Franchise Canada July/August 2020 by Franchise Canada

FRANCHISING WEATHERS THE ECONOMIC STORM

FRANCHISES GIVE BACK DURING CRISIS

FRANCHISE LAWYERS ACROSS CANADA

DIGITAL Check out thcehise Focus Special Franinning on Award-W t Franchises a da.Online FranchiseCana A Canadian Franchise Association Publication / FranchiseCanada.Online

YOUR RESOURCE FOR THE BASICS OF BUYING A FRANCHISE Franchising 101 Finding Your Optimum Franchise Franchise Due Diligence Business Plan Basics Checklist for Franchisees

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12 COVER STORY

The Franchise Guide Your resource for the basics of buying a franchise

FEATURES

28 Est. 2015

Franchising Weathers the Economic Storm The franchise business model is built to last through times of crisis

Family Ties Four franchisors are putting their families first as they grow their franchise brands

Franchise Lawyers Across Canada Learn more about CFA member lawyers from coast to coast

905-814-8030 chucksroadhouse.com

4 Canadian Franchise Association

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Franchise Canada is published by the Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

DEPARTMENTS

HOME-GROWN & LOCALLY-OWNED 100% Canadian Franchise Systems

MILLENNIALS IN FRANCHISING Top of the Line EverLine Coatings is leaning into the strengths of millennials to expand across Canada

LEADERSHIP PROFILE Kicking into Franchising High Gear 9Round CEO Shannon Hudson outlines his trajectory from kickboxing champion to international franchisor

A DAY IN THE LIFE Cultivating Success Passion, positive outlook, and strong support help Spiritleaf franchisee in Vernon, BC shine

THE FIRST YEAR Virtual Franchising Fun Ctrl V franchisee creates a new reality for happy customers

ICONIC BRAND Taking Care of Business Adapting to provide relevant business services helps The UPS Store reach 40-year franchising milestone

SHOW ME THE MONEY 4 Franchises for $50K to $150K

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FRANCHISE FUN Partner in Grime Fiona Styant’s strong bonds with franchisees and family are helping to fuel MOLLY MAID’s success

FRANCHISE TUTORIAL Tutorials 13 & 14 This issue: • Intro to Insurance • Intro to Recruitment

COLUMNS

9 CFA CODE OF ETHICS 10 INDUSTRY NEWS 72 ASK THE EXPERTS 78 MARKETPLACE 85 ADVERTISERS’ INDEX 86 GIVING BACK

Visit www.LookforaFranchise.ca to find further information about the franchises featured in this July/August issue.

e Join our innovativ concept today!

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July | August 2020 5

PUBLISHER’S MESSAGE

THE STRENGTH OF FRANCHISING

ince March, the impact of COVID-19 has wreaked havoc on our lives and businesses. At press time, most businesses are still closed or operating at a reduced capacity as Canadians practice physical distancing to help stop the spread of the virus. This has led to much uncertainty, and unfortunately, unemployment for Canadians from coast to coast. But there is a light at the end of the tunnel as we start to look forward at how we can grow and recover from this crisis, with some provinces already rolling out plans to reopen their economies. The franchise business model provides a strong opportunity for entrepreneurial Canadians to make their dream of owning their own business a reality, with much-needed support. The foundational relationship between franchisees and franchisors, along with the established operating procedures and franchise system support, mean franchisees are not in business on their own, and are set up to find success, even during times of crisis. Franchising has navigated storms of the past, including the Great Recession of the late 2000s. For example, the number of franchise units in both Canada and New Zealand increased between 2008 and 2010, and some franchise brands experienced growth in this same period. The “Franchising Weathers the Economic Storm” article on page 28 explores this further, along with the factors that make franchising such a strong and resilient business model. We also share ‘good news’ stories from franchise brands that are making positive contributions to their communities during these turbulent times in our Industry News article on page 10. If you are looking to make your business dreams come true through franchising, this July/August 2020 issue of Franchise Canada is a great place to start. It includes The Franchise Guide, a go-to resource to help you learn more about franchising so you can kick-start your franchise career. Containing a Franchising 101 article to introduce you to the basics of franchising, along with guides for finding the right franchise fit, building a business plan, financing your franchise, and conducting the proper due diligence, The Franchise Guide, starting on page 12, has what you need to help you make the most informed investment decision possible.

6 Canadian Franchise Association

Working with franchise support professionals is another essential step in the due diligence process. On page 35, we have compiled information about Canadian Franchise Association (CFA) franchise lawyers from coast to coast. This go-to resource can help you find the right lawyer with franchise expertise to guide you through the legal elements of establishing a franchise. Another important resource for those considering franchising is the community of franchisees who are ready to share their experiences and advice. On page 52, we introduce you to Dylan McCann and Nigel Baxter, two millennial EverLine Coatings franchisees who highlight the positive impact that franchising has had on their lives. We also take you through a day in the life of Spiritleaf franchisee Sarah Ballantyne as she navigates the challenges and opportunities that come with successfully operating a recreational cannabis retail franchise (page 58). And on page 61, Ctrl V virtual reality arcade franchisee Robert Fedoruk shares how franchising has set him up for success, while also allowing him to have plenty of fun along the way. If you’re looking to start your own franchise business, you can learn from families who have built their franchise systems together. In our Families in Franchising article on page 30, we share insights from four franchisors about how they successfully work with their loved ones to grow their businesses. We hope this issue, packed with information, tools, professional advice, and success stories serves as your Franchise Guide going forward. While the world is currently filled with uncertainty, one thing is more certain: with the right tools at your disposal, you can make your business dreams become reality through franchising. We look forward to welcoming you into our franchise community so we can become Stronger Together.

Sherry McNeil President & CEO Canadian Franchise Association

www.cfa.ca | www.FranchiseCanada.Online

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CFA BOARD OF DIRECTORS (as of time of print) BOARD CHAIR Gerry Docherty*, Good Earth Coffeehouse PRESIDENT & CEO Sherry McNeil*, Canadian Franchise Association 1ST VICE CHAIR David Druker*, The UPS Store 2ND VICE CHAIR Lawrence Eade, Caffé Artigiano

PUBLISHER

TREASURER Lyn Little, BDO Canada LLP

Canadian Franchise Association (CFA)

SECRETARY & GENERAL COUNSEL

VP, CONTENT & MARKETING Kenny Chan

Larry Weinberg*, Cassels Brock & Blackwell LLP

EDITOR Lauren Huneault

PAST CHAIR John DeHart*, Hartify Franchise Consulting

GRAPHIC DESIGNER Andrea Lee

CHAIR, LEGAL & LEGISLATIVE COMMITTEE

ADVERTISING SALES Gwen Dunant

Darrell Jarvis*, Fasken

CHAIR, FRANCHISE SUPPORT SERVICES

Kirk Allen, Reshift Media DIRECTORS

Hadi Chahin, Mary Brown’s Chicken & Taters Steve Collette, 3rd Degree Training/Actual Nutrition Sebastian Fuschini, Pizza Pizza John Gilson, COBS Bread Terry Hould, ServiceMaster of Canada Limited Andrew Hrywnak, Print Three Franchising Corporation Rimma S. Jaciw, CFE, WSI Digital Marc Laurin, MTY Group Ken Otto, Redberry Restaurants Ryan Picklyk, A&W Food Services of Canada Inc. Gary Prenevost, FranNet Stephen Schober, Metal Supermarkets Family of Companies Frank Stanschus, Little Kickers Bob Tipple, Expedia CruiseShipCenters Laura Wittholz, THE TEN SPOT Beauty Bars *Executive Committee member

NATIONAL SPONSORS

The CFA wishes to acknowledge and thank these National Sponsors for their support throughout the year. Find out more about these companies at www.cfa.ca/sponsorship

AD COORDINATOR Andrea Lee CONTRIBUTING WRITERS

Suzanne Bowness, Lauren Huneault, Roma Ihnatowycz, Gina Makkar, David Chilton Saggers, Andrew Schopp, Karen Stevens, Jordan Whitehouse, Kym Wolfe FRANCHISE FUN ILLUSTRATION Sam Gorrie PRINTING Premier Printing FOR ADVERTISING INFORMATION:

Gwen Dunant Tel: 877-254-0097 | gdunant@cfa.ca TO SUBSCRIBE TO Franchise Canada

visit www.FranchiseCanada.Online or call 1-800-665-4232 ext. 238. Return Undeliverable Canadian Addresses to: Canadian Franchise Association 5399 Eglinton Ave. West, Suite 116 Toronto, ON M9C 5K6

We invite your comments, questions and suggestions. Please contact us at editor@cfa.ca or 1-800-665-4232.

© 2020, Canadian Franchise Association. All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the publisher. Franchise Canada is a member of Magazines Canada. Publications Mail Agreement No. 41043018 Legal Disclaimer The opinions or viewpoints expressed herein do not necessarily reflect those of the Canadian Franchise Association (CFA). Where materials and content were prepared by persons and/or entities other than the CFA, the said other persons and/or entities are solely responsible for their content. The information provided herein is intended only as general information that may or may not reflect the most current developments. The mention of particular companies or individuals does not represent an endorsement by the CFA. Information on legal matters should not be construed as legal advice. Although professionals may prepare these materials or be quoted in them, this information should not be used as a substitute for professional services. If legal or other professional advice is required, the services of a professional should be sought. FSC® certification is a commitment to good forestry practices, carried from forest to consumer

8 Canadian Franchise Association

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CODE OF ETHICS

he Canadian Franchise Association (CFA) is dedicated to encouraging and promoting excellence in franchising in Canada. Each member of the Association agrees to abide by the CFA Code of Ethics and to further the Association’s goals of encouraging and promoting ethical franchising in Canada. Each member of the Association agrees to comply with the spirit of this Code of Ethics in its general course of conduct and in carrying out its general policies, standards and practices. The following are considered by the Association to be important elements of ethical franchising practices: 1. Franchise system and franchise support services members should fully comply with Federal and Provincial laws, and with the policies of the Canadian Franchise Association. 2. A franchisor should provide prospective franchisees with full and accurate written disclosure of all material facts and information pertaining to the matters required to be disclosed in advance to prospective franchisees about the franchise system a reasonable time [at least fourteen (14) days] prior to the franchisee executing any binding agreement relating to the award of the franchise. 3. A ll matters material to the franchise relationship should be contained in one or more written agreements, which should clearly set forth the terms of the relationship and the respective rights and obligations of the parties. 4. A franchisor should select and accept only those franchisees who, upon reasonable investigation, appear to possess the basic skills, education, personal qualities and financial resources adequate to perform and fulfil the needs and requirements of the franchise. Franchise systems and franchise support services members of the Association should not discriminate based on race, colour, religion, national origin, disability, age, gender or any other factors prohibited by law. 5. A franchisor should provide reasonable guidance, training, support and supervision over the business activities of franchisees for the purposes of safeguarding the public interest and the ethical image of franchising, and of maintaining the integrity of the franchise system for the benefit of all parties having an interest in it. 6. Fairness should characterize all dealings between a franchisor and its franchisees. Where reasonably appropriate under the circumstances, a franchisor should give notice to its franchisees of any contrac-

tual default and grant the franchisee reasonable opportunity to remedy the default. 7. A franchisor and its franchisees should make reasonable efforts to resolve complaints, grievances and disputes with each other through fair and reasonable direct communication, and where reasonably appropriate under the circumstances, mediation or other alternative dispute resolution mechanisms. 8. A franchisor and a franchise support services member should encourage prospective franchisees to seek legal, financial and business advice prior to signing the franchise agreement. 9. A franchisor should encourage prospective franchisees to contact existing franchisees to gain a better understanding of the requirements and benefits of the franchise. 10. A franchisor should encourage open dialogue with franchisees through franchise advisory councils and other communication mechanisms. A franchisor should not prohibit a franchisee from forming, joining or participating in any franchisee association, or penalize a franchisee who does so. 11. A franchise support services member in providing products or services to a franchisor or franchisee should encourage the franchises to comply with the spirit of this Code of Ethics. A franchise support services member should not offer or provide products or services if legislative or professional qualification is required to do so unless the franchise support services member has such qualification.

LOOK FOR EXCELLENCE As you investigate the many franchise opportunities available to you, you will see a special logo featured in franchise literature, on franchising websites and in franchise tradeshow booths. This logo identifies franchise systems and franchise support services/suppliers as members of the Canadian Franchise Association (CFA). You should be on the lookout for this symbol when researching franchise systems or assembling a team of franchise support professionals to assist in your search. CFA encourages and promotes excellence in franchising in Canada and members of the Association voluntarily agree to follow the CFA’s Code of Ethics in pursuit of these goals. Start your search for your franchise dream with a CFA member. Visit FranchiseCanada.Online today.

Franchise Canada July | August 2020 9

INDUSTRY NEWS

Franchising Gives Back During Crisis The franchise community has stepped up to give back during the COVID-19 crisis, with franchises supporting their franchisees and the community at large. In this special edition of Industry News, we highlight franchises that are contributing to their communities and introducing innovation to help franchisees. OPA! of Greece Implements Measures to Support Franchisees In the wake of significant and growing challenges facing the food service industry as a result of COVID19, OPA! of Greece announced measures to provide support for franchisee partners. The Calgarybased franchisor is standing in solidarity with the franchisees who currently own and operate its more than 100 locations across Canada by providing them with extended royalty relief and ongoing support from the home office. OPA!’s home office began operating at a loss as of Monday, March 9 in order to offer much needed relief to its franchisees, who play a crucial role in the day-to-day operations of the organization. At that time, royalties and marketing fund contributions were reduced, for an overall reduction in franchise fees of 66 per cent. Due to the rapidly evolving nature of the COVID-19 situation, OPA! had not set an end date for this support commitment. Franchisees will not be required to reimburse head office for the reduction in royalty payments when operations return to normal following the conclusion of the COVID-19 pandemic. OPA! also communicated with landlords on behalf of its franchisees in order to assess next steps in providing further assistance and relief with regards to leasing agreements. OPA! has also prioritized the implementation of precautionary steps to ensure the ongoing health and safety of its customers, employees, franchisees, and extended community.

10 Canadian Franchise Association

Topper’s Pizzerias Support Communities with Two Special Programs During this unprecedented time, Topper’s Pizza supported their communities with two special programs. As of March 24th, $3.00 from every Family Pleaser Combo sold was donated to help local food banks and Feed Ontario’s COVID-19 Emergency Food Boxes to support its communities. Customers could also choose to give additional donations of $1, $2, or $5. Second, as a special thank you to Healthcare Workers and First Responders, as of March 25, Ontario Healthcare Workers and First Responders (police, fire, and paramedics) received 25 per cent off any large pizza. “These are unprecedented times and families are experiencing everincreasing stress and worry; many having been laid off. Our local food banks are stretched thin and our Healthcare and First Responders are working around the clock to help Ontarians stay healthy and safe. Many people are going above and beyond to help. For these two groups specifically, they have added pressures and we wanted to help,” said Keith Toppazzini, Co-Owner, Topper’s Pizza Canada. Subway® Canada Donates One Million Meals to Food Banks Canada in Response to COVID-19 Crisis As a long-term partner of Food Banks Canada, Subway ® Canada launched several measures to help support the organization, including a donation of one million meals and a commitment to feeding local

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volunteers and employees in communities across the nation. In addition, starting March 30th, Subway ® donated $2 from every delivery purchase to Food Banks Canada.* “These are unprecedented times and it is our responsibility to do what we can to support the organizations putting nutritious food into the hands of our friends and neighbours,” said Cristina Wells, Country Director, Subway ® Canada. “We are calling on all Canadians to give what they can to help support Food Banks Canada by donating directly or by participating in the delivery donation drive.” In addition to the charitable donation and delivery donation drive, Subway ® Canada franchise owners delivered lunch to employees and volunteers in food banks across Canada to show gratitude for their tireless work. *The one million meals come from a monetary donation of $500,000 CAD to Food Banks Canada. Subway is also committed to donating $50,000 of Subway ® products to local communities across the nation. Delivery available in select areas.

Driverseat Helps Franchisees Navigate COVID-19 Driverseat created a four-tier plan for franchisees to minimize the impact of COVID-19 on their business. The franchise pivoted the business to continue to help support communities and to generate alternative revenue streams. Driverseat partnered with local grocery stores to help deliver supplies to people in need. This service is called Shop + Drop. Driverseat Chauffeurs can shop for up to 10 families at once, which means there is less traffic in

INDUSTRY NEWS stores, helping to support recovery efforts. They are also developing the preparation for business post COVID-19. The franchise has used this time wisely to educate its franchisees on how to build contacts, business relationships, and create a stronger online presence. Prep’n Sell Introduces SANI-HOME and SANI-BIZ Prep’n Sell is utilizing its ozone treatment services used to remove smoke, cooking, and pet odour from homes to help flatten the curve of the COVID-19 pandemic. Launched in April, Prep’n Sell’s newest services – SANI-HOME and SANI-REZ – provide home and business owners with state-of-the-art cleaning services to fight the virus. For years, Prep’n Sell has used ozone treatment to effectively elimi-

nate smoke and other unwanted odours. Prep’n Sell President David Collier noted how they could use ozone – which purifies everything it touches and destroys viruses, bacteria, and mould – to help clients fight COVID-19. From there, Prep’n Sell launched its newest offering across the franchise. SANI-BIZ ensures commercial or retail spaces are safer before employees return to work. It can also be used for ongoing treatment of the workplace, purifying materials and surfaces that other cleaning methods can’t reach or might miss. Minuteman Press Introduces Bounce Back Canada Minuteman Press International launched a new initiative, Bounce Back Canada, to help give back to businesses in local communities

that were hit hard by the COVID-19 pandemic. The initiative was free to business owners at BounceBackCanada.com. “Bounce Back Canada™ offers two free services to help support all of our neighbouring businesses as we find a way to work together through these unprecedented times. First, we are distributing COVID-19 awareness and prevention posters at no charge to any business in our service areas. Second, we are providing free local advertising on this site to stimulate business and help all of our neighbours overcome the tremendous economic effects of the COVID-19 pandemic. We truly believe that a rising tide will lift all ships, and we want to make sure our communities stay afloat,” says Nick Titus, President, Minuteman Press International.

Franchises have also been sharing their initiatives through social media. Here’s a roundup of some of the social posts shared by Canadian franchises. Pizza Pizza, Mary Brown’s Chicken & Taters, YUM! Brands, and Smoke’s Poutinerie lent their support to healthcare workers and other community members in need through food donations.

Algonquin College of Applied Arts and Technology donated thousands of pieces of protective equipment and loaned at least nine ventilators to help healthcare facilities prepare for COVID-19 patients. The donation included 125,000 gloves, more than 7,000 masks, 200 pairs of glasses and goggles, and 100 protective gowns.

Franchise Canada July | August 2020 11

YOUR RESOURCE FOR THE BASICS OF BUYING A FRANCHISE Investing in a franchise is not a decision to be taken lightly, but Franchise Canada has you covered. This Franchise Guide takes you through every step of the process, including finding your right franchise fit, navigating due diligence, and franchise financing, so you can kick-start your career in franchising!

Franchising 101: An Introduction to Franchising

ranchising is an attractive and powerful way for Canadians to make their business dreams become reality and achieve success as small business owners. Through the proven business concept and support provided by the franchisor, franchisees are able to be in business for themselves, but with the support and assistance of the franchisor, the advantage of the franchise

12 Canadian Franchise Association

system’s past success, and access to the knowledge and experience of a network of franchisee peers. Franchising is about sharing success. The success of a franchisee leads to the further success of the franchisor and the franchise system as a whole. When you invest in a franchise, you align yourself with a brand that may already enjoy established consumer awareness and loyalty in the Canadian marketplace. This instant brand

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THE FRANCHISE GUIDE recognition can bring many advantages, including a stronger position when applying for a business loan. As a franchisee, you’ll benefit from the license to use the franchise system’s proven branding, trademarks, and proprietary products and/or services. A franchise also provides you with the advantage of a tried-and-true system and an operations manual that fully explains how you’re to replicate the franchise’s system at your location. While it’s impossible to eliminate all risk, if you work and follow that system, you can reduce the risk of business failure and increase your likelihood of success. As a franchisee, you’re considered a small business owner, and it’s important for you to assume a leadership role in your business. By joining an already established system, you don’t have to invent the business from the ground up like you would as an independent business. The franchise system can save you time and money by keeping you up to date on your market. Through the franchisor, you can stay on top of business trends, research and development, new marketing initiatives, and changes in consumer tastes or behaviours. Being a franchisee also means there is strength in numbers. Many franchise systems have an established supply chain and strong relationships with suppliers. By ordering your stock, supplies, and equipment through approved suppliers as a member of your franchise system, you may receive the benefit of preferential pricing or special delivery. Joining a franchise system also gives you a network of peers upon whose knowledge and experience you can draw. If you encounter an issue or have a question, your franchise system colleagues are just a phone call or email away. What are the key responsibilities of the franchisee? While system-specific responsibilities required of the franchisee will be outlined in the franchise agreement, there are a few key responsibilities that are generally required of the majority of franchisees. The franchisee should: • f ollow the franchisor’s standards, methods, procedures, techniques, and specifications to ensure consistency; •p ay a fee (typically an initial franchisee fee and ongoing royalties) to the franchisor for the right to use the franchisor’s trademarks (brand) and business system;

• take care of accounting, local marketing, staffing, and the other administrative aspects of operating a business; • invest their time, particularly during the start-up phase, by working hands-on in their business to fully understand the operational side of the franchise; and • work in partnership with the franchisor, allowing for effective two-way communication between the two parties and a mutually beneficial relationship. What are the key responsibilities of the franchisor? While the franchise agreement will outline the specific responsibilities and obligations of the franchisor, there are a few key responsibilities of the franchisor that apply in most scenarios. The franchisor should: • undertake to provide franchisees with operating systems and support services to help their businesses grow in ways that are effective, efficient, and profitable; • continue to evolve the franchise system through research and development of new products and services; • handle all brand advertising and (usually) provide franchisees with assistance for their local marketing activities; • protect and manage the brand and its trademarks, while ensuring consistency and quality standards are maintained by all franchisees in the system; and • provide initial and ongoing training and support. If you’re interested in embarking on a career in franchising, we’ve assembled the resources you need to make an informed investment decision. The Franchise Guide takes you through the path to making a franchise purchase, hitting the highlights of finding your franchise fit, building a business plan, understanding franchise finance fundamentals, and navigating franchise disclosure, and also includes a handy checklist of questions to ask the franchisor and other franchisees. To get started, turn to page 14, where you’ll learn how to narrow your search to the right franchise options to suit your interests and abilities.

