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Canada is known for a lot of things, from the politeness of our population to the rugged natural landscapes that travellers love to explore. But there’s another reason Canada shines on the world stage, when it comes to business—it’s a country where franchising thrives.

One in 10 Canadians are employed—directly or indirectly—in a franchise system, and the average Canadian consumer interacts with three to five franchised businesses each day!

Canada offers exciting business opportunities in a diverse market, especially when it comes to franchising. Boasting franchises across all sectors, a young base of prospective franchisees looking for their next opportunity, and an easy-to-navigate legal framework, there are many reasons why franchising is so strong in the Great White North. 

Strong and stable

Franchising is the twelfth-largest industry in Canada and the second-largest franchise industry in the world. By 2027, franchising is projected to be a $150 billion industry, comprising more than 70,000 franchise units across the country.

Since the introduction of the International Franchise Attractiveness Index in 2020, Canada has consistently ranked among the top five countries with attractive franchise markets for balanced growth. This means international franchises, from the U.S. and further afield, have a strong chance of maintaining growth in Canadian sectors. 

Furthermore, an investment in Canadian franchising is a low-cost, low-risk option for expansion into an international market: it ranks first among G7 countries for political stability. The marginal effective tax rate has also been trending downward since 2000 and is now the lowest of all G7 countries. 

Solid foundation 

Franchise law in Canada is distinct from similar regions, namely the U.S., due to federal and provincial legislation. Corporate tax rates vary, depending on the industry and type of corporation. The Canadian Franchise Association (CFA) offers a myriad of educational modules, ensuring new systems in Canadian franchising are operating with a wealth of information and according to the country’s franchising best practices. 

Industry support from financial institutions and government organizations is also available for new franchisors and systems along the way. All the major Canadian banks have established head office franchise departments, providing customized programs and financial solutions to assist franchise systems with all their funding needs.*

All of Canada’s major banks also have established relationships with the Canadian Franchise Association. The CFA network is essential for providing insight and understanding of the nuances and particularities of business ownership in Canada. 

Help for international investors 

While expansion into Canada has the potential to be successful, there are legal and cultural adaptations that must be considered before making the leap. Canada is very diverse, with an array of visible minorities across its major cities and welcoming 250,000 newcomers per year, so prospective franchisors must adjust their rollouts to appeal to a wider audience. 

With franchising being regulated at the provincial level in seven provinces, foreign franchisors should ensure that their franchise agreements have been adapted to Canadian laws. Each of these provinces—Alberta, British Columbia, Manitoba, New Brunswick, Ontario, Prince Edward Island, and Saskatchewan—has specialized legislation for franchise operation. 

Between withholdings tax, language requirements and disclosure legislation, foreign franchisors will undoubtedly need a helping hand when making an introduction in Canadian markets. The CFA has a wealth of resources to introduce new members to its network of entrepreneurs, investors and established franchisees. Incoming franchisors can learn the particulars of these differences and connect with franchise experts and suppliers who can prime their system for the Canadian market. The mix of diversity and cultures creates a rich and varied customer market for foreign franchise brands, as long as you can speak their language … no pun intended. 

As the national not-for-profit representing the franchise industry, the CFA is the voice of franchising in Canada, and aims to enhance, grow and protect franchising from coast to coast to coast. The CFA does this through: 

• community, by connecting its members with opportunities and the sharing of best practices;

• education, providing learning opportunities that make franchising stronger across the country and allow CFA members to improve their systems;  

• advocacy, evoking the benefits of franchising in the halls of power across Canada and bringing national attention to the issues that impact franchised businesses, and fighting for franchisees on their behalf; 

• and brand awareness, creating new connections for franchisors and franchisees, and increasing the profile of CFA member brands and the franchise industry in general, nationwide.

So, what’s not to love about Canadian franchising? With seemingly limitless opportunities, a diverse audience hungry for new options, and strategic partnerships available with key partners, continued growth is on the horizon, and the CFA invites you to become a part of it. 

* World Franchise Council Country Report, Canada 

Canadian Franchise Association - Growing Together™ 

The Canadian Franchise Association (CFA) helps everyday Canadians realize the dream of building their own business through the power of franchising. The CFA advocates on issues that impact this dream on behalf of more than 650 corporate members and over 40,000 franchisees from many of Canada’s best-known and emerging franchise brands. Beyond its role as the voice of the franchise industry, The CFA strengthens and develops franchising by delivering best-practice education and creating rewarding connections between Canadians and the opportunities in franchising.