Understanding Franchising Basics
American and Canadian franchising are proven business formats that accelerate the growth of a business. A significant number of Canadians work directly or indirectly in a franchise business. As one writer said, most prospective franchisees look at a franchise as a way to be in business for themselves, but not by themselves.
One positive aspect of owning a franchise is job creation. The franchisee is, in many cases, assisted in starting the business which would include a selected location, logistics, equipment and supplies. When prospective franchisees look at a possible franchise opportunity, they are confident that the trademark and brand of the business are recognized by the buying public.
Franchising is a licensing system by which the owner (licensor or franchisor) of a product or service licenses others (franchisees) to market his product or service within a defined territory. There are well-defined guidelines to be followed by franchisees.
Today, most products and services in Canada are available to consumers through a franchise business.
Canadian franchisees represent over 600 brands in close to 50 industries with over 40,000 franchise locations across the country (Canadian Franchise Association).
These industries include hotels, auto repair, business services, residential and industrial cleaning services, food and beverage, educational services, health and fitness, senior care, pet care, printing and publishing services, personnel staffing/coaching, retail, computer, manufacturing and many more.
Benefits of Owning a Canadian Franchise
- Start-up assistance (location, equipment, supplies)
- Purchasing power (public’s trust for the trademark and brand)
- Marketing programs
- Tested operating systems
- Continued support (which may include staff training, accounting)
These constitute a “safety net” for Canadians entering the franchising world.
Professor Tony Wilson wrote an article in Toronto’s Globe and Mail saying that some US-based franchisors do not adapt their licensing agreements and other agreements to Canadian laws. FranNet takes this seriously and is very much aware of Canadian realities. We coach all our franchisors and franchisees about the importance of being familiar with the Canadian market.
FranNet is not new to Canadian franchising.
Why not contact FranNet today by calling us at 1-800-372-6638 or fill in the Find Your Perfect Franchise form on the right.