Franchise Canada July | August 2020 13

THE FRANCHISE GUIDE

9 Rules for Finding Your Optimum Franchise

ith so many franchise opportunities available in Canada, it can be overwhelming to try to pinpoint the franchise brand that will allow you to make your dreams of business ownership become reality. That’s where the experts come in. At the Franchise Canada Show in Toronto this past February, franchise consultant Gary Prenevost, president of FranNet of Southern Ontario and Eastern Canada, outlined his top nine rules to help prospective franchisees find the right franchise match. Here, we share the highlights from his presentation to help you make the best possible franchise investment decision. RULE #1: Know Thyself! Before you get too far into the research process, it’s important to undertake a self evaluation, so you have a better understanding of your skills, interests, resources, and circumstances. You should ask yourself: • W hat types of work do you excel at, love to do, and that you want in your business? • W hat types of work do you dislike doing that you don’t want to do? You should also take stock of your financial resources, including what initial investment you can make, the business working capital you’ll need to break even, and the personal working capital you’ll need to break even (the point where revenues are high enough to cover operating expenses). It’s also important to examine the ‘why’ of your franchise plan; the lifestyle you want and how you plan to get there. What financial and lifestyle goals are you trying to solve, that can’t be solved through corporate employment? RULE #2: Ride Only One Horse! The first 12 months of business ownership are critical, and it’s during this time that the business will need the most from you. There will be a steep learning curve in the first year, where you’ll learn: the franchisor’s systems and processes; how to market your business; who your customers are (and aren’t); how to hire, train, coach, and manage staff; how to manage inventory and schedules; how to manage revenue and expenses; and the difference between profit and cash flow. Perhaps most importantly, you’ll also be learning how to manage your work-life balance throughout this

14 Canadian Franchise Association

‘sacrificial’ year that will be devoted to getting your business up and running. During this time, you’ll need to be completely focused on your business, and won’t be able to be distracted by other major commitments, including any other part-time work. RULE #3: Avoid “Shiny Things” Don’t get ‘seduced’ by the opportunity and make a decision too quickly, or that isn’t right for you: just because others have found success with this opportunity doesn’t automatically mean that you will, too. If the following are true in your case, you need to slow down and do more research: • You’ve only talked to the franchisor and are excited about the concept • You want to buy an existing franchise and are only looking at that unit’s performance • It looks like a good concept, but you can’t substantiate your income goals with existing franchisees It’s imperative that you research, research, research, and investigate before investing! Remember, it’s totally normal to be afraid of failure as you get started. You can manage and reduce this fear, however, by doing your research and making fact-based decisions. You can’t allow fear to drive your decisions; don’t make judgments based on your perceptions or any uneducated opinions. Make sure you have the facts! Gary’s franchise success formula: “A”: The franchisor’s systems and processes “B”: The franchisor’s initial AND ongoing training and coaching “C”: Your strongest transferable skills “D”: Your passion for this type of work “E”: Degree of financial and lifestyle success AxBxCxD=E RULE #4: “Date” a Little, Not a Lot! The search for business “love” is complex and takes time. Passion is an essential component of franchise success, but it’s the passion for the types of work that drives success, not a passion for the product. When you meet your franchise match, you’ll have: • Conviction for the value proposition of the product or “solution suite” (not just loving the product) • Confidence in the franchisor’s ability to support you through launch, as well as ongoing support • Culture fit with franchisor

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THE FRANCHISE GUIDE •C ulture fit with the majority of the franchisee base You need to avoid the trap of making an emotionally charged decision, and then trying to justify that decision logically thereafter. You also shouldn’t immediately put all your eggs in one basket. You need to see what else is out there before you commit to one franchise, so investigate multiple concepts at the same time to ensure you’re not missing out on an opportunity that could be a better match. RULE #5: Do Some “Dancing” Before you make your investment decision, you need to talk to at least eight to 10 existing franchisees to learn more about their experience with the system. You can’t, however, just talk to the top-performing franchisees: one third of calls should be to those top performers, while one third should be to middle performers and the last third should be to unhappy franchisees. Through these conversations, it’s important to get their perspectives on their relationship with the franchisor, what it takes to drive success, and what a day, a week, and a month in the life look like as a franchisee in this system. Once you’ve carried out this validation process, you need to ask yourself: Can I do it? Will I do it? RULE #6: “Fall in Love” Before you move forward with your decision, you need to make sure that the logical and emotional components are aligned. Logical components: •F inancially affordable •C an enable you to meet your financial goals •G oals can be achieved in the timeline you need •T he business can run effectively in the weekly time available Emotional Components •Y ou love the work (critical roles) it takes to drive success •Y ou have conviction in the value proposition (not just love of the product) •Y ou like, trust, and respect the franchisor’s leadership team •Y ou like and relate to most of the franchisees you spoke with

RULE #7: “Meet the Parents” Don’t just base your decision on the franchise salesperson; you also need to meet with as many members of the franchise team as possible to get a more complete picture of what it will be like to join the brand. You should attend a Discovery Day, where you’ll meet the leadership team, along with the training and support team. Through this day at the franchisor’s head office, you’ll also be able to assess the infrastructure they have in place and be better able to determine if the culture of the company fits well with your expectations and needs. All decision-makers should attend this Discovery Day, as this is where the final negotiations will take place. Throughout this process, remember that you’re looking for reasons why you should say ‘no’ to this opportunity, and hoping that you don’t find any. You won’t be making a final decision while you’re there – you’ll be able to return home and take any final considerations into account before signing the franchise agreement. This decision is usually made within five to seven days after attending the Discovery Day. RULE #8: “Prenuptial Review” It’s essential that you enlist the help of franchise professionals in reviewing all documentation from the franchise, including the disclosure document and overall franchise agreement. You need to work with a franchise lawyer, not a regular business lawyer, because they have an in-depth understanding of franchise law, and will be able to advise you on: • your rights and obligations • the franchisor’s rights and obligations • a ny legal deficiencies in the disclosure document • negotiation recommendations RULE #9: “Get Married” Signing a franchise agreement means that you’re entering a “business marriage” with the franchisor. This is a longterm relationship that involves a lot of work from both parties, with multiple options for renewing the agreement in the future. You wouldn’t enter into a personal marriage without being one hundred per cent certain that you were marrying the right partner, so don’t sign your franchise agreement without doing your research and ensuring that you feel completely confident in your business future.

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THE FRANCHISE GUIDE

Franchise Due Diligence:

Legal Aspects to Consider Before You Get Started

ranchising is often referred to as a mutually rewarding relationship between franchisors and their franchisees. While this is true, the franchise business model is also built on contracts and other documentation, which makes the relationship that much more complex. Luckily, there’s help for prospective franchisees in wading through the paperwork and fully understanding the rights and obligations of the franchise relationship that are outlined within. Franchise legal counsel Franchise lawyers are well versed in the ins and outs of the franchise business model. It’s vital for you to fully understand all documentation involved in your franchise investment, particularly the disclosure document (a comprehensive summary of pertinent information about the franchise system, its officers, finances, etc.) and the franchise agreement. As a potential franchisee about to invest your time, effort, and money, you should have a complete understanding of the relationship you’re about to enter. This is where an experienced franchise lawyer comes in. Though there are common features found in franchise agreements, they can vary from franchise system to franchise system, and from franchisee to franchisee. Some provinces – British Columbia, Alberta, Manitoba, Ontario, New Brunswick, and Prince Edward Island – have franchise legislation that prescribes the information that franchisees must receive before signing the franchise agreement. This is just one of the reasons why retaining a lawyer who has experience with the franchise business model is a wise choice. So, where can you find a franchise lawyer? Prospective franchisees can find a lot of the information they need online, through sites like the Canadian Franchise Association (CFA) directory of franchise support services members (www.cfa.ca/listings). You can also turn to page 35 of this issue, where you’ll find the Franchise Lawyers Across Canada feature, including details about all CFA member lawyers. Although these are great tools for initial inquiries, prospective franchisees should speak and meet with lawyers before retaining one. When selecting a lawyer, there are a few things you should consider. Look at the lawyer’s experience – have they dealt with the franchise you’re interested in before? How often have they acted for franchisors and franchisees?

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A large part of researching the franchise system involves reviewing its disclosure document and agreements. When meeting with a franchise lawyer, you’re advised to bring in everything you’re being asked to sign, from the franchise agreement itself to any leases or other contracts. These are usually standard documents, but each should still be reviewed. It’s also important for some documents, such as the franchise agreement and real estate lease, to be examined together. The lawyer is looking for two main things: franchise obligations and potential risk. If, upon review, everything is in order, you can sign on the dotted line and move forward with establishing your franchise location. But it doesn’t necessarily signal the end for the relationship with the franchise lawyer, as once a good working relationship is established, many clients will return with other legal work down the road. Having an experienced franchise lawyer on your team is an asset both during and after your franchise investigations. Franchise disclosure document As part of a proper due diligence process, prospective franchisees should collect pertinent information about franchising and franchise systems. You should also be evaluating this information against your goals, attributes, capabilities, and assets. During due diligence, some of this information (financial capacity, skills, passions) will come from you, while other details will come from the franchise system. An important piece of this investigation puzzle is the franchise disclosure document. Here’s how you can put these valuable resources to best use and collect as much information as possible. What is a franchise disclosure document? A franchise disclosure document is a written resource designed to provide franchisees with vital information that they need to make an informed decision about investing in a franchise opportunity. A typical franchise disclosure document may include: • Background on the franchisor and the key players within the system, such as its directors and officers • A ny history of litigation, civil action, convictions, bankruptcies, etc. of the franchisor and/or its directors and officers • A summary of the trademarks and other intellectual property

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THE FRANCHISE GUIDE • A summary of the costs and fees required to start and run the franchise business • A n outline of the training and ongoing assistance provided by the franchisor • A list of current and former franchisees and their contact information • Financial statements and other fiscal information The disclosure document must meet requirements set out in any provincial franchise legislation. Prospective franchisees are given a minimum of 14 days to review the document before signing on with the franchise. Will a franchise disclosure document specify how much money a franchisee can make? Franchisors can, but aren’t required to, provide information on projected earnings. As a variety of factors can play into the success of a franchise location, it can sometimes be difficult – and risky – for franchisors to provide earnings claims that apply widely. The financial information that franchisors will include in the disclosure document is likely the franchisor’s overall fiscal performance during the most recent year (which will show the assets, liabilities, and earnings of the franchisor itself). It might also include the historical actual gross sales of anonymous individual locations. Franchisees are advised to review all financial statements with an accountant, who can explain the numbers and extrapolate the financial viability of the franchise system. They can also help you put together a solid business plan (more information about business plans can be found on page 18 of The Franchise Guide). No matter how the financial information is presented, you need to be able to substantiate and justify the information. Another way to find out about earnings potential is to speak with existing franchisees in the system. When will a prospective franchisee receive a franchise disclosure document? When a prospective franchisee will receive the disclosure document can vary from system to system. Just as you’ll be evaluating the franchise opportunity, the franchisor will also be assessing whether you’ll be a good fit for the system. The franchise disclosure document usually comes into play when a prospective franchisee is considered a serious candidate. What should a prospective franchisee do with a franchise disclosure document? When a disclosure document is provided, a prospective franchisee has a minimum of two weeks to review the materials. You shouldn’t sign any contracts or agreements until this period has passed.

The first step is to gain a full understanding of the information it contains, with help from an experienced franchise lawyer. A franchise lawyer will be able to “translate” all the essential rights, responsibilities, and obligations that the documents outline for both sides of the franchise relationship. The lawyer will also point out anything different or unusual about the information or what the franchisor requires. They can also often identify anything that may be negotiated with the franchisor (and lead these negotiations when the time comes). In addition to speaking with a franchise lawyer, you should consult with other professionals during this time, like an accountant and banker, who may also want to review the disclosure document. You’ll also want to put that list of franchisees the disclosure document provides to good use by contacting current and former franchisees for their firsthand knowledge. You should speak with eight to 10 franchisees, with varied performance levels. Franchise disclosure documents play an important role in a franchisee’s due diligence. By consulting with franchise professionals, a disclosure document can help you make your investment decision with a better understanding of the franchise opportunity, as well as the rights, responsibilities, and obligations you’ll be undertaking as a franchisee. Franchise legislation In certain provinces, there’s a legal framework that sets out the relationship between franchisees and franchisors. The legislation intends to help ensure that prospective franchisees are making an informed investment decision; once they’ve joined a franchise system, the legislation encourages franchisees and franchisors to deal with one another in good faith. Franchise law helps ensure franchisees receive certain information to make an educated decision about investing in a franchise business. At the time of writing, franchise legislation exists in British Columbia, Alberta, Manitoba, Ontario, New Brunswick, and Prince Edward Island. In provinces without specific franchise legislation, the franchise business relationship is usually governed by common and/or general business laws. For prospective franchisees, certain components of the franchise legislation will have a big impact right away. Franchise legislation helps potential franchisees make more informed decisions by requiring franchisors to provide serious franchisee candidates with disclosure documents. Franchise legislation usually outlines what information needs to be included in disclosure (continued on page 20)

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THE FRANCHISE GUIDE

Business Plan and Financial Management Basics

egardless of the franchise opportunity you choose to pursue, you need to map out your path to business success before getting started. By establishing a business plan, you’re signalling to lenders, and the franchise system, that you’ve established and understand the tools you need to succeed. You’re ready to work hard and do what it takes to make your business dreams become a reality. At the Franchise Canada Show in Calgary this past January, John Leavitt, a partner at BDO, shared information that prospective franchisees need to establish a strong business plan and kick-start their franchising careers. As the national franchise industry leader at BDO, Leavitt has extensive experience working in the franchise industry, helping clients with their accounting, tax, and advisory needs. Here, Leavitt shares what you need to know as you look to build the business plan that will put you on the path to franchising success. Who should write the business plan? When you realized that your bank requires a business plan to provide you with financing options, your immediate thought was likely that you don’t know where to begin. You may be tempted to find someone to do this for you, but ultimately, this responsibility lies with you. You can seek assistance from franchise professionals, but you need to understand and present what your plans are for the business, rather than someone else’s. Remember, you may need to build a business plan because the bank has asked for one. It’s important to do so because you want to map out and ensure your business is going to succeed. This is an important part of the due diligence process that will improve your chances for building a profitable franchise business. So, what needs to be included in your business plan?

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YOUR BUSINESS PLAN 1. Executive summary The executive summary should: • describe the franchise you intend to purchase • include the background and track record of the franchisor and other existing franchisees • include a background of your products and services, while identifying your core market If you’re looking to join an established franchise, you’ll likely want to focus on that. If it’s a newer franchise system, you should focus on the market trends and opportunity available. 2. Management team profile This is the most important part of a business plan for many lenders. The management team profile should: • describe your skills and experience • explain why you’re suited to own and operate this franchise • include the same information for any other members of your management team This is the place to highlight any attributes that make you particularly suited for this franchise, and to share any details about any previous business success. The more the lender believes in you, the more likely they are to provide the financing you need. 3. Description of products and services The description of your products or services should include: • featured benefits • explanation of how your product or service differs from those of your competitors • outline how you will deliver these products and services at ground level Here you should provide the specific details about the

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THE FRANCHISE GUIDE product or service that your franchise will be providing, along with what sets your offering apart from others in the market. 4. Core market information This section should: • describe your core market sector • outline your current competitors and future prospects • itemize strengths and how you will use them • i temize weaknesses and how you will address and strengthen them • estimate the market share you plan to achieve • describe your existing customer base While the bank will want this information, it’s also important for you to have the answers to the following questions: Who’s your competition? What do they do well? What do they not do well? How are you going to stand out? Is your market trending up or down? 5. Description of operations The description of operations should: • describe the premises where you will operate •e xplain how you will produce your products or services • r efer to location, property, facilities, leases, employees, insurance, technology, equipment, and suppliers These are all crucial details that need to be determined before you get started. Location can be a particularly important one, and if this is the case for you, you should provide as many details as you can about your location and the role it will play in your success. 6. Other supporting documents Other supporting documents to include are: •y our resume, and those of the key members of your management team • job descriptions • credit reports • letters of reference • letters of intent • l eases/contracts and other legal documents, as they pertain to the franchise you are purchasing

Cash flow forecasting: A key tool for the business plan and beyond The base of a cash flow forecast is the anticipated income and expenses of the franchise. If you’re purchasing a new franchise location, you can determine the expected revenues and costs by doing your research, including talking to the franchisor and other franchisees in the system. Once you start to get a picture of the numbers, you can do a sensitivity analysis, wherein you carry out multiple cash flow scenarios: one based on high sales, one based on low sales, and one in the middle. This helps you determine what targets you need to hit and what sales are required for you to make vs. lose money. Along with a complete accounting of cash requirements for the franchise, identify the sources of funding, as well as the relevant financing terms. •F inancing for most new franchise companies comes from the owners, supplemented by friends and family members, along with some bank financing. Investors or lenders expect owners to personally assume some of the risk with a solid self-financed capital base of 30 per cent to 50 per cent of the total debt. •T o secure the funds, lenders may require a second-charge mortgage on residential property or personal guarantees up to the maximum amount of the loan. This points out the importance of reducing the risk of undercapitalization, and why the business plan should detail the amount of funding required, how the funds will be used, and when investors and lenders can expect a return on their investment.

7. Financial information Most businesses fail because they run out of cash. If you don’t want to follow suit, you need to make sure that you complete a thorough financial analysis to ensure that you have a viable plan based on reasonable assumptions. This is not only for your own sake, but also because the bank will need to have total confidence to move forward, and they’ll find that with reasonable financial forecasts that show how you’re going to become profitable.

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THE FRANCHISE GUIDE Your financial advisor can be particularly helpful with preparing and itemizing this part of your business plan. The financial section should: • address the financial potential viability of the business • include monthly budget and cash flow projections/ analysis • describe your current financial situation • include a personal net worth statement that lists all of your personal assets and liabilities The financial section needs to show that your business is viable, which means that it’s going to be profitable. It should include cash flow projections (see sidebar) and information about your financial situation. Some terms that will come up as you complete the financial section are: Pro forma financial statements (including balance sheet, income statement, and cash flow statement) should be prepared for the short term (monthly statements for 12 months) and long term (three to five years; quarterly for the first year). These should be based on realistic assumptions to account for the typical delays and challenges experienced by every business start-up. Breakeven analysis that demonstrates what the company must sell to cover costs. Relevant financial ratios that serve as benchmarks for management to monitor the financial performance of the overall franchise and that of individual franchisees. These ratios will be used to identify both performance strengths, as well as emerging problems that could threaten the health of individual franchisees or of the entire franchise system.

• legal fees • accounting fees to prepare the appropriate financial projections • marketing costs including plans, website, print materials, tradeshows, etc. • inventory purchases • land and/or building and equipment • staff • working capital reserves to cover operating losses until the business is capable of generating sufficient revenue • monthly overhead for six to 12 months • personal living expenses for six to 12 months • financing costs It’s important to remember that it often takes months for income to come in regularly. This means it’s essential to have adequate capitalization to reduce the risk of franchise failure. Your business plan should include a comprehensive section on financial requirements, including detailed estimates of all anticipated start-up costs until the projected breakeven point. The bottom line Ultimately, your business plan should assure investors that: • there is a market for your products or services • you and your management team are capable • you have the necessary physical and financial resources • you know where you’re going, and how you’re going to get there • you’re able to provide appropriate security • most importantly, that the franchise you’re buying is financially viable and that you can repay the loan!

When purchasing a franchise system, the key costs that should be considered in the financial section of the business plan include:

(continued from page 17) documents and how they may be delivered to prospective franchisees. Under legislation, franchisees are prescribed a certain amount of time to review the disclosure document, usually two weeks, and consult franchise professionals, such as a lawyer, accountant, and banker, to go over the documents in detail.

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Legal experts encourage prospective franchisees across Canada to request a disclosure document, as franchisors should be willing to share the information with serious prospects. Franchise legislation also provides for rights for established franchisees, such as the right to associate and share information with fellow franchisees.

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THE FRANCHISE GUIDE

Franchise Financing Fundamentals

hen you’re investigating the wide range of franchise opportunities available, it’s easy to get caught up in your search. With so many new concepts and exciting brands to explore, the possibilities can seem endless. But before you delve too far into your research, remember that you need to consider the cost involved. It’s important to know your financial capabilities and limitations before you get started so you can set realistic expectations for your franchising future. Here are some of the important financial questions you need to address so you can make your franchise dreams become reality. Can I afford this? This is one of the most important questions you need to ask before you get started. It’s crucial that you can not only afford the total cost of the franchise, but also that you have a cash buffer. The franchisor can provide you with a summary of the typical costs required to open the franchise. Take a good look at these costs and make sure that once you pay the franchise fee, purchase or lease equipment, order initial inventory, and take care of any other start-up costs, you still have money left over. You need to ask yourself whether you have the funds to buy a franchise and support yourself and your family during the critical start-up period. A common reason why new franchisees might fail is because they didn’t have enough money going into the franchise. If you

put every cent you have into acquiring the franchise, you won’t have the additional funds needed to support yourself during this time. A good cushion would include about three to six months of personal expenses, enough to cover living costs – rent or other home payments, food, and other bills. You should have a complete picture of your financial situation at the ready, including a personal net worth statement, personal tax assessments for the most recent two years, and your credit rating, to find a franchise with the right financial fit. Where is the money? Once you’ve gathered this information, you need to delve into the details of your assets. Many franchisors and banks have requirements for the unencumbered equity a franchisee needs to have. Unencumbered equity is any cash you have that isn’t tied up in any way and doesn’t need to be repaid to anyone else. Most franchisees will finance their franchises with a combination of equity (either personal equity invested by the franchisee or outside equity obtained by selling partial ownership to investors) and debt (loans). The amount of personal funds you’ll be required to contribute is usually based on a percentage of the total cost of the investment. Typically, between 30 and 50 per cent of the investment should be your unencumbered equity. Remember, taking on too much debt can be detrimental, because you need to be able to focus on growing your business and not on making debt payments.

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THE FRANCHISE GUIDE What are lenders looking for? Once you sort out how much equity you’ll be supplying and how much debt you’re prepared to take on, you’ll need to approach a bank to help with the financing. A solid business plan is a major asset in securing financing. It helps you determine what financing you need, and how you’ll pay it back. A well-thought-out business plan should cover all the questions your banker might have about your franchise business and how it will operate. A business plan consists of a business model and a financial plan. The business model will outline the qualities of your business – the customers, the industry, the competition, and your qualifications. It should also identify any weaknesses and explain how you plan to overcome them. The financial plan should include a projected balance sheet, income statement, and cash flow statement. It should also answer any “what if...?” questions: what if sales drop by 25 per cent? What if they increase by 50 per cent? While there are many business plan templates available, you should put your plan together and then consult with others, such as an accountant and existing franchisees in the system, to ensure the financial aspects are realistic and accurate. To learn more about business plans, check out the Business Plans and Financial Management Basics article on page 18 of The Franchise Guide. What are some unexpected costs I might encounter? Though you’ll try to account for all expenses in your franchise investment process, inevitably there are things that may come up depending on your exact circumstances. While it’s important to focus on the hard costs, including the location and equipment, you can’t forget about the soft costs involved. These include financing costs (interest on loans); working capital to use until the business breaks even; security deposits (paid to utility companies, for example); professional fees to retain lawyers, accountants, and others; and any required licences, permits, insurance, and training costs. You should plan ahead so you’re not strapped for cash a few months into your venture. These costs should be included in your business plan, so you can ensure that you find the funds to cover them.

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How can I improve my chances of securing financing? Once you have a full understanding of your personal financials and financing requirements and have crafted a great business plan, there are a few things you can do to help secure that loan when you meet with your lender: •E stablish a good relationship with the banker. Approach the same bank you use personally or find out whether your franchise system already has banking relationships in place and can give you an introduction. •B e prepared to answer any questions the lender might have during your meetings. Be open and honest. Know all the information contained in your business plan in detail and be ready to support your assumptions. •P resent yourself well and dress professionally when meeting with your lender. •P lan ahead and approach your bank as early as possible. Even with an amazing business plan, if you leave financing to the last minute, the deal might not get completed. This can also indicate a lack of organization and preparedness on your part. • Offer a resume of your previous experience. Even if your background isn’t in franchising or the industry in which you’ll be operating your franchise, showing a history of success can help.

