Canadian Franchise Magazine
issue 4#2 - 2019
w w w. c a n a d i a n f r a n c h i s e m a g a z i n e . c o m
Mary Brown’s Chicken & Taters celebrates five decades of Made Fresh Food
buying a franchise
the be nefits a nd pitfa lls
is franchising the right fit for you?
her e’s how to find out
LATEST NEWS
FINANCIAL ADVICE FROM THE BANKS
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TOP LAWYERS’ ADVICE
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CANADIAN FRANCHISING VOLUME 4, ISSUE 2 - 2019 president: Colin Bradbury. colin@cgbpublishing.com
publisher: Vikki Bradbury. vikki@cgbpublishing.com
Editorial Department: editor@cgbpublishing.com
Assistant Editor: Diana Cikes. editor@cgbpublishing.com
Advertising advertising@cgbpublishing.com
PRODUCTION: production@cgbpublishing.com
DESIGN: Jejak Graphics. jejak@bigpond.com
COVER IMAGE: Mary Browns Chicken and Taters
CGB PUBLISHING #107 - 1001 Cloverdale Avenue, Victoria, B.C V8X 4C9 CANADA www.canadianfranchisemagazine.com Proud member of the IFA:
from the
Publisher Welcome to the latest issue of Canadian Franchise Magazine. We have compiled plenty of informative news, stories and Expert Advice articles to help you in your journey to entrepreneurship. Starting with our Cover Story on Mary Browns Chicken and Taters which is
celebrating its 50th anniversary this year with a new look and a new push for expansion and it’s seeking hands-on franchisees to help it grow throughout the country and beyond. Turn to page 10 to learn more about this exciting Franchise.
From our experts we have Steven Tallis who discusses Becoming your own boss and how much easier it is when you look at a franchise model. Wayne
Maillet discusses A common question asked by prospective franchisees that are reviewing a franchise opportunity, “How much money can I make? This
thought-provoking article answers this question and offers some guidelines to
consider. As usual we have some great experts discussing topics on Cash Flow,
How to stay competitive and the important question you should ask yourself, is Franchising right for you.
This issue also has a great article on Pay2Day , A fast-growing financial services franchise that is taking the Canadian market by storm and is
SUPPLIER FORUM International Franchise Association 1501 K Street, N.W., Suite 350 Washington, D.C. 20005 Phone: (202) 628-8000 Fax: (202) 628-0812
looking for franchisee’s who will continue to help them stand apart from the competition by advancing everyone’s expectations.
Don’t forget to take a moment to shop around our A-Z Directory at the back of the magazine. And be sure to stay in touch and send us your comments. Happy reading! Vikki Bradbury Publisher
www.franchise.org The information and contents in this publication are believed by the publisher to be true, correct and accurate but no independent investigation has been undertaken. Accordingly the publisher does not represent or warrant that the information and contents are true, correct or accurate and recommends that each reader seek appropriate professional advice, guidance and direction before acting or relying on all information contained herein. Opinions expressed in the articles contained in this publication are not necessarily those of the publisher. The publication is sold subject to the terms and conditions that it shall not be copied in whole or part, resold, hired out, without the express permission of the publisher.
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contents 10
Canadian Franc
hise Magazine
ISS UE 4#2 - 201 9
MARY BROW N’S CHICKEN & TA TERS CE LE BR AT ES FIV E DE OF MA CA DE
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BUYING A FR A
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IS FRANCHIS RIGHT FIT FOING THE R YO HE R E’ S HO W TO FI ND U? OU T
ADV ICE FRO M THE BAN KS
TOP LAW YER Page 1 S’ ADV ICE
On the Cover 10 Cover Story:
Mary Browns Chicken and Taters Celebrates Five Decades of Made Fresh Food
12 Buying a Franchise the
Benefits and Pitfalls
22 Is Franchising the Right Fit
12
For You
in every issue 6 What’s New!
Announcements from the industry
35 A-Z Franchise and
18
Services Directory
focus 16 PAY2DAY
Payday Lending Franchise Advances Everyone’s Expectations!
26 International Workplace Group
Franchising USA
Franchise’s Newest Target: The Flexible Workspace Revolution
20
Canadian Franchise Magazine
august-october 2019 Expert Advice 12 Buying a Franchise the Benefits and Pitfalls
22
Lori Karpman Karpman and Company
18 Five Things Every Franchisee Must Know About
Cash Flow
David Banfield The Interface Financial Group
20 Is The World Ready for Canadian Franchises?
Edward (Ned) Levitt Dickinson Wright LLP
24
22 Is Franchising the Right Fit for You
Joseph Pisani BMO Bank of Montreal
24 Becoming Your Own Boss
Steve Tallis Starks Barber Company
28 How the Sustainability of Healthcare Franchises
Makes them a Strong Investment in Canada Josh Robinson Pearle Vision
30 How Much Money Can I Make
28
Wayne Maillet Franchise Specialists
32 Retail in 2019
Dan Kelly Canadian Federation of Independent Business
30 22 Page 5
ca nadia n f ra nchise maga zine
what’s new! jani-king Celebrating 50 years of commercial cleaning franchise success In 1969, Jani-King Commercial Cleaning Service’s founder Jim Cavanaugh landed on an idea so unique that it would change the landscape of the commercial cleaning industry. By the early 1970’s, Jani-King began to apply its pioneering franchise concept – a model in which Jani-King secures commercial cleaning contracts and offers the Franchise Owner an initial customer base to service. Today, 50 years after the system was first developed, Jani-King remains one of the world’s largest commercial cleaning franchise systems. In Canada, there are more than 700 Franchise Owners supported by 12 Regional Office Centres in most major cities across the country. What sets Jani-King apart from its competition is a proven, well-crafted system. Franchise Owners are supported by a local regional office that provides initial and ongoing training, operational and administrative support as well as
assistance in securing new business. Beyond Jani-King’s solid reputation of excellent service, the company’s franchise model provides clients with added assurance that the job will be thorough and consistent. This is because the cleaning is performed by
the franchisees themselves—business
partners who have invested in their own
Jani-King Franchise and are dedicated to client satisfaction.
www.janiking.ca/franchiseopportunities/
Atlantic Canada’s Leader in Laser Hair Removal and Medical Aesthetics continues National Expansion DermaEnvy Skincare, A growing Canadian Laser, Skincare and Medical Aesthetics franchise is continuing its national expansion with the opening of the first Ontario franchise territory in Waterloo. With the opening of Waterloo Ontario clinic, DermaEnvy Skincare has six clinics in four provinces (Ontario, Nova Scotia, New Brunswick and Newfoundland) offering the latest in medical spa and cosmetic treatment technology including Laser Hair Removal. “We are excited to see the growth of the DermaEnvy Skincare brand and our expansion outside of Atlantic Canada and look forward to welcoming new team members and franchisees to Team DermaEnvy and bring affordable, quality laser, skincare and medical aesthetics treatments to Waterloo Region” said Cohen MacInnis, President of Wellness Brands Canada Inc., franchisor of the DermaEnvy Skincare brand. The Waterloo clinic, located at 99 Northfield Drive East, Suite 305 in Northfield Medical Centre will include treatments
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for body contouring, skin rejuvenation, acne treatments, dermaplaning, microneedling, tattoo removal, teeth whitening, waxing and full facial and peel treatment menu. As part of the Grand Opening in addition to exclusive opening week specials, the local franchisees will be donating treatment certificates to twenty local Waterloo region charities to thank our new community. www.dermaenvy.com
Canadian Franchise Magazine
Connect with Nature’s Table: Nature’s Table is a fast-casual dining concept that gives health-conscious eaters a variety of options that are the highest quality and taste in the industry including smoothies, wraps, sandwiches, soups, protein bowls and acai bowls – ensuring there’s something appetizing and delicious for every guest. It first opened in Central Florida in 1977. The company’s core mission includes diminishing its ecological footprint, helping the local economy, giving back to the community and utilizing locallysourced ingredients to ensure the freshest product possible. The company is headquartered in Orlando, Florida and has a dedicated operations team readily available to lead you through every facet of opening a successful franchise including site-selection, buildouts, design, and training. Nature’s Table locations can be found in hospitals, colleges, airports, military bases, malls and more due to its flexible footprint that allows a Nature’s Table to be built in existing buildings anywhere people work, shop or travel. Website: www.naturestable.com
Midas®, Announces change in leadership for Central US and Canada Regions One of the world’s largest providers of automotive services with more than 2,100 franchised, licensed and company-owned Midas shops in 14 countries, including nearly 1,200 in the United States and Canada, recently announced a change in leadership with the promotion of Will Helton, most recently Division Vice President of the Central US and Canada Regions, to Vice President & General Manager of Midas.
seen the value that Will brings to the organization and we are excited to work alongside of him, our leadership team and our franchisees to take Midas to the next level,” said Brant Wilson, President & COO of Franchise Operations for TBC Corporation, parent company of Midas. “His operational expertise, leadership experience and knowledge of the industry has been and will continue to be beneficial to our organization.”
Since joining Midas two years ago from Bridgestone, he has played an integral role in many of the Midas initiatives that have propelled the brand to the next level.
Prior to joining Midas, Helton held positions of increasing responsibility, last as Region Manager, over the course of 16 years with Bridgestone.
“Over the last two years, we have
https://www.midas.com/
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ca nadia n f ra nchise maga zine
what’s new! Making Moves: FDF Brandz and Famoso Italian Pizzeria + Bar announce Eastern expansion
FDF Restaurant Brandz, parent company of Famoso Italian Pizzeria + Bar has announced major expansion plans for Ontario, the result of a new partnership with Toronto-based franchise development agent, Labreche Group. Famoso Italian Pizzeria + Bar opened its first location in Edmonton in 2007, aiming to serve up Neapolitan inspired pizzas made with authentic, high-quality ingredients in a fun and vibrant atmosphere. Following their initial success, Famoso put down roots with new franchises across BC and Alberta, ending 2018 with a total of 29 locations in BC, Alberta, Saskatchewan and Ontario. Following in the footsteps of other Canadian restaurant staples, FDF Brandz CEO, Frank Di Benedetto is taking steps to expand Famoso into the Ontario market. Labreche Group, headed by Chad and Dean Labreche, who actively own and operate Ontario’s only two Famoso locations, will be at the helm of the expansion.
