosure of New “Material Facts” In addition to any updates to the prescribed information contained in a franchisor’s current form of FDD, franchisors should also consider whether there are any new “material facts” that need to be disclosed to prospective or renewing franchisees as a result of the effects of the pandemic on the franchise system.

“Material facts” include any information about the franchisor or the franchise system that would reasonably be expected to have a significant effect on the value or price of the franchise to be granted or the decision to acquire the franchise. Below are some examples of information that might constitute a material fact in the context of the pandemic: • the overall impact the pandemic has had on revenues or operating costs within the franchise system; • any changes to standard operating procedures, methods for provision or delivery of products or services, or hours of operation within the franchise system; • temporary modifications or waivers of certain obligations under the franchise agreement or any other agreement relating to the franchise; • any known disruptions in the supply chain for required products or services, or any material changes in the pricing terms for such products or services, arising from or in connection with the pandemic; • any changes to build-out timelines or anticipated delays in relation to the construction, opening, and operation of the franchised business; • any industry-specific measures imposed by governmental authorities in response to the pandemic that are relevant to the establishment and operation of the franchised business; and • any site-specific material facts relating to a particular franchise being offered.

demic that could potentially rise to the level of a material fact, franchisors should ensure that those developments are disclosed in the FDD. Disclosure of “Material Changes” For any prospective franchisees who have been given an FDD but have not yet signed a franchise agreement, franchisors should consider carefully whether any “material changes” have occurred since the FDD was provided, in connection with the pandemic or the steps that the franchisor or relevant governmental authorities have taken in response to it. A “material change” is a change in the business, capital, or control of the franchisor, or a change in the franchise system, that would reasonably be expected to have a significant adverse effect on the value or price of the franchise to be granted or on the decision to acquire the franchise. If a material change has occurred, the franchisor must provide the franchisee with a statement of material change as soon as practicable after the change has occurred and before the prospective franchisee signs the franchise agreement or makes any payment to the franchisor in relation to the franchise. Since the pandemic, the various responses to it, and its effects on franchise systems are all unfolding on an ongoing basis, and can change rapidly, franchisors must exercise extra diligence to stay abreast of these matters and ensure that any developments that could constitute a material change are disclosed to prospective franchisees in accordance with applicable franchise legislation.

Key Takeaways The pandemic and its ongoing effects on franchise systems present significant disclosure challenges for franchisors. In order to stay on top of these challenges, the best practice is for franchisors to review their standard form of FDD often and ensure that it is updated promptly to reflect any developments associated with the pandemic that affect the accuracy of its contents or that potentially constitute new material facts regarding the franchise being offered. As the pandemic continues to unfold, franchisors should take extra care to ensure that every FDD that is provided to a prospective or renewing franchisee is entirely up to date, complete, and accurate, and that any material changes that arise after an FDD is given to a prospective or renewing franchisee are properly disclosed to the franchisee before they sign the franchise agreement or make any payment to the franchisor. While it seems that little is certain when it comes to the pandemic, its evolution, and its effects, one thing that is clear is that COVID-19 and the business environment it has created will be with us for many months to come. Accordingly, franchisors should ensure that their FDDs and disclosure practices are properly updated and aligned to ensure compliance with their statutory disclosure obligations.

ABOUT THE AUTHORS Blair A. Rebane is a partner at Borden Ladner Gervais LLP (“BLG”) and the National Leader of the firm’s Franchise and Distribution Group.

Eric C. Little is a partner in the Corporate Commercial Group at BLG, who practices corporate commercial law with an emphasis on franchising, licensing and distribution.

If any developments have occurred in connection with the pan-

Canadian Franchise Association

The Franchise Voice // Winter 2021

33

Legal Digest

On behalf of the CFA Legal & Legislative Affairs Committee

Legal Digest

BY DAV I D S H AW A N D E M I L I E AT T I A , DA L E & L E S S M A N N L L P

Alberta Court of Appeal Clarifies Calculation and Assessment of “Net Losses” 1777453 Alberta Ltd v Got Mold Disaster Recovery Services Inc, 2021 ABCA 9

T

his case is an appeal from the Court of Queen’s Bench of Alberta’s decision to not award any rescission damages to the franchisee, 1777453 Alberta Ltd. (“117”). According to Alberta’s Franchise Act, RSA 2000, c F-23 (the “Alberta Act”), franchisees are entitled to be compensated by the franchisor (or its associate, as the case may be) for their net losses incurred in acquiring, setting up and operating the franchised business within 30 days of receiving a notice of the cancellation of the franchise agreement (Section 14(2) of the Alberta Act).

117’s calculation of its net losses that it incurred in acquiring, setting up and operating the franchised business equalled $200,394.27.

After considering the expert evidence adduced by 117 and the franchisor with respect to the calculation of “net losses”, the chambers judge determined that $18,372 was the appropriate amount of damages, accepting the methodology of the franchisor’s expert witness. The significant discrepancy resulted from adjustments and excluded expenses that were attributed to the owners who provided services to the franchise at an above-market rate (comprised mainly of management fees, advertising, promotion costs, and accounting services). The chambers judge ultimately found that because there were profits earned from the business after the franchise agreement was cancelled “by virtue of having had the benefit of the franchise for over a year” (para 6) that exceeded 117’s losses, 117 was not entitled to any damages at all.

Relying on Hi Hotel Limited Partnership v Holiday Hospitality Franchising Inc, 2008 ABCA 276 (“Hi Hotel”), the chambers judge found that the “calculation of “net loss” […] may, in circumstances where the franchisee stands to receive a windfall, require the franchisee to account for profits after the rescission of the agree-

34 The Franchise Voice // Winter 2021

ment” (1777453 Alberta Ltd v Got Mold Disaster Recovery Services Inc, 2019 ABQB 259 at para 69). Evidently, the chambers judge was concerned that franchisees use the statutory rescission remedy to claim and be awarded rescission damages under Section 14(2) of the Alberta Act, only to have the franchisor effectively fund the franchisee’s similar competitive business.

The Alberta Court of Appeal (“ACA”) found the chambers judge’s finding and analysis to be inconsistent with the purpose of Section 14(2) of the Alberta Act. Indicating that an award of net losses under Section 14(2) of the Alberta Act were akin to reliance damages and “is intended to return a franchisee who suffers net losses to the financial position the franchisee was in prior to entering the franchise agreement”, the ACA held that “net losses” are to be calculated as the “difference between the revenue generated by the franchisee during the currency of the franchise agreement and the expenses incurred to acquire, set-up and operate the franchised business during that same period of time” (para 28). The ACA clarified that the revenues and profits that are received by the former franchisee after the franchise agreement was rescinded should not be factored into the calculation of net loss unless such profits were, in fact, realized, or earned, during the term of the franchise agreement. The ACA found that that the windfall concern expressed in Hi Hotel was said in obiter and was not sufficiently explained to be relied on here.

In assessing the validity of claims for net loss, the ACA agreed with the chambers judge that an assessment of the reasonableness of expenses is required to determine whether the types of expenses being claimed fall within the scope of expenses that Section 14(2) of the Alberta Act attempts to remedy. The ACA found that expenses of services by the owners of the franchise at an above-market rate are not to be included in the “net loss” calculation. Nevertheless, in assessing the reasonableness of such calculations, the ACA found that for the purpose of Section 14(2) of the Alberta Act, depending on the sophistication of the parties, some deference may be awarded to business decisions with respect to expenses made early on in setting up a franchise. In particular, expenses that, with hindsight, the franchisee may not have incurred had they had more experience, should be allowed. The ACA found this analysis to be consistent with the Alberta Act’s attempt to balance power inequities of franchisee-franchisor relationships. Franchisees need not have “hindsight-aided assessment of the prudence of each and every expense incurred” (para 34). Rather, assessing net losses requires a flexible approach where good faith purchases in acquiring, setting up and operating the franchise during the term of the franchise agreement, as supported by evidence, will properly be included in the net loss calculation.

The flexible approach and added deference in assessing net loss underscores the significance of making proper and complete financial disclosure in franchise disclosure documents. Especially when dealing with first-time and inexperienced franchisees, franchisors in Alberta are put on notice that courts will be more protective of inexperienced franchisees by including certain expenses in the “net loss” calculation that they may not have otherwise incurred had they had more experience.