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THE FRANCHISE GUIDE

Checklist for Franchisees

nvesting in a franchise is a major investment decision, and not every franchise will be the right fit for you. That’s why it’s important to ask the following questions if you’re considering the purchase of a franchise. You may need to ask many more questions to properly conduct your due diligence, and it’s also very critical that you retain franchise professionals to assist you through the process of determining whether to purchase the franchise.

This workbook has been prepared with the assistance of the following franchise experts: Franchise Lawyer: Joseph Adler, Hoffer Adler LLP Franchise Consultant: Gary Prenevost, FranNet Franchise Accountant: Lyn Little, BDO Canada LLP *Note: The Franchisee Checklist is a public resource of general information which is intended, but not promised or guaranteed to be correct, complete, or up to date. It is not intended to be a source of legal advice. Readers should seek the advice of competent legal, accounting, and business counsel.

SECTION 1: The franchisor – identity & experience Questions to ask the franchisor: 1. Who are the officers, directors, and shareholders of the franchisor? 2. What is the business experience of the franchisor’s shareholders, directors, and officers? For how many years have they been in the current business category? How many years in the franchise industry? 3. Is the franchisor a subsidiary of another company (i.e. private equity company purchasing the franchisor system)? • If so, who is the parent company? Who are the shareholders of the parent company? • Has that franchisor or any of its affiliates ever franchised other concepts? • If so, which concept(s), and how successful are they? 4. What other companies are related to the franchisor? What role do these companies have in relation to the franchised business? • Will any of the franchisor’s affiliates be your suppliers under the franchise agreement? 5. Are the units franchised under a master franchise agreement? What are the terms/timelines of the master franchise agreement? How are you impacted if the master franchise agreement is terminated? Does the master franchisee have experience with franchising? 6. Has the franchisor and/or any of its associates, or any of their respective directors, officers, or shareholders been: • convicted of fraud, unfair or deceptive business practices, or a violation of law that regulates franchises or business or been subject to an administrative order or penalty?

• bankrupt or insolvent in the last six years? Has there been a charge pending against such persons involving such matters? 7. For how many years has the franchise been operating? 8. For how many years has it been offering franchises in Canada? Outside of Canada? If a U.S. franchisor is coming into Canada, what work has been done to adjust for the Canadian market, i.e. supply chain, Canadianizing the marketing messages, PIPEDA, and e-marketing laws, etc.) 9. How many franchised and corporate units are currently operating in Canada? In the U.S.? 10. Is the franchisor a member of the Canadian Franchise Association? If not, why not? 11. W hat is the franchisor’s reputation with the Better Business Bureau? With the Chamber of Commerce? With D&B Canada (Dun & Bradstreet)? 12. W hat is the franchisor’s financial condition? Have you reviewed its most recent financial statements, and have they been prepared in accordance with the applicable franchise legislation in your province? If the franchisor is permitted to simply disclose an opening balance sheet or is exempt from providing financial disclosure, do you have sufficient financial information regarding the franchisor to make an informed decision? SECTION 2: The franchisor’s relations with its franchisees 1. What is the franchisor’s reputation for relations with its franchisees, customers, and suppliers? 2. How does the franchisor qualify, screen, and choose its franchisees? • Have your qualifications been reviewed? • A sk yourself: why do you feel you’re a good match?

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THE FRANCHISE GUIDE 3. What are the franchisor’s plans for future development, including product, service, and/or technology innovation? • For expansion and/or diversification? • How will these plans affect your dealings with the franchisor? 4. How does the franchisor monitor franchisee operations to help improve performance? How much is by automated CRM and how much by manual reporting? • Does the franchisor periodically inspect all of the franchises? • W hat are the franchisee reporting requirements? • Does the franchisor subject the franchisees to periodic audits of books and records? 5. Is there a franchisee association or advisory council (FAC)? • If so, who belongs: how many members are voted by the franchisees, and how many are appointed by the franchisor? • Does the franchisor relate well with the association or council? 6. Does the franchisor keep advertising funds in a separate account/entity? • Will the franchisor regularly provide franchisees with a statement of how the advertising funds are disbursed? • Will the franchisor use the advertising fund to promote existing locations or fund expansion efforts? • Has the franchisor documented how the advertising funds will be used? 7. Does the franchisor solicit franchisee input into marketing strategies, new product development, etc.? What amount of control does the FAC have regarding how the ad fund revenues are deployed? 8. Does the franchisor account for the unique needs of different marketing (geographic) areas as it implements its marketing strategies? 9. Do all franchisees and corporate stores pay into the advertising fund at the same rate? 10. Has the franchisor provided you with a list of all of its franchisees? 11. W hat is the failure/turnover rate for franchisees? • Has the franchisor terminated any of its franchise agreements in the last three years? If so, how many, and for what reason? • W hat are the reasons for the failure/turnover? 12. Has the franchisor litigated with any of its franchisees in the past? • W hat was the outcome of such litigation? 13. Is there any pending litigation by or against the franchisor or any of its associates? • W hat is the status, nature, and likely outcome of such litigation? 14. How does the franchisor describe its corporate culture and will you be comfortable with this culture?

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15. Does the franchisor have a recognition program for exceptional performance and if so, what does this program involve? 16. How innovative is the franchisor? • How important is innovation to the franchisor’s industry? • W hat successful innovation has the franchisor introduced since it began its business? • How has the franchisor responded to technological change or innovation in its industry? SECTION 3: Required investment 1. How much is the initial franchise fee? 2. Is there a deposit? If so, when is the deposit due and how much of the deposit is refundable, and under what circumstances? 3. What is the minimum recommended operating cash requirement at start-up, in addition to the original investment? 4. Is there a training fee, a site development fee, or a management or administration fee? 5. What is the anticipated cost of leasehold improvements, equipment, signage, and start-up inventory? Does the franchisor supply any of these items? Is the price reasonable? 6. What is the anticipated occupancy cost of the premises? • Rental payments or purchase cost of real property? • A nticipated construction costs for the premises? 7. What is the general timeline between site selection and opening? 8. What other costs may be incurred? 9. Does the franchisor assist in the financing of the franchise? 10. W hat assistance, if any, does the franchisor provide to assist with site selection/lease negotiation? If there are no in-house resources, how closely do they work with external real estate professionals to assist with site selection/lease negotiation? 11. W hat is the anticipated period of time between start-up and profitability? 12. W hat are the anticipated franchise earnings, and has the franchisor provided you with any financial performance representations? If so, have you been provided with the underlying assumptions that substantiate the representations? 13. W hat is your anticipated “personal” working capital required through the launch period (the amount you need monthly to cover living expenses, multiplied by the number of months before you can draw income from your franchise)? 14. Do you have the resources to finance the initial investment? Has the franchisor negotiated any franchise finance programs?

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THE FRANCHISE GUIDE SECTION 4: Franchised product or service 1. What makes the franchisor’s product or service unique? • Does it satisfy a need? • Is it marketable in your territory? • W hat is the size of the market in your territory? 2. Is the franchise system easily replicated, and if so, how will the franchisor differentiate itself from its competitors? 3. Is there any goodwill attached to the franchise system? 4. How long has the product/service been on the market? 5. What is the competition for the franchisor’s product or service in your market? 6. On a scale from 1 to 10, how competitive is the pricing of the franchisor’s product or service? 7. Is the sale of the product or service subject to certain legal restrictions? If so, what are the applicable federal and provincial standards and regulations, and does the franchisor comply? 8. Is the product protected by patent, trademark, or copyright? • W ho owns the trademarks, copyrights, or patents? • A re the trademarks, copyrights, or patents registered in Canada or have trademark applications been filed for their protection? • If the trademarks are in the process of being registered, is there any opposition or other barriers to the registration of the marks? 9. Are there product warranties and if so, who is responsible for such product warranties – the franchisor, the franchisee, or a third-party supplier? 10. W hat products must be purchased from the franchisor or designated suppliers? • On a scale from 1 to 10, how competitive is the cost with third-party suppliers? • If supplies are interrupted, can purchases be made through alternate suppliers? • Will the franchisor be receiving volume discounts or rebates? If so, will these savings be passed on to the franchisees? 11. Innovation: • How often does the franchisor update product/service offerings? • Do the innovation advances come from the franchisee base, or from head office? • How are the innovations field-tested to prove viability? 12. W hat are the franchisor’s policies with respect to gift cards and certificates, online orders, and food delivery applications? And is pick-up, delivery, or drive-thru an important component of the service offering? 13. How often does the franchisor require your premises to be renovated or upgraded and what is the estimated cost of these renovations/upgrades?

14. Will you be able to renew the franchise agreement without completing renovations? SECTION 5: Sales territory and location 1. Is your franchise territory exclusive? • If not, would there be some other form of territorial protection? • If so, what are the parameters of the exclusive territory granted to you? • Will there be other outlets opening near your territory which may undermine your sales? • Would these be company-owned or owned by other franchisees? • Can you get a first right of refusal for any adjoining territories? • Does the franchisor sell its products through other channels of distribution? • If so, what are these channels, and how will they impact the profitability of the franchise? 2. Can you decrease or expand your sales territory? If so, under what conditions and at what additional investment level? 3. Has the franchisor conducted a site selection analysis of the location of the franchised business and the territory, and provided you with information that substantiates the viability of the location and territory? If not, how could you obtain this information? SECTION 6: Questions to ask current franchisees 1. What was your total investment in the franchise? 2. Were there any unexpected costs? If so: • W hat were they for and how much were they? • Were they unique to that individual, or is it something several franchisees experienced? 3. Are the royalty, advertising, and other fees charged by the franchisor reasonable in comparison to your profits? 4. On a scale from 1 to 10, how good is the quality of the products or services supplied by the franchisor or its designated suppliers? How satisfied are you with the price-quality relationship? How reliable are these deliveries from the franchisor or its designated suppliers? Are you allowed to use alternative suppliers? 5. On a scale from 1 to 10, how effective was the franchisor’s initial training? How long was the training? 6. What is the franchisor’s initial and ongoing training program? On a scale from 1 to 10, how effective is the: i) initial training? ii) ongoing training? iii) group training calls? iv) mentoring by the franchisor? v) mentoring by other successful franchisees?

Franchise Canada July | August 2020 25

THE FRANCHISE GUIDE 7. On a scale from 1 to 10, how effective is the franchisor in responding promptly and helpfully to questions you have or advice you seek? 8. What are the most important things a new franchisee needs to know about business generation (prospecting, digital and traditional advertising, networking and community engagement, etc.)? 9. What type of ongoing support and advice (including advertising, marketing, and promotional assistance) do you receive from your franchisor? On a scale from 1 to 10, how satisfied are you with this support? 10. On a scale from 1 to 10, how profitable is your franchise as compared to initial expectations? 11. How long did it take for revenue to cover operating costs? 12. How long did it take for you to break even? 13. W hat have you done to make your franchise successful, and would you recommend this franchise? 14. Does the franchisor have a dispute settlement board with both franchisee and franchisor representatives? On a scale from 1 to 10, how effective is it? 15. Have you ever had a serious disagreement with your franchisor? What was the disagreement about? How was it settled? 16. If you have experienced financial difficulty in operating the franchise, how has the franchisor supported you through the difficult time? 17. W hat is the time investment for the franchisee (high amount of owner involvement, or more self-sufficient operations)? 18. K nowing what you know now, what are the three most important things you would tell new franchisees that they must do? And that they must avoid doing? 19. K nowing what you know now, would you do it over again? Why or why not? 20. How effective are the marketing and advertising programs implemented by the franchisor? • Does the franchisor provide a periodic report on the marketing expenditures? • A re you satisfied with how the marketing contributions are spent? 21. Do the corporate outlets contribute to the marketing fund? 22. A re you aware of other franchisees who are not happy with the system or who are struggling with their franchise? 23. How involved is the franchisor with the day-to-day operations of the franchise? Do you feel that you have the autonomy you require to operate your franchise as you see fit?

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SECTION 7: The franchise agreement 1. Have you retained a franchise lawyer with expertise in reviewing franchise agreements? 2. Are the franchise, the location, and the territory clearly described in the agreements? 3. If the premises is not identified, by what date are you or the franchisor, as the case may be, required to locate a premises and obtain a lease? 4. Is there an opt-out provision that gives you the right to terminate the franchise agreement if you do not find a suitable premises within a certain period of time? 5. Does the contract clearly describe the duration, type, and cost of the training to be provided by the franchisor? 6. Does the contract clearly describe the support to be provided for the grand opening? 7. Does the contract clearly specify the type, amount, method of payment, and timing of all payments to the franchisor? This includes the franchise fee; any deposits and the conditions for any refunds; royalty payments based on a percentage of gross sales; local, regional, and/or national advertising contributions; fees of continuing services provided by the franchisor; and any other payments. 8. Does the contract clearly describe the rules around digital marketing and social media? 9. Are you required to purchase supplies from the franchisor or other designated suppliers? • If so, what and how much? • A re there any minimum purchase quotas? • If the franchisor receives rebates from the suppliers, are they reasonable in light of the cost of the products or services being purchased? 10. Can you use alternate suppliers (provided the franchisor’s quality standards are maintained) if the franchisor’s supply deliveries are interrupted or for other reasons? 11. Do you have the right to use any innovations developed by the franchisor? 12. A re there sales quotas that you are required to meet? If so, are they attainable and what are the consequences if you fail to meet them? 13. W hat is the length of the contract term? • Is the term renewable, and on what basis? • A re the renewal conditions reasonable? 14. W hat types of records and reports are you required to provide to the franchisor? How cumbersome are the requirements? 15. A re you leasing your location directly with your landlord, or will you enter into a sublease with the franchisor?

www.cfa.ca | www.FranchiseCanada.Online

THE FRANCHISE GUIDE

• Is the lease for the same period as the franchise contract? • Can the lease be renewed, and on what terms and for what time period? • Can you change locations? If so, on what conditions? • Does the landlord have the right to demolish your premises or require you to relocate? 16. A re you required to build, or can you renovate existing franchise premises? • Will the franchisor provide design and construction specifications, and/or monitor the construction? • Can these specifications be changed? 17. Do you choose the location or sales area of the franchise, or does the franchisor? 18. Can you operate more than one franchise in your sales area? Do you have any development rights? 19. Can you sell your interest in the franchise? • Does this require the franchisor’s consent? • W hat are the conditions of such consent? • How is the sale price determined? • Is there a pre-determined valuation formula? 20. Can you terminate the contract? • If so, what are the termination conditions? • W hat are the costs and/or penalties? 21. On what basis can the franchisor terminate the contract? 22. If the contract is terminated, will you be compensated for any component of the goodwill that you have built up in the business? 23. Is there a post-term non-competition covenant, and is it a reasonable one? What is the length of the post-term covenant and what is the geographical boundary? 24. If you violate any provision of the agreement, do you have adequate time to correct the situation? 25. Does the contract provide for arbitration or mediation as a pre-requisite before litigation is commenced? If so, how will the arbitrator be selected? How are the costs of the arbitration/mediation to be divided? Are there any rights of appeal? 26. W hat happens if you suffer a prolonged illness or death? • Will your survivors, for example, be entitled to operate and maintain ownership of your franchise in such event? 27. Can you engage in any other business enterprise during the term of the contract or are you required to devote your full-time efforts to operating the franchise? 28. Are you required to provide any personal guarantees? 29. Can you enter into the franchise agreement personally, or are you required to incorporate? If required to incorporate, are there any requirements for how your corporation is to be organized?

30. A re you allowed to operate your own website or social media accounts? 31. W hat is the effective date of the franchise agreement? Have you diarized the expiration of your possible two-year rescission period, during which time you may be able to rescind the agreements if you have not been properly disclosed? SECTION 8: Disclosure document 1. For franchisees in provinces where legislation mandates the provision of disclosure documents – currently British Columbia, Alberta, Manitoba, Ontario, New Brunswick, and Prince Edward Island. • Has the franchisor provided you with a disclosure document that complies with the applicable franchising disclosure statute? In particular, does the disclosure document contain all disclosure required by the relevant franchise disclosure statutes, including the franchise agreement, all other agreements, and the franchisor’s financial statements for its most recently completed fiscal year? • Was the disclosure document provided as one document at one time and fully up-to-date as of the date of disclosure? • Have you retained a franchise lawyer with expertise in reviewing disclosure documents? • Have you retained an accountant with expertise in franchising matters to review the franchisor’s financial statements? • Is the disclosure made by the disclosure document consistent with the terms of the franchise documentation and the representations made by the franchisor’s salespersons? • Has the franchisor complied with the disclosure requirements of the relevant disclosure statutes by providing you with at least 14 days in which you could review the documentation before paying the franchisor any monies or before you signed any agreements? • Did the franchisor include a signed certificate of disclosure in its disclosure document and if so, was it signed by two officers or directors or an officer and a director, if there are in fact two such persons? 2. For franchisees in provinces without legislation mandating the provision of disclosure documents. • Has the franchisor provided you with a disclosure document in accordance with the Canadian Franchise Association’s (CFA) voluntary disclosure rules? Please visit www.cfa.ca/About_Us/Disclosure_Documents for more information.

Franchise Canada July | August 2020 27

Franchising Weathers the Economic Storm The franchise business model is built to last through times of crisis BY LAUREN HUNEAULT

s we approach the summer months, it’s clear this will be a summer like no other in Canada. At press time, the economic storm rages on, with the country just beginning the long process of starting to open again after the COVID-19 crisis caused full closures. As Canadians practice “social distancing,” businesses are struggling, and only those that successfully adapt to the challenges presented by the pandemic will continue to thrive after this economic crisis is over. As of April 15, more than six million Canadians applied for the COVID-19 Emergency Response Benefit, which was put in place to help those who have lost their source of income as a result of the crisis. But it isn’t all doom and gloom. While the forecasts are currently bleak, there’s hope that clearer economic skies are ahead of us. One reason for this hope comes in the form of franchising. The resiliency of franchising While no one can predict the future, we can learn from the past. Globally, franchising has successfully weathered economic storms before, including the Great Recession of the late 2000s. According to Franchise Canada Directory listings, there was a 6.5 per cent increase in franchise and corporate locations in Canada, and a 23 per cent increase in franchise opportunities (brands) between 2008 and 2010. In addition, the 2010 Franchising New Zealand survey found that despite the recession, the total number of franchised units in the country increased by 5.3 per cent between 2009 and 2010. And, 24 per cent of those 2010 respondents had started franchising in the previous five years. While some franchise brands were undoubtedly hit hard during the Great Recession, others successfully

28 Canadian Franchise Association

expanded during this time. According to Forbes magazine, Subway experienced the most growth of franchise chains, adding close to 6,000 restaurants between 2008 and 2010. Commercial cleaning franchise Jani-King also added just over 4,500 locations in that same period. We can also take a closer look at what’s happening right now in Canada. In the Canadian Franchise Association (CFA) webinar, “Emerge from COVID-19 with a Growth Plan: How to Build Your Franchisee Pipeline Right Now,” Reshift Media noted that “franchise ownership” online searches are just as strong as they were last April. More interestingly, they found that “self-employment” related searches are up 733 per cent, and “work for self” is up 525 per cent. This shows that entrepreneurial Canadians, many of whom are recently out of work, are choosing not to go back to the corporate world and instead are looking for ways to make their business dreams become reality. Franchising is a strong candidate for making that happen, even in tough economic times. A strong support network The general principles behind franchising make it a more resilient model. There is a tried-and-true system in place, with detailed operations that allow the business to be easily replicated in communities across the country. As a result, consumers recognize and are familiar with these franchise brands, and franchisees can rest assured that the system is providing a relevant product or service to this consumer base. One of the many advantages of the franchise business model is that franchisees don’t have to go it alone. While franchisees are small business owners, they have the backing of a franchise system that can provide

www.cfa.ca | www.FranchiseCanada.Online

FRANCHISING WEATHERS THE ECONOMIC STORM much-needed support during challenging times. While an individual franchisee may not have experience with this kind of crisis, the franchisor has likely navigated through turbulent times in the past and can use this insight to help its network of franchisees. As challenges arise, the franchise head office team not only has valuable knowledge to share with the network, but they also have the research, contacts, and resources they need to adapt and innovate their operations to meet the specific challenges, whether that’s changing a marketing strategy or updating the product offering. For example, if a food franchise needs to adapt by also offering grocery products to customers, it’s a lot easier for the franchisor to determine the strategy and communicate it to individual franchisees than it is for a franchisee to test out a strategy while trying to keep the day-to-day business afloat. With franchising comes opportunity While there are many downfalls to an economic crisis, it can also bring opportunity. Affordable real estate is hard to find in a hot economy, but when the economic climate cools, more real estate can become available, and

at a more affordable rate. This is especially important for new franchisees, who can focus more on building their business rather than worrying about being able to pay their rent during this pivotal first year. During an economic downturn, Canadians who have been hit hard by the tough times don’t have a lot of disposable income. The good news for franchisees is franchises often provide mid-market goods that are still accessible to consumers when budgets are tight, including affordable food service and retail options. Further, franchises provide services that consumers will continue to need, from health care and cleaning services to haircare and health and fitness. Certain franchises also provide essential services, including shipping services and pet care, and have remained open during the crisis. Better weather ahead These are tough times for Canadians, but better weather is coming. For those entrepreneurial Canadians who find themselves out of work or who are just ready to take the plunge into business ownership, franchising just might be the right business model to make those business dreams come true.

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Franchise Canada July | August 2020 29

Family Ties

Four franchisors are putting their families first as they grow their franchise brands BY GINA MAKKAR

Working with family might come with challenges, but it also offers amazing rewards. Not only can you spend the day with your favourite people, you’ll develop a bond that only comes from building a business together. Learn how four franchisors foster a family-first mindset for unparalleled success at work and at home.

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www.cfa.ca | www.FranchiseCanada.Online

Driverseat Two of 12 children, Brian Bazely and his brother Luke wanted to start a business. They spent a year researching ideas and uncovered a niche in providing specialty transportation services. “It fit all the checkpoints, so we developed the business model and brand of Driverseat,” says Brian. They launched in 2012 and Luke opened the first location in Barrie, Ontario. From there, they began franchising and now operate 70 locations across Canada and the United States. “We are on target to be double in size this year.” The concept uses mid-size commercial vans to provide shuttle service and chauffeur service using a customer’s vehicle. Rides cover the gamut, from weddings and wine tours to transporting ambassadors. They also offer micro transit solutions, shuttling students from dorms to universities. A specialized level of service, drivers (referred to as chauffeurs) will even walk a patient to their hospital appointment to ensure they reach their destination. It’s the ultimate in peace of mind for families. When it comes to working with family, Brian says the most important thing in any business partnership is trust. “We always fall back on the fact that we are lucky to be working with family because we already have inherent trust, and that’s a lifelong bond. When you start with that as a foundation, everything else becomes easy.” In fact, Brian says it often takes people time to realize they are family. “If you came into the setting, you would more see a group of people working together to accomplish common goals.” As they expand, the company

looks for partners who want to grow a large, sustainable business. The model allows franchisees to grow organically and start slowly, building a fleet and setting up an office as they become larger. Brian’s daughter Dani recently came on board as the director of marketing, helping script the company’s new core values and elevate the diversity platform. She was recently named the Young Professional of the Year at the Greater KItchener-Waterloo Chamber of Commerce. “She contributes far more than she extracts out,” says Brian. On working with family, Brian suggests handpicking the people you will work with, and start by developing your governance model. “It controls how you conduct yourself every day and will reflect on every aspect of everything you do.”

