Considering starting a franchise in Canada? It’s a good idea to first get a basic understanding of the industry as a whole. Here’s a snapshot of what the franchising industry looks like for 2016.
How Many Canadian Franchises are There?
Did you know that Canada is the second largest franchise market in the world? The franchising industry in Canada is worth $100 billion in annual sales, and is steadily climbing. With more than 76,000 individual franchise operations in Canada working under 900 brand names, it’s a great place to become a franchisee.
The reasons people have for starting a franchise, according to research put out by Canada Franchise Association, include:
Wanting to be their own boss
Desiring to change careers
Having the urge to start a new career
What Industries Should I Consider?
Before you can start looking at franchise brands, you need to first assess what the best industry for you is. It may be one you have experience working in, or a completely new industry that you’re really interested in.
Some hot franchise industries in Canada right now include:
Fitness
Fast food
Personal care
Tech
Service business
How Do I Choose the Right Franchise Brand?
Deciding which franchise to invest in and become a part of is a decision you shouldn’t take lightly. To find the right fit, franchisees look for:
Brand recognition (28%)
How much it costs to get started (27%)
The support and training offered (26%)
The concept or product/service (19%)
The brand you ultimately invest in should be one you are interested in, that has great growth potential.
How Much Investment is Required?
While investment in a franchise brand will vary depending on the business, the average franchise fee, according to Canada Franchise Association, is $29,000. The average franchise investment (think: startup costs, payroll, inventory) is $160,000.
Keep in mind: it’s wise to have enough money to cover a year’s worth of personal and business expenses set aside, as you aren’t guaranteed to make a profit right away. This can keep you from hitting a cash flow crisis that threatens the future of your business.
Where are Franchises Located in Canada?
While you’ll find franchises in every corner of the country, certain provinces have a higher concentration of them, including Ontario, British Columbia, and Alberta.
Now that you have a little more information about franchising in Canada, start looking for opportunities that fit your interests, experience, and budget.
Susan Payton is the President of Egg Marketing & Communications, a marketing firm specializing in content writing and social media management. She’s written three business books, including How to Get More Customers With Press Releases, and frequently blogs about small business and marketing on sites including Forbes, AllBusiness, The Marketing Eggspert Blog, and Tweak Your Biz. Follow her on Twitter @eggmarketing.