It should be noted that rescission damages under the Alberta Act are solely and exclusively for the net losses described above.

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On behalf of the CFA Legal & Legislative Affairs Committee

Conversely, the franchise legislation in Ontario (and the other Canadian jurisdictions with franchise legislation currently in effect) states that the franchisor must provide the following compensation to the franchisee within 60 days of the notice of rescission: (1) refund any money received from or on behalf of the franchisee, other than money for inventory, supplies or equipment; (2) purchase any remaining inventory that the franchisee had purchased pursuant to the franchise agreement at a price equal to the purchase price paid by the franchisee; (3) purchase any supplies and equipment that the franchisee had purchased pursuant to the franchise agreement, at a price equal to the purchase price paid by the franchisee; and (4) compensation for any losses that the franchisee incurred in acquiring, setting up and operating the franchise, less the amounts paid pursuant to (1) through (3). In the result, while there are no rescission damages at all under the Alberta Act in a case where the franchisee is profitable (and thus has no net losses), rescission damages are possible in the other Canadian jurisdictions with franchise legislation in effect as damages can be awarded under categories (1) through (3) above, even in cases where the franchise has been profitable.

To disclose or not to disclose 2619506 Ontario Inc. v. 2082100 Ontario Inc., 2020 ONSC 6817 The Superior Court granted a summary judgement motion brought by the Plaintiff franchisee, who served a notice of rescission under the Arthur Wishart Act (Franchise Disclosure), 2000, S.O. 2000, c. 3 (the “Act”) for inadequate disclosure in the franchise disclosure document (the “FDD”) delivered to it by the franchisor of the “Fit for Life” quick service restaurant franchise. The Plaintiff entered into a franchise agreement with the Defendant franchisor in April 2018. The Court recognized that the Court of Appeal has repeatedly emphasized that the purpose of the Act is to address an imbalance of power between franchisors and franchisees. Further, the Act protects the interest of franchisees through rigorous disclosure obligations on franchisors and strict penalties for non-compliance. In the result, the Court held that the Plaintiff was entitled to rescind its franchise agreement under subsection 6(2) of the Act. This subsection allows a franchisee to rescind its franchise agreement, without penalty or obligation, within two years of entering into a franchise agreement if the franchisor never provided the disclosure document required to be delivered to the franchisee under the Act. In this case, the FDD only included unaudited financial statements from 2016. Pursuant to the Act and its regulations, disclosure documents must include either an audited or reviewed financial statement for the most recently completed fiscal year of the franchisor’s operations. The regulations under the Act (O. Reg. 581/00) include an exception where the previous year’s financial statements may be included in the franchisor’s disclosure document if less than 180 days have passed since the end of the most recently completed fiscal year of the franchisor and a financial statement has not yet been prepared nor reported for that year.

With the FDD not disclosing any financial statements for 2017 or 2018, the Court found the FDD to not provide any meaningful financial disclosure to the franchisee. Following Raibex Canada Ltd. v ASWR Franchising Corp., 2018 ONCA 62, the Court held that the

Canadian Franchise Association

Legal Digest

Defendant franchisor’s failure to provide its most recent financial statements rendered the FDD so deficient as to amount to a complete lack of disclosure. Thus, the Plaintiff was entitled to rescind its franchise agreement under subsection 6(2) of the Act. On the issue of liability following a valid recession for prescribed losses pursuant to subsection 6(6) of the Act, the Court held that both Samuel Davis and Farhan Absar were “franchisor’s associates” within the meaning of the Act. Mr. Davis was the sole director and shareholder of the franchisor. Additionally, he was directly involved in granting the franchise to the Plaintiff and signed the disclosure certificate. In the case of Mr. Absar, the Court held that he was controlled by the Davis Group, which was another person who directly controlled the franchisor. Such determination was made on the basis of the fact that he testified (and as evidenced by his e-mail signature) that he was the Director of Franchising and Development of the Davis Group. The Davis Group, which was owned and controlled by Mr. Davis, included Fit for Life as one of its franchise systems. Additionally, Mr. Absar was an employee of Dakin News Systems Inc., the franchisor of INS Market, which was also part of the Davis Group. In these roles, Mr. Absar advertised for Fit for Life to find franchisee candidates and discuss their application.

The Court notes that, based on undisputed evidence, Mr. Absar met with the Plaintiff on two occasions to discuss the franchise application and provide the FDD. Since Mr. Absar made representations to prospective franchisees for the purpose of marketing the franchise, the Court held that in addition to Mr. Davis, Mr. Absar was also liable for recession damages as a franchisor’s associate.

This case serves as a reminder that disclosure documents must disclose franchisor financial statements for the most recently completed fiscal year of the franchisor that meet the requirements of the Act. Otherwise, the prospective franchisee will be entitled to rescind their franchise agreement within two years of entering into such agreement. Additionally, the broad definition of franchisor’s associates in the Act may impose personal liability for one who makes representations to grant, market or otherwise offer to grant the franchise even if they do not directly nor indirectly control the franchisor.

SCC declined to hear ONCA appeal: Pleadings constitute proper notice of recession WORKS Gourmet Burger Bistro Inc., et al. v. 2352392 Ontario Inc., et al., 2020 CanLII, 92509 (SCC) The Supreme Court of Canada (the “SCC”) dismissed an application for leave to appeal from the Ontario Court of Appeal (the “ONCA”) decision that a franchisee’s notice of rescission of a franchise agreement is sufficiently effected when contained in pleadings: 2352392 Ontario Inc. v. Msi, 2020 ONCA 237. The ONCA held that pleadings within a third party claim to franchisors met the notice requirements of subsection 6(3) under the Act on the basis of being (1) in writing and (2) delivered to the franchisor. Deciding otherwise, explained the ONCA, would be contrary to the stated intention of the Act that aims to balance the power inequities between franchisors and franchisees.

The ONCA’s approach, which favoured substance over form with respect to franchisees’ rights, remains good law in Ontario.

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Legal Digest

On behalf of the CFA Legal & Legislative Affairs Committee

In the result, franchisees in Ontario are not required to provide notice before commencing litigation proceedings with respect to rescission damages. Effectively, the ONCA found that the notice and claim for rescission being simultaneous does not run afoul of the notice requirements under the Act and that the purpose of the notice of rescission is not to serve as a precondition to litigation. Critically, if pleadings for recession damages can be provided without prior notice, the opportunity for a franchisor to make the franchisee whole in the 60-day period allotted pursuant to subsection 6(6) becomes moot. For franchisees, although it is not necessary to provide a separate notice before filing pleadings, as the ONCA notes, the recommended procedure is still for the rescinding franchisee to provide a clearly worded written notice to the franchisor explicitly rescinding the franchise agreement. If the requirements with respect to recession damages under subsection 6(6) are not satisfied by the franchisor within 60 days of receipt of the notice of rescission, only then should a franchisee proceed with commencing an action against the franchisor for its failure to comply with the requirements of subsection 6(6) of the Act. SCC Finds No Duty of Care: A loss for pure economic loss 1688782 Ontario Inc. v Maple Leaf Foods Inc., 2020 SCC 35 In a 5:4 split decision, the SCC decided not to recognize a novel duty of care owed by suppliers of shoddy goods to franchisees in connection with pure economic loss. The SCC majority shows a continued reluctance in recognizing claims of pure economic loss in the sphere of torts. The SCC majority held that a claim in negligence for pure economic loss in one of three categories (being negligent misrepresentation or performance of a service; negligent supply of shoddy goods or structures; and relational economic loss) is sufficient if the loss is caused by someone who owes a duty of care and is within a proximate relationship with the injured party. Unfortunately for Mr. Sub franchisees in this case, their exclusive supplier of ready-to-eat meats, Maple Leaf Foods Inc. (“Maple Leaf”), was found not to owe a duty to protect the franchisees from the loss of profits, goodwill, sales, nor for the replacement of shoddy supply as they lacked the requisite proximity. That is, not being close and direct enough, despite supplying the franchisees for almost two decades, having a helpline specifically for the franchisees, and the ready-to-eat meats being central to the franchisees’ menu and their operations.