Cora Breakfast and Lunch takes flight aboard WestJet
Cora Breakfast and Lunch recently announced that the brand is now a valued partner of Canadian airline WestJet. The onboard breakfast meal, served exclusively in the Premium cabin, is now provided by Cora. It is a satisfying mark of confidence in the Canadian breakfast restaurant pioneer. Travelers on flights lasting 2½ hours or more and departing between 10:30 p.m. and 9:30 a.m. will have the chance to savour exclusive Cora meals. The restaurant franchise is famous for its generous servings of fresh fruit and eye-catching presentations, which continues to set the brand apart to this day. The dishes have been adapted to suit onboard requirements while remaining true to the original creations. The breakfast selection is inspired by favourite Cora classics: Smoked turkey eggs Ben et Dictine, a Vegetable skillet and a Spinach and aged cheddar omelette served with turkey sausage.
There are 7 new locations slated to open in the west by Summer 2020, in addition to multiple Ontario locations, with two different franchise models. With this expansion in the works, the chain is poised to become a household name in the Ontario market in a matter of years.
Passengers in WestJet’s Premium cabin are now able to enjoy Cora breakfasts, making it a delicious opportunity for Cora to offer a taste of its menu to a different segment of the population. Moreover, this new mandate will allow the breakfast franchise leader to pursue its expansion plan and bring added value to its offering.
Website: https://famoso.ca/
www.chezcora.com
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Canadian Franchise Magazine
British Swim School continues to set the bar with international expansions British Swim School, best known for its education in water safety in a fun and gentle environment, continues to set the bar with international expansions with a new location in Brampton, Ontario! The brand-new location was celebrated through a grand opening event at the Courtyard Marriott Hotel on Saturday July 6th, where a representative from Brampton City Hall assisted with the ribbon cutting ceremony. Franchisee, Ann-Maire Rowe officially began lessons on July 8th to bring water safety survival skills to the Brampton community.
“I realized there was a great need for water safety survival schools like British Swim School in Brampton” said British Swim School franchisee, Ann-Marie Rowe. “I’m very excited I had the chance to bring this amazing resource to the Brampton community. It’s so easy to learn how to swim because every day is enrollment day at British Swim School!” The British Swim School franchise operates a unique water safety program with teaching methods that serve as a trademark for the brand. The company offers lessons out of multiple national fitness chains and hotel pools year-round. British Swim School operates in nearly
200 schools in 21 states within the U.S. and holds nearly 19,000 lessons per week nationally. www.britishswimschool.com/
GLOBAL PET FOODS IS AWARDED BRAND OF THE YEAR Recognized for their top tier brand experience in the pet industry, alongside some of the largest and most recognized brands in the world. also recognize our strong reputation as leaders in pet specialty innovation, which authenticates our core beliefs. The award ceremony was held in the Throne Room of Vienna’s Hofburg Palace on July 3rd, 2019. Over 60,000 consumers from around the world voted for more than 800 brands. 92 of these brands were awarded. “A good brand needs to offer a meaningful experience while remaining relevant and distinctive,” says Julian Andersen, Managing Director of the Forum. Global Pet Foods: Dino Fragaglia, President; Jim Walker, Executive Chairman; Paul Thomson, CEO.
At Global Pet Foods, we truly believe that pets are undeniably part of the family. That’s why we work hard to provide Canadian pet parents with the highest quality foods, expertise, and unmatched customer service. We couldn’t be happier that Global Pet Foods was awarded the 2019 Brand of the Year in the Animalis Edition of the prestigious World Branding Awards. “The Animalis Edition of the Awards is an acknowledgement to the tireless effort of the teams that build and maintain their brand presence in an everchanging market in the pet and animal industry,” says Richard Rowles, Chairman of the World Branding Forum. It’s fulfilling knowing that our customers recognize our brand and we’re extremely proud of that achievement. Pet parents
The Brand of the Year Award is a wonderful testament to the team effort directed towards this goal. About Global Pet Foods: Since 1976 Global Pet Foods has grown to become the third-largest pet specialty retailer in Canada and fifth largest in North America. The 100% Canadian owned concept believes pets are undeniably part of the family. Offering expertise in holistic nutrition and the broadest selection of ultra-premium and innovative products for all types of pets. With over 200+ million in store revenue and almost 190 franchised locations. For more information or franchise inquiries visit www.globalpetfoods.com About the World Branding Awards: The World Branding Awards is the premier awards of the World Branding Forum. The Awards recognises the achievements of the best brands in the world. Winners are selected based on brand valuation, market research, and online public voting. For more information, visit www.awards.brandingforum.org
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cover stor y
M a r y B row n’s C h i c ke n & Tate r s
Canadian chicken franchise celebrates five decades of Made Fresh Food
The largest Canadian quick serve chicken restaurant franchise is celebrating its 50th anniversary this year with a new look and a dramatic push for expansion – in Canada and beyond. Could this be the opportunity you’ve been looking for?
History Mary Brown’s Chicken & Taters, established in St. John’s, Newfoundland & Labrador in 1969, currently has about 160 stores coast-to-coast across Canada, including several in Walmart locations. It’s one of Canada’s fastest-growing franchises. “The brand was named to honour Mary
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“After five decades of perfecting their methodologies, menu and approach to Guest service, Mary Brown’s is now set to expand into Latin America, the United Kingdom, the Middle East and beyond.” Brown, the woman behind our southern chicken recipe,” explains Vice-President of Franchise Development, Safiah Arooz, in a recent interview with Canadian Franchising.
Exponential Expansion Gregory Roberts, a Newfoundlandborn entrepreneur, purchased the brand in 2007. Under his leadership, Mary Brown’s store count has more than doubled, Arooz notes, and it’s still going strong. Currently, Franchisees make up about 70% of the stores’ ownership throughout the country, with many Franchisees being multi-unit operators.
The balance of the stores is corporate owned. “Our goal is to surpass 200 stores by 2020,” Arooz says, “and we’re well on our way to achieving that target.” The brand is also geared for international expansion. After five decades of perfecting their methodologies, menu and approach to Guest service, Mary Brown’s is now set to expand into Latin America, the United Kingdom, the Middle East and beyond. The franchise’s strategy is to begin its global expansion by opening locations in two or three countries within one larger,
Canadian Franchise Magazine
“Our goal is to surpass 200 stores by 2020, and we’re well on our way to achieving that target.” a business and must complete a written test at the end of the program. Once that is done, Franchisees return to their home base and complete additional courses online before their store opens.
Rebranding
international region. While it will still concentrate on its core menu of Chicken and Taters, the restaurant will customize dipping sauces and other items to accommodate local palettes.
“They are at the heart of our brand and bring the brand to life in communities across Canada,” he said in a recent press release.
Opportunities
The main difference between Mary Brown’s and its competitors, Arooz notes, is the superiority of Mary Brown’s product. Chicken is delivered to each store whole and fresh and then is marinated, hand cut and hand breaded. Similarly, Taters are handcrafted from farm fresh Canadian potatoes – hand cut and hand breaded in each store.
Arooz, who came over from another popular restaurant franchise, has years of experience in franchise development and is now in charge of both domestic and international franchise development for Mary Brown’s. She says Mary Brown’s is looking for hands-on owner/operators who are dedicated to preparing and serving real, fresh, comfort food that is made with care in-store. Arooz says there is room to grow across all provinces, with Ontario and British Columbia being the hottest markets. Industry experience is not mandatory, Arooz notes, but the right attitude and commitment to community is important. For Mary Brown’s, authentic hospitality is a prerequisite in all stores, in keeping with the brand’s east coast roots. Mary Brown’s maintains the highest standards for its Franchisees, but at the same time, is quick to credit them with much of the brand’s success. “Without our Franchisees, who are our hands-on owner/operators, we would not be where we are today,” she says. “They live and breathe our brand.” That sentiment was echoed by Mary Brown’s President and COO, Hadi Chahin, who credits Franchisees for Mary Brown’s longevity in Canada.
The Mary Brown’s Difference
“When we speak to people at the trade shows who haven’t tried Mary Brown’s and they ask what’s good about our product and ask us more about it, we tell them to try it and come talk to us after.” She adds, “When they see us again, they’re converted!” She explains further, “It’s definitely the product. Our menu is real comfort food. There’s nothing else quite like it!”
Training All new Mary Brown’s Franchisees undergo a comprehensive threeweek mandatory training session in Newfoundland, providing both the necessary skills as well as an understanding of the culture that is at the heart of the brand. Prior to that training, Franchisees must complete a training curriculum available through Learn MB, Mary Brown’s online training portal. Courses cover the basics of Guest service and regulated compliance training. Franchisees learn all aspects of running
Leading up to the 50th anniversary of the brand this year, Mary Brown’s underwent a rebranding effort that saw the logo reinvigorated with new colours, an update for Mary herself and an exciting modernization of store design. The goal is to expand audience appeal and to relay that Mary Brown’s is a premium Canadian brand. Each store across the country features a tribute to St. John’s, the brand’s hometown, with a mural of the city’s colourful “jelly bean” houses – perfect for Instagram posts by the key millennial target audience. Another event held for the 50th anniversary is a national contest with Grand Prize Trips to St. John’s. An Anniversary Party is planned in the city with attendance expected by celebrities, dignitaries, all corporate staff and of course, Franchisees. As for what the next 50 years holds, Chahin says it will involve looking toward the future while honouring the past. “More growth and more innovation are coming for sure, but we won’t lose sight of what makes Mary Brown’s special,” he says. “A delicious handcrafted menu and genuine hospitality are who we are – and always will be.” With solid expansion plans, the next 50 years promises to be as lucrative for the Canadian brand as the first 50.
Awards Franchisees’ Choice Award Winner for the ninth year in a row by Canadian Franchise Association 50 Best Managed Companies in Canada by Deloitte Canada and Canadian Business magazine.
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ex per t advice
Lori Karpman | President | Lori Karpman & Company
Buying a Franchise:
the Benefits and Pitfalls New entrepreneurs who are looking to start a business often look to franchising to find their next opportunity.
For many would-be entrepreneurs, franchising is an interesting opportunity as it offers the chance to be your own boss without taking on the significant risk that comes with starting a business from scratch. In a franchised business, the franchisor trains franchisees on their operational, marketing and business administration rules and regulations. You are buying the brand awareness the franchise has generated and this makes getting into business via franchising a very attractive choice for many people.
Benefits and Advantages of Buying a Franchise Independence:
Lori Karpman
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Franchising offers entrepreneurs the independence of small business ownership all while being supported by a larger network of people and resources. With a franchise you operate under the
banner of an already established brand name. The entire system from opening to daily operations and more is already tried and tested and ready to be deployed to another franchise unit. In theory, there should be be far less work (and cost) involved in trying to establish and build your franchise. The brand is already known and trusted in the marketplace and therefore should produce a stream of customers.
