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Franchises are a growing industry in Canada, second only to that of the United States. With an average annual growth of 4.4 units per year, Canada is set for great growth in 2019.
Restaurants provide 35% of the overall sales for all franchises and retail has 45% of all sales. These franchises generate over $100 billion in sales each year. It’s no wonder that franchises are the preferred small business expansion model in the country.
Franchises Have Longevity in Canada
According to a Canadian Franchise Association’s advocacy survey, franchising is an established business model, with 62% of the Canadian franchises having been around for 11 years or more and 30% of them in operation for 25 years or more. Since franchises have a higher success rate than start-up businesses, it’s not surprising that 86% of the franchises that were opened in Canada over the last five years are still under the same ownership and 97% of them are still operating.
Canadian franchises are expected to continue to grow. Over the next few years, it is projected that franchises will make up over 50% of the total regional economy.
Popular Franchise Opportunities
The fees can range greatly to open a Canadian franchise, with starting fees beginning at less than $5,000 to over $75,000. This can make the initial investment fall between $10,000 and $1 million or more.
Some of the popular franchise categories that are expected to grow in 2019 include:
- Home services (average initial cost: $50,000)
- Employment services (average initial cost: $156,000)
- Real estate (average initial cost: $228,000)
- Restaurants (average initial cost: $172,000)
An up-and-coming franchise is the children’s franchise, with an average initial cost of $96,000. This franchise category may include recreation, sports, and entertainment. Children’s franchises can also include tutoring and homework assistance, giving kids a safe place to get their work done in a supervised environment.
If you’re considering buying a franchise this year, you’ll be in good company. The Canadian Franchise Association (CFA) says that there are now roughly 76,000 franchises with over 900 brands in Canada. Many are well-known and established brands that have already done the marketing for you, while other upstarts provide significant opportunity to get in on the ground floor.
Susan Guillory 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.