Background In 2008, Maple Leaf recalled some of its products after learning that they contained listeria. Part of its recall included the voluntary recall of the products supplied to Mr. Sub in accordance with an exclusive supply agreement that required its franchisees to purchase only ready-to-eat meats produced by Maple Leaf though a distributor. The franchisees and Maple Leaf were linked indirectly through Mr. Sub, the franchisor, and never had a direct contractual relationship. The recalls resulted in a supply interruption, leaving Mr. Sub’s franchisees with no ready-to-eat meat supply for six to eight weeks. Mr. Sub’s franchisees, as part of a class action, sued Maple Leaf in negligence on the basis of pure economic loss.

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SCC Majority Judgment The SCC majority held that no duty of care was owed by Maple Leaf to Mr. Sub franchisees since the franchisees entering into a franchise agreement had the effect of “restrict[ing] their autonomy in ways that foreclose their ability to sue in negligent misrepresentation” (para 40). Proximity in cases of negligent misrepresentation or performance of a service is established where two factors are present: (1) the defendant’s undertaking; and (2) the plaintiff’s reliance. Reliance on the defendant’s undertaking that is outside the scope of the undertaking’s purpose, however, is not reasonable, nor foreseeable. The SCC majority reasoned that Maple Leaf’s undertaking to not make Mr. Sub’s customers sick or die, was precisely directed towards its consumers — not commercial intermediaries. Thereby, neither Mr. Sub franchisees, nor Mr. Sub as the franchisor, could have reasonably relied on Maple Leaf’s undertaking.

With respect to negligent supply of shoddy goods, the SCC majority reminds us that there is no right, without a contractual or statutory entitlement, to the quality and fitness of goods. The SCC majority agreed that the duty to recover costs in Winnipeg Condominium No. 36 v. Bird Construction Co., [1995] 1 S.C.R. 85 is limited to those costs required to avert “real and substantial danger” and not to repair defects nor prolong the continued use of goods. The SCC majority found that the franchisees have no right to be protected from the cost to avert loss of past and future sales, profits, capital value or goodwill. The fact that Maple Leaf recalled and destroyed the meat meant that they averted the real and substantial danger. No further recovery for other costs outside losses to avert real and substantial danger under tort law can be pursued. Where the defendant and the plaintiff are linked indirectly by a middleman by contract, it is important that allocating risk with respect to expectations, representations, and reliance are dealt with in such contracts. Otherwise, courts should not allow commercial parties to circumvent contracts to pursue losses in tort.

The SCC majority did not find any analogous category of proximity. Even though the duty between manufacturers and ultimate consumers who are physically injured as a result of negligent conduct is well-known (Donoghue v. Stevenson, [1932] A.C. 562), for the same conduct, such a duty relationship does not extend to intermediaries’ economic losses.

After going through a full proximity analysis, the SCC majority failed to find proximity between the parties. A contractual relationship is not determinative of a proximate relationship. Despite the exclusive supply agreement and the imbalance of power due to the standard form agreement, the SCC majority noted that the franchisees chose to enter into a franchise agreement and benefited from same. Effectively, the vulnerability of franchisees to supply chain negligence is not a tort issue but rather an issue of the operation of franchise systems. Insurance is an option available to allocate risk and reduce franchisees’ vulnerability but was not obtained in this instance. Ultimately, though the SCC majority did not want to make a presumptive finding as to whether the franchisor would approve an alternative supplier, previous case law suggests that parties who chose to forgo options that limit their vulnerability were unsuccessful in claiming tort losses.

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On behalf of the CFA Legal & Legislative Affairs Committee

Since the SCC majority found no proximity between the franchisees and the supplier, in accordance with the Anns/Cooper framework, the SCC majority failed to find a novel duty of care to recover losses that fall outside the costs of “averting real and substantial danger.”

SCC Dissent The dissenting SCC justices (the “Dissent”) found that proximity exists between Mr. Sub franchisees and Maple Leaf. Holding that the losses were also reasonably foreseeable, the Dissent found a novel duty “to take reasonable care not to place unsafe goods into the market that could cause economic loss to the franchisees as a result of reasonable consumer response to the health risk posed by those goods” (para 167).

The Dissent emphasized that there is no bar to recovery in case law with respect to economic loss for lost profits, sales, goodwill, and special damages for clean up and disposal that was incurred to mitigate the effects of Maple Leaf’s breach. The Dissent found that negligent misrepresentation with a novel duty of care captures the loss that results from the continued association with the supplier. The Dissent held that the potential for economic harm that may result from negligent production was reasonably foreseeable to a supplier like Maple Leaf.

The parties’ relationship was also found to be close and direct to such a degree that imposing a duty of care is just and fair on the basis of the following: (1) Maple Leaf knew the extent its products were imposed on the franchisee, being its exclusive supplier; (2) Mr. Sub’s menu centred around Maple Leaf’s meats; (3) Mr. Sub had a large account with Maple Leaf; (4) Maple Leaf had a direct franchisee contact hotline to deal with supply chain issues directly with the franchisees; and (5) a “three-way contractual matrix” existed between the franchisor, franchisee and supplier.

In the view of the Dissent, all of these factors worked to strongly support a finding of proximity.

In the Dissent’s view, even if the contract was silent on the allocation of risk with respect to losses and recovery of unfit or unsafe products, such costs should not automatically oust the finding of a duty of care. Especially since franchisees have no reasonable prospect to negotiate the allocation of risk with their inferior bargaining power, the finding of a lack proximity, and therefore duty, is arbitrary and unfair. In fact, despite the long-standing relationship, Mr. Sub franchisees did not negotiate the renewal of their franchise agreement. Thereby, the integrated nature of Maple Leaf in this franchise system shows a particular dependence on the parties’ proximity.

The Dissent found that Maple Leaf’s duty to its consumers “is aligned with its duty to the franchisees,” (para 154). The scope of recoverable losses, however, are limited to the losses that result from the reasonable consumer response to the risk the supplier posed to the health of its consumers.

At the policy considerations step of the Anns/Cooper framework, the Dissent held that the following considerations of the proposed duty of care do not negate creating it: (1) the recoverable losses associated with the duty is not so great that manufacturers would fear disruptions from liability claims by intermediaries; (2) the argument with respect to a chilling effect on manufacturers mak-

Canadian Franchise Association

Legal Digest

ing voluntary recalls is not compelling since food is extensively regulated in Canada; (3) imposing a duty would lead manufacturers to make more recalls; and (4) this will, in turn, aid manufacturers to mitigate losses from their own negligence. Furthermore, the fear that a novel duty of care would open the floodgates is irrational as negligence claims have multiple elements that have to be met to be successful.

While the Dissent felt comfortable in expanding recovery to find proximity and create a novel duty of care, the SCC majority was more concerned about clearly delineating where contracts end and torts begin with respect to pure economic loss. This hesitance translated in the SCC majority finding that no proximity exists between franchisees and their exclusive suppliers. While not excluding recovery in tort where no privity of contract exists, the SCC majority seems to be signalling to franchise systems and other contractual parties that are indirectly linked, that despite the interconnectivity of contracts, tort law will not come to your rescue. Even if manufacturers do not recall or dispose of their shoddy goods, there is still no proximate relationship. Ultimately, this decision reinforces the importance of allocating risk in contracts. Specifically, it is important to consider the factual matrix that surrounds the formation of a contract and to include terms that account for future potential losses that may result from third parties. Although this decision can be seen as a loss for the recovery of economic loss, the decision’s close split indicates a shift in the SCC’s approach and a small step towards potentially ultimately allowing recovery of pure economic loss in torts, as opposed to, or even in addition to in contracts.