NO Experience Required: You do not need to have any experience in the industry in which the business operates. This is true for 95% of franchised opportunities other than those that require a specific degree or license, like an accounting practice for example. I advise individuals to look at what their passions and hobbies are when selecting a franchise. Additionally, you do not need to have any business experience either,
Canadian Franchise Magazine
“Most franchisors prioritize supporting their franchisees especially when they are just starting out.”
with already loyal customers and this can give you a quicker head start to making money and earning profits by drawing customers from day one.
Franchisor Support: Most franchisors prioritize supporting their franchisees -- especially when they are just starting out -- by offering them pre-opening assistance with operations like site selection, design, construction, financing, training, and grand-opening programs. The help doesn’t stop there: Some franchises even give loans and other forms of financial assistance to their franchisees.
Be Your Own Boss: Owning a franchise gives you the flexibility of being your own boss, within the confines of the franchise system though. Many feel a greater sense of control over their careers and have an even better quality of life. Franchising’s motto is “be in business for yourself but not by yourself”.
Pitfalls and Disadvantages of Buying A Franchise you will get all the training you need from the franchisor.
name and operational and financial support.
Higher Rate of Success:
Collective Buying Power:
Franchises generally have a higher rate of success than an independent start-up as it is a more secure investment. Franchises are a more secure investment than new businesses because they have the support and backing of a larger, established corporation. These corporations have business models that have been tested, often in different markets across the country, and have already proven themselves to be effective.
When you purchase a franchise and become part of a buying group that the franchisor has set up. The franchisor builds relationships with suppliers that result in lesser costs to the franchisee for products they would otherwise have to buy elsewhere. This means that inventory should be less expensive because of the franchisor’s collective buying power.
Easier Financing: Because a franchise already has a history of success, getting a loan is easier than if no historical data was available. Banks find franchises to be a less risky business to finance because of their history of proven success. Investors are far more willing to invest in a business with an established network, a known brand
Brand Recognition: The most difficult task in any new business is generating customers. This is one great reason to buy a franchise, you get the benefit of the recognition and awareness that your franchisor has already created. When you buy a franchise, you bypass a lot of the work that goes into marketing and branding a new, unknown business. With a franchise you have access to an established brand
Just as with any business model, there are disadvantages to buying a franchise.
Formal Agreement: Buying a franchise means entering into a formal agreement with your franchisor. Essentially you are “renting” their business model for a specified period of time. Once the Agreement ends, the franchisor may not be required to renew it. By the same token, you can also decide not to renew if you are not satisfied with the performance of the brand.
Limited Control: The franchisee has no, or very little, control over the business or how it is operated. There are usually restrictions covering, amongst other things, territory, the products you use and sell and where to buy them, marketing and promotions and more. How the business operates is set forth in the franchisor’s operations and other manuals and franchisees are generally not permitted to go beyond the confines of them.
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ex per t advice
Lori Karpman | President | Lori Karpman & Company
Initial Investment Can be High: Depending on which franchise you choose to invest in, the initial investment can be very high, especially for bigname brands. However, when you think of the hundreds to millions having been invested to perfect the brand and systems, it is still cheaper than going solo.
Financial Information is Shared: Franchisors collect financial information from their franchisees on a regular basis in order to improve the unit’s performance and profits, as well as to calculate royalty and marketing payments. This means that a franchisee has no confidentiality regarding financial information. Not to worry though as the information is kept internal and only shown to those who “need to know”. However, if you are doing business correctly you should have no reason to be shy to provide the franchisor the information it needs. The franchisor also uses the information to benchmark a unit’s performance as compared to the rest of the system. This can be a huge advantage for franchisees to help improve their financial performance and business profitability.
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“A franchisee will often be expected to pay an initial cost to buy into the franchise agreement. As part of the continuing franchise agreement, they will then be paying on-going fees for the support, training and marketing provided by the franchisor.”
Franchise Costs: This is a big disadvantage for most franchises – the costs. A franchisee will often be expected to pay an initial cost to buy into the franchise agreement. As part of the continuing franchise agreement, they will then be paying ongoing fees for the support, training and marketing provided by the franchisor. In the long term, this means a restriction to the amount of profit (and money in your pocket) that you can make as a franchisee. However, in my opinion it is a small price to pay given that 95% of businesses go bankrupt within 5 years, whereas 85% of franchises are still in operation.
Difficult to Exit the Business: Selling a business can be challenging. Selling a franchise business can have potentially more pitfalls as any buyer is bound by the terms that have been negotiated with the franchisor when a franchise was granted. The initial
franchise agreement will probably have been negotiated for a fixed period, so even if the business has been successful, the terms of the franchise will have to be re-negotiated on renewal and any potential buyer may be deterred by the uncertainty of the terms the franchisor may seek to introduce on renewal. In conclusion, franchising is a great way to get into business especially your first one. However, franchising is no guarantee of success and the same principles of good management - such as informed decision-making, hard work, time management, having enough money, taking care of your employees and serving your customers well - still apply. Lori Karpman is president of Lori Karpman & Company A fullservice firm providing a full range of consulting and legal services. For more information: (514) 481-2722 e-mail at lori@lorikarpman.com www.lorikarpman.com
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PAY2DAY
Payday Lending Franchise
Advances Everyone’s Expectations!
A fast-growing financial services franchise that is taking the Canadian market by storm is looking for franchisee’s who will continue to help them stand apart from the competition by advancing everyone’s expectations. In operation since 2006, PAY2DAY has built its reputation right from the start by
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being a responsible and compassionate company treating its clients and franchisees with the respect and integrity that they deserve. PAY2DAY’s core values are “EPIC” (Excellence through Passion, Innovation and Collaboration) said co-founder and president Nelson Belchior during a recent interview with Canadian Franchising. Our franchisees enjoy and benefit from our constant drive to lead this financial industry down the ever expanding FinTech environment, Belchior noted. Customers who use their service benefit from their constant drive to improve
how they get access to their money while removing friction as much as possible, as PAY2DAY prides itself on having the highest standards and is leading the way like no other company in the industry. “Lending people a little bit of money can make a huge difference in their lives”, the PAY2DAY president said. These people have found themselves with a short term cashflow need and don’t want their financial institution of choice making assumptions or judgements about their lives, that’s not our business, but providing them a great service is!
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Putting People First
Going Above and Beyond
Belchior pointed to many small things that add up to making a big difference between PAY2DAY and its competitors.
PAY2DAY is dedicated to providing its franchisees with world class service and profitability, not only through ongoing support and drive for better technology but also by creating a valuable, recognizable and cutting-edge financial services brand.
PAY2DAY has leading edge proprietary software and an App, which is backed up by a 24 hour customer service operation providing customers access the service anytime they need. Another small difference the customers with PAY2DAY enjoy is the use of existing technology to send texts and email as an alternative point of contact, as some customers would prefer to not receive phone calls from their lender. PAY2DAY systems empower their franchisees so they can be flexible with customer repayments. This allows for the customer to relax and feel at ease. Aside from the government regulations, which everyone has to follow, franchisees are free to work with clients to help them through the tough times in their lives. “Other companies say ‘I’m sorry that happened, but this is our policy,’ and we say: ‘I’m sorry that happened, let’s figure this out and give you the flexibility you need’,” Belchior explained. Another source of convenience is PAY2DAY’s ability to truly lend money online. While some of PAY2DAY’s competitors say they offer online loans, they just end up sending people to their stores because they haven’t developed the same infrastructure to handle a 24/7 online operation. PAY2DAY has 24-hour customer service available at all times so the customer can get access to their money any day of the year. This dedication to customer service and convenience has garnered a lot of positive feedback from customers for the franchise, Belchior added.
PAY2DAY has worked to become a world class financial services provider since its inception in 2006. The expert management team at PAY2DAY is second to none in the space which is evident in every quant or measure available. PAY2DAY prides itself on advancing expectations while continuing to build mutually beneficial relationships everywhere. “The important thing is we’re always trying to build a mutually beneficial relationship, where by when you win! We win!” Belchior noted.
Looking for Great Partners to Grow our Franchise with PAY2DAY was originally launched in 2006 as a vehicle to offer small loans over the internet. Two years later, recognizing a need, the company opened its first storefront branch in Brampton, Ontario. Currently, the franchise has 30 locations across Canada with 25 franchises and five corporate locations. The majority of PAY2DAY’s existing locations are in Ontario with two located in British Columbia; However, the company has many locations available for franchising all over the country. The company has plans to expand to other provinces such as Nova Scotia and others over the next few years.
PAY2DAY is looking to expand both its corporate and its franchise locations across the country. To accomplish this, they’re looking for franchisees who don’t just have the financial wherewithal to open a Financial services store, but who are ready to serve a vast and growing customer base. Once a franchisee is on board, they will receive ongoing training and support. Franchisees are encouraged to learn the business in a store front and classroom setting but due to the extensive and thorough support provided, Franchisees need to dedicate little time to their location and are better suited to the accounting and statement ends of the business. Franchisees have access to a district manager who oversees and coaches our corporate and franchised stores ongoing. Plus, the company handles hiring and training initiatives, provides buildout and site selection and everything else a franchisee requires to open turn key. “We’re a phone call away when they have a question,” Belchior said. Currently, only about 10% of Canadians use a financial service lender for a Payday Loan, Belchior noted, but about half of all Canadians are living paycheque-topaycheque, meaning there is plenty of opportunity for this space to grow. With its focus on respect and treating both customers and franchisees right, PAY2DAY’s expansion plans are likely to see it grow worldwide in the near future. For more information www.pay2day.ca
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ex per t advice
David Banfield | President | The Interface Financial Group
Five things franchisee know abo
You have seen the headlines “How I built my six-figure business in five easy steps”. This article is not going to take you down that road because that– statement is usually just a myth. What is a six-figure business? Often people assume that it means a six-figure profit number – whereas, of course, in most cases it means a six-figure sales or topline number which may or may not have any positive bearing on the bottom line. The old adage still rings true that ‘sales is for vanity; profit is for sanity, but cash is king!’ If you’re new to business, or contemplating taking a leap into selfemployment and entrepreneurship, the commercial secrets of a get-rich-quick entrepreneur are far less important than the financial advice that can be accessed by talking to trusted colleagues,
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accountants, advisors and the owners of established successful businesses. Every business owner and franchisee should be fully acquainted with all the elements of their potential cash flow and have a good strong contingency plan should any of those elements fail.
1
Cash is King!
Good cash flow stems from proper budgeting and understanding that cash is the lifeblood of your business. It oils the cogs, if you like. If one area of your business requires more cash than anticipated, then you probably need to pull that cash from another area – it’s all about active cash management. Having cash flow held up because of unpaid invoices or siphoning capital out of the business before it can do its job will soon result in everything grinding to a halt. Becoming a franchisee often alleviates some of these issues as quite often a franchise will come with a ‘tailor-made’ cash flow template and much of the planning will have been done by the franchisor.
