Whether you’re a Canuck looking for a solid business opportunity or a U.S. citizen looking to diversify and invest in other countries, franchising in Canada can be a lucrative venture.
Based on information from the Canadian Franchise Association (CFA), franchising is the 12th largest sector of the economy, contributing over $100 billion in Canadian dollars per year to the economy and creating 2 million jobs. The Canadian economy is ninth in the world in terms of GDP, and the U.S is the single largest foreign investor there. Canada has a stable economy, which for you as a prospective franchise owner means a favorable environment for business growth and success.
When zeroing in on Canada franchises, the CFA reports that there are about 1,200 brands with 76,000 locations across 50 business sectors.
If you want to be a business owner in a strong industry, there are some great Canada franchise opportunities at various investment levels in a multitude of industries.
The Best Franchises in Canada, Eh?
Much like franchising in the states, in Canada, many people initially connect franchising with food establishments. There are some big-name food brands like the well-known Tim Hortons, the largest Canadian franchise, founded back in the ’60s by Canadian hockey player Tim Horton.
Another born-and-bred Canadian franchise is Canada Bread, the largest commercial bakery in Canada with 900 locations in 32 countries.
But in the Great White North, 60% of franchises are not food franchises, leaving great opportunity for franchises in health, auto, home services and retail concepts.
Costs associated with entry into a franchise will vary depending on the type of franchise, its location, brand recognition, real estate and construction costs. When entering into a franchise agreement, it’s imperative that you understand all the costs associated with your investment as well as the commitment you are making.
Franchising in Canada
Canada franchises come with their own unique set of laws, regulations, and circumstances. If you want to enter Canada and do business, there are a number of ways to go about that. You may consider Entrepreneur Immigration, which is a temporary avenue to set up shop and residency with the opportunity to stay permanently once you have a successful business.
Another option is The Investment Canada Act, which encourages non-Canadians to invest in Canadian businesses with the purpose of enhancing economic growth.
For Canadian residents it’s an easier process with less paperwork, but the franchise system in Canada does differ from the U.S. This illustrates the advantages of exercising your entrepreneurial spirit through franchising because, in most cases, your franchisor will simplify the complexities regarding rules and regulations. International franchisors have specialists who know how to navigate purchases within a home country and guide franchisees coming over the border. For example, there are very specific tax rates in Canada, and they vary depending on whether or not they are federal or specific to the province where your franchise will be located. Another example is that franchise fees and royalties paid by Canadian franchisees to a U.S. franchisor, may be subject to Canadian withholding tax, based on information from the CFA.
Franchising Differences in U.S. vs. Canada
In the U.S., franchising is regulated by the Federal Trade Commission. In Canada, franchise regulation is handled by the individual provinces. There are 10 Canadian provinces and three territories. Six of those provinces have rules in place — British Columbia, Alberta, Manitoba, Ontario, New Brunswick, and Prince Edward Island. In these provinces, much like U.S. regulations, a Franchise Disclosure Document (FDD) must be provided to prospective franchise buyers at least 14 days before an agreement is signed or before any “loonies” (Canadian dollars) are given.
Joining the Canadian Flock
At Wild Birds Unlimited, we guide you through the purchase process whether you’re becoming a U.S. or Canada franchise owner. That’s what has made us among the top global franchises by Entrepreneur. We are currently seeking folks interested in owning a Wild Birds Unlimited franchise in British Columbia, Alberta, Saskatchewan, Manitoba, and Ontario.
We’re a leading franchise in the wild bird feeding industry. We’ve been experts for more than 40 years, which is why our flock has grown to more than 350 locations throughout North America. As a franchise owner, you become a leading expert on wild bird feeding and watching in your community.
That’s going to keep you busy, because Canada is the largest country in the Western Hemisphere by land mass and home to 462 species of birds. Most Canadian residents are familiar with the Downy Woodpecker, seen in just about every backyard, but as a Wild Birds Unlimited franchise owner, you can assist with all your customers’ bird watching needs.
Ready to come fly with us to The Great White North? Inquire today and we will be in touch.