ABOUT THE AUTHORS David Shaw is a Partner and Business Lawyer that heads up Dale & Lessmann LLP’s Corporate and Commercial practice group. David regularly advises clients in a wide range of industries on franchise and distribution law matters, including the negotiation and preparation of master franchise agreements, area development agreements, single-unit franchise agreements, disclosure documents and related documentation. He also advises and assists clients with respect to system rebranding, regulatory compliance, franchise acquisitions and divestitures, and terminations. David is the Chair of the Executive of the Ontario Bar Association’s Franchise Law Section following previous years serving as its Vice Chair, Secretary and CPD Liaison. He is also a member of the Canadian Franchise Association’s Legal & Legislative Affairs Committee and its Legislation and Regulations Subcommittee and serves as the Chair of the Legal & Legislative Affairs Committee’s Editorial Advisory Subcommittee. David has presented seminars and workshops and facilitated roundtable discussions at many franchising conferences and has written numerous articles relating to franchising including co-authoring the “Structuring an Expansion to Canada” chapter of the ABA Forum on Franchising's Fundamental of Franchising, Canada textbook published in 2017. David can be reached at 416.369.3812 or dshaw@dalelessmann.com.

Emilie Attia is an Articling Student at Dale & Lessmann LLP. She received her Juris Doctor from the University of Ottawa in 2020.

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Marketability

Using Dynamic Location Data for Marketing in the New Normal

BY S A R A H S T E I N E R – P I I N P O I N T

T

he future of retail continues to come forward at a quickening pace. As consumer trends have been accelerated by recent events in 2020, the demand for an increasingly unique, localized, and personal retail experience grows. To build organizational resilience and maintain relevance in this retail climate, more and more brands are embracing data, analytics, and technology to support their evolving strategy. When it comes to marketing, data and analytics can both help franchisors dig into insights on their customers and their ever-evolving needs and desires, which in turn can fuel larger organizational strategies for evolution.

Perhaps one of the most illuminating aspects of big data for marketing is its interaction with location. While not all marketing data points have a location associated with them (and for good reason too!), there are a growing number of data points that have a spatial component like an x,y coordinate, FSA, or postal code.

These data points can be used respectfully and safely by the franchisor to maximize their ability to tailor their retail branding and experience by geography to create a spectacular customer experience and set franchisees up for success.

This article outlines three approaches of how retail brands are leveraging big-data to innovate with a location-based marketing strategy.

Starting in-house For franchise brands to evolve their data and analytical strategies, the most difficult yet rewarding practice is in having programs and processes in place that allow them to collect, organize, and manage internally-created data. Whether it’s benchmarking store performance on a regular cadence, assessing sales and transaction data, tracking loyalty data or membership, or otherwise; this is living, breathing data that can be directly applied to the business.

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This can be extremely difficult to do. Many franchise brands operate across numerous territories and support dozens, if not hundreds of operators. This requires strong systems for reporting and accountability, even in “simpler times” before the COVID19 pandemic. Historically, customer data has been collected via receipt surveys, in-store intercept studies, loyalty programs, point systems, or rewards cards; eCommerce delivery addresses or distribution locations; or by transaction data that includes a location element. Luckily, with an increasing demand for retail brands to develop a hybrid network that includes both a brickand-mortar and eCommerce network, there are a growing number of digital tools that make collecting this data and managing it inhouse more accessible.

Managing in-house data empowers franchise brands to learn about their customers and how behaviours change by location.

Understanding what products they like, what price they buy at, their lifestyles and behaviour, if they purchased online or offline, how far they travelled to visit a store location; all offer a treasure-trove of information for marketing and beyond. These data insights can be applied through brand messaging, ads, promotional material, pricing strategy, where to pursue new franchise locations, even things like merchandising and store format or planning at the individual store level, or across segments of stores that have similar shopper traits.

Having a strong grasp on your brand’s data and an organized process for using it to your advantage lays a foundation for any data-driven organization. It is the most difficult, yet rewarding approach to support the network’s overall data strategy. Beyond the data a franchise brand can collect on its network and activities, two other datasets have become standard tools for the datadriven organization: mobile location data and geosocial data.

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Marketability Understanding observed movement patterns Mobile location data has a dual purpose in that it can augment the data collected in-house on franchise locations, as well as offer insights into competing brands or areas of interest. It comes from aggregated and anonymized GPS data on consumer movement patterns, which allows organizations to discover activity trends around a given location. These trends include observed visits to a site, the distance travelled to get there by visitors, the demographic characteristics of those visitors, the frequency of visits over time, related brands where they may spend time, as well as the estimated volumes of vehicular or pedestrian traffic.

When analyzed across an entire location network, these data points can help to inform large-scale and foundational marketing initiatives. For example, learning who the customers are, as well as the size of the market they currently capture. Because the data is constantly updating, it can be measured across different points in time. For many, the impacts that COVID-19 has had on customer capture rate and the changing nature of their trade area has been top of mind. For example, mobile location data shows a significant decline in movement patterns from 2019 to 2020 with some high street retail areas seeing over 54 per centi decline in traffic.

Digging into individual sites, mobile location data can shed light on potential marketing strategies specific to the store itself. This allows the franchise brand to develop unique and customized approaches to marketing depending on each specific market. For example, by understanding what other stores visitors go to, marketing teams can pursue new partnerships and co-marketing campaigns with neighbouring tenants or organizations who share the same customer. By understanding the traffic patterns on nearby streets, marketers can optimize their out-of-home advertising by knowing where the highest volumes of traffic are for ad placement. By looking at observations of visitors over time, marketers can evaluate the efficacy of online campaigns aimed at driving traffic in store.

All of these insights can be analyzed on the franchise brands’ network, as well as on competitor locations or general places of interest. Mobile location data gives marketers a pulse on activity by location. This has never been more important.

that can be used for more tailored marketing and drive franchise success at the dissemination area (DA) level. Its ever-changing nature allows marketers to tap into the conversations happening at a local scale in the markets they operate in. This helps franchise brands understand the characteristics and behaviours of a community, and in turn, ensure that the service and products they offer align with the desires and needs of the customer.

Conclusion Location-based marketing has a big role to play in the retail “new normal.” As each consumer expects an increasingly personal and convenient experience from the brands they trust and love, that path to maintaining or achieving loyalty can feel unclear.

Leveraging data as a marketer helps to reduce the uncertainties presented in a rapidly changing environment, and equips the entire franchise organization with information to make better decisions.

ABOUT THE AUTHOR Sarah Steiner is the Chief Product Officer at PiinPoint, who support retail franchisors in optimizing their location strategy. To learn more, visit piinpoint.com.

As identified by PiinPoint using Mobile Location data on a sample of high-street retail communities in Canada. i

Getting local market knowledge on community behaviour Geosocial data, pioneered by Spatial.ai, offers the inside scoop to franchise brands on the ‘vibes’ of a community, for one-off locations, but also at scale. Rather than relying solely on survey-based segmentation or demographic data, geosocial data illustrates consumer behaviours by organizing billions of public, geotagged social media posts into different customer segments.

These segments add another layer of insight into the characteristics of the dominant customer in a market, informing marketers on the best ways to target their audience and where to prioritize their activities.

Content created by consumers and citizens alike, which has a locational aspect (geotag), and is posted on platforms like Instagram, Twitter, or Facebook, is used to tune into the sentiments, opinions, highlights, and experiences of people by location. These segments reveal personal, and up-to-date customer attributes

Canadian Franchise Association

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Hot Off the Press Member News

Paris Baguette Registers Canadian Franchise Disclosure Document International Bakery-Café Concept Finalizes Legal Document; Continues Focus on Canadian Franchising Opportunities

Paris Baguette, the global bakery-café chain known for its delightful assortment of cakes, pastries, and breads, announced its cemented presence in Canada with its registered Franchise Disclosure Document (FDD). With a strong international presence and over 70 years in the baking business, Paris Baguette is well established in the neighbouring United States and poised for success in Canada, setting sights on expansion in Toronto, Montreal, Vancouver, and other booming provinces and cities.

“We look forward to building our footprint in Canada through franchising,” says Gregg Koffler, vice president of franchise sales and development. “Consumers are continuing to choose quick service restaurants and, as such, we see a great deal of opportunity for business owners looking for a tried-and-true business model, that offers gourmet menu selections for dine-in, delivery, or takeout. We offer multi-faceted store footprints, and our concept succeeds in a variety of environments, from city centres to suburban shopping complexes. Pairing that with our global identity and real estate team, we are confident that Paris Baguette is positioned to resonate with an array of communities in Canada.”