2
Timely paperwork sets a standard
It’s natural to reflect the behaviour of those around you. Just as employees learn from their leaders, customers share the behaviour of their suppliers. If you neglect to send out invoices to your customers, then your customers will be negligent in their payment attitudes. It’s essential that you invoice in a timely and regular fashion because not only will your customers come to appreciate the invoice, but they will respect the clear boundaries that you are setting and, needless to say, replicate that behaviour by paying you in a timely manner.
3
Be diligent with collections
We have yet to find any business owner or franchisee that really likes collecting money, however, it is an essential part of your day-to-day credit control, and if you do not have an appropriate collections policy that you diligently follow you are heading towards a cash flow headache. Cash flow is so vital that without a proper policy to
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every e must out
“If one area of your business requires more cash than anticipated, then you probably need to pull that cash from another area – it’s all about active cash management.”
5
Always have a backup plan
ensure its success you’re often risking the livelihood and future success of the business.
4
Always remember whose money it is
You are the business owner, so it is your money. An unpaid invoice, for example, is money that is due to you for goods or services that you have sold and delivered and, as such, it is your money and you have a right to it. You should not in any way be intimidated or uncomfortable in asking for that money – it is your money. Many business owners and franchise owners struggle with this when they begin their operations. It’s often easier to ask for money for someone else than it is for yourself and your business. In this area another adage comes to light, and that is that ‘practice makes perfect’. The more that you do this - the more that you perfect the system - the easier it becomes, and a poor cash flow can be turned into a vibrant situation with just the application of an appropriate and timely reminder call.
Starting a business or franchise requires a plan – nobody sets off on a journey without an appropriate roadmap and an understanding of where they are going and how they are going to get there. Starting a business, even if it is a franchise, is no different from that trip. You need to know where you’re going and how you will get there, and sometimes there will be a wrong turn in the journey. In a business, that wrong turn can often translate into a cash flow problem which, if unattended, turns into a cash flow nightmare and maybe even worse. It is essential to start with a plan, and to always have a ‘plan B’.
David Banfield is the President of The Interface Financial Group, a position that he has held for over 20 years. He has been instrumental in starting Interface as a franchise opportunity and building it to its current international status. Prior to his involvement with Interface, he worked extensively in the banking, credit and factoring financial service areas. www.interfacefinancial.com/franchise
This alternative plan and approach should be well-defined so that if the initial program does not work out, you can immediately implement ‘plan B’ to keep things moving and to avoid any untimely cash flow issues. Business ownership and entrepreneurship need not be just a dream – with proper planning they can easily become reality, and with that reality goes the understanding that cash is king and cash flow is your business lifeline.
David Banfield
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ex per t advice
Edward (Ned) Levitt | Partner | Dickinson Wright LLP
is the world ready for
CANADIAN FRANCHISES? country with many strong bonds with and connections to foreign markets. This also boosts a Canadian franchisors access to personnel who understand the language and culture of foreign markets. Also, international expansion of Canadian franchise systems is being facilitated by some of the same forces affecting franchisors everywhere. The increase in global travel, exposure to international media and the ability to communicate instantly on the Internet are raising awareness of the products and services of Canadian franchises and allowing Canadian franchisors to understand and connect with customers in foreign markets more than every before.
Historically, Canadian franchisors have not ventured into foreign markets in great numbers. When they have, it has mostly been to the massive, franchise savvy, U.S. market, with very mixed results.
among Canadian franchisors; the growth of successful franchise systems, both in number and size, and the steady increase in demand around the world for North American franchises.
However, times have changed. Today, we see more international expansions from Canadian franchisors, and more are expected in the future. What is causing this change?
To be successful in Canada, given the diversity of the Quebec market and the immense geography, with widely spaced populations, in the rest of Canada, a Canadian franchisor has to develop many of the skills and resources common to international expansions. Additionally, Canada is seen by the rest of the world as very similar to the U.S. and reflecting the American know how, when it comes to business and franchising in particular.
Many factors may explain this shift in strategy. I believe the important factors are the increased franchise knowledge
Another factor is the immigration laws of Canada, which have resulted in Canada becoming a very multi-cultural
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Of course, expanding a franchise system internationally is challenging. The risk of failure is high and the risk of surviving without really thriving is even higher. Some of the most common reasons for failure are choosing the wrong master or multi-unit franchisee, not having enough financial resources to support the master or multi-unit franchisee properly and lack of or poor adaption of the business concept for the local market. For a franchisor to be successful in an international expansion, it is necessary to navigate and plan effectively. Below are some of my thoughts on the key legal and business considerations for an international franchise expansion.
Plan Early and Take Into Account the Local Laws Not surprisingly, franchisors are faced with many business decisions when
Canadian Franchise Magazine
expand outside of Canada. Success will breed success, as more Canadian franchisors take the plunge into foreign markets. While caution, adequate resources and good planning are essential for success, the old adage of “nothing ventured; nothing gained” is so very apt for Canadian franchisors who have the ambition and smarts to establish themselves in the world.
“The future is bright and full of promise for Canadian franchisors wishing to expand outside of Canada.” embarking on an international franchise expansion. Some of these include: which markets to expand to first and when; deciding on capital and human resources requirements; and what adaptions should be made to the concept. The list goes on. Importantly, many of these business decisions are impacted by the legal system of the target country. As such, they should be considered at the planning stage, not just at the time of implementation. For example, when expanding into the U.S., less capital is needed if the first states selected do not require registration or do not have franchise specific legislation. Franchisors have similar considerations when deciding which countries to enter first. For example, the U.K. has no franchise specific legislation, so registration and creation of franchise disclosure documents is not required. This saves time and money.
Branding and Supply Chains With the importance of brand in franchising, comes the need to ensure that the franchisor can legally secure and license its trademarks in the target market. As well, supply chains need to be established in the new market, which may require local suppliers or be import-
based ones, all of which are determined or influenced by local laws.
Adapt Documents to Adhere to Local Laws Documentation, such as the franchise agreement and the franchise disclosure document, if required, will have to be adapted to comply with local laws. Even the operating manual needs a legal review and possible translation and the local tax laws, including such things as withholding taxes, should be evaluated.
Edward (Ned) Levitt is a Certified Franchise Executive, a partner at Dickinson Wright LLP, Toronto, Canada, and provides legal services to Canadian and international clients on all aspects of Canadian franchise law. He was General Counsel to the Canadian Franchise Association (20002007) and is a member of the American Bar Association Forum on Franchising, the International Bar Association and the International Committee of the International Franchise Association. As a member of the Ontario Franchise Sector Working Team, Ned was instrumental in the creation of Ontario’s franchise legislation and has had significant input in the franchise legislative process throughout Canada. Among his many publications is the leading text, Canadian Franchise Legislation (2001, LexisNexis/ Butterworths). Ned can be reached at 416.646.3842 or nlevitt@dickinsonwright.com
As a final caution, a Canadian franchisor will want to know that it can protect its system in the target market effectively and within manageable budgets. The franchisor’s Canadian legal counsel can and should have input into many of these and other areas at the earliest stage possible and before major decisions are made and strategies created. Finally, on the implementation side, Canadian counsel can be more helpful and effective for the franchisor if they have a solid and extensive network of international legal firms who are experienced and capable in franchise expansions. The future is bright and full of promise for Canadian franchisors wishing to
Edward (Ned) Levitt
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ex per t advice
Joseph Pisani | Director North American Industry Sectors, Franchise Finance | BMO Bank of Montreal
Is franch the righ for
Here’s how to
Franchising represents a major component of Canada’s economic health, and we expect the number of franchised businesses across the country to grow.
But before you get started, it’s important to remember that you may not be able to rely on the business for income in the first few years of operation, and the business may even end up being a burden. In my experience, here are the top things that should be considered to determine if franchising is right for you.
If you want to start your own business, a franchise can be a great way to increase your chances for success. As a franchisee in a major network, you can expect to benefit from a well-known brand with a proven business concept. This, along with the network’s professional marketing, national advertising, specialized training, and centralized purchasing, will – statistically – make you more likely to succeed with a well-established franchise than with a non-franchised independent business.
Franchise track record
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One of the first things to consider is the franchise brand. When choosing a franchise, it’s common for prospective franchisees to consider growth potential. Look for a franchise that’s a good fit for you, and do your research. See what the media is writing about the franchise, speak with customers, and visit existing locations. This will help provide a full picture of the franchise brand, as well as ensure that you’re committing to a model that you can support.
The (franchise) network When choosing a franchise, most franchisees focus only on the business model they are looking to operate. But all too often, franchisees neglect to look at the franchise network itself. The network – how the franchisor is going to support the franchise – is a vital component of long-term success. For franchisees, data can be a powerful tool and provide insight into the strategies that help fellow franchisees at a store level. The franchise brands that leverage data (and analyze that data) can tailor systems for various regions or cities. As a franchisee researching a brand, understanding how that brand deploys data and analytic capabilities to help create successful franchises will be the most important item to consider.
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hising ht fit r you?
o find out
“When choosing a franchise, it’s common for prospective franchisees to consider growth potential. Look for a franchise that’s a good fit for you, and do your research.” support the costs of site development, product development, training, marketing, and access to suppliers.
Consumer demand Longevity represents another vital trait to consider for a franchise. Some franchises pop up based on the latest consumer trends; they may well have excellent business models, but they won’t succeed without a sustained consumer appetite. Market research will help ensure that you are becoming a franchisee in a business with a long-term future.
Franchise fees The initial franchisee fee is a one-time, up-front fee that allows you to use the franchisor’s business system or products and is due upon signing the franchise agreement. In most cases, the franchise fee is non-refundable but your franchisee agreement will outline these terms. The franchise fee itself varies from franchise to franchise and could be used to help
You will also want to know the regular, recurring fees – royalties and advertising fees are often paid as a percentage of sales to the franchisor on a weekly or monthly basis. Make sure you understand how royalties and advertising fees affect your projected financials and potential income.
Expansion and growth Some franchise networks will allow you to work within a protected territory. This can prevent other franchisees within your same brand opening up near your business and competing against you. Your franchise agreement will outline if and how the territory is protected, utilizing population size, drive time map, geographic area, or some other form indicated. This can sometimes be negotiated within the franchise agreement. Not every network will provide territory rights, so it’s a good question to ask a prospective franchise brand. If they don’t have territory rights, it’s not necessarily a negative; each
franchise is set up differently and it could simply mean more competition. Franchising is on the rise in Canada, and it is here to stay. For those that are looking to start a business on their own, and with the right preparation, franchising is an exciting model with a lot of opportunities. Joseph Pisani is the Director North American Industry Sectors, Franchise Finance for BMO Bank of Montreal (BMO). Visit bmo.com/franchising for more information.
