Business Opportunities For Sale in Canada
A franchise is an excellent business opportunity with a wide array of benefits. And technically speaking, all franchises are "business opportunities."
However: Not all business opportunities are franchises.
Confused? Let us explain.
There are federal and provincial regulations regarding franchises and "business opportunities," and the agreement terms are often different. So, let's explore the difference between a classic franchise and a broader business opportunity. And then, we urge you to check out some of Franchise Direct's brilliant business opportunities for sale in Canada.
What do you get with a franchise? When you invest in a classic franchise, there is a range of stipulations:
- You make an initial investment to buy licences, etc.
- You receive training to fulfil the requirements of the agreement
- You run your business by given terms (for a given period)
- You pay franchise royalties according to your agreement
And for that, you enjoy:
- Brand recognition
- Exclusive rights to operate a successful brand
- Ongoing support from the parent company
And while the idea of a franchise might feel a little restrictive in scope for some entrepreneurs, franchising offers most people genuine and lasting freedom and an opportunity to be their own boss.
Because franchising provides the opportunity to take on a ready-to-go company - the business processes are already in place; you just follow the operating manual.
So, for people new to running a business, this means you hit the ground running with a fully functional operational model.
How business opportunities for sale in Canada differ from franchisesMost business opportunity programs offer more freedom. In most cases, there are:
- No franchise fees
- No ongoing royalties
- No trademark rights
This means that you get the opportunity to run your business in whichever way you see fit. And there's no obligation to run your business according to an operating manual or pay ongoing fees.
But you don't own the rights to the trademark with most business opportunities, so you're not usually permitted to use the parent company's instantly recognizable branding. You operate under your own trading name but supply goods and services according to the business opportunity terms.
So, if you’re a more experienced business person who doesn’t need the support network of a more structured franchise agreement, a business opportunity agreement could be all you need.
Additionally, most business opportunities offer:
- Lower start-up costs compared to a franchise
- Home-based or flexible working hours to suit your lifestyle
Who benefits from a business opportunity over a franchise?While many franchises offer flexibility in how you function, business opportunities for sale in Canada can be a better fit for people who enjoy atypical working patterns.
Most business opportunities allow you to dictate WHERE you run your business — you don’t necessarily need costly business premises. So, business opportunities for sale in Canada are ideal for:
- Home workers
- Investors looking for supplementary income
- Part-time workers
- Business people with management experience
Of course, the business opportunities we offer at Franchise Direct demand different conditions depending on the mode of business. But, on the whole, you have greater flexibility to work your business around your available hours.
What type of business opportunities for sale in Canada can I choose from?There are four principal models to look for when selecting an appropriate business opportunity.
- Rack jobbing
Let’s look at each of these in a little more detail.
The clue is in the name here — a distributorship is an agreement to distribute a product or service.
Distributorships are generally considered the most common mode of business opportunities for sale in Canada. In this type of agreement, you become a licensee — so you usually make an initial investment to buy the rights of the license.
This offers you the opportunity to buy products from the wholesaler (that’s the owner of the business opportunity), and you resell them at retail price. So, your profit is in the margin between the purchase price and the retail price.
Licensees aren't usually permitted to use the manufacturer's name or branding as part of their business name or identity. This means you must build your brand and reputation rather than piggyback off the parent company's established branding and reputation.
And as a licensee, you may be obligated to sell only your partner’s products or services, although some agreements provide greater freedom.
Another commonly applied business opportunity agreement is a vending license. This allows you to distribute and sell products via a vending machine.
And while this sounds a little limiting, there are some attractive advantages to operating under this model:
- You don’t need to pay for business premises
- You usually rent space
- It's easy to distribute to an extensive range of locations
You might associate vending machines with snacks and drinks, but actually, vending machines are used widely as a convenient and low-maintenance way of distributing:
- Sodas & beverages
- Candies & sweets
- Hot drinks
- Ice cream
- Instant pasta/ramen/noodle dishes
- Healthy organic snacks
- Freshly squeezed juices
- Dairy products
- French fries
- Toys and games
- Pet food
- Cellphone accessories, such as chargers, headphones, etc.
- Hair accessories
- Fresh fruit and vegetables
- Hot dogs
- Protein shakes for gyms
- Personal hygiene products
- Books and magazines
The list is literally endless.
And the wide range of low-cost distributable products means enormous potential for business
units across multiple locations - because vending machines aren't just for stations and canteens.
You could locate vending machines in hotels, gyms, airports, hospitals, supermarkets and shopping malls, tourist attractions, bars, stadiums and sports facilities, schools, colleges, universities, apartment buildings and washrooms, cinemas, nightclubs, toilets, beauty salons, in the street.
If you have the vision, you can sell a massive range of profitable items with a vending business opportunity in Canada.
These are business opportunities which typically focus on selling one particular product.
For example, many car showrooms are run under business opportunity terms as opposed to classic franchises.
Another example is rack jobbing. This is where you negotiate with stores to strategically place your products for maximum customer visibility.
Also referred to as a rack merchandiser, a rack jobber builds agreements with retailers to display and sell a specific range of products in a store. Typically, these products aren't generally found in a particular store, such as a gas station or grocery store.
Business Opportunities with Franchise Direct in Canada
Check out Franchise Direct's excellent portfolio of profitable business opportunities for sale in Canada. And own your own business without the ties of a franchise partner.
Find your brand new start with Franchise Direct.