Paris Baguette looks to maintain progress even during the pandemic, continuing growth throughout North America in the past months, with recent franchise agreement deals signed across the U.S. Providing a wide variety of to-go and take-out options for customers, Paris Baguette offers a business model that allows longevity as the world adjusts to the new normal.

With its growth in Canada through franchises, Paris Baguette continues its trajectory as a major international franchise concept. The most compelling selling points for franchise partners include strong average annual sales, proprietary recipes, and an engaged leadership team.

Ledgers Partners with Loyalty Brands to Create Bookkeeping and Tax Powerhouse Ledgers Canada and Loyalty Business Services have created a partnership to rapidly expand both companies in Canada and the U.S. As a part of the collaborative growth initiative, Loyalty Business Services will become Ledgers USA to enhance brand awareness throughout North America.

The newly formed Ledgers team is comprised of leaders from several different successful companies to create what is expected to become the largest bookkeeping, tax, payroll, and compliance reporting firm servicing owners of small businesses throughout Canada and the United States. Gordon Haslam, who founded Ledgers Canada and built Ledgers to an industry leader in Canada

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since starting the company over 25 years ago; John Hewitt, who has built two of the three largest retail income tax service companies (Liberty Tax & Jackson Hewitt Tax) and who has over 52 years of experience building successful, major companies; and Steve Rafsky, who championed the turnaround and growth of Padgett Business Services for almost 20 years, are all excited to collaborate to build a company to help small- and medium-sized business services firms focus more on the growth of their businesses. Ledgers Canada and Ledgers USA will offer tax preparation and consultation, payroll, management financial reporting, and other services using modern, cloud-based technology to meet today’s clients’ needs. For the business services owner, it is a value-based annuity in a business sector that is exploding.

The firm will expand its locations through its affiliation and franchising models. The firm has developed a system to enhance growth and scalability of each location, as well. The Ledgers system includes state-of-the-art technology to manage client onboarding and workflow and modern client acquisition programs that include inbound and outbound marketing that are enhanced with integrated search engine optimization, social media, and other robust programs. This coordinated growth program implementation affords Ledgers efficiencies that individual operators would not usually be able to employ. In addition, the companies will enhance work capacity for its locations by offering access to Ledgers’ central team of professionals.

Metal Supermarkets “Forges” 2021 U.S. Franchise Expansion Plan Projects 50 New Locations During Next Four Years

The phrase “Big things come in small packages” isn’t one typically associated with the metals distribution industry, where immense products and massive volumes are the order of the day. But Metal Supermarkets is defying these prevailing industry norms.

The North American leader in small-quantity metals has achieved something that few others in 2020 have been able to do – it has consistently broken year-over-year monthly revenue records, truly living up to “Big things come in small packages.”

“The strong momentum we’re demonstrating now has been brewing for several years. Our ability to withstand the pressures of the pandemic was no surprise because we’re set up to thrive in every type of economic condition,” says Stephen Schober, the 14-year president and CEO of Metal Supermarkets, and an executive with more than 30 years in the franchise industry. “When you blend our niche market with a solid business system and an unrelenting commitment to customer experience by our franchisee partners, Metal Supermarkets emerges as the standout metals supplier in every community that we serve.”

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Member News Known for its convenience, speed, product variety, and fixation on customer service, Metal Supermarkets announced in December that it is riding this wave of progress to move ahead with a strategic franchise growth initiative that will expand its presence to 150 locations by 2024.

Occupying a stable and important niche in the $200 billion U.S. metal distribution industry, future U.S. expansion is on the horizon. Metal Supermarkets is targeting new franchise development throughout New England, the Midwest, Texas, and the Southwest.

Designated an essential business, the concept offers a recessionresistant, innovative, and durable opportunity for interested franchise investors.

Each location provides solutions to customers’ ongoing and regular metal needs in both the business-to-business and businessto-consumer categories. With an innovative and diverse product base and no-minimum product order quantity, Metal Supermarkets has driven strong average gross margins of more than 50 per cent during the last four fiscal years.

FASTSIGNS® Ranked #1 In Category on Annual Entrepreneur Franchise 500 List for Fifth Consecutive Year Sign, Graphics, and Visual Communications Franchisor Reports Strong Year of Growth Amid Pandemic, Ranking #44 Overall on Esteemed List of Top Franchise Opportunities

FASTSIGNS International, Inc., franchisor of FASTSIGNS®, the leading sign, graphics, and visual communications franchise, announced in January it has been ranked the #1 franchise opportunity in its category in Entrepreneur magazine’s Franchise 500® for the fifth consecutive year. Recognized as an invaluable resource for potential franchisees, the Franchise 500® ranks FASTSIGNS as #44 overall — the only sign, graphics, and visual communications franchise to be recognized in the top 100 — for its outstanding performance in areas including unit growth, financial strength and stability, and brand power.

“We are incredibly proud to once again be the #1 franchise opportunity in the sign, graphics, and visual communications sector. After such an unprecedented year with so much uncertainty, our business model continued to show its resiliency and FASTSIGNS emerged strong and poised for growth in 2021,” says Mark Jameson, chief support and development officer of FASTSIGNS International, Inc. “This recognition is proof of our outstanding international network of franchisees and their commitment to serving their communities as well as our exceptional franchise support team that worked around the clock to help the system succeed.”

Fastsigns Holdings Inc., parent company of FASTSIGNS, reported a strong year of growth amid the pandemic, most notably making its first acquisition with the addition of NerdsToGo, an emerging IT services brand, to its portfolio. Additionally, FASTSIGNS signed 31 franchise agreements to develop new, co-branded, and conversion centres worldwide and the opening of 30 locations, including the brand’s first centre in the Dominican Republic. Much of FASTSIGNS’ success in 2020 can be credited to centres being deemed essential businesses, allowing franchisees to pivot their services to focus on what matters most — serving their customers.

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This year, Fastsigns Holdings Inc. aims to sell 30 NerdsToGo franchises nationwide as part of its plans to grow the brand’s presence in new and existing markets. FASTSIGNS is aiming to sign at least 35 franchise agreements across the U.S. in markets such as Southern California, the Midwest, New England, and along the Northeast Corridor. FASTSIGNS is particularly focusing on its co-brand and conversion programs, which help existing business owners add a FASTSIGNS to their store or fully convert their business to a FASTSIGNS franchise.

Express Employment Professionals Accelerates Franchise Development and Welcomes 50 New Franchisees in 2020 Leading Staffing Provider Franchise Signs 61 Agreements to Expand Footprint Across North America and South Africa

Express Employment Professionals, the leading global staffing provider franchise, announced in January that it experienced significant growth in 2020, signing a total of 61 franchise agreements to bring 27 new offices to key target markets, while continuing operations at 34 existing locations and welcoming 50 new franchise operators, systemwide.

In February 2020, Express Employment Professionals also acquired direct hire staffing firm, Frontline Recruitment Group, further expanding its global footprint into Australia and New Zealand for the first time.

“The global workforce was hit hard in 2020 by COVID-19 and each industry sector had different needs at different times.

Despite the challenges and complexities that the pandemic presented, our franchisees rose to the occasion and helped fill thousands of jobs last year,” says Bill Stoller, CEO of Express Employment Professionals. “We feel humbly grateful to be able to make an impact on people’s lives in the way we do, and we’re excited to grow this impact in the years to come.”

Since its inception 38 years ago, Express has become the dominant brand in the staffing franchise sector, growing to more than 830 locations across three countries. Express’s longstanding reputation as a staffing industry leader, top-tier unit-level economics, and proven track record of success have been driving forces behind its accelerated franchise development, and the brand is positioned for continued growth in 2021. This year, the company plans to open new offices in key areas across the globe: through-

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41

Member News out the U.S. in California, New York, and Ohio; in Ontario, Canada; as well as South Africa, Australia, and New Zealand.

Throughout 2020, Express was also recognized among the franchise and staffing industries’ most prestigious accolades, including Entrepreneur magazine’s Franchise 500, Franchise Direct’s Top 100 Global Franchises, the Canadian Franchise Association’s Recognition Awards, and ClearlyRated’s Best of Staffing® Client and Talent Awards.