Joseph Pisani
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ex per t advice
Steve Tallis | Co-founder | Starks Barber Company
Becoming Your Own Boss
I t ’ s easier than yo u think to become a b u siness owner in a franchise model M a k ing the decisi on to invest in becoming a b u s i n ess o wne r is n ot on e to be taken l i gh tl y. “They don’t see how easy it can be to succeed if you have a good model and are willing to work at it.”
Steve Tallis
There is, quite frankly, a lot at risk. But there is also greater reward opportunities — and a better lifestyle that may include things like more free time and a reduced commute. If you do the research and invest wisely, there is incredible value —personally, professionally and financially — in taking bold steps forward on your own.
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Your opportunity can be amplified if you jump into the business world via a franchise arrangement.
new store that just opened in Brooklin, north of Whitby. Its first franchise store is opening later this summer in Stouffville.
“People thinking about starting out in a new business are often scared of losing their shirts, but they don’t know how easy it is to start a franchise, and they don’t realize there are great governmentbacked financing programs that significantly reduce their risk exposure,” says Steve Tallis, co-founder of Starks Barber Company, and the man in charge of franchise development for the company. “They don’t see how easy it can be to succeed if you have a good model and are willing to work at it. People get intimidated by owning their own business, and yes, it can be intimidating. But the beauty of buying a franchise is you are buying support. We’re going to show you how to do everything and run the business successfully.”
When considering getting into the franchise game, Steve and Ryan offer the following tips:
There are currently three Starks Barber Company locations owned by Tallis and his business partner Ryan McLachlan — in Yonge Lawrence Village on Yonge Street in Toronto, in Unionville and a
• Know Yourself — Before you make any rash decisions, know what it is you are looking for. Are you investing in a franchise to give yourself a job? Is it for income replacement? Are you looking for a particular lifestyle? If you don’t like working nights, a bar probably isn’t for you. Before jumping into the franchise journey, know what kind of lifestyle you are looking for, and choose your options accordingly. • Get in on the Ground Floor — The more established a brand is, the more expensive and restrictive it is likely to be. There is an unspoken maxim in the franchise sector — if you have heard of them, it may be too late to get into the game. An emerging brand is more likely to net you a better location or territory, a better franchise
Canadian Franchise Magazine
“Before jumping into the franchise journey, know what kind of lifestyle you are looking for, and choose your options accordingly.”
agreement and more opportunities for growth and expansion in the future. • Consider the Competition — With the proliferation of online shopping, the risks are greater for those considering opening up a store — online retail behemoths are destroying that business model. Look to industries and sectors that are “tech proof” — a service or experience that people can’t just buy online, and are likely to always need (like a haircut). • It’s Not as Hard as You Think — There is a common misconception that getting financing for a franchise is time consuming and prohibitive, but it really isn’t. The Canadian Small Business Financing Program was designed to help entrepreneurs get their ideas off the ground. The program is available at all the major Canadian banks, and the Federal Government assumes 85% of the risk, which is a nice incentive for both the aspiring entrepreneur and the lender.
• Look for Support — The franchise agreement is important, and will dictate how much support you will have in getting your business off the ground. It’s hard to be good inside your four walls, and be really good at the marketing and external efforts required for success. In a sound franchise structure, the franchisor will take on much of the external marketing and support, allowing the business owner to focus on building the business. There is peace of mind that the brand is doing work for you as you build up a customer base. • Be Part of a Strong Team — Don’t look just to the franchisor; other franchisees have been there and an environment where best practices are shared is the place you want to be. You won’t be left all alone and will be able to learn from the mistakes of others. It will also help to know a bit about the business you want to get into. “When we speak to prospective Starks franchisees, we talk about the market
we are serving,” says McLachlan. “We came upon this business model because we found men weren’t feeling like they belonged in a salon environment. The old school barbershop was dated and not up to trend. We also found that men are loyal; when they find something they like, they will hang around for a long time.” Steve Tallis is the co-founder of Starks Barber Company, a chain of barber shops he launched in 2013 with a childhood friend. The concept was ‘a modern take on the traditional barber shop’ and has since evolved into locations across the GTA. In 2016 they launched Starks Gentlemen’s Supply; a line of premium men’s grooming products that are made in Canada. For more information, please visit starksbarbercompany.com. Follow Starks Barber Company on Instagram @starksbarberco, Twitter @StarksBarberCo and Facebook at /StarksBarberCompany. Check out their YouTube Channel Starks TUBE.
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international workplace group
Franchise’s newest target: the flexible workspace revolution
In the midst of what many are calling the flexible workspace revolution, franchisees are looking towards the serviced office market for lucrative new opportunities. Projections show that three in ten buildings on every high street could offer a new franchise opportunity, with flexible working, or coworking as it’s often called, emerging as a booming industry.
A booming industry With businesses and individuals increasingly using flexible working spaces, the co-working industry is estimated to be growing by 24% each
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Canadian Franchise Magazine
year.1 A recent study2 of 18,000 business leaders in 96 countries by IWG, the parent company of leading workspace providers including Regus and Spaces, revealed that the majority of business leaders (89%) believe flexible working is helping their businesses to grow and stay competitive. In addition, 80% felt that adopting coworking, and enabling their employees to work anywhere, has helped them recruit and retain top talent. Likewise, with a huge 50% of workers predicted to be working remotely for most of their working week, by 20223, forecasts suggest that the global mobile workforce will reach 1.87 billion people.4 This presents a unique opportunity for those in the franchise industry to jump on what is a rapidly growing trend. As more people look to work flexibly, the demand for places for them to do so is growing; and as the corporate real estate market continues to grow, global real estate giant JLL estimates that up to 30% of corporate real estate could be flexible workspace by 2030. 5
“The industry founder, IWG, with its thirty years of experience in the serviced office market and brands to match every requirement and style, is now offering people a chance to get involved.” in the world. Simply put, it is the next franchise frontier. And the industry founder, IWG, with its thirty years of experience in the serviced office market and brands to match every requirement and style, is now offering people a chance to get involved. In September 2018, the company announced they would be leading the UK’s first serviced office franchise partnership with franchising experts, ACCA Office Ltd. Since then, four more businesses have partnered with IWG, including Kash Office Limited, AMA Workspaces, SME Properties Limited, and Q-Boid Limited. These franchise partnerships will see sites opened across the country over the next couple of years.
The growing franchise opportunity
IWG is present in almost 3,300 locations, 120 countries and 1,100 town and cities across the world – and it’s this experience that makes IWG the ideal franchise partner for those wanting to take advantage of the booming demand for serviced offices worldwide.
This makes the serviced office market one of the most exciting growth markets
Steven McAnulty, Director of Franchise Development, Canada at IWG, said:
“Partnering with IWG gives business owners the ability to participate in this growth story and take advantage of the huge demand for flexible, contemporary workspaces – one of the most exciting growth markets in the country.” “Our years of experience in the industry and our well-established global network has taught us that building a quality flexible workspace offering requires trust and support. We work closely with our franchisees to ensure that they have a framework to find the right location and design, backed by the strength of our operational and marketing support and the 24-hour customer service that IWG is known for.” To find out how you can take advantage of the workspace revolution, contact IWG’s franchise team on franchise.CA@iwgplc.com or visit franchise.iwgplc.com. Forbes 2017 quoting Emergent Research. IWG flexible working survey 2018. www.iwgplc.com. 3 Flexjobs.com, 2017 annual survey. 4 Strategy Analytics. 5 JLL research. 1 2
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ex per t advice
Josh Robinson | Vice president of licensing & development | Pearle Vision
H ow the s u stainability of h e a lt h c a r e f r a n c h i s e s makes them a strong investment in C anada
“About 75 percent of Canadians have supplemental insurance, which is mostly provided through employers.”
Josh Robinson
If you are seeking a strong investment opportunity in Canada, you may want to consider buying a healthcare franchise. The need for good health is a constant, and healthcare franchises are generally considered recession-resistant. Still, Canada presents a uniquely rich opportunity for healthcare brands for two reasons: • The nation’s single-payer healthcare system is publicly funded but delivered privately. • Canada’s population is older and living longer than most of the world. Although there is some debate about the healthcare system in Canada, Canadians pay less per capita for healthcare than
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Americans and many other modern countries and report better outcomes. In 2018, healthcare spending in Canada totaled C$253.5 billion, or C$6,839 per person. That represents 11.3% of the nation’s gross domestic product (GDP), one of the highest percentages among the world’s developed countries. (The U.S. spends the highest percentage, at 17.9% GDP, or C$14,677 per person, but with less positive results.) Canada’s healthcare system, called “Medicare,” also gets mostly good reviews from its citizens. By the end of this year, Forbes predicts that as much as 15 percent of global healthcare spending will be based on value- or outcome-based care. Valuebased care stresses wellness, preventive screenings and quality of care that lead to better outcomes. That is expected to have a strong impact in countries like Canada and the U.S. because of the high percentage of GDP devoted to healthcare spending.
Public funding, private delivery The healthcare industry is flourishing in Canada, with both the public and private sectors investing substantially as they look to capitalize on the opportunities there. Leading the way are franchises such as Pearle Vision, which currently operates
about 60 EyeCare Centers throughout Canada. Thanks to the growing healthcare sector, Pearle Vision is in the process of expanding its footprint in Canada. In 2018, about 2 percent of Canadian healthcare spending was spent on vision services, according to the Canadian Institute of Health Information. The Canadian Medical Association estimates that 75 percent of Canadian healthcare services are funded publicly but delivered privately, or by private providers. Almost all healthcare deemed “medically necessary” is funded through the national system, which is administered at the provincial level. There is some variation among provinces in what is covered. Pharmaceuticals and some services — including optometry, dentistry, mental health, home care and long-term care — are usually not covered by Medicare and are paid out of pocket or through supplemental insurance. About 75 percent of Canadians have supplemental insurance, which is mostly provided through employers. Doctors and other healthcare businesses deal directly with the provincial insurers; patients do not have to get involved in billing or claims. Domestic and international healthcare companies doing business in Canada may have to
Canadian Franchise Magazine
“Canadians pay less per capita for healthcare than Americans and many other modern countries and report better outcomes.”
adjust their business practices to conform to the Canadian government’s way of processing claims.