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FAMILY TIES Jade Clinics After becoming pregnant, Jennifer Desloges developed a condition that caused her to produce excess body hair. In searching for a solution, she discovered electrolysis and saw results within three months. “After seeing how electrolysis helped me, I decided to train as an electrologist so that I could help others. I didn’t want anyone to feel like I did because of a hair problem. What started as my curse became my blessing because it led me to my destiny of helping people.” Jennifer’s journey led her to create what is now Jade Clinics. She opened her first clinic as a home-based business in Chilliwack, British Columbia in 1989. Jennifer credits her husband Marcel for playing a major role in the business. “He introduced me to electrolysis, retired to raise our children, and has worked with me from the beginning.” Jennifer’s sister, Christine Brayshaw, was the first to come on board in 1990 and has worked for the company on and off over the years. In 1996, the family moved to Edmonton, Alberta and Jennifer started an accredited vocational school for electrolysis. Jennifer’s daughter, Janine Jost, joined the business in 1998 as a receptionist, and quickly saw the impact the clinics had on clients. Janine began training as an electrologist with Jennifer’s brother, Tony Thurston, making it a full family affair. In 2006, the family moved back to British Columbia and the business followed. Jennifer’s son, Marc Desloges, came on board after graduating from the University of British Columbia. “Marc has a strong business acumen which has helped to propel the business forward since he joined. Janine has many years of experience and a solid technical background as an electrologist. Together, they form a dynamic team that will eventually lead the business when I hand over the reins.” Over the years, Jennifer has revamped the training program to develop a solid foundation, “We put a camera into our microscopes for more visibility when training. We can now correct even the slightest imperfections. We are 100 per cent confident in the quality of the training program we have created for our franchisees.”

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Today, the company has 11 clinics, with big targets for the future. Jade Clinics has a goal to expand to 100 clinics across Canada in 10 years. Jennifer is determined to make that happen. “It’s a really big goal, but my wish is that every person who is frustrated with their hair situation will have a clinic nearby where they can fix their hair issue permanently.” “The key to working with family is prioritizing each other,” says Jennifer. The family maintains a positive work environment by visiting a family psychologist to help with disagreements and decisions. “You are going to have problems, but you have to put family as the priority regardless of the obstacle. Our business is important, but if there is a disagreement, we’re going to figure it out. If you don’t have that type of family, a family business might not be a good option.”

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FAMILY TIES Osmow’s Sam Osmow took a chance when he rebranded his little sandwich shop in Streetsville Mississauga and switched to Middle Eastern cuisine in 2001. The gamble worked, and Osmow’s quickly became a local favourite. Today, Sam, the owner and founder, works alongside son Ben, CEO, and daughter Bernadette, chief marketing officer. They began to expand in 2015 by franchising to family and friends. Today, they operate 90 stores, with expansion plans for Calgary, British Columbia, and Manitoba. “Right now, our focus is on ensuring a strong start to Calgary markets, and we’ll expand from there,” says Ben. “We are very proud of our heritage and our Canadian heritage and appreciative of smaller communities that have welcomed us with open arms.” To build a strong, sustainable brand, they’ve bolstered marketing efforts. Last year’s Toronto Raptors campaign prompted a large increase in sales and elevated brand awareness. “Once there was brand recognition, people were more inclined to get out and get into the stores,” says Ben. As a family, they try to ensure clearly defined roles, and come together to discuss and rectify issues. “The most challenging thing is being biased toward one another. To avoid this, we’ve always made sure to have an open forum at Osmow’s.” Weekly head office meetings incorporate the voices of everyone on staff. “We talk about problems, ideas, and innovations, and allow anyone to voice their opinion, which takes the bias out of it.” As with any company, they address new obstacles as they come along. “None of us has ever worked for a company that owns over 100 franchisees. It’s about figuring out how to go about things in the best possible way.” Systems have evolved from the early days, with

Ben Osmow, CEO of Osmow's

fresh training programs and QA systems to ensure consistency. As a family business, Sam says they look for partners who want to work with them as if they are family. For prospective franchisees, he says one of the benefits is their openness. “They are not waiting for orders from head office. They are part of the decision-making process, which I think franchisees love. It’s all about implementing strategies to ensure an open network.” When it comes to family, The Osmow family says pre-set goals are key. “If it’s not clear, it’s going to be confusing, and you will have two people responding to scenarios in very different ways. Sit down and write everything out.”

Franchise Opportunities Available! www.secondcup.com

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1.800.569.6318

Franchise Canada July | August 2020 33

FAMILY TIES Scholars Education Centre Matt Baxter saw potential in Scholars Education and purchased the franchise system in 2018. The concept quickly grew to 48 locations. Scholars’ tutoring and enrichment programs foster learning across the core subjects and offer additional resources in resiliency and mindfulness. An initial assessment provides a clear snapshot of how each child performs and customizes a plan to each child’s needs. From there, teachers support children as they complete material independently. “The teacher is an arm’s length away to help and review, so confidence and self-esteem is built by the fact that they can progress through material on their own. The magic is really in the proprietary curriculum,” says Matt. Matt comes from an education-centric family. His mother Mary is a retired teacher who taught for 40 years. His wife, Dr. Danielle Glista, a professor at Western University, uses her audiology background to assist children with hearing loss. Matt’s brother Dan is the Chief of Radiology in Ottawa at the Montfort Hospital and Dan’s wife Melissa is a physician who holds a Masters of Medical Education. The idea is that Scholars guarantees results backed by science. “When I bought the company, the focus was to have the highest quality curriculum in the industry.” Matt’s two daughters are students at Scholars of London and he even has his godchildren involved: Chloe Wheeler’s mother is Dr. Christen Harris, who holds a PhD in Linguistics, while overseeing the French Department, and is a member of the Curriculum Advisory Board.

The possibilities are in your hands.

Centres are strategically located in plazas where caregivers can shop while their child is learning. In terms of growth, the franchise aspires to be Canada’s true education company. “It’s not about just slapping a maple leaf on the logo. There’s lots of smaller communities that need this. We’d be doing ourselves a disservice if we just wanted to go to all the top metropolitan areas and not help out the students in need that don’t have what major cities have in terms of educational resources.” They’ve recently managed to reach students in all parts of the country by moving all courses online in light of the global heath situation. The family finds balance by working in different regions, each with their independent roles to fulfill. They come together during meetings of the advisory board. In fostering the family feel, Matt partners with franchisees who have demonstrated success and are leaders in their community. “I see each individual franchise At BMO, our national team of franchising finance experts owner as a business partis standing by to help make your future successful. Our in-depth knowledge of the franchise landscape allows us ner. With all the growth, to advise you at every step along your business journey. we can afford to be very To learn more, visit bmo.com/franchise selective and want to ensure they are driven for Trademarks of Bank of Montreal the right reasons.” ™/®

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www.cfa.ca | www.FranchiseCanada.Online

FRANCHISE LAWYERS ACROSS CANADA

Learn more about CFA member lawyers from coast to coast As part of the due diligence process, it’s imperative that you work with a franchise lawyer, who can help you understand the legal elements of franchising. But where do you find the right lawyer with the appropriate franchise experience? Franchise Canada is here to help! In this resource article, we highlight our Canadian Franchise Association (CFA) member lawyers from coast to coast. Whether you’re in the city or in the remote corners of Canada, we introduce you to the lawyers who can help you navigate the legal aspects of franchising. Check out the profiles below to learn more!

Franchise Canada July | August 2020 35

FRANCHISE LAWYERS ACROSS CANADA

Alepin Gauthier Avocats Inc., Attorneys at Law

Alexander Holburn Beaudin + Lang LLP

Since its establishment in 1978, Alepin Gauthier has built its reputation on the quality and strength of its interventions within many fields of practice, particularly in matters directly and indirectly affecting franchising. Its team represents franchisors as well as franchisees. Alepin Gauthier has been involved in franchise law since 1979, making the firm one of the key players in this field.

Alexander Holburn Beaudin + Lang LLP is a leading Vancouverbased Canadian law firm providing a wide range of litigation/ dispute resolution and business law services. Its franchise practice assists clients in all facets of Canadian franchise law. It acts primarily for franchisors and master franchisees. Services span the spectrum from initial structuring of new or expanding franchise systems, to ongoing operational advice and litigation and dispute resolution and advocacy where required. It is well recognized for its franchise litigation expertise.

400-3080 Le Carrefour Boul Laval, QC H7T 2R5 Contact: François Alepin and Chanel Alepin Email: info@alepin.com Phone: (450) 681-3080 Web: www.alepin.com Provides services for: Franchisors, franchisees In business since: 1978 CFA member since: 1999

2700-700 West Georgia St Vancouver, BC V7Y 1B8 Contact: Judy Rost Email: jrost@ahbl.ca Phone: (604) 484-1726 Web: www.ahbl.ca In business since: 1973 CFA member since: 2001

AUDAXLAW PC

Blakes

AUDAXLAW is a boutique law firm providing experienced and cost-effective representation to franchisors, individual franchisees, and master franchisees in all aspects of franchising. Complimented by a strong background in business and real estate law, it works on a personal level with each of its clients in order to provide them with both the practical and legal advice best suited to achieving their particular business objectives and strategies.

As one of Canada's top business law firms, Blakes provides exceptional legal services to leading businesses in Canada, the U.S., and around the world. It provides practical advice to franchisors and master franchisees on all aspects of their business and franchise system, with experience advising clients in various industry sectors including: hotels, automotive, restaurants (including QSR), retail, financial, corporate training, educational, and other business, household and personal services.

670- 3300 Bloor St W, West Tower Toronto, ON M8X 2X2 Contact: Arturo R. Pugliese Email: arturo.pugliese@audaxlaw.com Phone: (416) 862-8329 Web: www.audaxlaw.com Provides services for: Franchisors, franchisees In business since: 2001 CFA member since: 2012

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4000-199 Bay St, Commerce Court W Toronto, ON M5L 1A9 Contact: Megan Shaw Email: megan.shaw@blakes.com Phone: (416) 863-2400 Web: www.blakes.com Provides services for: Franchisors, franchisees In business since: 1856 CFA member since: 1999

www.cfa.ca | www.FranchiseCanada.Online

FRANCHISE LAWYERS ACROSS CANADA

Blaney McMurtry LLP

Borden Ladner Gervais LLP

Full-service law firm providing legal services for all aspects of franchising.

It begins with service – Borden Ladner Gervais LLP is a major full-service national law firm with offices in Montreal, Ottawa, Toronto, Calgary, and Vancouver. It provides practical legal advice and assistance in the preparation and negotiation of franchise documentation and the resolution of franchise disputes.

1500-2 Queen St E Toronto, ON M5C 3G5 Contact: H Todd Greenbloom Email: tgreenbloom@blaney.com Phone: (416) 593-1221 Web: www.blaney.com Provides services for: Franchisors, franchisees In business since: 1954 CFA member since: 1997

1200 Waterfront Centre, 200 Burrard St Vancouver, BC V7X 1T2 Contact: Blair Rebane Email: brebane@blg.com Phone: (604) 640-4130 Web: www.blg.com CFA member since: 1994

Cassels

Dale & Lessmann LLP

Cassels is a full-service business law firm with offices in Toronto, Vancouver, and Calgary. Its lawyers provide knowledgeable advice on all legal and practical aspects of franchising, including franchise agreements, disclosure law compliance, dispute resolution, and litigation. The Chair, Larry Weinberg, is past Chair of the Ontario Bar Association’s Franchise Law Section and received Who’s Who Legal’s worldwide award for ‘Franchise Lawyer of the Year’ multiple years in a row.

Dale & Lessmann LLP represents Canadian and international franchisors in the drafting, review, and negotiation of all franchise agreements, disclosure documents, and other related franchise documentation. Their team advises on all matters relating to franchising, including corporate, real estate, litigation, distribution, supply chain, brand protection, franchise relationships, tax, contests, advertising, and trademarks.

2100 Scotia Plaza, 40 King St W Toronto, ON M5H 3C2 Contact: Larry Weinberg / Geoff Shaw Email: lweinberg@cassels.com Phone: (416) 860-2987 Web: www.cassels.com/franchise Provides services for: Franchisors In business since: 1888 CFA member since: 1997

2100-181 University Ave Toronto, ON M5H 3M7 Contact: Chad Finkelstein Email: cfinkelstein@dalelessmann.com Phone: (416) 369-7883 Web: www.dalelessmann.com In business since: 1994 CFA member since: 2011

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FRANCHISE LAWYERS ACROSS CANADA

David Kornhauser c/o Macdonald Sager Manis LLP David Kornhauser c/o Macdonald Sager Manis LLP provides a broad range of legal services for franchisors, individual franchisees, groups of franchisees, and franchise associations. Its seasoned lawyers draw on many years of experience in franchise law, and a deep understanding of the complexities of the legal and business relationship created by the franchisor and franchisee, including the enforcement of the rights afforded to either party through either the legal proceedings. 800-150 York St Toronto, ON M5H 3S5 Contact: David Kornhauser Email: dkornhauser@msmlaw.ca Phone: (416) 862-6280 Web: www.franchisingforum.ca/ Provides services for: Franchisors, franchisees In business since: 1987 CFA member since: 1995

Dentons Canada LLP Dentons is the world’s largest law firm, delivering quality and value to clients around the globe. Dentons is a leader on the Acritas Global Elite Brand Index, a BTI Client Service 30 Award winner, and recognized by prominent business and legal publications for its innovations in client service, including founding Nextlaw Enterprise. Dentons’ polycentric approach, commitment to inclusion and diversity, and world-class talent challenges the status quo to advance client interests in the communities in which they live and work. 400-77 King St W, TD Centre Toronto Toronto, ON M5K 0A1 Contact: Helen Fotinos Email: helen.fotinos@dentons.com Phone: (416) 863-4547 Web: www.dentons.com Provides services for: Franchisors, franchisees CFA member since: 1989

Dickinson Wright LLP

Dipchand LLP

Dickinson Wright is a full-service law firm offering seamless, cost-effective franchise legal services across Canada and the United States. Its team of experienced, responsive, and dedicated legal professionals is respected by its peers and honoured by numerous industry endorsements. With over 500 lawyers, practicing across more than 40 practice areas, its lawyers have an unwavering focus on providing unmatched client service and the highest quality legal advice.

Toronto-based law firm representing both franchisees and franchisors. Experienced with the establishment of franchise systems, including disclosure packages and operational manuals, as well as trademarks and litigation surrounding the Arthur Wishart Act.

2200-199 Bay St, PO Box 447, Commerce Court W Toronto, ON M5L 1G4 Contact: Canada: Ned Levitt, Partner Email: NLevitt@dickinsonwright.com Phone: (416) 646-3842 Web: www.dickinson-wright.com In business since: 1878 CFA member since: 2013

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2100-401 Bay St, Simpson Tower, PO Box 55 Toronto, ON M5H 2Y4 Contact: Gregory M. Prekupec Email: gprekupec@dipchand.com Phone: (416) 504-5805 Web: Dipchand.com

www.cfa.ca | www.FranchiseCanada.Online

FRANCHISE LAWYERS ACROSS CANADA

Fasken

Feltmate Delibato Heagle LLP

Fasken is one of Canada’s leading business law firms, with over 700 lawyers located across Canada, Europe, and Africa. Darrell Jarvis has been identified as one of Canada’s Best Lawyers for Franchise Law and as Repeatedly Recommended for Franchise Law by Lexpert. Prior to joining Fasken, Darrell Jarvis was an executive with one of Canada’s leading franchisors. He is a member of the CFA’s Legal and Legislative Affairs Committee and the OBA Franchise Law Section Executive.

Feltmate Delibato Heagle LLP is a full-service corporate/ commercial-based law firm with offices in Burlington and Oakville. It offers experience and practical advice in all areas of franchising, intellectual property (including trademarks), and corporate/commercial law. A team of dedicated professionals with diversified expertise, creating innovative and timely solutions.

2400-333 Bay St, Bay Adelaide Centre, Box 20 Toronto, ON M5H 2T6 Contact: Darrell Jarvis Email: djarvis@fasken.com Phone: (416) 868-3530 Web: www.fasken.com CFA member since: 1994

200-3600 Billings Crt Burlington, ON L7N 3N6 Contact: Brian Heagle Email: bheagle@fdhlawyers.com Phone: (905) 631-3653 Web: www.fdhlawyers.com CFA member since: 1997

Garfinkle Biderman LLP

Goldman Hine LLP

Garfinkle Biderman LLP has been practicing law since 1948. What started as a one-man operation back then has since grown to a full-fledged firm. It has specialists in every area of law who make a point of staying connected with their clients. There will be an entire team of lawyers dedicated to your case, but you don't ever have to worry about being bounced around: you can rely on the same, human point of contact from start to finish.

Goldman Hine LLP has been legal advisor to both franchisors and franchisees in more than 150 systems. Steven Goldman, past CEO of Speedy Muffler, and Jonathan Mesiano-Crookston are both Lexpert®-rated leading Toronto franchise lawyers and the firm is a leading firm. They both speak and write frequently about franchise law and sit on the Franchise Section of the Ontario Bar Association. Jonathan is also a patent & trademark agent and handles franchise-related intellectual property issues.

801-1 Adelaide St E Toronto, ON M5C 2V9 Contact: Jordan Druxerman Email: jdruxerman@garfinkle.com Phone: (416) 869-1234 Web: www.garfinkle.com Provides services for: Franchisors, franchisees In business since: 1948 CFA member since: 2012

2410-401 Bay St, Box 24 Toronto, ON M5H 2Y4 Contact: Steven H. Goldman Email: s.goldman@goldmanhine.com Phone: (416) 867-9100 Web: www.goldmanhine.com Provides services for: Franchisors, franchisees CFA member since: 2010

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FRANCHISE LAWYERS ACROSS CANADA

Gowling WLG

Hodgson Russ LLP

Gowling WLG is one of Canada’s largest national full-service law firms, with multiple offices across Canada, offering expertise in franchising, licensing, distribution, and intellectual property law, both domestically and internationally. It has offices in Vancouver, Calgary, Toronto, Ottawa, Waterloo Region, Hamilton, Montreal, United Kingdom, Belgium, France, Germany, Monaco, China, Singapore, Russia, and the Middle East.

Hodgson Russ is one of only a few full-service U.S. law firms with offices in Canada. It specializes in advising Canadian companies and individuals on a wide variety of U.S. legal matters, including franchise and distribution law. Hodgson Russ regularly provides Canadian franchisors with advice concerning U.S. franchise law compliance (including disclosure document preparation and registration), intellectual property, cross-border structuring, state and local tax issues, and immigration matters.

Hamilton Office: 1 Main St W, Hamilton, ON L8P 4Z5 Vancouver Office: 2300-550 Burrard St, Vancouver, BC V6C 2B5 Calgary Office: 1600-421 7th Ave SW, Calgary, AB T2P 4K9 Contact: Hamilton/Toronto: Debi Sutin Vancouver/Calgary: Peter Snell Email: debi.sutin@gowlingwlg.com peter.snell@gowlingwlg.com Phone: Hamilton: (905) 540-3259 Vancouver: (604) 443-7627 Calgary: (403) 776-3376 Web: www.gowlingwlg.com In business since: 1887 CFA member since: 1999

Hoffer Adler LLP Hoffer Adler LLP has represented franchisors, master franchisees, franchise associations, and franchisees of over 495 franchise systems. Joseph Adler acted as Secretary/ General Counsel of the CFA (2011-2015), was an executive member of the CFA Board of Directors (2007-2015) and is listed by Lexpert as one of the leading franchise lawyers in Canada. His partner, Lloyd Hoffer, is an experienced franchise litigator and is also listed by Lexpert as one of the leading franchise lawyers in Canada. 1102-595 Bay St Toronto, ON M5G 2C2 Contact: Joseph Adler Email: jadler@hofferadler.com Phone: (416) 977-3444 Web: www.hofferadler.com Provides services for: Franchisors, franchisees CFA member since: 2004

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2309-150 King St Toronto, ON M5H 1J9 Contact: George Eydt Email: geydt@hodgsonruss.com Phone: (416) 595-5100 Web: www.hodgsonruss.com In business since: 1817 CFA member since: 2007

Jones Law Professional Corporation Law practice focuses on the national and international distribution of goods and services, particularly in China and Eastern Europe. Internationally recognized for experience and expertise in franchising, trademark, privacy law, and general Chinese matters. Mr. Jones also provides advice on copyrights, licensing, competition law, and e-commerce, and obtained the first internet liquor licence in Canada. 602-67 Yonge St Toronto, ON M5E 1J8 Contact: Paul Jones Email: pjones@jonesco-law.ca Phone: (416) 703-5716 Web: www.jonesco-law.ca Provides services for: Franchisors, franchisees In business since: 2004 CFA member since: 2004

www.cfa.ca | www.FranchiseCanada.Online

FRANCHISE LAWYERS ACROSS CANADA

Juriscorp Law Offices

Keyser Mason Ball, LLP

Juriscorp Law Offices specializes in corporate commercial law in Edmonton and area with a growing clientele of the franchise community. It has a vast array of franchisee clients, from the medical to the food industry, including a master franchisee client in Alberta. Shounak Mehta has been practicing law in Canada since October 2014.

Keyser Mason Ball, LLP is a business law firm with 40+ years of experience assisting clients on a wide range of legal services. It assists franchisors and franchisees in all facets of the franchise relationship. Keyser Mason Ball, LLP has extensive experience providing advice in all legal and business aspects of franchising, including franchise agreements, supplier agreements, and disclosure documents.

200 5324 Calgary Tr Edmonton, AB T6H 4J8 Contact: Shounak Mehta Email: smehta@juriscorplaw.ca Phone: (780) 430-2826 Web: www.juriscorplaw.ca CFA member since: 2019

Lapointe Rosenstein Marchand Melançon, LLP Lapointe Rosenstein Marchand Melançon LLP is one the largest independent law firms in Quebec specializing in business & corporate law, insurance, franchising, licensing, intellectual property, tax, finance, real estate, bankruptcy & restructuring, mergers & acquisitions, labour & employment, and civil, commercial, and class action litigation. With high service standards and practical insights, LRMM has been fulfilling and exceeding its clients’ expectations for expertise, creativity, and reliability. 1300-1 Place Ville-Marie Montréal, QC H3B 0E6 Contact: Bruno Floriani, Co-Chair Email: bruno.floriani@lrmm.com Phone: (514) 925-6310 Web: www.lrmm.com Provides services for: Franchisors, franchisees In business since: 1966 CFA member since: 1987

1600-4 Robert Speck Pkwy Mississauga, ON L4Z 1S1 Contact: Amy M. Delisle Email: adelisle@kmblaw.com Phone: (905) 276-0422 Web: www.kmblaw.com In business since: 1979 CFA member since: 2005

Lavery, de Billy LLP Lavery, de Billy LLP Franchise and Distribution Section professionals are advisors of choice for structuring, launching, and guiding franchise and distribution systems of all industries. They provide Canadian and U.S.-based franchisors, master franchisees, distributors, retailers, and manufacturers with all the services they need to set up and improve their network across Quebec and Canada. Their expertise makes them efficient when advising their clients on any legal matter related to domestic or international distribution. 4000-1 Place Ville Marie Montreal, QC H3B 4M4 Contact: Jean-Philippe Turgeon Email: jpturgeon@lavery.ca Phone: (514) 871-2392 Web: www.lavery.ca Provides services for: Franchisors In business since: 1913 CFA member since: 2014

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FRANCHISE LAWYERS ACROSS CANADA

Law Works PC Law Works PC is a boutique law firm with expertise in franchise and business litigation, arbitration, and mediation. Toronto Office: 603-5775 Yonge St, Toronto, ON M2M 4J1 Vancouver Office (Law Works L.C.): 600-1285 West Broadway, Vancouver, BC V6H 3X8 Contact: Ben Hanuka Phone: Toronto: (416) 899-4147 / Vancouver: (604) 262-1711 Web: www.lawworks.ca In business since: 2012 CFA member since: 2019

Lawrence, Lawrence, Stevenson LLP As part of Lawrences’ Business Law Group, Louis advises both franchisors and franchisees on all aspects of franchising, such as compliance with franchise laws and regulations, including preparing or updating disclosure documents and franchise agreements, buying and selling of franchises, franchise disputes, renewal and termination of franchises, franchisee associations, intellectual property, and commercial leasing. Lawrences has been providing exceptional legal services for over 90 years. 43 Queen St W Brampton, ON L6Y 1L9 Contact: Louis Vouloukos Email: lvouloukos@lawrences.com Phone: (905) 452-6883 Web: www.lawrences.com Provides services for: Franchisors, franchisees In business since: 1924 CFA member since: 2011

Likewise Law

Lintott Law

John Rogers has over 30 years experience in franchise, licensing, and distribution law. He advises franchisors, franchisees, licensors, licensees, suppliers, and distributors on a broad range of legal matters. Mr. Rogers is a member of the International Who’s Who of Franchise Lawyers and is consistently recommended in franchising by Lexpert Legal Directory. He has been personally involved with CFA since 1986 and has acted as a CFA Director, Secretary, and General Counsel.