Starlight Construction Announces Rebranding and Name Change to Wolfpack Build Starlight Construction, a leader in the commercial construction industry, is proud to announce its rebranding as “Wolfpack Build.”

Company CEO Manojh Subenthiran says, “The change reflects our emerging place in the industry as a leader and innovator. The name “Wolfpack” better reflects our strength as a team of construction professionals and our determination to be the best and to lead all our competitors.”

The name change has already taken effect. Wolfpack Build encourages clients to visit its website at www.wolfpackbuild.com.

Always Best Care Reports Significant Growth in 2020 Leading Into 25th Year Leading Senior Care Franchise Launches Eight New Territories and Accelerates Franchise Development with Existing Franchisees

Always Best Care Senior Services, one of the leading senior care franchise systems in the United States, announced in January that it achieved significant growth amid an unprecedented year for the home health care industry, launching eight new territories in untapped markets including Naperville, Illinois; Thousand Oaks, California; Upper Chesapeake, Maryland; and its first location in the state of Utah. Most notably, the brand celebrated international expansion with the signing of a Canadian Master Franchise Agreement and the opening of Always Best Care of Oakville in the province of Ontario.

Demand for in-home care rose quickly during the COVID-19 pandemic, with long-term care facilities like nursing homes identified as hotspots for the virus’ transmission. This emerging industry trend catalyzed considerable growth within Always Best Care’s system. Throughout 2020, several existing franchisees reinvested in Always Best Care, resulting in a total of 18 franchise territory renewals, and serving as a true testament to the brand’s sustainable positioning and long-term viability in a rapidly evolving landscape. Additionally, four established operators expanded their portfolios with Always Best Care through the acquisition of new and existing territories, emphasizing the brand’s best-in-class franchise opportunity and unlimited potential for success.

“2021 marks Always Best Care’s 25th year in business and coming out of an unprecedented year, I couldn’t be more optimistic about the future and longevity of our brand. Despite the challenges our industry faced, I’m incredibly proud of how our dedicated corporate team and franchisees rallied alongside one another to reach new heights and best serve our clients and their needs during such a high-risk time,” says Jake Brown, president and CEO of Always Best Care. “As we reflect on the franchise development

42 The Franchise Voice // Winter 2021

growth we experienced in the midst of the pandemic, most of which was driven by existing franchisees, we’re fortunate to have such passionate, talented, and proud owners alongside us as we kick off a milestone year.”

Digital Main Street Partners with GetintheLoop to Pilot in Toronto Digital Main Street is pleased to announce that GetintheLoop has been selected to offer its mobile marketing solutions to the hundreds of businesses of Kensington Market BIA, Riverside BIA, Lakeshore Village BIA, the Eglinton Way BIA, the Broadview Danforth BIA, and the Beach Village BIA in Toronto through the Community Collaboration Program this winter. The program has the goal of onboarding 240 main street businesses (40 per BIA) to the GetintheLoop platform and 50 have already come online. Funding for this pilot is made available through the Digital Main Street Future Proof program.

GetintheLoop’s technology connects local shoppers to local businesses by providing real-time mobile offers and promotions.

Users receive push notifications and emails highlighting specials, incentives, and loyalty programs that are available from nearby small businesses. Participating businesses can feature both instore and online offers; promoting curbside pick-up, delivery, buy now use later, and other timely offers based on the current market conditions. Digital Main Street is supported through FedDev Ontario funding and in partnership with ventureLAB. “The Government of Canada is pleased to support the Digital Main Street and see innovative technology pilot studies, like this one with GetintheLoop, broadening digital access to main street businesses. We are proud to work with Digital Main Street partners including Toronto Association of Business Improvement Areas (TABIA), Communitech, Invest Ottawa, and the Regional Innovation Centres to help our innovation ecosystem grow stronger,” says The Honourable Mélanie Joly, minister of economic development and official languages and minister responsible for FedDev Ontario.

“We believe that local businesses form the foundation of a vibrant community. GetintheLoop is a simple and effective location-based mobile marketing platform that helps bricks and mortar businesses reach local residents via their smartphones, email, and the web with relevant and timely content and offers. Shopping local is more important than ever, and our technology helps communities stay connected while promoting local businesses during this critical time,” says ChrisPinkerton, president of GetintheLoop.

As main street businesses in Toronto face ongoing closures, they are looking for new ways to engage with their customers and to attract new ones. The Community Collaboration Program seeks to pilot projects that will help main street businesses discover innovative ways to expand their reach. The pilot runs until March 2021. They encourage interested businesses to contact their BIA to learn more.

www.cfa.ca | www.FranchiseCanada.Online

Raising the Profile of Franchising

A

s highlighted in our CFA Virtual Events Round-Up on page 18, the CFA has been striving to provide our members with quality education, networking, and lead generation programming in our increasingly virtual world. As the COVID-19 pandemic continues to impact franchising throughout the world, the CFA has used our social media channels to both promote the resources and webinars the Association has provided while also spreading important messaging about the issues impacting the industry. For example, in February, David Druker (president, The UPS Store Canada), Dawn Mucci (founder of Lice Squad.com), and Catherine Monson (CFE, CEO of FASTSIGNS ®) each shared video message on LinkedIn expressing the importance of the CFA’s advocacy work, achieving 958 impressions!

500

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

NEW SOCIAL MEDIA FOLLOWERS – NOV. 30, 2020 – FEB. 12, 2021!

The CFA’s social media presence continues to grow! Our social media accounts on Facebook, LinkedIn, Instagram, and Twitter have a total of 13,925 followers! Overall, we are one step closer to reaching our goals of becoming a social influencer within the Canadian franchising community!

Followers: Facebook

LinkedIn

Instagram

Twitter

Total

Nov 30, 2020

5,398

5,476

1,397

1,149

13,420

Feb 12, 2021

5,527

5,651

1,586

1,161

13,925

Things we posted on social: Event promos • Smart Growth • Franchise Your Business • Franchise Social • VFCS Toronto, Prairies, National • Franchisor Spotlight Webinars • Learn and Grow Webinars Franchise Canada • Podcasts • Learning Videos • Nov/Dec 2020 and Jan/Feb 2021 issues Franchise Voice Advocacy • 3 Endorsement Videos from Members

Canadian Franchise Association

The Franchise Voice // Winter 2021

43

New CFA Members FRANCHISE SYSTEM MEMBERS

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

Affordable Canadian Movers

234 Mason Rd Stratford, PE C1B 2E9 Steve Collette, President T (902) 626-3553 E info@affordablecanadianmovers.ca W www.affordablecanadianmovers.ca

East Side Mario's (Recipe Unlimited) 199 Four Valley Dr Vaughan, ON L4K 0B8 Laura Galle, Franchising Coordinator T (905) 760-2244 ext. 2255, (888) 854-4402 ext. 2255 E franchising@recipeunlimited.com W www.recipefranchising.com

FirstLight Home Care

Metcalfe Garden, 45 Metcalfe St St. Thomas, ON N5R 5Y1 Brad Rye, CEO - FirstLight Home Care Canada (Master Franchise) T (855) 420-6500, (855) 598-9500 E st.thomas@firstlighthomecare.com W www.firstlighthomecare.ca

Fuwa Fuwa Japanese Pancakes

Always Best Senior Care Services 115-710 Dorval Dr Oakville, ON L6K 3V7 Steve Kelly, CEO T (905) 592-4889 E skelly@abc-seniors.com W www.AlwaysBestCareCanada.ca

Elephant & Castle (Recipe Unlimited) 199 Four Valley Dr Vaughan, ON L4K 0B8 Laura Galle, Franchising Coordinator T (905) 760-2244 ext. 2255, (888) 854-4402 ext. 2255 E franchising@recipeunlimited.com W www.recipefranchising.com

408 Bloor St W Toronto, ON M5S 2N5 Benson Lau, Business Development T (647) 818-6682 E benson@fuwafuwapancakes.co W www.fuwafuwapancakes.com

Harvey's (Recipe Unlimited)