Longer life expectancies Canada’s life expectancy is among the highest in the world -- at 79 years for men and 85 years for women. That is an important factor for healthcare companies who are considering expansion into Canada. The demand for senior healthcare services, as well as home care and long-term care, is on the rise and is expected to continue to increase as the population gets older and lives longer. That offers franchisees in the healthcare industry the opportunity to provide necessary services and products and to help the changing demographic in their communities. For example, Pearle Vision anticipates that an aging population and aging workforce will lead to more critical need for vision care. As people age, they are more likely to require glasses or contact lenses, whether it will enable them to continue working longer or so they can enjoy a fuller life in retirement. We also
Canada’s life expectancy is among the highest in the world -- at 79 years for men and 85 years for women. That is an important factor for healthcare companies who are considering expansion into Canada. know that a strong market for quality vision care already exists: According to the Canadian Institute of Health Information, 60 percent of Canadians report vision problems that require, at minimum, corrective lenses, and Canadians spent more than $5 billion in 2017 on vision care.
a franchise system, entrepreneurs should have the tools they need to both successfully navigate Canada’s Medicare system and serve their changing communities.
A healthcare franchise like Pearle Vision offers established systems, processes and supply chains that make it easier for franchisees to be up and running more quickly and more efficiently. Additionally, a brand with an established presence in Canada would give a franchisee access to a network of peers from which to gain advice and information.
Josh Robinson is vice president of licensing & development of Pearle Vision and is responsible for defining and developing business strategies to grow the Pearle Vision franchise system. Robinson previously oversaw the franchise store operations team in the Eastern United States, Eastern Canada and Puerto Rico as a territory vice president. He has more than 20 years of experience supporting franchisees and helping them optimize the performance of their businesses.
Canada’s burgeoning healthcare industry offers a wealth of opportunity to healthcare franchises and their franchisees. With the backing of
To learn more about the Pearle Vision franchise opportunity, visit ownapearlevision.com or call 1-800-PEARLE-1.
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ex per t advice
Wayne Maillet | Founder and Franchise Management Consultant | Franchise Specialists
“How can you be expected to make a business decision and invest in the business when you are not provided with potential returns? This issue comes further to the forefront when you go to the bank and they ask you for a business plan with projections as part of approving your loan.”
Wayne Maillet
A common question asked by prospective franchisees that are reviewing a franchise opportunity is, “How much money can I make?” In response, the franchise salesperson avoids the question and assures you that
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you will have an opportunity to review the disclosure document and speak with franchisees. When you subsequently get the disclosure document you go to the earnings section and are faced with a statement that reads similar to the following: “The Franchisor does not give or authorize its agents to make any oral or written representations or estimates concerning the actual or potential sales, costs, income or profit of a franchise.” You then call the franchisees. Although they are willing to answer most questions, they become uncomfortable when you directly ask, “How much money are you making?” How can you be expected to make a business decision and invest in the business when you are not provided with potential returns? This issue comes
further to the forefront when you go to the bank and they ask you for a business plan with projections as part of approving your loan. They are looking for the evidence of the business being able to pay off the loan. Without this they are reluctant to lend you money. Franchisors can make earning claims provided they can be verified and substantiated. Many franchisors today provide average gross sales figures of their franchisees and some may have clear earning claims in their disclosure, but several do not. Most franchisors find that the variance in earnings is so great that making any kind of a claim creates undue liability. Some franchisees are more creative than others in posting expenses, making it difficult for the franchisor to compare statements. With
Canadian Franchise Magazine
“Put together two cash flow projections- a best case scenario and a worst-case scenario. Plan for the best but be prepared for the worst. This will allow you to sleep at night.”
new franchisors, there is simply not enough of a track record to go on. Other factors influencing earnings include the franchisee’s management ability, operating efficiencies, competition, the economy and other local factors. As a result, it is almost impossible for franchisors to provide a reliable earnings claim. All of this makes it difficult for you to make a fully informed business decision. The good news is that this forces you to do your homework. Take the time to develop your own spreadsheets. Put together a 36-month spreadsheet that captures all the income and expenses related to the business. Then start to fill in the blanks. You will end up being more informed and making a better decision than if you just blindly believed whatever the disclosure or franchisor representative tells you. The cash flow projections that you put together will become an invaluable management tool once the business is opened, allowing you to quickly see when you are on track and providing benchmarks that require seeking answers and making changes so that your profitability is achieved. Finally, you will have a better sense of your working capital needs during the startup phase of the business. Expenses will vary from market to market. Find out what the labor salaries being paid in your community are. What are the rents? Your local chamber of commerce or economic development department may be able to assist. An accountant can also provide valuable insight. Speak with franchisees and ask them for their input. Show them your list of expenses and see if they see any expenses that you may have forgotten. What are their monthly expenses? Were there any expenses that were a surprise to them after they opened? What expense
have they found to be the most difficult to manage? Then there is the issue of sales. Asking a franchisee,” How much money do you make?” will often not provide you with the information you are looking for. Alternative questions that you can ask that will often generate the answers needed are as follows: • What is your monthly inventory turnover? (retail) • What is your markup or margin? • What is your average check and customer count per day? (restaurant) • What are your billable hours, and what is your average hourly rate? (service) • What is the seasonality of the business? • How slow does it get during the offseason? • How do you adjust your expenses during the slow months? • How long did it take to get your business to break-even and then profitability? After you have prepared the cash flow projections, forward them to a few of the franchisees to get their input. Forward a copy to the franchisor. The franchisor
will be careful not to state if they are right or wrong but can review and see if there are any errors or major expenses that are missing. They have a desire to ensure that you are coming into the franchise with realistic expectations. Put together two cash flow projectionsa best case scenario and a worst-case scenario. Plan for the best but be prepared for the worst. This will allow you to sleep at night. No matter how detailed your projections, there will be no guarantees. The economy could change. New technology could deem the business obsolete. A new competitor could come into the market. Review your projections regularly and be prepared to make changes as circumstances change. Wayne Maillet is a franchise management consultant and founder of the consulting company Franchise Specialists. Respected within franchise circles, he brings a realistic, practical understanding of business and franchising. This article is based on excerpts from his book, Franchising Demystified. The book can be ordered through most book retailers or directly from the publisher at www.franchisingdemystified.com
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ex per t advice
Dan Kelly | President and Chief Executive Officer | Canadian Federation of Independent Business
Retail in 2019:
H igh job vacancies and higher property ta x es
Independent retailers don’t always get the recognition they deserve for the many contributions they make to their communities and to Canada. They provide young people with their first work opportunities, they grow the Canadian economy and they often sponsor local charities and sports teams. And yet, many smaller retailers are having a harder time staying competitive. Retailers are, on average, less optimistic about the overall health of their business than other business owners, according to the Canadian Federation of Independent Business (CFIB)’s monthly Business Barometer. The shortage of skilled labour is one of the top factors hindering their growth.
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Our business counsellors are increasingly getting calls from CFIB members who are struggling to find the right candidates and who are asking for guidance on filling jobs. In the first quarter of 2019, 58,700 retail jobs sat vacant for at least four months, according to our latest Help Wanted report. In fact, the vacancy rate in retail has been steadily growing since 2016. A vacant job means longer wait times for customers, a heavier load on other employees - and often on the owner themselves. Employers know that it’s never as simple as just putting a warm body in the job. They need employees with the right combination of skills and attitude – something that’s proving difficult to find. Young employees, especially, can take up a lot of time as they need more training in soft skills, like punctuality, communicating professionally and following workplace safety guidelines.
CFIB has been asking governments to recognize the training employers provide young workers by introducing an Employment Insurance (EI) training credit. Universities, colleges and high schools should also focus on creating more workplace-integrated opportunities that connect young people with small businesses. These are just a few measures that could help small firms compete with big business and government for a shrinking pool of qualified candidates. And while it’s hard to highlight just one of the many taxes small business owners pay, CFIB has increasingly been hearing from bricks-and-mortar retailers that rising property taxes are a major impediment to their ability to stay profitable. The issue came to a head this summer in Calgary, where thousands of business owners protested the city’s decision to increase commercial property taxes by a staggering 10 to 30
Canadian Franchise Magazine
“Young employees, especially, can take up a lot of time as they need more training in soft skills, like punctuality, communicating professionally and following workplace safety guidelines.”
per cent. The protest got the city to back down from the increase, but the fight isn’t over. Calgary is far from the only municipality where this is a problem. In fact, as you likely know from looking at your tax bill, nearly all local governments tax commercial properties at much higher rates than residential properties – up to nearly 5 times higher in some jurisdictions. On top of that, many provincial governments apply higher education taxes on commercial properties than residential properties. A more equal and fair distribution of property taxes between residents and businesses would help create a competitive environment for local merchants and encourage entrepreneurship. Governments can do much to improve both of these issues for small retailers, but they won’t do it unless they’re pushed. Unfortunately, small business owners rarely have the time or resources to fight for themselves. This is where business associations can help by uniting and amplifying the voices of independent retailers and working on their behalf to demand better.
CFIB’s credit card fight is a great example of this. About a decade ago, our members told us they were being charged astronomical fees on credit card transactions, especially with the rise of rewards cards. While the big guys were able to negotiate better deals with the major credit cards, independent retailers were stuck with unfair contracts and usurious rates. But with the collective bargaining power of more than 100,000 members, we were able to negotiate better rates for all small businesses and exclusive savings for CFIB members with Mastercard and American Express. We also convinced the government to implement a Code of Conduct for the payments industry. While work remains to be done on the credit card file, we have certainly come a long way. I encourage independent retailers dealing with problems like these to look to their community of business owners for support and join a business association. CFIB brings its members’ views directly to government, and we also offer expert advice on HR issues and government regulation, as well as exclusive savings on essential services
like payment processing, banking and payroll management. There is strength in numbers and by joining together, small business can have a big impact. Visit cfib. ca/retail for more information. Dan Kelly is President and Chief Executive Officer of the Canadian Federation of Independent Business, Canada’s largest association of small and medium-sized businesses with 110,000 members across every industry and region.
Dan Kelly
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baskin robbins Named the top ice cream and frozen dessert franchise in the United States by Entrepreneur magazine’s 36th annual Franchise 500® ranking in 2014, Baskin-Robbins is the world’s largest chain of ice cream specialty shops. BaskinRobbins creates and markets innovative, premium hard scoop ice cream and soft serve, custom ice cream cakes and a full range of beverages, providing quality and value to consumers at more than 7,500 retail shops in nearly 50 countries.
Bâton Rouge Steakhouse & Bar The new design direction of Bâton Rouge represents a modern yet timeless concept, reflecting the brand’s evolution, proven successful in both a downtown setting as well as in a suburban environment. The best franchisees are sought by emphasizing quality management and are more than just partners; they are invaluable family members for which their success is fueled by passion. They are supported with training programs that help their businesses grow and have continued access to operational and marketing support as well as architectural and construction services to facilitate design needs.