Lintott Law is an experienced law firm practicing in Calgary, Alberta. Cass Lintott devotes a significant amount of time to representing both franchisees and franchisors on all legal aspects of franchising.

1400-1125 Howe St Vancouver, BC V6Z 2K8 Contact: John L. Rogers Email: john@likewise.law Phone: (604) 209-6451 Web: www.likewise.law In business since: 1986 CFA member since: 2017

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2913 Centre St NW Calgary, AB T2E 2V9 Contact: Cass Lintott Email: cass.lintott@lintottlaw.com Phone: (403) 520-2283 Web: www.lintottlaw.com In business since: 2000 CFA member since: 2006

www.cfa.ca | www.FranchiseCanada.Online

FRANCHISE LAWYERS ACROSS CANADA

Mann Lawyers LLP

McCarthy Tetrault LLP

Mann Lawyers LLP is a full-service law firm and provides a broad range of legal services and representation to a diverse clientele. It offers full business and franchise law services including incorporations, contract drafting and negotiation, sales and acquisitions, and commercial real estate acquisitions and leasing. It takes pride in offering professional, timely, and innovative legal services and works collaboratively between departments to provide a holistic approach to your legal needs.

McCarthy Tetrault LLP’s Franchise & Distribution team advises and represents private and public companies in Canada and the U.S. in all areas of law that affect franchise and distribution networks, including corporate-commercial, intellectual property, competition, real estate, tax, product liability, litigation, privacy, and regulatory compliance. It has extensive expertise assisting manufacturers, suppliers, distributors, franchisors, and master franchisees across diverse sectors.

300-11 Holland Ave Ottawa, ON K1Y 4S1 Contact: Andre Martin Email: info@mannlawyers.com Phone: (613) 722-1500 Web: www.mannlawyers.com In business since: 1994 CFA member since: 2018

Suite 5300, Box 48, Toronto Dominion Bank Tower Toronto, ON M5K 1E6 Contact: Adam Ship, Partner Email: aship@mccarthy.ca Phone: (416) 601-8200 Web: www.mccarthy.ca In business since: 1855 CFA member since: 2010

McInnes Cooper

McKenzie Lake Lawyers LLP

McInnes Cooper is among the 25 largest business law firms in Canada. It advises franchisors on all aspects of franchise law and routinely assists with the preparation of franchise agreements and franchise disclosure documents and with administration of its clients’ franchise disclosure and contracting processes. It assists clients with master franchising and area development transactions, franchise-related M&A, and franchise start-ups. It also routinely manages franchisorfranchisee disputes and franchise litigation. It serves clients across Canada and abroad from offices in Halifax, Moncton, Fredericton, Saint John, Charlottetown, and St. John’s.

The authors of the bestselling franchise textbook, Canadian Franchise Law Handbook, McKenzie Lake Lawyers LLP represents franchisors of all sizes and in all stages of development and franchisees in most major franchise systems. Its clients range in size from individuals investing in franchised businesses to franchisors operating and expanding internationally. All of its clients benefit from its dedication to client service, and its effective, efficient, and innovative legal services, with offices in Ontario and British Columbia.

Barker House, Suite 600, 570 Queen St Fredericton, NB E3B 6Z6 Contact: Michael Melvin, Partner Email: michael.melvin@mcinnescooper.com Phone: (506) 458-1666 Web: www.mcinnescooper.com In business since: 1859 CFA member since: 2009

1800-140 Fullarton St, London, ON, N6A 5P2 201-5325 Cordova Bay Rd, Victoria, BC, V8Y 2L3 Contact: Daniel F. So Email: so@mckenzielake.com Phone: (800) 261-4844 Web: www.mckenzielake.com Provides services for: Franchisors, franchisees CFA member since: 2004

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FRANCHISE LAWYERS ACROSS CANADA

McMillan LLP McMillan is a leading business law firm serving public, private, and not-for-profit clients across key industries in Canada, the U.S., and internationally. It has expertise in litigation, competition, financing, environmental, insolvency, labour and employment, securities, and tax law. Its franchise and distribution lawyers are experienced in all aspects of franchising, from drafting franchise agreements and disclosure documents to litigating and resolving franchise and distribution disputes. 4400-181 Bay St, Brookfield Place Toronto, ON M5J 2T3 Contact: John Clifford, Brad Hanna, or Andrae Marrocco Email: john.clifford@mcmillan.ca / brad.hanna@mcmillan.ca / andrae.marrocco@mcmillan.ca Phone: (416) 865-7000 Web: www.mcmillan.ca Provides services for: Franchisors In business since: 1903 CFA member since: 1998

Miller Nash Graham & Dunn LLP Miller Nash Graham & Dunn attorneys work with franchise systems in a broad range of specialty industries. They have helped many Canadian brands expand into the U.S. market and they are familiar with the common questions and concerns that arise when deciding to expand internationally. They help you create legal strategies to achieve your business objectives. Everything they do is aimed at helping you get as much value as possible out of your system. 300-2801 Alaskan Way Seattle, WA 98121-1128 Contact: Josh Piper Email: Josh.Piper@MillerNash.com Phone: (206) 777-7451 Web: www.millernash.com Provides services for: Franchisors In business since: 1890 CFA member since: 2011

Miller Thomson LLP

Miller Titerle + Company

Miller Thomson is a national business law firm with some 550 lawyers working from 12 offices in each of Canada’s major markets. With the broadest geographic footprint of any Canadian law firm, Miller Thomson advances the interests of domestic and international franchise clients nationally and locally. Its industry team advises on disclosure and compliance issues, and provides practical and insightful counsel to franchise clients in all areas of business.

MT+Co. is a group of forward-thinking lawyers who have built a new kind of law firm based on the passionate and personal practice of law. The MT+Co. Franchise Team services franchisor and franchisee domestic and international clients, offers franchise disclosure compliance products for all Canadian provinces, and licensing and product distribution advice. Braden is a franchise lawyer with a background in accounting, tech, and business.

5800-40 King St W Toronto, ON M5H 3S1 Contact: Richard Leblanc (Lead) Email: rleblanc@millerthomson.com Phone: (416) 595-8657 Web: www.millerthomson.com/franchising In business since: 1957 CFA member since: 1996

300-638 Smithe St Vancouver, BC V6B 1E3 Contact: Braden Lauer Phone: (778) 945-3070 Web: www.millertiterle.com CFA member since: 2019

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www.cfa.ca | www.FranchiseCanada.Online

FRANCHISE LAWYERS ACROSS CANADA

Mills & Mills LLP Established in 1884, Mills & Mills LLP believes in forming lasting relationships. For generations, it has served as a trusted partner and advisor to its clients. It provides legal services in a comprehensive range of practice areas, including franchise law. It represents both established franchisors and franchisees across Canada. Its lawyers have extensive experience overseeing franchise transactions, managing ongoing business concerns, and representing its clients in litigation if necessary. 2010-2 St. Clair Ave W Toronto, ON M4V 1L5 Contact: Denise E. Robertson Email: denise.robertson@millsandmills.ca Phone: (416) 682-7139 Web: www.millsandmills.ca In Business Since: 1884 CFA Member Since: 2018

Morrison Brown Sosnovitch LLP Morrison Brown Sosnovitch is a business law firm with extensive experience providing value-added legal services to both franchisors and franchisees in all aspects of franchising. Its franchise advisory team is dedicated to helping its clients find the right business/legal solution. In doing so, it provides top-notch skills with a good range of experience to meet all circumstances so that its franchise clients receive information and practical advice with good value. 910-1 Toronto St Toronto, ON M5C 2V6 Contact: Derwin Wong Email: dwong@businesslawyers.com Phone: (416) 368-0600 Web: www.businesslawyers.com Provides services for: Franchisors, franchisees In business since: 1994 CFA member since: 1998

Nerland Lindsey LLP

Ogilvie LLP

Nerland Lindsey LLP is Western Canada’s premier tax and business law boutique. It has broad experience working with start-up and established franchisors and franchisees on a wide variety of franchising matters. Nerland Lindsey LLP typically acts for progressive commercial clients, high-net worth individuals, entrepreneurial families, and public and private enterprises across all industry sectors and the capital providers that finance them. It approaches your business and legal concerns in a pragmatic, cost-effective, and creative way.

Ogilvie LLP is a well-established, successful, and progressive firm home to some of the province’s top lawyers. It provides service to clients across six major practice areas: Administrative Law, Corporate and Commercial Law, Franchising, Insolvency & Restructuring, Litigation, and Personal Estate Services & Real Estate. It supports its clients in building successful businesses and franchises.

1400-350 7th Ave SW Calgary, AB T2P 3N9 Contact: Sam Khajeei Email: skhajeei@nerlandlindsey.com Web: nerlandlindsey.com CFA member since: 2018

1400-10303 Jasper Ave Edmonton, AB T5J 3N6 Contact: Aleem Popatia Email: apopatia@ogilvielaw.com Phone: (780) 421-1818 Web: www.ogilvielaw.com In business since: 1920 CFA member since: 2011

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FRANCHISE LAWYERS ACROSS CANADA

Osler

Pitblado Law

Osler’s National Franchise Group has the unmatched legal expertise to help you build and protect your franchise system. It continually adapts to meet its clients’ commercial and litigation needs, from extending its expertise to new legal frontiers to adopting innovative technologies to streamlining the way it provides its services. Osler Dash™, its automated end-to-end solution to the franchise disclosure and contracting process, is yet another example of its commitment to innovation and evolution.

Pitblado Law offers franchisors and franchisees a broad range of services and strategic legal advice with respect to: franchise disclosure law compliance; negotiating and drafting franchise agreements, including single and multi-unit agreements; purchase and sale of franchises and franchise systems; and franchise default and termination. With competitive Manitoba rates and broad expertise, Pitblado is well positioned to assist you.

100 King St W Toronto, ON M5X 1B8 Contact: Andraya Frith Email: afrith@osler.com Phone: (416) 362-2111 Web: www.osler.com Provides services for: Franchisors In business since: 1862 CFA member since: 1981

2500-360 Main St Winnipeg, MB R3C 4H6 Contact: Judy Payne Email: payne@pitblado.com Phone: (204) 956-0560 Web: www.pitblado.com Provides services for: Franchisors, franchisees In business since: 1882 CFA member since: 2009

Plave Koch PLC

Robins Appleby LLP

Plave Koch PLC is a small entrepreneurial law firm in Washington, DC with a practice focused on franchise law, distribution, litigation and arbitration, domain names, trademarks, copyrights, FTC matters, technology, and crossborder transactions. The firm represents 325+ brands in a wide range of industries. With 11 experienced “big law” partners (each with 20+ years of experience representing franchisors), it has one of the largest franchise transactional and litigation practices in the U.S. Over 275 clients entrust their franchise matters to its deep bench of seasoned attorneys and paralegals.

Robins Appleby LLP is a trusted and highly regarded law firm focused on helping clients face important issues. That is why it takes a client-centric approach, striving to gain an intimate understanding of your business, industry and company culture, and your personal goals. No matter how complex the issue, its personalized approach, responsive service, strong interpersonal skills, and sophisticated legal expertise translate into favourable results in both the boardroom and in the courtroom.

200-12005 Sunrise Valley Dr Reston, VA 20191-3404 Contact: Lee Plave Email: lplave@plavekoch.com Phone: (703) 774-1200 Web: www.plavekoch.com We provide Services For: Franchisors In Business Since: 2007 CFA Member Since: 2013

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2600-120 Adelaide St W Toronto, ON M5H 1T1 Contact: Jonathan Zepp Email: jzepp@robapp.com Phone: (416) 868-1080 Web: www.robapp.com In business since: 1949 CFA member since: 2009

www.cfa.ca | www.FranchiseCanada.Online

FRANCHISE LAWYERS ACROSS CANADA

Sherrard Kuzz LLP, Employment & Labour Lawyers Sherrard Kuzz LLP is one of Canada’s leading employment and labour law firms (Canadian Lawyer®, Chambers Global®, Legal 500® and Lexpert®), exclusively representing employers. The firm has extensive experience acting for a broad range of franchise organizations in a variety of industries including: retail, hospitality, healthcare, service, transportation, etc. 3300-250 Yonge St Toronto, ON M5B 2L7 Contact: Managing Partner, Michael G. Sherrard Email: msherrard@sherrardkuzz.com Phone: (416) 603-0700; 24 Hour (416) 420-0738 Web: www.sherrardkuzz.com In business since: 2001 CFA member since: 2012

Shields Harney Greg Harney has provided legal advice to franchisors and franchisees for almost 40 years. Greg and his legal team advise a wide variety of franchised businesses from offices in Vancouver and Victoria. 3-750 Pemberton Rd Victoria, BC V8S 3R4 Contact: Greg Harney Email: gharney@shieldsharney.com Phone: (250) 405-7616 Web: www.shieldsharney.com In business since: 1998 CFA member since: 1998

Sotos LLP

Stikeman Elliott LLP

A CFA member for over 30 years, Sotos LLP is Canada’s leading franchise law firm, with over 20 legal professionals dedicated to franchising, Sotos LLP provides a comprehensive range of franchise law, corporate, commercial, litigation, intellectual property, employment, and real estate services to franchisors. It is celebrating its 40th year working with regional, national, and international franchisors in every sector of the franchise industry from launch to exit, including with their international expansions. Sotos LLP has a complete understanding of the business issues facing franchisors of every size and helps its clients make tailored decisions to promote and accelerate their success.

Stikeman Elliott is recognized internationally for the sophistication of its business law practice. It is ranked as a top firm in domestic and international M&A and corporatecommercial law, and is widely regarded as a leader in business litigation. The firm has knowledge of a wide range of industries including food and beverage, hospitality, communications, and technology. Stikeman Elliott maintains offices in Toronto, Montréal, Ottawa, Calgary, Vancouver, London, New York, and Sydney.

1200-180 Dundas St W Toronto, ON M5G 1Z8 Contact: Allan Dick Email: adjdick@sotosllp.com Phone: (416) 977-0007 Web: www.sotosllp.com Provides services for: Franchisors, franchisees In business since: 1980 CFA member since: 1989

5300 Commerce Court W, 199 Bay St Toronto, ON M5L 1B9 Contact: Danielle Royal Email: droyal@stikeman.com Phone: (416) 869-5254 Web: www.stikeman.com In business since: 1952 CFA member since: 2012

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FRANCHISE LAWYERS ACROSS CANADA

Teplitsky, Colson LLP

Wises

The franchise team is led by partners Ian Roher and David Altshuller, who have been repeatedly recognized by Lexpert, Martindale & Hubbell, Best Lawyers, Franchise Times Magazine, Who’s Who Legal, and Chambers and Partners as experienced respected franchise litigators. They are advisors and problem-solvers, but are also known as creative and fearless advocates for the interests and rights of their clients. They also have extensive franchising related expertise in commercial leasing, real estate, construction, employment, and professional negligence disputes.

Wises is Oakville’s business and trademark law firm. It acts for franchisors and franchisees, serving their corporate, franchising, leasing, and trademark needs. Argus Corporate Centre, 200-586 Argus Rd Oakville, ON L6J 3J3 Contact: Robert Wise Email: rjwise@wises.pro Phone: (905) 901-2790 Web: www.wises.pro CFA member since: 2017

200-70 Bond St Toronto, ON M5B 1X3 Contact: Ian N. Roher Email: iroher@teplitskycolson.com Phone: (416) 865-5311 Web: www.teplitskycolson.com Provides services for: Franchisors, franchisees In business since: 1976 CFA member since: 2010

Call in the Experts Witten LLP Witten LLP is an Alberta business law firm. It offers advice and support in all areas of franchising matters including agreements and disclosure document preparation, compliance with the Alberta Franchises Act, leasing, trademark registration, franchise litigation, and dispute resolution. It advises and assists a broad range of franchising clients representing international, national, and locally-based franchisors and franchisees. 2500-10303 Jasper Ave Edmonton, AB T5J 3N6 Contact: Ellery Lew or Susan Clapp Email: elew@wittenlaw.com or sclapp@wittenlaw.com Phone: (780) 428-0501 Web: www.wittenlaw.com Provides services for: Franchisors, franchisees In business since: 1935 CFA member since: 1989

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Beyond retaining a franchise lawyer, you'll want to work with other franchise professionals as you carry out the due diligence process. Check out the full Canadian Franchise Association (CFA) Support Service/Supplier Directory at www.cfa.ca/listings to find information for other franchise professionals, including franchise consultants, franchise bankers, franchise accountants, and more.

www.cfa.ca | www.FranchiseCanada.Online

HOME-GROWN & LOCALLY-OWNED

100% CANADIAN FRANCHISE SYSTEMS

A good idea and an entrepreneurial spirit don’t always spell success, but the chances are increased when combined with a sound strategy and a willingness to work hard. These systems also show that real opportunities can be found catering to children and their parents and grandparents. BY DAVID CHILTON SAGGERS

Angus Valley Montessori Schools

Franchise units in Canada: 2 Corporate units in Canada: 1 Franchise fee: $65K Start-up capital required: $200K Investment required: $650K Training: Provided Available territories: ON, US In business since: 2018 Franchising since: 2019 CFA member since: 2019 To learn more, visit www.LookforaFranchise.ca

Murtaza Hasan, founding partner of Angus Valley Montessori Schools, says the system is attracting new franchisees who are business minded. “We look for entrepreneurs,” says Hasan from the head office in Markham, Ontario. “If they understand the commitment it takes to be a small business owner, they’ll have a better likelihood of succeeding.” A background in education is an advantage, he says, “but it isn’t a requirement, as you can hire seasoned educators.” Angus Valley Montessori began its research and planning in 2017, Hasan explains, and started franchising in 2019. There are now four schools in the system, and all should be in operation by this September. Three are in the Toronto suburbs of Pickering, Vaughan, and Milton, and the fourth is in Toronto itself, in North York. Hasan’s team has successfully operated an independent school, Angus Glen Montessori, in Markham for the last six years, which was the impetus for developing the franchise model. Montessori schools follow the teaching principles of the late Maria Montessori, an Italian doctor and world-renowned educator. As an education system aimed at children, the rules governing its schools are stringent. Angus Valley Montessori assists new franchisees with the complex provincial ministerial permit process, which can take up to 12 months. They also provide guidance during staff recruit-

ment. “It’s important to us to support our franchisees,” says Hasan. All of the system’s schools are new and custom designed and built. The ideal location is often in a new sub-division and construction is coordinated with the development. School sizes range from 6,500 square feet to 10,000 square feet and can accommodate 120 to 140 children, whose ages run from six months to six years, and there’s an after-school program for children aged six to 12. The cost of a franchise varies from about $850,000 to $1,000,000. Training takes four weeks; there are two weeks in class, appropriately enough, and two weeks on-site. Looking ahead, Hasan says he hopes to add two more schools in 2021 and two to three more the year after that in the Toronto-London-Oshawa-Newmarket region. As for the benefits of investing with Angus Valley Montessori, Hasan says, “we’ve developed so many unique aspects for our schools, from their layout and interior design, to the multi-functional libraries, playgrounds for different age groups, and most importantly, the dedicated kitchen and menu planned by the system’s own executive chef.”

Franchise Canada July | August 2020 49

Custodia Seniors Support

Franchise units in Canada: 6 Corporate units in Canada: 2 Franchise fee: $25K-$50K Start-up capital required: $70K-$150K Investment required: $70K-$150K Training: 2 Weeks – 1 week (5 business days) in class + 3 days in-field in Mississauga + 2 days in your territory Available territories: AB, BC, MB, ON, NB, NL, NS, NT, NU, SK, YT, US In business since: 2018 Franchising since: 2019 CFA member since: 2019 To learn more, visit www.LookforaFranchise.ca

Canadians are living longer than ever, which means there’s an ever-larger number of seniors in the population. Almost all of them want to stay in their own homes, but not all of them can do the things they used to: raking leaves, shovelling snow, changing light bulbs, installing grab bars in bathrooms, and so on. That’s where Custodia Seniors Support comes in. “We’re like a senior’s concierge,” says founder Geoff Whitlock. “We’re here to solve a pervasive problem.” Whitlock had just sold a business and was driving to help his mother when he realized that there must be lots of others like her who need help, but who don’t have family members who can pitch in. That was in 2018, and now Custodia has six franchises – one in North York East, Mississauga East, Mississauga West, Niagara Falls, Stoney Creek, Barrie, and Ottawa in Ontario. In addition,

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says Whitlock from his office in Toronto, he’s had 19 major requests for franchises from across Canada and the U.S., including Vancouver and St. John’s in Canada and Boston and Newport in the U.S., and he’ll consider master franchising requests. Custodia uses postal data to identify the market target of those aged 60-plus. Whitlock is looking for franchisees who are personable and trustworthy. They will be screened for suitability, must be bonded and insured, and will undergo a criminal record check. Custodia provides two weeks of training, called Custodia U – one week in the virtual or in-person class and one week in the field meeting customers and learning the system. The franchise is suitable for both men and women, says Whitlock, and many owners spend their time building the business and hire contractors to do the work. Monthly subscription fees run from $89 to $489, and there are some addons, which are extra. A single unit franchise fee starts at $25,000 and a double unit starts at $50,000, plus firstyear start-up costs. There are multiple benefits to investing with Custodia, says Whitlock. “The number one benefit at Custodia is building a strong business asset while helping your community,” he explains. “And you can run the entire system on a smart phone from Barbados!” Other substantial benefits include a growing market – over 10,000 people turn 65 each day in North America – strong branding, and a central call centre. “We make our money helping seniors and their families live better lives,” he continues. “It’s a great way to build a business.”

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Keys Please

Franchise units in Canada: 2 Corporate units in Canada: 1 Franchise fee: $19K-$35K Investment required: $35K-$68K Training: 6-8 Days Available territories: All of Canada In business since: 1997 CFA member since: 2015 To learn more, visit www.LookforaFranchise.ca

Keys Please got its start when Ginger Greenwood and her partner Dave Dick spotted a business opportunity: providing designated drivers for those who had been to a bar and had essentially three choices – drive home, take transit, or take a taxi. Transit and taxis, of course, required those who’d been out for the night to leave their cars behind. Keys Please began in 1997 with one corporate location in Calgary, says Greenwood in an interview from headquarters in the southern Alberta city. “It was a needed service,” she says. Since then, times have changed, Greenwood continues – the number of drivers, the size of populations, and the sorts of product that cause impairment such as marijuana, now legal in Canada, along with the driving services the system offers.