Fionn MacCool's (Recipe Unlimited) Crayola Imagine Arts Academy (2Inspire) 201-8360 rue Bougainville Montreal, QC H4P 2G1 Scott Reid, Sales Director T (800) 586-5231 E info@imagineartsacademy.com W www.imagineartsacademy.com

44 The Franchise Voice // Winter 2021

199 Four Valley Dr Vaughan, ON L4K 0B8 Laura Galle, Franchising Coordinator T (905) 760-2244 ext. 2255, (888) 854-4402 ext. 2255 E franchising@recipeunlimited.com W www.recipefranchising.com

199 Four Valley Dr Vaughan, ON L4K 0B8 Laura Galle, Franchising Coordinator T (905) 760-2244 ext. 2255, (888) 854-4402 ext. 2255 E franchising@recipeunlimited.com W www.recipefranchising.com

www.cfa.ca | www.FranchiseCanada.Online

Holy Shakes / TO's Kathi Roll Eatery 10 Gillingham Dr Brampton, ON L6X 0G6 Sumit Kohli T (647) 748-8573 E kohli_sumit@rocketmail.com

Original Joe's (Recipe Unlimited) 199 Four Valley Dr Vaughan, ON L4K 0B8 Laura Galle, Franchising Coordinator T (905) 760-2244 ext. 2255, (888) 854-4402 ext. 2255 E franchising@recipeunlimited.com W www.recipefranchising.com

Mad Science (2Inspire)

Il Fornello Restaurants

200-500 Eglinton Ave E Toronto, ON M4P 1N3 Joel Sisson T (416) 920-9410 E franchising@ilfornello.com W www.ilfornello.com

Kelseys (Recipe Unlimited)

199 Four Valley Dr Vaughan, ON L4K 0B8 Laura Galle, Franchising Coordinator T (905) 760-2244 ext. 2255, (888) 854-4402 ext. 2255 E franchising@recipeunlimited.com W www.recipefranchising.com

201-8360 rue Bougainville Montreal, QC H4P 2G1 Scott Reid, Sales Director T (800) 586-5231 E info@imagineartsacademy.com W www.imagineartsacademy.com

Mike Holmes Inspections

2-55 Horner Ave Toronto, ON M8Z 4X6 Scott Piccolo, CEO T (416) 456-5830 E spiccolo@mikeholmesinspections.com W https://franchiseopportunities. mikeholmesinspections.com/apply/

®

Philty Philly’s CheeseSteaks & Poutinerie 986 Northern Prospect Cres Newmarket, ON L3X 1N8 Danny Kotsopoulos, CEO T (416) 400-1947 E danny@philthyphillys.com W www.philthyphillys.com

Milestones (Recipe Unlimited)

199 Four Valley Dr Vaughan, ON L4K 0B8 Laura Galle, Franchising Coordinator T (905) 760-2244 ext. 2255, (888) 854-4402 ext. 2255 E franchising@recipeunlimited.com W www.recipefranchising.com

QuickLube

939 Carrington Blvd NW Calgary, AB T3P 1L7 Mike, Director of Franchise Developments T (403) 397-3345 E info@quick-lube.com W www.quick-lube.com

Little Kids Daycare Center

1-2165 Grosvenor St Oakville, ON L6H 7K9 Christina Payne, Franchise Consultant T (888) 992-0595 E franchise@littlekidsdaycare.com W www.littlekidsdaycare.com

Lube FX Plus

12621 Ford Rd Edmonton, AB T5C 3C2 Eddie Sayed, Owner/Director T (780) 707-0710 E lubefx.plus@gmail.com W www.lubefx.com

Canadian Franchise Association

New York Fries (Recipe Unlimited) 199 Four Valley Dr Vaughan, ON L4K 0B8 Laura Galle, Franchising Coordinator T (905) 760-2244 ext. 2255, (888) 854-4402 ext. 2255 E franchising@recipeunlimited.com W www.recipefranchising.com

Swiss Chalet (Recipe Unlimited) 199 Four Valley Dr Vaughan, ON L4K 0B8 Laura Galle, Franchising Coordinator T (905) 760-2244 ext. 2255, (888) 854-4402 ext. 2255 E franchising@recipeunlimited.com W www.recipefranchising.com

The Franchise Voice // Winter 2021

45

FSS/SUPPLIER MEMBERS

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

State & Main (Recipe Unlimited) 199 Four Valley Dr Vaughan, ON L4K 0B8 Laura Galle, Franchising Coordinator T (905) 760-2244 ext. 2255, (888) 854-4402 ext. 2255 E franchising@recipeunlimited.com W www.recipefranchising.com

East Brands

66 Strawberry Lane Stratford, PE C1B 0K7 Steve Collette, President T (902) 394-7575 E info@eastbrands.ca W www.eastbrands.ca

Franchise System Supply (Sales Connector) 596 Mullin Way Burlington, ON L7L 4J4 Steve Mullaley, Co-Founder & CEO T (289) 237-9121 E info@salesconnector.ca W www.salesconnector.ca

St-Hubert (Recipe Unlimited)

199 Four Valley Dr Vaughan, ON L4K 0B8 Rocco Lofano, Vice President, Operations T (450) 688-4400 E franchise@st-hubert.com W www.recipefranchising.com

ValentaBPO

750-2 Robert Speck Pkwy Mississauga, ON L4Z 1H8 Muhammad Asif, Managing Director T (647) 532-7219 E asif.muhammad@valentabpo.com W www.valentaBPO.ca

Fortitude Construction

734 Gibb St Oshawa, ON L1J 2A2 Kayleigh Bradshaw, Director of Operations T (437) 236-8855 E kbradshaw@fortitudeconstruction.ca W www.fortitudeconstruction.ca

400-1 Concorde Gate Toronto, ON M3C 4H9 Gail Lemay, National Account Manager T (416) 738-1583 E gail_lemay@homedepot.com W www.homedepot.ca

Imagine Franchise

Angelee Brown, CEO and Founder T (289) 214-7557 E angelee@franchisefix.ca W www.franchisefix.ca

402-370 rue St-Andre Montreal, QC H2L 0C4 Stephane Breault, President T (514) 349-0536 E sbreault@imaginefranchise.com W www.imaginefranchise.com

Franchise Kickstarter

ME Franchising

Franchise Fix

253 Columbia St Vancouver, BC V6A 2R5 Braden Lauer / Sandra Graham T (800) 951-1319 E braden@thefranchisekickstarter.com sandra@thefranchisekickstarter.com W www.thefranchisekickstarter.com

46 The Franchise Voice // Winter 2021

Home Depot (The)

305-1095 Pratt Ave Montreal, QC H2V 2V5 Mahmoud Chahrour, President T (514) 574-7270 E mahmoud@me-franchising.com W www.me-franchising.com

www.cfa.ca | www.FranchiseCanada.Online

New CFA Members

Participating MLT Aikins LLP

2200-10235 101 St Edmonton, AB T5J 3G1 Aleem Popatia, Partner T (780) 969-3509 E apopatia@mltaikins.com W www.mltaikins.com

Torkin Manes LLP

1500-151 Yonge St Toronto, ON M5C 2W7 Matt Maurer, Chair – Franchise Law Group T (416) 777-5452 E mmaurer@torkinmanes.com W www.torkinmanes.com

in CFA events, committees, and publications is a great way to connect with industry leaders and share best practices with like-minded professionals, while building your profile and resume.

Contact the CFA membership team at membership@cfa.ca to learn more about how you can become an active member of Your Association today!

TrainingFolks Neovation

449 Provencher Blvd Winnipeg, MB R2J 0B8 Josh Flower, Sr. Sales Director / Philip Giles, Sr. Sales Director T (855) 885-2469 E josh.flower@neovation.com / philip.giles@neovation.com W neovation.com

33-111 Zenway Blvd Woodbridge, ON L4H 3H9 Saqib Hassan, President & Co-Founder T (905) 850-3986 E info@trainingfolks.com W www.trainingfolks.com

Wagepoint

Predictive Success

1-310 Byron St S Whitby, ON L1N 4P8 Jason Taylor, Managing Principal T (905) 430-9788 E jtaylor@predictivesuccess.com W www.predictivesuccess.com

#1110, 240-70 Shawville Blvd SE Calgary, AB T2Y 2Z3 Arjun Pisharody, Head of Partnerships E marketing@wagepoint.com W www.wagepoint.com

THE CFA MEMBER LOGO Your Strongest Link You can download the CFA Member logo through the CFA Members Only Area.

