Franchising significantly influences the Canadian economy, with about 45% of retail sales in the nation attributed to franchised businesses [1]. This translates to roughly $585 billion annually, accounting for $1 out of every $5 spent and constituting 5% of Canada’s Gross Domestic Product, a figure comparable to annual franchise sales in the United States.
While joining a franchise may not be inexpensive, with initial franchise fees often exceeding $25,000 and total investments surpassing $150,000, these costs are offset by the impressive success rates of franchises in Canada, the available support, and the reduced marketing burden of established brands. In fact, with over 4,000 new franchise outlets opening yearly in the country, it’s evident that initial joining fees do not deter determined business owners.
Corporate Membership
The Canadian Franchise Association boasts around 500 corporate members who collectively own about 1,250 companies. Considering all outlets, this totals nearly 76,000 franchised establishments operating in Canada, equating to roughly one franchised operation for every 450 members of the population.
Supported and Prosperous
Canadian franchises tend to thrive, with 97% of franchises opened in the past five years still in operation, and 86% of them remaining under the same ownership as their inception. This underscores the available support and guidance for franchisees in the country.
Franchise Distribution Across the Nation
Ontario serves as the hub of franchising in Canada, with 56% of the country’s franchises headquartered in the province. Additionally, 65% of the nation’s franchise outlets are based in Ontario [2].
Employment in Franchises
Franchising plays a pivotal role in the Canadian economy, employing over 1.5 million individuals across more than 30 retail and service sectors and various franchise business types. The hospitality sector, which accounts for nearly 40% of franchised businesses in Canada, benefits from the nation’s vibrant culture and tourism opportunities, with 35% of all restaurant sales in the past year coming from franchises.
In Summary
Franchising remains integral to Canada’s economy, offering a plethora of opportunities for both business owners and employees. The upward trajectory of success shows no signs of slowing down, making franchising an attractive option for investors this year.
[1] Source: Franchise Direct Canada
[2] Source: Franchise 101