Baskin-Robbins was founded in 1945 by two ice cream enthusiasts whose passion led to the creation of more than 1,200 ice cream flavors and a wide variety of delicious treats. In 2013, more than 13 million ice cream cakes were sold in Baskin-Robbins shops worldwide. Headquartered in Canton, Mass., BaskinRobbins is part of the Dunkin’ Brands Group, Inc. (Nasdaq: DNKN) family of companies. For further information, visit www.BaskinRobbins.com. To learn more about franchising opportunities, visit www.baskinrobbinsfranchising.com
Undoubtedly, the key ingredient to the brand’s success is the amazing food they serve. To ensure high standards of freshness, the food is prepared daily from the finest ingredients, as per exclusive brand recipes. Building upon its signature offerings of ribs and quality cuts of meat, the menu continues to evolve. With 30 Bâton Rouge restaurants located throughout the provinces of Quebec, Ontario and Nova Scotia, as the brand continues its expansion throughout the Canadian market, its popularity is expected to grow exponentially. Phone: 514-336-8885 Website: https://www.batonrouge.ca Email: ptsafoulias@mtygroup.com Contact: Peter Tsafoulias 514-946-7571
CANADIAN FRANCHISE
Excellent for branding and recognition.
INTRODUCING OUR NEW A-Z LISTING SECTION!
Choose a 12 or 6 month package or simply add the A-Z directory onto your FOCUS, PROFILE or AD!
Making an appearance every issue in Canadian FranchisE magazine, each detailed, 4 color A-Z listing comes with a 150 word write up and your logo.
To learn about the A-Z directory or any other products, please contact Kimberly Kutnick: kimberlyk@cbgpublishing.com or 847-607-8407.
Dickinson Wright
• Drafting and negotiating licence and dealer agreements • Litigation and alternative dispute resolution • Marketing, advertising, promotions and contests • E-commerce • Regulatory compliance, with particular emphasis on franchise disclosure laws, product licensing and competition law • Protecting trademark and other intellectual property rights • Purchase and sale of individual units or complete systems • Leasing and real estate acquisition • Corporate and personal tax planning • Corporate and business law
Our franchise and distribution law lawyers are some of the most widely published and most respected practitioners in the world and have decades of experience representing a broad spectrum of businesses, from start-ups to multinational and multi-brand enterprises, in a vast range of industries. With access to Dickinson Wright’s full scope of capabilities, we support our clients in their every need, including: • Creating domestic and international franchise and distribution networks • Preparation of disclosure documents and materials • Drafting and negotiating franchise and distribution agreements, including unit, area, development, master and international agreements
Fired – Up Pizza Fired – Up Pizza is a mobile fired pizzieria that offers fresh made thin crust wood fired pizzas, Calzones, fired pies and fired dogs that will guarantee to satisfy appetites for something different. Fired up Pizz Inc has developed and owns a unique propriety franchise system relating to the establishment, development and operations of a mobile restaurant trailer, specializing in the sale of wood fire pizza, Calzones, Fired dog and Fired pies that are prepared using the best ingredients
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• Employment and labour law Phone: 416-646-3842
available and cooked using a wood fired oven. The Franchisor will train new Franchisees uniformily to its high standards of quality and service. Seasonal business 7-12 months depending on area – Easy to learn system Turn- key operation within 48 hours of concession trailer delivery – Strong GPM – Estimated ROI 1.5 -2 Years. For more information Tel: 866 746 6999 or email rob@firedup-pizza.com www.firedup-pizza.com
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fr a nch ise & serv ices di r ecto ry
Canadian Franchise Magazine
fr a nch ise & serv ices di r ecto ry
Freshii Eat. Energize. That’s the Freshii mantra. Freshii is a health-casual restaurant concept that serves fresh food designed to energize people on the go. With a diverse and completely customizable menu of breakfast, soups, salads, wraps, bowls, burritos, frozen yogurt, juices and smoothies served in an eco-friendly environment, Freshii caters to every dietary preference and type of taste buds. Freshii will operate 200 units by the end of 2015
The Interface Financial Group – IFG 50/50 The Interface Financial Group – IFG 50/50 is an affordable home-based franchise that provides short-term working capital to small and medium-sized businesses by purchasing current, quality invoices at a discount, thus accelerating the client’s cash flow and growth. All transactions are syndicated 50/50 with the franchisee and the franchisor, and that means less working capital required to fund transaction: IFG does the bulk of the due diligence and the ‘paperwork’ for the transactions, and IFG 50/50 franchisees will concentrate their efforts on building the referral relationships – they do the ‘people work’.
Find the nearest Freshii: http://www.freshii.com. Keep in touch with Freshii on Facebook: https:// www.facebook.com/freshii. Follow Freshii on Twitter and Instagram: @freshii.
• No staff to hire, fire, or manage • No storefront to own, lease, or maintain • No Inventory or stock to purchase • No extensive travel because IFG franchisees do business locally • Business-to-Business, professional environment with regular business hours of operation • Flexibility to relocate for part of the year or permanently and continue doing business Our franchisees are excellent communicators, relationship builders with decision-making and problem-solving skills, and much more sales & marketing oriented.IFG has been in the ‘invoice discounting’ business since 1972, and employs its franchise network around the world.
Key advantages of being an IFG 50/50 franchisee include:
www.interfacefinancial.com
CANADIAN FRANCHISE
Excellent for branding and recognition.
INTRODUCING OUR NEW A-Z LISTING SECTION!
Choose a 12 or 6 month package or simply add the A-Z directory onto your FOCUS, PROFILE or AD!
Making an appearance every issue in Canadian FranchisE magazine, each detailed, 4 color A-Z listing comes with a 150 word write up and your logo.
To learn about the A-Z directory or any other products, please contact Kimberly Kutnick: kimberlyk@cbgpublishing.com or 847-607-8407.
international workplace group
Franchisees will also benefit from a built-in network of 2.5 million customers, including some of the most successful entrepreneurs and multi-billiondollar companies, that instantly become available to franchise owners.
IWG is the leading global flexible workspace provider with brands like Regus and Spaces and is seeking driven, committed franchise partners to capitalize on the significant demand for flexible, contemporary coworking spaces across Canada. IWG created the coworking concept 30 years ago and has been the industry’s global leader with over 3,300 locations across the world. The proven and scalable operating model can provide franchisees with a highly attractive return on their investment.
Liberty tax service Founded in 1997 by CEO John T. Hewitt, Liberty Tax Service is the fastest-growing tax preparation franchise in the industry and has prepared almost 18 million income tax returns in more than 4,400 offices and online. Liberty balances strong growth, best business practices, social responsibility, and a fulfilling life experience for our franchisees. We’re committed to creating a business system and environment that will be held up as the model for all other tax preparation franchises to emulate.
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in 80+ cities and 15 countries, opening 2 new restaurants every week. Guests can visit Freshii anywhere from Toronto, Miami, Chicago and Houston to Bogota, Dubai, Stockholm, and Dublin. Freshii restaurants are found in all types of locations from cosmopolitan cities, malls, college campuses, suburb neighborhoods, fitness clubs, airports and small towns.
www.canadianfranchisemagazine.com
Financial Comments: Franchisees should have a minimum net worth of $3 million and a minimum of $1 million in liquid assets per location. Franchisees are required to pay a $50,000 initial franchise fee. Franchising Nationally. Call 1 647 256 1313 Email franchise.CA@iwgplc.com Web http://franchise.iwgplc.com
Liberty Tax is a company to watch, not just in tax preparation franchise terms, but in the business world as a whole. Our corporate team, Area Developers, and franchisees are accessible and down-to-earth. We provide a supportive network and a culture that is progressive and fun. You can join one of the top franchise opportunities in the world. Just fill out our request franchise information form to find out more about Liberty Tax. www.libertytaxfranchise.com/request-franchiseinformation.html
Little Caesars offers strong franchisee candidates opportunities in select locations across the country. We provide candidates an opportunity for independence with a proven system, a simple operating model and strong national brand recognition. Franchisees benefit from a comprehensive training program that focuses on all aspects of the business, including training, architectural and construction services to help with design, preferred lenders to assist with financing, the ongoing research and development of new products, and effective
Mary Brown’s Chicken & Taters Mary Brown’s Chicken & Taters is the largest Canadian-owned Quick Serve Chicken Restaurant and one of the fastest-growing franchises in Canada. Our Signature Chicken is Made Fresh from Scratch in-store from whole, Canada Grade A Chicken; our tasty Taters are hand cut from
massage addict Massage Addict is the country’s largest and fastest growing provider of massage therapy services, with over 40 clinics across Canada. Massage Addict is a proven business concept serving a gap in the market by helping Canadians improve their health through affordable, convenient massage therapy without sacrificing quality or service. Clients love the quality of Massage Addict’s Registered Massage Therapists and our franchise partners love the business model. • Low investment and start-up costs • Recurring revenue and quick ROI
PAY2DAY PAY2DAY is a profitable alternative retail financial services company with a multitude of locations available throughout Canada. As part of our dynamic team, our franchisees have complete operational support, including, but not limited to; full in-depth training, expert assistance with site selection, advertising/marketing support,
skedaddle Skedaddle Humane Wildlife Control has been Canada’s leader and pioneer in the area of urban wildlife control for over 25 years, helping home and business owners remove and exclude wildlife from their property in an effective and humane manner. As cities, towns and suburbs continue to expand the need for value-added wildlife management will continue to grow. Skedaddle’s proven three step approach includes humanely removing the wildlife, repairing the damage and securing the home against future intrusion. This ensures a customized and complete solution for customers at a premium price point. Skedaddle Humane Wildlife Control is the latest brand to join That Franchise Group who manage a portfolio of six home service franchises with over 400 locations across North America. With this strong backing, Skedaddle has aggressive growth plans to
fr a nch ise & serv ices di r ecto ry
Little Caesars
marketing programs. Franchisees continue to receive support, expert analysis and consultation from corporate as their business grows. Little Caesars requires candidates desiring to open one store to have a net worth of $250,000 with a minimum of $100,000 in liquid, unencumbered assets (such as cash). Franchisees must also be able to obtain financing to cover the total costs of opening a franchised location. Contact: Angelee Brown, development manager Phone: 888-822-7981 Email: LCCfranchising@littlecaesars.ca Website: www.littlecaesars.ca
real, farm fresh Canadian potatoes. Mary Brown’s processes are time-proven, delivering a delicious, consistent menu and genuine hospitality that brings Guests back again and again. Contact: Franchising Phone: 1-866-640-3339 Website: www.marybrownsfranchising.com Email: franchising@marybrowns.com
• Approximately 80% of treatments are paid by insurance • Opportunity for multi-clinic ownership • Straightforward clinic operations • 100% Canadian owned and operated Massage Addict is the right industry, the right business model, the right brand and most importantly it’s the right time. Call today. Phone: 1-855-852-6108 Email: info@massageaddict.ca Website: www.massageaddict.ca
as well as the benefit of a corporate management team of knowledgeable experts with a combined 80+ years of experience in the Payday Loans and Cheque Cashing industry. Contact: Wesley Barker Phone: 905-450-2274 Ext 777 Email: info@pay2day.ca Website: www.pay2day.ca
spread its footprint across Canada in the coming years. Skedaddle Humane Wildlife Control is a community based business that currently provides profitable and rewarding service in 22 locations throughout Ontario, Quebec and Nova Scotia. No prior experience is required to get out from behind your desk and become your own boss today. Key Benefits Include - high demand - low competition - cash business - limited accounts receivable - few employees - minimal supplies and equipment required - rapidly profitable - home based business - low start up costs - excellent head office support - environmentally friendly and socially responsible services For more information about this exciting opportunity: Website: http://www.skedaddlefranchise.com/
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fr a nch ise & serv ices di r ecto ry
Signarama Signarama is the largest sign franchise in the world, standing as the leading innovator in the industry. Signarama was also named #1 sign franchise by Entrepreneur magazine for 2014. Signarama is the best in the business and will start you off with all of the tools that you need to succeed. Our local Signarama stores serve brand building and visibility experts in their local business communities. They don’t just sell signs...just about anyone can do that! Our stores deliver multiple products and services as part of solutions for businesses to increase customers and build brand awareness. Each of our stores is individually owned and operated by highly trained experts who serve their local community. Although signs can be found everywhere, we operate on a new concept that’s unique to our stores. We combine signs with a full
The Garage Door Depot® The Garage Door Depot® is Canada’s largest and only coast to coast garage door supply, service and installation company, headquartered in Port Coquitlam, British Columbia with franchises across Canada. The Garage Door Depot is committed to providing Canadian Consumers, Business customers, Builders, Garage Door Dealers and its Garage Door Depot Franchise partners with a one-stop
The Seasons Art Class The Seasons Art Class is an adult art class franchise providing art classes one day per week. This is a great opportunity, low investment, no inventory, not need to rent a location. Great for part-time or as an added revenue stream. Our business has been in operation since 2009 and is the original provider of these inspired courses.
