Franchising Trends in Canada
Interview with Wayne Maillet, BBM at Franchise Specialists, Canada.
How did you get started as a franchise consultant?
I have always had a passion for business and entrepreneurship. When I got out of school I immediately got into business brokerage, helping people to buy and sell independent businesses. From this I learned the value of a franchise, providing support and a brand. I began working for national franchisors in Canada, working with such companies as Realty World, Uniglobe Travel and Keg Steakhouse. Although all in different industries I discovered that the opportunities and challenges within the franchise growth model were the same. They were excellent brands that allowed me to learn all aspects of franchising before I branched out on my own as a consultant in 1997.
Who are your clients?
As a full-service franchise development and management company in Canada, Franchise Specialists has been proudly serving both large and small franchisors for over 15 years. The outsourcing of franchise development and working with an experienced franchise consultant allows the client to access best-in-class competencies, access experience at an affordable cost and avoid costly mistakes. It enables the client the ability to focus on their core competencies. At Franchise Specialists we know that success in franchising involves a focus on many details. Key services that we provide include strategic planning, operational support to franchisees, writing of operational manuals, franchise recruitment, and overall assistance to franchisors entering the Canadian market.
What are the current trends on the franchising market in your country?
Because of Canada’s strong economy we are seeing a lot of brands from other countries entering the Canadian market, especially from the US. There are a growing number of baby boomers who are reaching retirement age who are simply not financially or mentally ready to retire who are seeking to get into business for themselves with the support of a proven franchise model.
How many companies in your country offer franchises?
There are more than 78,000 franchised locations operating under approximately 1,200 brands across Canada. Franchising in Canada employs well over 1 million people.
Which are the best Franchises by growth, branch and demand? What makes them different?
Key growth areas include senior in-home care and service based businesses in both commercial and residential, business consulting and children products and services.
What's the average startup investment in money and time for a franchise?
Start-up investment varies considerably depending upon the industry, ranging from as low as $20,000 for a home based service franchise to as high as $2.5 million for a full service restaurant. Average investment is roughly $250,000.
What is the profile of the people who choose to buy a franchise?
Every year, thousands of Canadians are improving their lives by becoming franchisees. They come from all walks of live. The largest demographic are outplace executives who have been displaced by corporate downsizing. They are seeking to have greater control of their own destiny and work with a proven business model. This group of prospects has work experience, is business savvy, and possesses the connections to be successful. Most have substantial equity in their homes that they are able to leverage for financing.
What should a franchisor know before coming to your country? Any specific requirements, legal restrictions.. etc?
In Canada there are legal requirements of disclosure in the provinces of PEI, New Brunswick, Ontario, Manitoba and Alberta. At the time of writing British Columbia is considering implementing disclosure laws. Documents and manuals should be modified for the Canadian market and, depending upon the business industry, changes made to the product/ service offering to meet the needs of the Canadian consumer. Franchisors entering the Canadian market will be best served by working with an experienced Canadian franchise professional.