Now, she explains, Keys Please provides designated drivers for day surgery patients, corporate events, weddings, and more. The client supplies the vehicle and the company provides a driver. Greenwood says Keys Please is looking for franchisees who are passionate about the system and who have “a strong moral compass.” And, she adds, they should be “outgoing, energetic, and able to think on their feet.” Keys Please sold its first franchise in 1999 in Prince George, British Columbia and a second last year in Edmonton, Alberta. Greenwood has expansion plans for all of Canada except Quebec and wants to grow where there is a large enough population to sustain a business, since Keys Please places only one franchise in a city. The cost of the franchise varies and is populationbased. The charge for a smaller location is $34,800 and it’s $51,900 for a larger one. That cost includes a promotional decal for a vehicle, initial promotional material, set-up cost, booth material, training, and franchisee fee, along with 12 weeks of free central dispatch for drivers. Training takes six to eight days. The benefits of a Keys Please franchise include that one-city, one-location setup – even in somewhere as big as Toronto – and low overhead, says Greenwood.

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MILLENNIALS IN FRANCHISING

TOP OF THE LINE EverLine Coatings is leaning into the strengths of millennials to expand across Canada BY KYM WOLFE

hen you park your car at work, at the mall, at the grocery store, or in any other lot, you may not even think about the painted lines that delineate each parking spot, or notice that the asphalt has been swept or sealed. “Asphalt is literally everywhere,” says Dylan McCann, a franchisee with EverLine Coatings. And in parking lots, all of that asphalt needs to be painted, cleaned, maintained, and repainted on a regular basis. Up until a few years ago, if you were a national chain, you would be hard pressed to find a company that could look after all of those tasks in your various locations across Canada. “Our typical competitor is a local family-run company. EverLine covers a huge service area, allowing us to service big box stores and other national clientele,” says McCann. “We offer consistent quality and a professional approach.”

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“EverLine is disrupting the industry,” adds Saskatchewan franchisee Nigel Baxter. He notes that in addition to looking after parking lot needs like power washing and painting or installing parking blocks and speed bumps, the company offers related interior use products and services like line painting, epoxy flooring, and nonslip specialty coatings for plants, warehouses and other businesses, and more. If you caught the Dragons’ Den episode that aired in November 2019, when EverLine founder John Evans made his successful pitch, you would have seen McCann and Baxter standing with him. As two of EverLine’s first franchisees, these millennials have seen first-hand the benefits and challenges of being part of a newly established franchise concept. Evans started EverLine in Calgary in 2012 and decided to develop a franchise model in 2015, drawing on his expe-

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MILLENNIALS IN FRANCHISING

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rience running a successful College Pro Painter franchise while he was in university. Today EverLine has 11 locations from British Columbia through Ontario. Territories in British Columbia, Ontario, Quebec, New Brunswick, Nova Scotia, and Newfoundland & Labrador are available. McCann joined the company as general manager for Northern Alberta, and purchased the first EverLine franchise in 2016, in Edmonton. “Because I was involved so early, we were still developing a lot of the systems that we have today. There is always a little bit of apprehensiveness from new clients until you prove you will show up and do what you said you would do. That’s the hurdle I remember from year one – I think every business goes through that,” says McCann. “John is very innovative – for example, the partnership with TBL Durables,” he adds. TBL Durables is an environmentally friendly sprayable liquid that cures in five to 10 minutes, creating a hard plastic that is more resistant to wear and provides greater reflectivity than other products on the market. “As we’ve gotten bigger, John has put a lot of time into the financial aspect and coaching our franchisees through making data-driven decisions,” says McCann. “That helps take the stress down – this is a business where 80 per cent of revenue is generated during warm weather months. John has created a system to predict cash flow, and franchisees have the ability to scale up or down as they need to.” New franchisees can start with line markings, then add other elements like floor epoxy and other indoor services, to build year-round revenue, he explains. “John is flexible, so long as you have a plan, he’ll give you the tools to do it.” Baxter, who purchased franchise rights for Saskatchewan in 2017, says determination and drive and a willingness to work hard are key to any new franchisee’s success. “Being a young business owner is challenging. In the beginning, you have to put everything you have into the business, not just financially, but also your time. The first three years were tough. Saskatchewan is a very loyal province, which makes it hard to break into the market, but once you prove yourself, customers will stick with you. Customer service is huge. You can learn all of the hard skills – the actual painting, sales, operations, staffing – but you need to be personable, and you need to be patient, and give your business time to grow.”

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July | August 2020 53

MILLENNIALS IN FRANCHISING

Left: EverLine Coatings franchisee Nigel Baxter with EverLine Coatings founder John Evans; Right: EverLine Coatings franchisee Dylan McCann.

Leaning into the strengths of millennials Both McCann and Baxter enjoy being part of a franchise system where they work closely with other young likeminded entrepreneurs. McCann mentions the camaraderie that has developed, and Baxter notes that as a group, they have built up a large knowledge base that everyone can draw from. Additionally, says Baxter, “John does an excellent job of developing and updating training resources, and we have weekly meetings with all franchisees so that we have the pulse of what is happening in the industry.” Evans has mainly attracted millennial franchisees, and that’s purposeful, Evans explains. “I’m inclined to assist the millennial generation get into business for themselves. They tend to be high energy and innovative, and they are technologically adaptable, able to pull up information that they need quickly. That’s definitely important in a system based on data-driven decision making. They don’t have to learn those skills – they grew up using technology. We’re leaning into those strengths.” “We also have a values-based management style,” adds Evans. “Part of our purpose statement is to be a vehicle for our franchisees’ personal and professional growth. They are going to come across challenges, work through them, and as they overcome them, we celebrate that.” As EverLine has built positive brand recognition and established itself as an industry leader, says McCann, “Being part of a network allows us to service contracts we wouldn’t otherwise be able to. John and head office are continually chasing national contracts, which is great for getting the new guys up and running, and it also creates recurring work for us older franchisees.”

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Being a business owner, says McCann, forces you to think about things differently. “I’m definitely not a 9-to-5 kind of guy; I need to do something where I control my own destiny and earning potential, and being a franchisee obviously allows for that. Being in business for myself has been the most rewarding challenge I have ever taken on. If you think you’re entrepreneurial, but can’t seem to find the right idea to take the plunge, franchising is a great way to scratch the itch and water down the risk.” “Looking back on the last three years, there has been a lot of personal growth and development,” says Baxter. When the opportunity to purchase an EverLine franchise presented itself, he was excited and jumped in with both feet. It’s turned out well for him, but he advises potential franchisees to thoroughly research and evaluate before making any decisions. “Getting in early was big for me, and I’ve had lots of support, which is particularly important with a new company. I’m pumped to be part of this. We’re growing at an incredible rate, and being able to help new franchisees develop and grow their businesses quicker than I could is very rewarding.” EVERLINE COATINGS STATS Franchise units in Canada: 11 Franchise fee: $30K-$40K Investment required: $80K-$140K Training: Provided and supported thoroughly by franchisor Available territories: BC, NB, NL, NS, ON, QC In business since: 2012 Franchising since: 2016 CFA member since: 2016 To learn more, visit www.LookforaFranchise.ca

www.cfa.ca | www.FranchiseCanada.Online

LEADERSHIP PROFILE

KICKING INTO FRANCHISING HIGH GEAR 9Round CEO Shannon Hudson outlines his trajectory from kickboxing champion to international franchisor BY ROMA IHNATOWYCZ

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LEADERSHIP PROFILE

or Shannon Hudson, what began as a childhood interest in martial arts morphed not only into a successful sporting career, it also motivated the former world champion kickboxer to launch a franchise based on the sport. His company, 9Round, has become a global kickboxing sensation, with nearly 800 fitness centres stretching as far as Australia, Turkey, Japan, and even Saudi Arabia. But none of that was on Hudson’s radar when he was a young boy growing up in Lyman, South Carolina and, like many boys, decided he wanted to learn karate. “I was seven years old and my older brother was doing it, so I wanted to as well,” says Hudson. “I then started kickboxing (a sport combining karate with boxing) and competing at an amateur level when I was about 18. I went professional a few years after that.” Shannon “The Cannon” Hudson had a successful eight-year run as a competitive kickboxer, peaking when he won the IKF Light Middleweight Kickboxing World Champion title in 2011. But as successful as his kickboxing career was, it didn’t exactly translate into a competitive salary – far from it. “You couldn’t really make a living,” says the 9Round CEO today. “To put it into perspective, I was paid $2,400 for my World Title fight.” To earn a decent wage, Hudson owned and ran three karate schools with his brother in upstate South Carolina, a business they started in 2003 that’s still owned and operated by Hudson’s brother today. This provided him with the income needed to compete on the side, as well as the business training that would prove crucial when launching 9Round in 2008. Business collaboration It was at the karate school that Hudson met his future wife Heather, a woman with a strong passion for fitness who was taking karate lessons there with her young daughter. The romantic match turned into a brilliant business collaboration when the young couple set their

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minds on creating a business that would bridge the gap between kickboxing as sport and kickboxing as a fitness tool. They zeroed in on kickboxing rather than karate because the latter requires years of training for instructors, which was not exactly conducive to the franchise model they had their eye on. “The karate business is really hard to scale because you have to have instructors with black belts and that takes time,” says Hudson. “Whereas with the 9Round kickboxing concept, you can get fitness-minded people trained very quickly. It’s about big, simple movements that almost anybody can do. So a kickboxing concept like 9Round is much easier to scale than a martial arts school like karate.” That said, Hudson realized it wouldn’t be straightforward. He knew he’d have to tweak the kickboxing to appeal to a general public looking to get in shape as opposed to diehard purists interested in competitive sport. In short, the workout had to be accessible to a wider demographic and this meant person-to-person striking was out, as was having set class times. Inspired by the hugely successful Curves franchise, Hudson and his wife Heather turned their attention instead to circuit training, both for its convenience and ease of use. “I said, ‘Let’s make a fitness program like Curves that’s really convenient, that you could walk in, have the trainer plug you into one of the stations, guide you, direct you, and you can do the nine rounds in 30 minutes. That’s where we got the name ‘9Round,’” says Hudson. The young couple maxed out on their credit card and borrowed $10,000 from a friend to scrape together enough money to open their first prototype: a 1,100-square-foot spot in Greenville, South Carolina that’s still in operation today and is also used for training new franchisees. “We had zero money,” says Hudson, who was only 28 at the time. “We were on a shoestring budget and couldn’t even afford a sign on the building. We just put up a banner.”

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LEADERSHIP PROFILE “I’M A FIGHTER AND I NEVER GIVE UP. YOU HAVE TO HAVE GRIT AND DETERMINATION BECAUSE LIFE IS PUNCHING YOU IN THE FACE EVERY SINGLE DAY. IF YOU DON’T HAVE THAT GRIT, IT’S EASY TO JUST GIVE UP AND THEN YOU’RE NOT GOING TO GET AS BIG AS WE DID.” As well, it was the middle of what’s come to be known as the Great Recession, and the couple had a newborn at home. “It was very hard. Heather would work in the morning and then I would work in the evening,” says Hudson. “But we had a big vision and big goals.” The two spent their first year tweaking their fitness concept and reading up all they could on franchising. On the eve of their second year, they sold their first franchise to one of their customers. Five years on, they had grown the business into an impressive 200 locations. “That was when things really took off,” says Hudson. “We started to get a lot of traction and momentum and people really began noticing who we were.” Novel concept 9Round quickly gained a cult-like following, which Hudson credits in part to the novel business concept: there wasn’t anything in the way of circuit-style kickboxing when they first opened. 9Round filled that void. At the same time, Hudson’s competitive kickboxing experience allowed him to roll with the many punches that popped up when building the new business. He was always able to look to solutions to keep up the momentum. “I’m a fighter and I never give up,” he says. “You have to have grit and determination because life is punching you in the face every single day. If you don’t have that grit, it’s easy to just give up and then you’re not going to get as big as we did.” 9Round franchisees share this focus and drive and, more importantly, a love of fitness and people. To become a 9Round franchisee, “you have to have a passion for fitness and you also need to love people because above all else, this is a relationship and service business,” says Hudson, laughingly adding, “And you also have to love spandex!” The trainers all complete an internal certification program to learn the different kickboxing moves and how to teach them. They’re the ones on the floor working with

members doing the circuit and play a critical role in the 9Round success story. “The trainers will make or break the business because it’s a very trainer-led experience,” emphasizes Hudson. Moving forward, Hudson wants to grow 9Round to 1,000 locations over the next two years. In Canada, the company already has 80 fitness centres in all provinces but Quebec, with an aim to build the chain to 200 locations. “Our plan is to keep improving and building our team and hopefully conquering the world,” says Hudson. “While franchising is a relatively new concept in many countries, we’ve found that fitness translates everywhere, so it’s extremely exciting.” While it took a whole lot more than his world kickboxing title to build his business into the extraordinary success it is today, Hudson is cognizant of the role sport has played not only in his life, but now, through 9Round, in the lives of others. What’s most gratifying, he says, is being able to have a positive impact on others through a sport he loves. “I’m most happy to have turned kickboxing into a fitness program and to have the opportunity to give people a vehicle to better themselves,” says Hudson. “Kickboxing gave me confidence as a kid and now it’s doing the same for hundreds of thousands of 9Round members. When they feel better about themselves, they perform better at work and they perform better in their lives. So we’re impacting the world in such a positive way and that’s exactly what my wife and I want to be doing.” 9ROUND FRANCHISING OF CANADA, INC. STATS Franchise units in Canada: 81, US: 571, International: 147 Franchise fee: $30K Start-up capital required: $99,675-$143,075 USD Available territories: All of Canada, US, International In business since: 2008 Franchising since: 2009 CFA member since: 2014 To learn more, visit www.LookforaFranchise.ca

Franchise Canada July | August 2020 57

A DAY IN THE LIFE

CULTIVATING SUCCESS PASSION, POSITIVE OUTLOOK, AND STRONG SUPPORT HELP SPIRITLEAF FRANCHISEE IN VERNON, BC SHINE BY JORDAN WHITEHOUSE

hen Sarah Ballantyne and her husband Carson opened their Spiritleaf location in the north end of Vernon, British Columbia last year, Sarah was doing what many new business owners do: a little bit of everything. Not only was she on the floor of the cannabis retail store welcoming customers, answering questions, organizing shelves, etc., but she was also circling to the back of the store to do things like buy product, complete returns, and figure out pricing. It didn’t last. “I was doing that for the first six months,” she says, “but I found I couldn’t focus my attention. I was only half there when I was on the floor because the other half of my brain was saying, ‘Oh, I have to buy all of this product.’ Now that I’m doing mostly back of house, I can focus my attention a lot more.”

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It helped that she studied human resources in university and therefore knew about how to find the right people for the right job, some of whom are better at frontof-house tasks — like sales — than she is anyway, she says. But it’s also been huge to have such strong support from her fellow Spiritleaf franchisees in B.C., as well as the company’s corporate team, she adds. “I just love having access to a team who has years and years of retail experience and just that they’re so open,” she says. “I can text Darren [Bondar], our CEO, and he responds within five minutes. We’re all very, very close, and the encouragement and reassurance we give each other is just amazing.” Since Bondar launched Spiritleaf in March 2017, the retailer has gone on to open 46 locations and counting, most of which are in Western Canada, and has signed

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A DAY IN THE LIFE

more than 100 franchise agreements, making it one of the leading recreational cannabis chains in the country. Spiritleaf was the first cannabis retail business granted membership in the Canadian Franchise Association and the first recreational cannabis company to do an IPO and trade on the Canadian Securities Exchange. Morning routine Ballantyne’s day typically starts well before the doors open at 9 am, and it usually begins with reviewing the previous day’s sales analytics. Spiritleaf uses a computer program that tells franchisees what their store is overstocked or understocked in so that they can make informed cannabis and accessories purchases, which is usually the second thing Ballantyne does when she gets in. Around the same time, she will also be in contact with head office, because they set the prices for stores, so if there are any price adjustments that need to be made, that will happen before the Vernon store opens. By then, staff begin to show up, so Ballantyne will help them set up and get the store ready for customers. And then the doors open, and while Ballantyne does spend most of her time in the back now, she still circles to the front to talk to customers, which is one of her favourite parts of the day. “We just have such a great group of customers here, and we have a wide range of conversations, from local politics, to the cannabis industry, to dogs — we’re very pet friendly, so a lot of people bring in their dogs.” Back in the office, Ballantyne will head back to the computer to complete tasks like sending accounting files to the bookkeeper, ordering more products, dealing with returns, inputting purchase orders, receiving products, and organizing promotional activities like in-store popups with licensed producers who sometimes visit to give away free swag to customers, as well as information about the products their companies produce.

Ballantyne is also constantly in contact with her store manager, who talks to her about everything from staffing and scheduling to good and bad feedback about product. That negative feedback, while rare, is the part most challenging part of Sarah’s day, she says. “Although I like to stand behind my products, I can’t control every little thing that goes into every container in here. And then because we go through a centralized distribution system in B.C., I’m always dealing with the other middle person — I can’t deal with LPs directly — so that’s quite challenging.” Afternoon routine In the afternoon, Ballantyne completes some financial tasks. Once her office work is completed, she likes to talk to customers and staff to make sure everything is running smoothly. Local media and reps from licensed producers also usually drop by around this time, so she will spend time with them, as well. Like almost anyone associated with the cannabis industry, however, Ballantyne and her staff have to be careful about how they advertise. Canadian cannabis advertising laws dictate, for instance, that retailers can’t advertise to young people or promote cannabis as part of an appealing or exciting lifestyle. “So with advertising, it’s a lot of word of mouth,” says Sarah. “So we’re always talking to customers about other things we have or saying things like, ‘If you talk to your friends, tell them we have this, tell them where we are.’” Before leaving for the day at around 4 pm, Ballantyne will typically review product stock and see what the store is overstocked with so that she can then tell staff which products they might want to suggest to customers. Once Ballantyne gets home, though, that doesn’t mean the working day is over. She can keep a close eye on inventory on her phone, so if she sees sales spikes with particular products, she can still add them to the weekly order.

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A DAY IN THE LIFE

Bottom line It’s a busy, dynamic, always changing day for Ballantyne, and she says one of the keys to thriving as a Spiritleaf franchisee is to have an optimistic outlook. “You really need a positive attitude because there are a lot of changes in this industry right now. You have to kind of come back down to earth every day and think about what’s happening in your store, what’s available to you and how are you going to sell it that day, or how are you going to encourage your staff to sell a product.” And while franchisees also need to have a passion for cannabis to thrive at Spiritleaf, Ballantyne says that the franchise will teach you almost everything you need to know about cannabis. That starts at the intense oneweek training course at the head office in Calgary and can then be supplemented by the company’s online education and communication platform, called Spirit Hub, which all employees can use too. That training is just another example of the comprehensive support franchisees get from Spiritleaf, says Ballantyne, and another reason she’s thankful she decided to go with the company. “I see some of the other independents in this industry around me that are struggling, so I’m just really thankful that there was an opportunity to

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have my own business but also have that support, especially with all of the regulations and legal stuff that you have to go through.” As for any advice she would give to someone interested in becoming a Spiritleaf franchisee, it’s simple: do your research. “And maybe ask if you can do some store shadowing with another owner so that you get a really good idea of how it works,” she adds. “It’s so different from province to province and from city to city that you really have to be in touch with what’s going on around you.” SPIRITLEAF STATS Franchise units in Canada: 36 Corporate units in Canada: 10 Franchise fee: $25K Start-up capital required: $300K-$500K Investment required: $300K-$500K Training: One week at Calgary Headquarters Available territories: AB, BC, ON, SK In business since: 2017 Franchising since: 2018 CFA member since: 2017 To learn more, visit www.LookforaFranchise.ca

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THE FIRST YEAR

Ctrl V franchisee creates a new reality for happy customers

BY SUZANNE BOWNESS

y now, most people have heard of virtual reality (VR), even if they haven’t all tried it. We’ve seen the futuristic, boxy-looking headsets that help to transport people into an alternate imaginary world in front of their eyes, and we’ve observed users flailing around as their brains are tricked into believing they’re walking the streets of an alien land or kung-fu fighting with an ancient foe. It looks like fun. For Winnipeg, Manitoba franchisee Robert Fedoruk, that’s one of the best parts of owning a Ctrl V virtual reality arcade franchise. “Once people try it, the concept sells itself,” he says. To confirm Fedoruk’s statement, you only need to visit the Ctrl V website. A collection of videos offer a sampling of the 50 games that the franchise offers at a play-by-thehour rate, from the zombie shooter game Arizona Sunshine (Fedoruk’s most popular game) to Fruit Ninja, where you slice oranges and watermelons falling from the air with a sword (this writer’s favourite upon quick browse). Ctrl V’s website also shares the origin story of this Canadian-based franchise, which was launched in summer 2016 by a trio of founders out of an old Blackberry building in Waterloo, Ontario. Now with locations across Canada and the United States, Ctrl V was North America’s

first virtual reality arcade and is currently the world’s largest virtual reality arcade chain. Finding the right fit For Fedoruk, the journey to Ctrl V started when the entrepreneurship bug bit. A longtime manager for various corporations, he needed a change from life in an office and had started to research business opportunities. Then a TV show about virtual reality sparked his interest in VR. Could this be a business? Fedoruk visited the one smaller VR store in Winnipeg and even made an undercover visit to Ctrl V’s main Waterloo location. He also looked in to starting a VR business himself, but when he crunched the numbers, he realized that the specialized space requirements and corporate licensing for the rights to popular games might be prohibitive. “Even just looking at the licensing, it was not worth it on my own. That was the tilt towards the franchise route because Ctrl V had a pretty cool setup, better than anything else I had seen out there locally,” recalls Fedoruk, adding that he likes the fact that the franchise deals directly with game developers and other suppliers to bring down costs.

