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Green Franchise Industry Report

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Green Franchise Industry Report

The green economy is a fast-growing economic structure that focuses on the mitigation and prevention of environmental pollution, global warming, resource depletion, and ecological degradation while also creating jobs and promoting economic growth. As the world continues to be threatened by global warming and other environmental issues, it is of critical importance that both economic growth and environmental issues be addressed concurrently.

In response to the growth of the green economy, more and more franchised businesses are not only offering green products and services, but they are also introducing environmentally friendly practices within their businesses in an effort to reduce their negative impact on the environment.

Find out more in this report!

The Canadian Green Economy

The world's green economy is growing faster than the general economy, with a profound shift in focus towards emerging green technologies and skills in the areas of alternative and renewable energy, energy efficiency, and green building.

According to Oxford Economics, “the growth in demand for the new green goods and services that will facilitate the green economy will create an opportunity worth $10.3 trillion to 2050 global GDP, in 2020 prices. This is the equivalent of 5.2% of global GDP in that year.”

However, the RBC found in 2022 that “though Canadian green spending has hit consecutive records in the last two years, it remains well behind other nations. As a share of the economy, our spending is a third of China’s and half of Europe’s.”

But one could expect that to be changing. The Canadian Government has stated a goal reducing emissions by 40% to 45% of 2005 levels by 2030 and a net zero carbon emissions target for the country by 2050.

With that goal, you can expect more government-backed business economic opportunities related to the goal of mitigating climate change to arise. For instance, in August 2022 the Minister of Agriculture and Agri-Food announced an investment of over $1.8 million under the AgriAssurance Program to assist Bioindustrial Innovation Canada to further develop quality standards to accelerate growth of the bioeconomy in the agriculture sector. The bioeconomy, part of the greater green economy, is based on the production and sale of products other than foodstuffs made from agricultural, aquatic and forestry resources, or even municipal waste.

In building a new energy economy in Canada, the government is interested in businesses engaged in green industries, including renewable energy, energy efficiency and sustainable buildings. These areas have proved to be fast-growing sectors of domestic and global economies in recent years.

In addition, there exists a wide range of rebates and other financial incentives designed to encourage businesses franchised and non-franchised to introduce initiatives that will be environmentally beneficial. All provinces offer some form of financial incentive to encourage businesses to use renewable energy or adopt energy efficiency systems and equipment.

2017 Green Franchise Industry Report-1

The Impact of Consumer Demand for Green Products and Services

<blockquote>“There are rising expectations of the more educated consumer, and being environmentally conscious is now an aspect of a top-notch brand. As more and more businesses begin to implement green practices, waiting to make the shift to an eco-friendly business model can end up costing you in the long run.” ~ Joseph Berger, You’ve Got Maids</blockquote>

In decades past, consumers were less conscious of the effect that their purchasing decisions were having on the environment. But now, interest in products and services offered by green franchised businesses is increasing. Consumer demand has signaled to business owners that environmental responsibility is not divorced from successful business operations and will help their competitiveness in the marketplace.

During periods of recession the expectation of industry experts was that the green industry would lose some of its momentum. It was presumed that consumers would not pay more for eco-friendly products during harsh economic times. Reports have shown, however, that the green economy has not only survived these periods but actually thrived as there was a continued consumer awareness of, and demand for, green products and services.

Eco-friendly habits are increasingly a part of Canadian consumers’ daily routine. According to a 2013 study by the Business Development Bank of Canada, 75% of consumers said that they try to buy local Canadian-made products. Further, in a 2022 survey, 40% of Canadian said they were more likely to shop locally because they feel it’s more sustainable and better for the environment.

The Internet has made information easy to access and widely available. Consumers have grown accustomed to being able to access information on any number of different topics and are now demanding transparency and access to information from businesses in relation to their green practices and policies.

The Canadian Green Franchise Industry

2017 Green Franchise Industry Report-1

Green Franchise Definition

For our purposes, a green franchise refers to any franchised business that is making a conscious and deliberate effort to reduce their negative impact on the global or local environment or a franchise whose services are aimed at consumers who want to reduce their own negative impact on the environment.

Types of Green Franchises

While not all franchises can be divided cleanly into these two main types of green franchised businesses, they give a general overview of how increased environmentally-friendly business is being achieved.

1. Franchises that directly aid the environment

Green franchises that directly aid the environment can range from solar panel installation businesses to energy conservation consultants. Renewable energy, such as solar panels, offers people an alternative to fossil fuels, which are being depleted at an alarming rate.

2. Franchises that employ green technology and practices

Franchises that employ green practices can be found across a range of industries from food franchises and retail franchises to auditing and consulting franchises.

Practices include using biodegradable and recyclable packaging, utilizing vehicles that run on the latest hybrid and biofuel technology, and offering fundraising programs for community recycling.

Automotive franchises have adopted practices of pollution prevention, proper removal and recycling of waste oil, and developing a proprietary line of eco-friendly auto fluids.

Within the cleaning industry more and more franchises are using products and employing practices that do the least amount of damage to the environment. Some cleaning franchise implement programs that include biodegradable products that won’t damage streams, products with low pH levels for safe contact, and cleaning solutions that don’t contain damaging levels of volatile organic compounds (VOCs).

Choosing a Green Franchise

Deciding on a franchise is always a difficult decision and deciding on a green franchise is no different. The following is some practical advice on how to choose a green franchise.

  1. When deciding on a green franchise, a potential franchisee will need to decide if they want to be part of a franchise that directly aids the environment, such as solar panel installation or green energy or if they want to be part of a franchise that employs green practices and is dedicated to helping the environment.
  2. When selecting a green franchise, make sure they are truly green. A lot of “green washing” occurs as franchisors try to profit from the hype without putting forth the effort required to be truly green. In some cases, a business spends their entire green budget on promoting the fact that they are a green company rather than using the money to implement green practices. Also, be aware that some green “awards” displayed may not be legitimate.
  3. Ensure that the franchise offers training for the new franchisee and for their staff. This training will not only cover the basics of running the franchise but also teach the staff green practices which should be in place.
  4. For a franchisee, an accurate understanding of the costs of a green franchise or the costs involved in going green is essential. It is important that a potential franchisee does a thorough investigation of the franchise to ensure that they are making a good investment in a truly green franchise.

The green industry is not a passing trend. At present consumers are more likely to support companies that have environmental programs and initiatives in place. Consumers, by-and-large, now expect companies to be environmentally responsible. Because of that shift, there has never been a better time to become part of the green franchise industry.

Going green helps a company’s bottom line. Whether it is a franchise that directly aids the environment or a franchise that employs green practices, the future is bright for the green franchise industry.

For more information on green franchises, view our green franchise opportunities page.

Green & Eco-Friendly Franchise Opportunities for Sale in Canada

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