Signarama is a proven business. We have the operational systems and processes in place to help our printing franchise owners succeed in today’s competitive business landscape. Our team of leaders and administrators will help you to get up-to-speed on all requirements and procedures for running the business, as well as provide on-going support and training to ensure that your printing franchise has reached its full potential. Contact: Anas Saltaji Phone: (905)281-8000 Email: info@Signarama.ca Website: www.Signarama.ca
destination to provide for all their residential and commercial overhead door and related product/ service needs. CFA Franchisees Choice 2014 CFA Franchisees Choice 2015 Contact: Dean Carman Phone: 604-526-1086 or 1-888-698-3667 Fax: 604-526-1087 Email: franchise@garagedoordepot.ca Website: www.garagedoordepot.ca
The system has proven so successful that it has been expanded throughout Europe, North America and Australasia with many, very happy Franchisees and countless students. With well over 125 successful franchises already in operation right throughout the UK (and growing), we’re now offering the opportunity for you to be part of this successful group and run your own business in your area.
There have been many imitators in that time but none have managed to match the comprehensive process and systems that we formulated and continue to improve on year after year.
Using our proven business systems, you have the potential to earn a full-time wage for part-time hours! For more information contact Mike Curry email: theseasonsartclass@yahoo.co.uk
Topper’s pizza
We’ve learned from our successes and we know what works and what doesn’t.
Proven, tested, tried and true systems are among the biggest advantages to franchising versus starting your own business from scratch. With Topper’s Pizza, you’re benefiting from nearly 30 years of successful franchise systems. During that time we have invested and reinvested in all of our operations – from our P.O.S. systems, to training policies, to marketing, to research and development… and the list goes on.
What does it mean for you? It means you get to hit the ground running with years of knowledge and experience. It means you don’t have to worry about getting all of these systems in place—you get to do what you signed up to do: operate your business and achieve your personal goals. Let the delicious pizza, our Customer-Centric Culture and successful structure take care of the rest. www.toppersfranchise.ca
CANADIAN FRANCHISE
Excellent for branding and recognition.
INTRODUCING OUR NEW A-Z LISTING SECTION!
Choose a 12 or 6 month package or simply add the A-Z directory onto your FOCUS, PROFILE or AD!
Making an appearance every issue in Canadian FranchisE magazine, each detailed, 4 color A-Z listing comes with a 150 word write up and your logo.
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portfolio of branding options that result in a customized advertising solution for your clients’ businesses. A Signarama franchise is a solid business model that works to give back to businesses in the local community.
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CANADIAN CHICKEN FRANCHISE CELEBRATES
“Our goal is to surpass 200 stores by 2020, and we’re well on our way to achieving that target.” a business and must complete a written test at the end of the program. Once that is done, Franchisees return to their home base and complete additional courses online before their store opens.
FIVE DECADES OF MADE FRESH FOOD
Rebranding
international region. While it will still concentrate on its core menu of Chicken and Taters, the restaurant will customize dipping sauces and other items to accommodate local palettes.
“They are at the heart of our brand and bring the brand to life in communities across Canada,” he said in a recent press release.
Opportunities
The main difference between Mary Brown’s and its competitors, Arooz notes, is the superiority of Mary Brown’s product. Chicken is delivered to each store whole and fresh and then is marinated, hand cut and hand breaded. Similarly, Taters are handcrafted from farm fresh Canadian potatoes – hand cut and hand breaded in each store.
Arooz, who came over from another popular restaurant franchise, has years of experience in franchise development and is now in charge of both domestic and international franchise development for Mary Brown’s.
The largest Canadian quick serve chicken restaurant franchise is celebrating its 50th anniversary this year with a new look and a dramatic push for expansion – in Canada and beyond. Could this be the opportunity you’ve been looking for?
“After five decades of perfecting their methodologies, menu and approach to Guest service, Mary Brown’s is now set to expand into Latin America, the United Kingdom, the Middle East and beyond.” Brown, the woman behind our southern chicken recipe,” explains Vice-President of Franchise Development, Safiah Arooz, in a recent interview with Canadian Franchising.
Exponential Expansion
History Mary Brown’s Chicken & Taters, established in St. John’s, Newfoundland & Labrador in 1969, currently has about 160 stores coast-to-coast across Canada, including several in Walmart locations. It’s one of Canada’s fastest-growing franchises. “The brand was named to honour Mary
Gregory Roberts, a Newfoundlandborn entrepreneur, purchased the brand in 2007. Under his leadership, Mary Brown’s store count has more than doubled, Arooz notes, and it’s still going strong. Currently, Franchisees make up about 70% of the stores’ ownership throughout the country, with many Franchisees being multi-unit operators.
The balance of the stores is corporate owned. “Our goal is to surpass 200 stores by 2020,” Arooz says, “and we’re well on our way to achieving that target.” The brand is also geared for international expansion. After five decades of perfecting their methodologies, menu and approach to Guest service, Mary Brown’s is now set to expand into Latin America, the United Kingdom, the Middle East and beyond. The franchise’s strategy is to begin its global expansion by opening locations in two or three countries within one larger,
She says Mary Brown’s is looking for hands-on owner/operators who are dedicated to preparing and serving real, fresh, comfort food that is made with care in-store. Arooz says there is room to grow across all provinces, with Ontario and British Columbia being the hottest markets. Industry experience is not mandatory, Arooz notes, but the right attitude and commitment to community is important. For Mary Brown’s, authentic hospitality is a prerequisite in all stores, in keeping with the brand’s east coast roots. Mary Brown’s maintains the highest standards for its Franchisees, but at the same time, is quick to credit them with much of the brand’s success. “Without our Franchisees, who are our hands-on owner/operators, we would not be where we are today,” she says. “They live and breathe our brand.” That sentiment was echoed by Mary Brown’s President and COO, Hadi Chahin, who credits Franchisees for Mary Brown’s longevity in Canada.
The Mary Brown’s Difference
Leading up to the 50th anniversary of the brand this year, Mary Brown’s underwent a rebranding effort that saw the logo Canadian Franchise Magazine reinvigorated with new colours, an update for Mary herself and an exciting ISSUE 4#2 - 2019 modernization of store design. The goal is to expand audience appeal and to relay that Mary Brown’s is a premium Canadian brand. Each store across the country features a tribute to St. John’s, the brand’s hometown, with a mural of the city’s colourful “jelly bean” houses – perfect for Instagram posts by the key w w w. c a n a d i a n f r a n c h i s e m a g a z i n e . c o m millennial target audience.
MARY BROWN’S CHICKEN & TATERS
“When we speak to people at the trade shows who haven’t tried Mary Brown’s and they ask what’s good about our product and ask us more about it, we tell them to try it and come talk to us after.” She adds, “When they see us again, they’re converted!” She explains further, “It’s definitely the product. Our menu is real comfort food. There’s nothing else quite like it!”
Another event held for the 50th anniversary is a national contest with Grand Prize Trips to St. John’s. An Anniversary Party is planned in the city with attendance expected by celebrities, dignitaries, all corporate staff and of course, Franchisees.
CELEBRATES FIVE DECADES OF MADE FRESHAsFOOD for what the next 50 years holds,
Training All new Mary Brown’s Franchisees undergo a comprehensive threeweek mandatory training session in Newfoundland, providing both the necessary skills as well as an understanding of the culture that is at the heart of the brand. Prior to that training, Franchisees must complete a training curriculum available through Learn MB, Mary Brown’s online training portal. Courses cover the basics of Guest service and regulated compliance training. Franchisees learn all aspects of running
Chahin says it will involve looking toward the future while honouring the past. “More growth and more innovation are coming for sure, but we won’t lose sight of what makes Mary Brown’s special,” he says. “A delicious handcrafted menu and genuine hospitality are who we are – and always will be.” With solid expansion plans, the next 50 years promises to be as lucrative for the Canadian brand as the first 50.
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Awards
Franchisees’ Choice Award Winner for the ninth year in a row by Canadian Franchise Association
THE BENEFITS A ND PITFA LL S
50 Best Managed Companies in Canada by Deloitte Canada and Canadian Business magazine.
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