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THE FIRST YEAR

Joining the team and first-year challenges Signing in September 2017, Fedoruk spent the fall acquiring and renovating a space that would suit his needs: 4,400 square feet in a strip mall close to Winnipeg’s largest shopping centre and downtown. He opened his doors mid-December with a cool space featuring 16 separate VR stations, plus a party room. While the business may sell itself once you’ve tried it, one of the biggest challenges that Fedoruk faced in his first year was getting people in the door. “Marketing is the absolute toughest part of the business that I continue to face to this day,” he says. He threw a big grand opening event, and continues to advertise on social media including Google AdWords, Facebook, and Instagram. He also advertises in the city’s leisure guide and on the radio. Launching close to Christmas, he tried selling gift cards, which was another big win. “Gift cards were the best thing ever,” he says. “To this day, I sell a lot of gift cards because people want to buy experiences for their friends and family, instead of stuff.” The party room, which seats 15 to 20, was another great investment. “One key differentiator for me was a room for private birthday parties. The existing place didn’t have that,” says Fedoruk. He doesn’t have a kitchen on-site, so he allows visitors to bring in outside food, which parents love. “Most of them order pizza, they bring in their own pop, they have their cake, open up gifts, out the door they go, and the next group comes in. That has been very beneficial.” Fun facts These demographics have driven his marketing strategy as well, even if they weren’t what he expected. “I would have thought males, millennials from age 20 to 35, and it probably started there, but tons of families come in with the party room,” he says. Catering to this interest in gaming in groups, he now offers discounts for parties of

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multiple gamers, who often engage in multiplayer games via connected headsets. The surprise factor continues with the fact that a top pick for kids by far is a game called “Job Simulator” where kids can playact a day in the life of an occupation such as office worker or store clerk. “Kids get so fired up. I tell parents, ‘this is what your kids are going to play.’ They scoff at me and then sit there and watch their kids play that for the whole hour. It’s crazy,” says Fedoruk with a laugh. Franchise always moving forward Fedoruk has also been pleased with the amount of support from head office, beginning with an initial training session that includes classroom training and a weekend working at a store. “You work a weekend out there, basically doing what you do in your own shop – checking people in, making sure everybody’s set in their gear, helping them out.” After the initial training, the Ctrl V team came to help him build out his own location. Ongoing support includes bi-weekly owner meetings, and a centralized intranet where owners can ask for help or report bugs and troubleshoot with other owners. Fedoruk says he appreciates the amount of support and software that the head office provides, including their own point-of-sale system, bookkeeping, and especially updates for the software and games. “Each week they’re pushing out updates, they’re really focused on that,” he says. The franchise also provides helpful analytics software that helps track repeat customers, their gaming preferences, and other information that’s useful for marketing. An interest in technology but mostly in people Fedoruk says that while the franchise provides lots of resources, franchisees should probably have a basic interest in technology. Although he’s not an obsessive

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THE FIRST YEAR ing with kids, you are going to be crushed. All of our staff have a lot of patience,” says Fedoruk, noting that while a five-minute video is supposed to provide an overview of the basics, not everyone is attentive while they’re excited to play, so you’re still delivering learning. Fortunately for Fedoruk, people have also turned out to be the best part of the business. “It’s fun. I get to meet and help a lot of people every day. It’s fun watching people play,” he says, adding that screens posted above each station allow outsiders to see players grappling with their virtual worlds. “It is quite hilarious watching people do it. I get to laugh every day.”

gamer, Fedoruk did manage technical support desks at various points in his career so was quite comfortable with troubleshooting. Now he looks for employees (he currently has four of them, plus his wife) who have the same attitude. Even more important is an interest in people and customer service. “If you don’t like talking to people or deal-

CTRL V STATS Franchise units in Canada: 15, US: 3, International: 1 Corporate units in Canada: 1 Franchise fee: $40K Investment required: $250K-$300K Training: 10 Days Available territories: All of Canada, US, International In business since: 2016 Franchising since: 2016 CFA member since: 2017 To learn more, visit www.LookforaFranchise.ca

OPENING SOON dq.ca

Franchising Information:

Tammie Verna (905) 637 4741

tammie.verna@idq.com

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ICONIC BRAND

Taking Care of Business

Adapting to provide relevant business services helps The UPS Store reach 40-year franchising milestone BY KAREN STEVENS

his year, The UPS Store is celebrating its 40th year as a franchise concept. Forty years is a big milestone in any industry, but particularly so in the business services sector. The ubiquitous shipping and print company got its start in Southern California back in 1980 and launched internationally in Canada eight years later. At that time, the concept was called Mail Boxes, Etc., which was the name that it operated under until it rebranded in 2005 in Canada (2003 in the U.S.). In its early days, the franchise rented out mailboxes, offered shipping services, and provided additional services such as photocopying, wedding invitations, and even developing of film. Fast forward to 2020, and the concept has evolved to provide a full range of business services to small business customers in over 350 neighbourhoods across the country.

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Steve Moorman, senior vice president, franchise operations, has a long history with the company, going back to when he and his mother were the brand’s very first franchisees. “We’ve seen tremendous changes over the years,” says Moorman. “In the 1980s, we began as the post office alternative, providing small businesses and customers with an alternative to the US Postal Service, and today we are a full-service outsourcing partner for small business owners – or just people who have too much to do and not enough time to do it.” While shipping has remained a consistent part of the business over the years, Moorman goes on to say that they’ve adapted to new technology and changes in the needs of their key customer base – small business – by adding full service, digital printing solutions in store, for example. “Probably the biggest thing that surprises

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ICONIC BRAND

people is that The UPS Store Canada is actually the largest retail chain of print shops in Canada,” Moorman explains. “Printing is a very important segment of our business; it really dominates everything that we do today. We print everything from business cards to trade show banners.” Beyond shipping and printing, Moorman emphasizes that the brand has worked to position itself to continuously adapt in a few other areas. For example, to combat theft of online purchases, The UPS Store locations act as an Access Point for UPS, which allows customers to have their packages delivered to the stores to be held safely and securely until the customer is ready to pick them up, rather than leaving them unsecured on their front porch. Other customers may choose The UPS Store’s mailbox services, which give them a secure mailing and delivery address that can be accessed 24/7 at most locations. Additionally, The UPS Store has focused on the growing sector of e-commerce over the last few years in response to some of their customers’ preference to shop online versus in store. The UPS Store initially developed its Online Print service in 2012 and gave that side of the business a refresh in 2019. “Our service offers customers the choice of creating their own custom print product from scratch using the Online Print tool. Or, we’ve got nearly 10,000 custom templates that our customers can choose from. Whether they’re ordering a business card or sales brochure, etc., they can do it in their own home, and they can choose to pick up at whichever store is most convenient for them,” says Moorman. Another way that The UPS Store has adapted its business is by expanding into non-traditional locations with store-in-store concepts. Currently, The UPS Store has six franchises that operate within a Walmart Supercentre, with more scheduled to open in the coming months. Shares Moorman, “The variety and convenience of the products and services offered at The UPS Store allows

the customer to accomplish more while shopping at Walmart. It offers our shared customer greater value in their shopping experience.” The UPS store has also partnered with Iron Mountain to provide secure shredding solutions at the store locations, which can help protect customers against the possibility of identity theft. “Things have changed socially, and in the way we do business and the services we offer. It’s incumbent upon us to really focus on understanding trends and looking ahead,” says Moorman. Putting customers first The UPS Store also stays competitive by bringing on board strong, business-minded, customer-focused franchisees. According to Moorman, customer service expertise is the number one skill a The UPS Store franchisee needs in order to be successful. “We’re a service business,” he explains. “There’s nothing unique that we sell that you couldn’t get somewhere else, but the real differentiator is that franchisee we have behind the counter, who works with their community and helps their customers succeed.” While business experience is always a great “nice-tohave” according to Moorman, it’s not necessary. “Franchisees don’t need a specific background in those particular areas,” he says. Although, he goes on to describe that when someone has that print experience, it shortens the learning curve and makes it easier to develop the business. Above all, the franchisee “must have a passion for success and a passion for helping other people,” says Moorman. One franchisee who lives out this passion every day on the job is Mary-Ann Biersteker, who owns four franchises in and around Barrie, Collingwood, and Wasaga Beach in Ontario. She first joined The UPS Store as a manger of a franchise in Barrie, and from there got a job

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ICONIC BRAND

at the corporate office doing training and support before becoming a franchisee herself. “I love dealing with the customers,” she says. “I love the variety of customers, from high school and college students needing their assignments printed out to senior citizens who need something faxed or scanned or business people.” When a franchisee first joins the system, they go through a (minimum) five-week training program which includes classroom training, e-learning courses, and instore work experience. During the on-the-job training, franchisees get paired with an experienced franchisee/ certified trainer to practice what they’ve learned. To help keep franchisees up to date and motivated, the corporate office runs quarterly continuing education seminars covering everything from new product or service launches to packaging techniques to local store marketing. Then there are webinars, a bi-annual convention, and two weekly newsletters, which are filled with important updates and info to help franchisees build their businesses. On top of all that, each area or region of the country has franchise business consultants in the field to support franchisees locally. “They make regular visits and they monitor what we’re doing and how we’re doing it and offer suggestions, and it’s all helpful,” says Biersteker. “The training program is very good, and it’s very, very thorough.” Franchisees also have solid support through their network of peers, and share ideas and best practices in a number of ways. For example, The UPS Store franchisees have a closed Facebook group. “It’s open for anybody to come on and say ’Hey, this is my problem, what can I do?’ and there’s always a dozen or more franchisees to jump in within minutes to help,” explains Biersteker. For Biersteker, the biggest challenge of being a The UPS Store franchisee is spreading the word that the shop offers more than shipping and packing. “Because it’s a worldwide brand, people know some of the stuff

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we do before they even step in the door. However, once they’re in, it’s up to us to educate them on what else we do,” says Biersteker. The best way that Biersteker knows how to get people in the door is through word-of-mouth marketing in her community. At her franchise in Collingwood, she doesn’t charge seniors when they want to make just a couple of photocopies. “It’s the cheapest marketing I can do, because I know they’re going to talk to all their friends over coffee or cards,” she says. “Good customer service gets people talking.” Overall, Biersteker loves being a franchisee. “What I love about the whole franchise is that no two days are the same. When you unlock the door in the morning, you never know what your challenges are going to be for the day, but you know you can handle them,” she describes. “I wouldn’t have four stores if I didn’t believe in the brand; it’s been good to me.” One of the biggest benefits of becoming a The UPS Store franchisee is the autonomy franchising offers. “I like being my own boss, while being part of a larger family with an established brand reputation,” Biersteker says. Moorman also echoes this sentiment: “I think the primary benefit of being a franchisee from The UPS Store is self-determination – all your efforts at building the business and the rewards go to you,” he says. THE UPS STORE STATS Franchise units in Canada: 350, US: 5000 Franchise fee: $40K Start-up capital required: $100K Investment required: $174K-$198.5K Training: Yes Available territories: All of Canada In business since: 1990 CFA member since: 1991 To learn more, visit www.LookforaFranchise.ca

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Everything you need to create your franchise future! Buying a franchise can be an overwhelming process. The good news is you donâ&#x20AC;&#x2122;t have to do it alone. Franchise Canada is here to guide you through the franchise process, with everything you need in one spot: www.FranchiseCanada.Online

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SHOW ME THE MONEY

4 FRANCHISES FOR $50K TO $150K Franchising is about diversity. Franchise opportunities may be found in nearly every industry and business sector. It’s a great way for Canadians from all walks of life to go into business for themselves but with the support of a franchise system behind them. One of the most important considerations for a prospective franchisee is investment level. Figuring out a budget that fits with your financial situation and goals will help you to zero in on the franchise opportunities that might be the best match. With so many opportunities, there is a franchise for everyone at a variety of investment levels. Here, Franchise Canada showcases franchise systems in which you can invest for $50K to $150K.

Aisle 24

B-Protek Concrete Resurfacing

Automation and self-service are reshaping the grocery shopping experience. Aisle 24 franchises offer you the opportunity to harness these powerful trends to deliver an innovative twist on the corner store. Aisle 24 stores — cashier-less, small footprint grocery markets catering to last-minute shopping — serve the booming Canadian residential property market. Aisle 24 provides condos, apartments, townhouse complexes, campus residences, and other shared living communities with a high-value amenity for tenants. Franchise fee: $30K Start-up capital required: $60K-$80K Investment required: $150K Available territories: AB, BC, MB, NB, NL, NS, ON, SK Training: Yes In business since: 2016 Franchising since: 2019 CFA member since: 2019 To learn more, visit www.LookforaFranchise.ca

B-Protek is a dynamic, goal-oriented franchise partner group, based on integrity, expertise, and teamwork. Its teams provide expert affordable and durable floor coating services with a 20-year warranty. B-Protek provides a wide range of coating solutions to reflect customer needs, preferences, and budget for garages and basement floors, and outdoor surfaces such as balconies and stairs. BProtek is already well established in Québec, with 18 territories in action under the B-Protek and Béton Surface brands. Franchise units in Canada: 18 Corporate units in Canada: 2 Franchise fee: $30K Start-up capital required: $30K Investment required: $100K Available territories: All of Canada Training: Complete training on how to operate the equipment, customer service, and overall management of the franchise In business since: 2014 Franchising since: 2015 CFA member since: 2018 To learn more, visit www.LookforaFranchise.ca

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SHOW ME THE MONEY

Comfort Keepers

Sandler Training Canada

A Comfort Keepers franchise is more that an entrepreneurial business. Starting a Comfort Keepers franchise is an opportunity to build a business with purpose and make a positive impact in the lives of others. Comfort Keepers franchisees come from many walks of life, but all have a common goal of helping people retain their dignity, independence, and thrive. Comfort Keepers is here to help its strategic franchise partners with support, resources, and comprehensive training, delivered by a dedicated Canadian team. Franchise units in Canada: 43, US: 628, International: 15 Corporate units in Canada: 5, US: 23 Franchise fee: $49.5K Start-up capital required: Minimum $75K Investment required: $113.5K-$154.3K Available territories: All of Canada Training: Extensive In business since: 1998 Franchising since: 1999 CFA member since: 2004 To learn more, visit www.LookforaFranchise.ca

Sandler is a global leader in Sales Training, Sales Leadership, and taking companies to new levels of success. If you have a passion for sales, are looking for an opportunity to control your income, are tired of corporate life, and want to make a difference in people’s lives, then consider Sandler Training Canada. Franchise units in Canada: 21, US: 162, International: 71 Franchise fee: $80K Start-up capital required: Varies Investment required: $80K Available territories: AB, BC, ON, QC, SK Training: Yes In business since: 1967 Franchising since: 1983 CFA member since: 2017 To learn more, visit www.LookforaFranchise.ca

Find franchises by investment level on LookforaFranchise.ca

Want to find franchises at a particular price point? Searching by investment level is just one of the search options available on Franchise Canada’s online franchise directory at LookforaFranchise.ca. This website is powered by the Canadian Franchise Association and part of Franchise Canada’s suite of products for aspiring franchise owners. Build your profile on LookforaFranchise.ca and browse available franchises, request more information directly from the companies you’re interested in, and access exclusive Franchise Canada content online.

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FRANCHISE FUN

PARTNER IN GRIME Fiona Styant’s strong bonds with franchisees and family are helping to fuel MOLLY MAID’s success

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FRANCHISE FUN Fiona Styant, director of franchise development, says MOLLY MAID Canada is a premium home cleaning company that enriches lives one clean at a time. “We enable franchise partners to live out their entrepreneurial dreams, while empowering team members to build their own dreams, and who together give our customers the gift of free time through a clean home,” she explains. Coming off the exciting Silver Franchisee of the Year Award recognition for Sudbury MOLLY MAID franchisees Kelsi Ashley and Erin Levesque at the Canadian Franchise Association (CFA) awards, Styant says MOLLY MAID has much to celebrate. Here, the self-described fearless, witty, and straight-shooting Styant shares her top advice for franchising success. On top of her passion for the franchise business model, Styant comes clean about what drives her forward, including loyalty, an aversion to procrastination, a love for her two boys, and a desire to fly a plane. Read on to learn more! The most interesting thing I’ve done recently is… Enroll in flight classes. In its best form, work is… Exciting! I love working with people to see if they are going to be the right fit with MOLLY MAID. A good franchisee… Walks the talk. They execute their business plan and follow the franchise system. A good franchisor… Is a supportive partner in grime! My top advice for prospective franchisees is… Do your homework! Some of our best partners are those who have done their due diligence to make sure MOLLY MAID is the right fit for them. You should ask questions, make sure to read through the franchise agreement, disclosure document and provide it to your lawyer to ensure you understand the obligations and know who you are partnering with. My top advice for new franchisors is… Ensure systems and processes are in place before expanding. Be fair, ethical, and honest with your franchise partners and celebrate every success! The most important thing in life is… Family! (Including my extended MOLLY MAID family).

One of the most enjoyable things to do is… Anything but clean. There are people to help with that! The hardest thing for me to do is… Keep my house clean with two little dirt magnets (aka my boys)! My favourite drink is… Pink Whitney with a splash of soda! If I could change one thing… We would have world peace. Also, I would love it if every lead I received was the perfect franchise partner for MOLLY MAID! If I could meet anyone… I’d love to have met Princess Diana. She was elegant, graceful, a wonderful mother, and an inspiring woman. The person who has had the most positive influence on me as a businessperson is… Jim MacKenzie, Chairman of MOLLY MAID International. Jim has taught me many business lessons, including the importance of finding the ‘right’ franchise partner, not just taking someone’s cheque because it’s easy. That business is all about the people, not the business itself. Always taking time to make sure we are doing the right thing, not just taking the easy road.

Canadian franchising is… Really expanding. It’s an exciting time to work in franchising! My franchise system began because… There was a need in the market for a professional cleaning service. At that time, there were only the ‘underground/private’ cleaning ladies. Our society was changing, women were going out to work, and the dual-income family was becoming more prevalent. The most positive influence on my life as a person is… My dad. He taught me to always show up and give it “your all.” The key to success is… Do the work. Avoid procrastinating and get it done! I’d like my friends to describe me as… Loyal, trustworthy, always there when needed, and good for a laugh. The accomplishment I look forward to the most is… Having raised two boys who become kind, respectful men who contribute positively to the world. My personal motto is… Stress is just a state of mind. One necessary item on my life’s “to do” list is… Fly a plane! Franchise Canada July | August 2020 71

Q A

ASK A LEGAL EXPERT What does a franchisee need to make a fully informed investment decision? DECIDING TO PARTNER WITH A FRANCHISOR and embark on a new business is an exciting time for prospective franchisees. However, the decision is a major one, and should be fully informed. The source of much of this information comes in the form of a franchise disclosure document, which is a legislatively required packet of documents and information, regulated by laws enacted in most provinces.1 Most of the provincial acts are similar, but do have some important differences. Fundamentally, the courts have interpreted these legislated disclosure requirements as aiming to ensure that a franchisee has all of the information necessary to make a “fully informed investment decision.” As such, each element of the required disclosure is designed to ensure all relevant and material information is included and given to franchisees before they sign a franchise agreement. While the disclosure document is a legal requirement, and may seem daunting or technical, the underlying premise is to ensure franchisees are fully informed. The disclosure document should of course be carefully reviewed with lawyers and advisors. The legislation and regulations, however, are premised on and drafted with potential franchisees in mind. As such, the legislation and regulations provide a road map that outlines the type of information franchisees should be sure to have, and be sure to understand before deciding to finalize the franchise agreement. Each province’s franchise acts and regulations are slightly different, but each prescribes lists of facts and information that should be in the disclosure document. These include: • the franchisors’ business background; • the business background of the franchisor’s directors and officers; • details of whether the franchisor, its associates or directors have been convicted of fraud or unfair business practices, have been subject to administrative orders or penalties, or have been found liable in any civil action for misrepresentation or unfair business practices; • details of whether the franchisor, its associates, or any corporation that the franchisor’s current directors were former directors or officers with, have been involved in bankruptcy or insolvency proceedings; • audited financial statements; • disclosure about whether alternative dispute resolution is mandated in the franchise agreement; • outlines of all of the franchisee’s costs for establishing and continuing the franchise, including any 1

supply restrictions, mandatory contributions to advertising funds, and training or assistance that is offered or required; • descriptions about the scope and limits of the franchisee’s rights in respect to the franchisor’s trademarks and logos; • a description about the franchisee’s territory, any terms of exclusivity, and a description of any policies about the proximities between franchisees; • contact information for the franchisees and locations of all similar types of franchises in the province; • the contact information for each franchisee that has been terminated, cancelled, not renewed or otherwise left the franchise system; and • a description of all restrictions or conditions in the franchise agreement relating to termination, renewal, or transfer. For those who may not have an extensive business background or are new to franchising, knowing the kind of information you need that is material may not be intuitive or obvious. The legislation and regulations are designed to set out these details, and in effect define the scope of what is needed to make a fully informed investment decision. Though no one wants to think about the end of the relationship in the exciting days before it has begun, it is important to understand the broad rights and protections the legislation affords franchisees who are not given all of the required information. However, these protections do not mean that a prospective franchisee is immune from having to do their due diligence. It is important that as a prospective franchisee, you actually understand all of the information provided. While each case that is litigated is analyzed on its fact-specific circumstances, courts do consider when looking in hindsight what it is that the franchisee actually knew and understood at the outset of the relationship. It is never for anyone’s benefit to operate in ignorance. Deciding to open a franchise is a big, life-changing decision, and it should therefore be made with as comprehenStephanie Sugar Associate McCarthy Tétrault LLP ssugar@mccarthy.ca

Visit the CFA backgrounder page on legislation for more details: https://www.cfa.ca/our-services/advocacy/franchise-legislation/

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ASK A LEGAL EXPERT sive an understanding as possible. A truly fully informed investment decision benefits all concerned. Franchisors want to partner with people who know, support, and want to expand the franchise system. Franchisees want to succeed in their business. As the adage goes, there is

Q A

no such thing as a dumb question. Get answers to the questions you know to ask, and find out what you may not know that you should be asking. The path to success is paved with knowledge, and the first step in your franchise journey is a fully informed investment decision.