If you require assistance with logging into your Members Only Area account, or require the CFA Member Logo in a different format, contact Andrew Schopp, Webmaster, at aschopp@cfa.ca.

Canadian Franchise Association

The Franchise Voice // Winter 2021

47

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.

Dani’s Bright Idea:

Joining Clubhouse:

The Platform That Everyone in Business Should Be On

C Dani Bazely Director of Marketing Driverseat

lubhouse is a growing platform which started with only 1,500 users in May 2020, and has grown to have more than 600,000 registered users in 2021. At this current trend, the platform may be at two billion users by June.

Engaging on Clubhouse is like live podcasting mixed with a conference call. Users can listen to conversations, join in, ask questions, and host their rooms. It is made up of Clubs, Rooms, and Followers. Clubs are topic-based, allowing like-minded people to share advice, topics, and interests. Rooms are the live-hosted conversations, which can be created on the spot or scheduled out. Users are notified when someone they follow joins as a speaker in a room so that they can listen in.

What you need to know if you are currently using or thinking about getting on Clubhouse: 1. Expect to be there more to learn than you are there to teach. You should envision Clubhouse like a conference.

Clubhouse has quickly become my favourite social and business app. When other media has become a lot of work and ultimately draining, Clubhouse is the opposite. It is motivating, inspiring, and engaging. Every user on the app is giving their time to support their network, share their insight, and get to know others. It is as authentic to a conference as you can get, so don’t underestimate the learning and motivation that speakers have.

Remember when you are at a conference in a keynote speaker room with thousands of others, it is not necessarily a space to network. Networking happens in small and mediumsized rooms where you can speak, share, and ask questions.

2. Respect the rules and each other.

Clubhouse is currently invite-only, and there are rules on the platform and in clubs. It is also in Beta mode and works only on iPhones. These rules are built to protect the value of Clubhouse and ensure that the conversations are positive, meaningful, and on topic. If you are in a room about lead generation, do not veer off into a sales conversation trying to sell your business products. If you break rules, you can be removed from a room, a club, or taken off the app entirely.

3. Maximize your profile and the tools in your biography.

Your biography is the first look into who you are and what you do, and it needs to represent you. Most Clubhouse bios are about 20 lines of information, but the first two are what they see when they first click on your profile. Here are my tips for crafting an effective biography:

48 The Franchise Voice // Winter 2021

www.cfa.ca | www.FranchiseCanada.Online

with the app at under five per cent of its potential user-ship by end-of-year, there is a greater opportunity to meet others. There are many great conversations about franchising, marketing, and leadership. I try to host a room once a week or more to facilitate conversations about these topics. Each user has something to offer and interacting with like-minded individuals helps you join more meaningful conversations in the future. If you are interested in hosting a room on a topic that interests you or that you specialize in, invite other speakers to grow the audience and to create a more diverse panel of speakers.

• Make your picture pop. A single colour background with a professional headshot is a good way to go.

• Share your pronouns. Like most social media platforms, gender identification is not available. Share your pronouns to create an inclusive environment on the app.

• Make the first two lines of your bio impactful. Share the most known thing about you. It could be your role, your passion, or your organization.

• Brag about yourself in your bio. Include your awards, accolades, areas of expertise, and anything that will encourage someone to follow you, or to hear more about those potential topics.

• Attach your public profiles, and make them public! There is currently no one-on-one messaging on Clubhouse. Everyone takes their conversations offline to Instagram DMs, so your profiles need to be public and be an accurate photographic representation of who you are on Clubhouse. To connect more with others, it is pertinent to be open to messages.

4. Create meaningful connections.

This app is worldwide and its algorithm is based on whom you follow and the clubs that you are in, so you can meet people from all over the world with like-minded interests. Currently,

5. The platform is going to grow, which is going to cause a lot of change.

Many of the existing features and flow of the app will not be functional with a larger number of users - which increases daily. We will likely see moderators become paid roles or partnerships with the app, creating clubs will be nearly impossible, and highly-followed keynote speakers will eventually come at a cost. Enjoy the app as it is now, and be patient as the changes come and the app becomes something very different in the next 10 months.

Follow me at @danibazely to join our conversation on Clubhouse and direct message me to connect further!

CATCH UP ON SEASONS 1, 2, AND 3 NOW!

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

SPONSORSHIP OPPORTUNITIES ARE NOW AVAILABLE! For more information, please contact Lou Gervasi at lgervasi@cfa.ca.

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

FranchiseCanadaChats.ca Canadian Franchise Association

The Franchise Voice // Winter 2021

49

FREE FOR ALL CFA MEMBERS!

All webinars are now complimentary; another great member benefit at no cost

Upgrade your skills from the convenience of your home, office or on the go every Wednesday with Learn & Grow Webinars!

Looking to upgrade your skills but don’t have time to attend off-site events? Don’t let a jam-packed schedule stop you from staying current in your field. Register for the CFA’s Learn & Grow Webinars today and: n

Watch on your PC, tablet or smartphone. Whether you’re in the office or on the go, Learn & Grow Webinars offer maximum flexibility for busy franchisors.

n

Hear from the experts and ask questions about your most pressing business challenges.

n

Learn best practices and strategies you can implement today.

You don’t have to travel or take time off from work to learn new skills and ideas – register for Learn and Grow Webinars and expand your expertise with the click of a button.

Upcoming Learn & Grow Webinars Lineup The CFA has unveiled an exciting webinar lineup for 2021 covering the hottest topics in franchising. Upcoming sessions include:

March 17, 2021

The COVID-19 Vaccine and Its Implications in the Workplace

Register at www.cfa.ca/events/learn-and-grow-webinars/ and be sure to check back often, as new webinars will be added throughout the year.

ndar!

Mark Your Cale

Upcoming CFA Events

UPCOMING EVENTS March 2021 March 25, 2021 10AM – 3PM AST

E xpanding Your Franchise Brand Into Canada Webinar F ranchise Development in the New Normal Franchise CEO Forum Franchise Social Ask an Expert Roundtable

April 15, 2021 10AM – 3PM ET

April 2021 Virtual Franchise Your Business Franchise Social

Important CFA Dates and Deadlines Franchise Canada May/June 2021 issue Ad sales close: March 19, 2021 Franchise Canada July/August 2021 issue Ad sales close: May 14, 2021 Contact Nav Matharu at nmatharu@cfa.ca

Franchise CEO Forum Ask an Expert Roundtable

May 2021 May 15, 2021 10AM – 3PM PST

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

Canadian Franchise Association

Franchise Social Franchise CEO Forum Ask an Expert Roundtable visit www.cfa.ca/events/ for more updates on upcoming events

Franchisor Spotlight Webinar

March 2, 2021 PropertyGuys.com 2PM – 3PM ET

March 23, 2021 TaxAssist 2PM – 3PM ET

The Franchise Voice // Winter 2021

51

Check Out the Upgraded Franchise Canada Website!

This year, we launched upgraded websites across all of the CFA brands (CFA.ca, LookForAFranchise.ca, and FranchiseCanada.Online) to enhance the user experience with increased speed and an easier to navigate platform.

With the enhanced Franchise Canada website, users now have a better browsing experience, making it easier for prospective franchisees to access the resources that can help them discover franchise opportunities.

Users can explore a wide variety of content including the current Franchise Canada issue, articles from back issues, exclusive online content, franchise learning videos, podcast episodes, access to purchase the 2021 Franchise Canada Directory, and so much more.

FranchiseCanada.Online receives more than 4,000 monthly visitors, with a target audience comprised of prospective and existing franchisees, entrepreneurs, investment organizations, and more. We also promote the content to our 14,000+ followers on all of the CFA’s social media platforms and in biweekly newsletters to our 17,000+ subscribers.

Contact Nav Matharu at (437) 982-2718 or nmatharu@cfa.ca to learn more about how FranchiseCanada.Online can help you find your next franchisee!