ASK A FINANCE EXPERT

Beyond traditional loans and cashflow, how can I improve my liquidity? LIQUIDITY IS ESSENTIAL for maintaining and growing your operations, particularly during periods of change and uncertainty. More than ever, it’s important to understand the various ways to leverage your balance sheet, tap into additional financing, or access cash inside your business through savings and other efficiencies. Here are a few creative ways to access the cash your business needs to thrive. •L ease equipment. Instead of purchasing all of your equipment at once, consider leasing some or all of it. In addition to providing the equipment you need today, leasing allows you to acquire higher-capacity (and typically higher-cost) equipment as your business and its requirements grow. Because leasing involves both flexible payment terms and a lower capital investment compared to buying, it can also free up working capital for other business purposes. • Inventory financing. Inventory financing is an assetbacked line of credit or a short-term loan you can use to purchase supplies. Those supplies, which form part of your inventory, serve as collateral to secure funding. This type of financing is especially useful for franchisees that must pay their suppliers in a shorter time frame than it takes to make and sell the products they produce. It’s also a good way to help manage fluctuating operational demands by allowing you to acquire extra inventory required to meet demand during busier times of the year. •C ash management solutions. Reviewing your cash management needs and comparing cash management solutions can result in significant savings. For starters, look at your day-to-day cash management for ways to save money. Reducing costs in a number of small ways can positively affect the bottom line as much as making a single major reduction. Compare the terms – payments, fees, and amortization – of all your capital, including lines of credit, credit cards, and everyday banking transactions. You can also consider

potentially consolidating debt, or at least refinancing to tap into lower-cost options. Digital payment solutions also offer opportunities for savings and increased efficiencies. Online business banking portals provide a one-window view into all of your banking and are a convenient and cost-effective way to pay suppliers and track payments, providing sharper cash management control – whether that’s through wire payments, electronic fund transfers, or other payment tools. If you have a cash-based business, maybe it’s worth looking at a smart safe? This technology not only securely stores and tracks your cash, but can also automatically convert cash into a bank deposit, saving you the time, cost, and worry of using couriers or staff to make deposits. •P ayroll. Staff-related expenses can positively or negatively impact cash resources for any franchisee. Consulting with an HR expert can help ensure you optimize your staff levels. You might also ask your financial institution whether it offers a more cost-efficient payroll service than you currently use. Ultimately, it’s worth sitting down with your banker to discuss your capital and cash-flow requirements within a context of your overall business needs and goals. By having a complete picture of your business, your banker can help you make financing and cash management decisions to meet your unique needs and support you at every stage of your franchise journey. Tom de Larzac Head of Franchise Banking HSBC Bank Canada tom.delarzac@hsbc.ca

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FRANCHISE TUTORIAL

TUTORIAL 13: THE FUNDAMENTALS OF FRANCHISING

INTRO TO INSURANCE WHEN OPENING A BUSINESS AS A FRANCHISEE, you’ll want to ensure that you’re adequately insured. Proper insurance allows you to recover from a financial loss during the occurrence of a specific event. Such events might consist of an employee or customer being injured at the business premises, business interruption due to fire or flood, theft, or even employee fraud. Each of these events can cause the franchisee to have a loss of income and also cause the franchisor to incur a loss of royalties. As you make tenant improvements and stock inventory prior to opening your business, you’ll want to have insurance coverage commence immediately upon taking possession of the premises. Typically in a franchise agreement, or within the operation manual, there will be specific insurance requirements that you’re obligated to get from insurance providers. Typical insurance requirements include: • Comprehensive public liability insurance: coverage in case a customer, employee, or any other person suffers bodily injury while on your premises or as a result of your service or products • Product Liability Insurance: for physical loss or damage to inventory • Property Damage Insurance: for property damage due to fire, flood, smoke, vandalism, etc. • Business interruption insurance: for financial loss from closing of the business due to damage or destruction of property • Employment Practices Insurance: coverage arriving from such claims as discrimination, wrongful dismissal, or harassment • Workers Safety Insurance: coverage for employees at the workplace • Auto Insurance: coverage for delivery vehicles, etc. The franchise agreement will normally require the franchisee to add the franchisor as an additionally insured third party to the insurance policy and provide a copy of the insurance certificate for the franchisor’s records. These requirements are in place to protect the franchisee and the system as a whole and typically don’t cost anything more to the franchisee. This also allows the franchisor to claim any lost royalty payments from the insurance company and to protect themselves

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against lawsuits (which may arise against them through no fault of their own) as a result of such things as personal injury. The franchisee is required to indemnify the franchisor from all fines, suits, claims, or actions of any nature related to the operation of the franchisee’s business. Without adding the franchisor, you would be assuming the financial risk, which defeats the purpose of the insurance. It allows the franchisor to operate efficiently and protects them from potentially spending financial resources on issues that are at an individual franchisee location level. The cost of insurance will vary depending upon numerous factors including, but not limited to, the geographical area, type of business, deductable amounts, and the dollar amount of the coverage. Franchise systems that have reached a certain size will often negotiate a group policy with a preferred supplier in order to pass savings on to the franchisee. The franchise agreement will often state that the franchisee may be required to purchase insurance from a preferred supplier. This allows all franchisees in the system to take advantage of the franchise system’s size and buying power. In addition to the required business insurance, franchisees will want to look at optional insurance packages to further protect themselves and/or their employees. For example: • Life Insurance • Disability Insurance • Critical Illness Insurance • Health Plan Insurance Employees are increasingly expecting and seeking higher standards for medical service and financial security. Group insurance and benefit plans for employees allow employers to be competitive and attract and retain good employees. A group plan is significantly lower in cost compared to individual coverage. This article is by no means an exhaustive list of the insurance available. Not all coverage will apply to your specific circumstance. Your specific insurance needs will vary depending upon the nature of the business and exposure to potential liabilities. Consult with your franchisor to determine the specific needs required and consult with an insurance broker. They will be able to assess your specific circumstances and provide advice as to what products are best for you and your business. Be sure to have them fully explain the specific details of the

www.cfa.ca | www.FranchiseCanada.Online

FRANCHISE TUTORIAL insurance policy and the coverage and the restrictions that apply. A list of insurance companies specializing in the franchise model can be found on www.cfa.ca. Ultimately insurance is planning for worst-case sce-

narios. With insurance in place you can focus your energies on building a successful business and not be worried about financial loss due to hardships that are often outside your control.

TUTORIAL 14: THE FUNDAMENTALS OF FRANCHISING

INTRO TO RECRUITMENT AS A FRANCHISEE, one of the roles you’ll spend a lot of time in is the area of recruiting staff. Unless you’re running a one-person operation, this will be an important part of your business. Recruiting staff is an ongoing function of management and well-selected employees can dramatically improve the success of the business. Although some franchisors will assist the franchisee in hiring staff during the start-up phase of a new location, it’s typically the franchisee’s responsibility once the location is up and running. Most franchise agreements will clearly state that you’re required to maintain a sufficient number of staff, you must take the necessary steps to ensure that they’re trained, and that your staff represent the brand well to ensure good customer relations. The franchise agreement will typically further clarify that, as a franchisee, you’re responsible for all decisions related to hiring, firing, training, wages, hours supervision, and discipline. The employees are clearly working for you and not the franchisor. Staff requirements vary depending on the type of business you invest in. A full-service restaurant may have as many as 80 to 100 employees, whereas retail concepts may require only one or two. Staffing requirements may also vary depending upon seasonal variations. For example, retail tends to have higher staffing needs during the Christmas shopping season. In industries where there is a high need for labour, progressive franchisors have developed recruitment departments to address current labour shortages in Canada and also have programs to bring in foreign workers. Progressive franchisors also look at ways to reduce the labour needs of the franchisees through outsourcing certain aspects of the operations. The type of staff you require will vary depending upon the business model. Often the business will rely on you and your staff’s ability to build relationships with customers and sell your product. As a result, you’ll typically want employees who are people oriented. You’re looking

for staff that reflect that brand’s values, have the ability to learn, and are available the hours required. The more flexible employees are, the easier scheduling will be. Have clarity on the staffing needs of the business before hiring your staff. The franchisor will often provide details of staffing needs in the operation manual, as well as provide specific job descriptions and tools to assist you in the recruitment process. The franchisor will also typically provide tools in the form of leadership training, staff surveys for feedback, and recognition programs for staff retention. The recruitment process will vary but typically involves the following steps: 1. Advertising to generate enquiries 2. Reviewing resumes or applications 3. C onducting interviews, either individually or by groups 4. Checking references 5. Orientation and training The franchisor, based on the experience of existing franchisees, can provide you with best practices for the entire recruitment process. What you pay employees is dictated by labour laws as well as what is required to attract employees in your specific market. Today’s market is competitive and you’ll want to be aware of what other companies are paying by doing a quick survey of the market. The cost of employees goes beyond the pay cheque. Depending upon the business and market, there will be the costs of employment taxes, workers compensation, and benefits. But the biggest cost is the cost of employee turnover. You’ll want to ensure that you take the time to hire the right employees and then provide a great work environment that will encourage good employees to stay. You can improve staff retention and reduce your hiring (Continued on page 77)

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Unleash your potential as a franchise business owner. At the International Franchise Associationâ&#x20AC;&#x2122;s website, franchise.org, you can search, select and compare thousands of franchise businesses by industry, investment level and keywords. Check it out today and be in business for yourself, but not by yourself.

FRANCHISE TUTORIAL costs by becoming an “employer of choice.” Employees today are looking for: • Career development and advancement opportunities • Ongoing and progressive training • Recognition • A fun environment • Flexible work hours and time • Fair treatment • Involvement and consultation with management Throughout the recruitment process, you need to be aware of the employment standards and labour laws that are applicable to your area. Provincial Human Rights Codes prevent employers from discrimination when hiring and managing employees. There are certain questions that cannot be asked during the recruitment process such as those regarding race, age, sexual

orientation, and religion. Instead you need to focus on the position being filled and identifying the characteristics that a successful candidate needs to fill this role. There are also privacy laws to be aware of. You don’t want to disclose your employees’ personal information. It’s the franchisees’ responsibility to become familiar with all applicable laws and to adhere to them. Your business success is dependent upon you finding the right people who will deliver great customer service. No matter how good your employees, it doesn’t diminish the need for you to be involved in the business. Sales and customer satisfaction often increases when a franchisee is actively involved in the day-to-day operations. All franchisors will agree that there’s nothing that can replace the dedication and commitment of a franchisee who has a vested interest in the success of the business and who has made a financial investment.

STUDY QUESTIONS TUTORIAL 13

TUTORIAL 14

1. Typically in a franchise agreement, or within the operation manual, there will be specific insurance requirements that you’re obligated to have including: a) home owner’s insurance b) travel insurance c) auto insurance

1. Most franchise agreements will clearly state: a) that you are required to maintain a sufficient number of staff b) who you can and cannot hire c) t hat all staff are employees of the franchisor

3. A group plan with the franchise system is significantly lower in cost compared to individual coverage. True or False? a) True b) False 4. A ll insurance needs are the same for all franchised businesses. True or False? a) True b) False

2. T he cost of employees goes beyond the pay cheque. Some other costs are: a) per diems, profit shares, and RRSP contributions b) clothing allowances, transportation reimbursements, and housing c) employment taxes, workers compensation, and benefits 3. A s a franchisee, your employees work for you and not the franchisor. True or False?

a) True

b) False

4. Provincial Human Rights Codes prevent employers from discrimination when hiring and managing employees. True or False? a) True b) False

Answer Key: 1) a 2) c 3) a 4) a

2. P roper insurance allows you to recover from a financial loss during the occurrence of a specific event such as: a) employee or customer injury b) business interruption from fires or floods c) theft and fraud d) all of the above

Franchise Canada July | August 2020 77

Answer Key: 1) c 2) d 3) a 4) b

MARKETPLACE

BMO Bank of Montreal Established 1817. CFA-MSS member since 1980. Major Canadian chartered bank, providing a full range of domestic and international financial services. The Bank’s National Franchising Services Group focuses exclusively on the franchise marketplace. We provide assistance by way of Financial Services Programs and banking arrangements to both the established and emerging franchise systems operating in Canada. We understand franchising. We have the expertise necessary to fully understand your business and to respond with a comprehensive package of loans, cash management and electronic banking services suited to your network’s distinctive circumstances. The Bank of Montreal recognizes that franchising is a significant contributor to the Canadian economy and we are committed to its continuing success. For more information, contact us at BMO Bank of Montreal, National Franchising Services, 55 Bloor St. W., 17th Floor, Toronto, Ontario M4W 3N5 Contact: Joseph Pisani at 1-877-629-6262, E-mail: franchising@bmo.com Or visit bmo.com/franchise

Browns Socialhouse is more than a restaurant or a bar. And it’s better than either – combined. Browns Socialhouse is a fresh, hybrid concept that successfully bridges the gap between upscale casual dining and neighbourhood pub. Blending “local ingredients” such as Owner-Operators that live in the markets they serve with great sites that many of our competitors simply can’t fit into, Browns Socialhouse delivers: • Great experiences to its guests…in their own communities • Industry-leading innovations that create operational efficiencies for franchise owners Our Mission at Browns Socialhouse is to grow a world-class restaurant brand that creates wealth and opportunity for our partners. And we’re looking to partner with top-notch restaurant industry veterans that have paid their dues in the Casual Dining arena but want more than just a paycheque to show for it… Let’s chat, if you’re “Feeling Social” about the idea of owning your own Browns. 207A-3540 West 41st Ave. Vancouver, BC V6N 3E6, Canada Phone: (604) 630-0885 Fax: (604) 630-0887 Web: http://www.brownssocialhouse.com Email: franchising@brownsrestaurantgroup.com

Chuck’s Roadhouse Bar and Grill® is an innovative concept with a competitive advantage in the casual dining industry – An advantage that places them as one of Canada’s fastest growing franchises year-after-year. Having premium locations throughout Ontario, industry-leading sales and sales growth, low royalties and marketing costs, turn-key buildouts, and optimized operations support; this low-cost investment provides franchisees with exciting returns. Schedule a meeting with their development team to learn about the growing demand from guests across Ontario, your opportunity as a restaurant owner and their continued expansion. Food the way it ought to be, priced the way it used to be! Franchise Since: 2015 Franchise Fee: $50K Investment Required: $250K-$600K Training: Yes, Included. Available Territories: All of Canada In Business Since: 2015 CFA Member Since: 2016

905 814 8030

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Serving breakfast, lunch, dinner and dessert, Crepe Delicious offers fresh, nutritious and tasty food for people on-the-go. All of our Crepes are made in a open concept kitchen for customers to witness their food be prepared fresh before their eyes. Not only do we offer our numerous sweet crepes, we also offer savoury Crepes with hearty veggies and proteins to satisfy any craving. Our premium gelato is a perfect complement to Crepes, which is proudly made in house with fresh ingredients, while also offering vegan options. Our unique concept combines low food costs with excellent site selection to provide our franchisees with the recipe for success. Single-unit, area development and master franchises available for this innovative specialty food concept.

For more information about Chuck’s Roadhouse Bar and Grill franchise opportunities, contact: development@obsidiangroupinc.com

Crepe Delicious is the largest and fastest growing creperie and gelateria. Specializing in innovative crepes and handcrafted gelato, we take pride in being a leader in the trend towards healthier eating.

www.crepedelicious.com info@crepedelicious.com Phone (905) 326-2969 Toll Free (877) 582-7373

www.cfa.ca | www.FranchiseCanada.Online

MARKETPLACE

We are a world-class franchisor with a commitment to quality, having more than 7,100 stores in more than 29 countries. DQ Grill & Chill® offers a variety of soft-serve treats along with a full line of hamburgers, hotdogs, chicken and salads. As an ongoing expansion program, we are presently accepting applications for DQ® franchises across Canada. Candidates must have business acumen, superior people skills and desire to work with a proven franchise system. A DQ Grill & Chill® has a total investment of approximately $800,000 - $1,200,000 or more. The candidate must have a minimum of $400,000 cash available. A DQ® Treat location can be in major shopping malls or as a free-standing unit. The total investment for a retail store is between $300,000 $500,000 and up to $800,000 for a free-standing unit. Applicants must have a minimum of 40% project cost in cash to invest. www.dq.ca Contact: Tammie Verna at tammie.verna@idq.com or 905.637.4741

Grab the Day by the Eggs® Eggspectation is an innovative upscale-casual dining restaurant concept. Founded in 1993, Eggspectation restaurants are known for their brunches. With an extensive all-day menu choices, Eggspectation offers a unique experience. From breakfast to brunch, lunch to coffee & dessert time to happy hour and dinner, Eggspectation is the place to kick back in style with friends, family and business associates and enjoy good times in this unparalleled environment. Franchise Units: Canada 13, USA 7, International 8 Corporate Units: Canada 2, USA 1 In Business Since: 1993 Franchise Since: 1998 Franchise Fee: $50K Investment Required: $500K-$1M Training: 10 weeks Available Territories: All of Canada, USA, International CFA Member Since: 2011 7960 rue Saint-Denis, 2nd. Flr., Montreal, QC, H2R 2G1 Phone: (514) 282-0677 x 225 / (833) 838-EGGS (3447) Fax: (514) 282-8115 Web: www.eggspectation.com Email: sr@eggspectation.ca Contact: Sanjeev Rohailla, Director of Operations

Elite Trade Painting is built on 30+ years of experience in the painting contracting business. Providing high quality residential and commercial painting services in markets across Canada. Our support, training and custom mobile software establishes a competitive advantage for all of our franchisees. Franchises have an opportunity for business success with a lifestyle to enjoy that success. We are looking for entrepreneurs to join us today in the highly rewarding home services industry. Franchise Units: Canada: 10 Investment Required: $85K - $110K Franchise Fee: $48K In Business Since: 1991 Franchise Since: 2012 Available Territories: All of Canada CFA Member Since: 2016 For further information: 1.877.663.5483 info@elitetradepainting.com elitetradepainting.com/franchise

Fatburger has been serving up the freshest, biggest, juiciest burgers for over 65 years. With restaurants in 37 countries, prospective franchisees benefit from investing in a concept with a proven track record. Prime ownership opportunities are available across Canada. We provide: • A highly recognized trademarked brand • Extensive initial training • Ongoing operation & training support • Marketing/advertising support • Excellent return on investment capital An upper tier quick-casual restaurant serving fresh, never frozen custom made Alberta Angus beef burgers and Buffalo’s™ World Famous Wings and Tenders, Fatburger is a recognized leader in the premium burger category. We are passionate about quality, food and service - and it shows! We offer an extensive menu and dynamic décor that brings food, fun and style together. Each meal is cooked to order using fresh ingredients and traditional cooking methods. The taste and quality of Fatburger has been inspiring fierce customer loyalty since its inception in 1952. 60 locations across Canada and growing! For more franchise information, call us at 1-888-597-7272 or email franchise@fatburgercanada.com. For locations and more visit www.fatburgercanada.com.

Franchise Canada July | August 2020 79

MARKETPLACE

PETS ARE UNDENIABLY PART OF THE FAMILY. At Global Pet Foods we believe that caring for pets means taking care of their minds, bodies, spirits, and souls. That is why when a customer walks into a Global Pet Foods store, they know they are getting the absolute best quality nutrition, accessories and service for their pet. Since 1976, Global Pet Foods has evolved to become the largest 100% Canadian pet specialty retailer with the widest selection of holistic nutrition on the market today. Even the house brand, Nature’s Harvest, is made from only freshest human-grade ingredients, locally sourced and manufactured in Canada. A genuine need to help pets and their families live longer, healthier lives together is what keeps our customer coming back and a notch above our competition. Our attention to careful site selection, detailed store planning and quality “hands-on” merchandise management has resulted in time-proven, steady profitable growth within our family of stores with over $200 Million in annual sales. Combine that with our robust Franchisee Support and absolutely everything else that provides you with a turn-key operation, you’ll see Global Pet Foods is a business truly worth barking about. Franchised Locations: 186, Corporate Locations: 10 CFA Member Since: 2003 Contact the Franchising Team: (905) 790-9023 | franchises@globalpetfoods.ca

2020 will be a year to remember for us all! For M&M, it marks 40 years of helping Canadians put delicious meals on the table which has never been more relevant than during the recent crisis. We are extremely proud of our front line Franchise Partners, Managers and Meal Advisors who have stepped up to the table to support their customers and communities showing that while much has changed with M&M, our commitment to our customers has not! New name, new award winning design/concept offering our customers the confidence they can shop in a clean, convenient, welcoming environment. We’ve proudly met our food promise with all of our products free of artificial colours, artificial flavours, and artificial sweeteners. No other national grocery retailer can currently say that! We offer easy-to-prepare, top quality, innovative options for those looking for something different for dinner, be it our individual Premium Single Serves in their revolutionary packaging or quick to prepare skillets to feed the entire family. Our new M&M APP makes shopping online and redeeming M&M Rewards convenient as well offering delivery in most regions and now in response to the COVID crisis we have curbside pick up available! Reach out today to find out about the opportunities we have nationally where you can be your community’s M&M brand ambassador! For more information, visit our website at www.mmfoodmarket.com/en/franchising or call us at 1-800-461-0171.

IT PAYS MAKE A LIVING THAT MAKES A DIFFERENCE Join Oxford Learning, a leader in tutoring excellence, helping students worldwide from preschool to university. Oxford Learning celebrates multiple awards from the Canadian Franchise Association, including Franchisees’ Choice Designation in 2018, 2019, and 2020, Top Franchisee 2020 Award, and 2020 Lifetime Achievement Award for Oxford Learning’s founder. Proudly Canadian with 36 years as a proven franchise system, we have more than 125 locations across Canada. Whether in an Oxford Learning centre or through our online program, Virtual TableTM, we are changing the way students process, interpret, and organize information for more reliable, long-term outcomes. It’s called cognitive learning! Become an Oxford Learning franchisee. An education background is not a prerequisite - our unique cognitive learning program, proprietary curriculum, and comprehensive training combined with your drive to succeed is the only requirement! Looking for an opportunity to make a difference in your life and in your community? Discover the rewards of helping children succeed. 1-888-559-2212 (ext. 115) or franchise@oxfordlearning.com.

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BECOME A HOME MAKEOVER SPECIALIST PREPPING HOMES FOR SALE – AND MUCH, MUCH MORE Do you like Real Estate, Design, Staging and Renovations? Do you enjoy Networking and want a Flexible Work Schedule? PREP’N SELL COULD BE THE RIGHT FIT FOR YOU Prep’n Sell Franchise owners provide a convenient, hassle-free “One Call” service to Real Estate agents and home owners who are looking to sell or buy a home. We provide a full spectrum of home improvement services and specialists – everything that’s needed to prepare a home for sale. Our Prep’n Sell Franchises have hundreds of Real Estate Agents promoting our business. What a WIN / WIN Concept! • Home-based business with low overhead costs • Family-friendly business • In-demand, niche market in an $80 billion industry • Contractor opportunity for trades • Complete turnkey system • Prep’n Sell custom operations software • Complete training and ongoing support • Management of digital & social media marketing • Franchisees just like you connect online every two weeks PARTNER WITH US TO START YOUR OWN FRANCHISED BUSINESS Contact David Collier today. 416.201.1010 or 844.299.1104 dcollier@prepnsell.com www.prepnsell.com

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MARKETPLACE

Join The Future of Real Estate

Join the Quesada franchise team and discover the Joy of Mex!

The Internet has transformed everything we do. It allows visionary companies to move faster and make things happen for less money. That’s why you don’t see many ads for video store or travel agent franchises in this magazine like you once did.

QUESADA FRANCHISEE BENEFITS:

If you’ve often thought that the real estate industry is also ripe for major transformation, then it’s time to join the club. At PropertyGuys.com we leverage people and technology in a way that makes real estate better. Our national network of over 100 franchise owners enjoy being on the cutting edge of innovation, have exclusive territories and represent a real estate platform that creates raving fans. While we’re already in over 600+ communities coast-to-coast, we’re not done growing. This could be your chance to be part of something amazing.

• Affordable entry cost • Proven business model • Canadian owned company with hands-on franchisee support including: ° Site selection, lease negotiation, and restaurant design expertise ° Operational and management training ° Advertising and promotional support ° Systems to build sales, reduce operating costs and increase profitability

If you want to learn more about how you can own a piece of the Future of Real Estate please let us know by email to opportunities@propertyguys.com, phone 1-844-333-7017 or by visiting info.propertyguys.com/cfa.

Three corporate locations and over 135 franchises from coast to coast – with more locations opening every month.

With approximately 250 cafés across Canada, Second Cup Coffee Co. is Canada’s largest specialty coffee franchisor, proudly serving premium coffee and amazing opportunities since 1975.

Welcome to the home of the original Famous All Day Breakfast™ Canada’s leading full-service breakfast restaurant franchise Fresh is Tastiest™ is the Sunset Grill philosophy. Our guests are loyal to our brand and love our food because we use quality ingredients, healthy cooking methods and our meals are freshly prepared and cooked to order.

Our Mission is to deliver an unforgettable coffee experience that celebrates life’s moments and gives good vibes! Together with our franchisees we create the most joyful coffee experience. Customers come to us for our friendly, knowledgeable, skilled and passionate baristas, and our warm and inviting environment. If you have the ability to provide an inspiring in-café experience to your customers along with the know how to make a retail business succeed, we would like to talk to you. Second Cup Coffee Co. provides intensive management training and ongoing marketing and operational support. You can also look to us for product innovation and exciting developments in café design and customer service. To learn more, please visit secondcup.com E-mail franchising@secondcup.com

Recipient of the 2011 CFA Hall of Fame Award

Steve Gill Founder & CEO

franchising@quesada.ca www.quesada.ca/franchising/

Our award-winning formula has been perfected through decades of experience operating and franchising successful restaurants. For over 30 years, our owner-operators have enjoyed healthy returns and high profit margins (up to 20 per cent on net sales). We set you up for success with our turnkey build-outs and handson training program. You’ll learn the ins and outs of running a successful and sustainable breakfast restaurant, and you’ll benefit from ongoing professional guidance. Partner with Canada’s # 1 breakfast brand today as we continue to expand over the next 12-month period, opening at least 20 new franchised units across Canada and select markets in the U.S. Join the breakfast revolution today and let us find you a home at Sunset Grill. Visit us: www.sunsetgrill.ca Email us: franchising@sunsetgrill.ca Call us: (905) 286-5833 Sunset Grill. A business that works for you.

Franchise Canada July | August 2020 81

MARKETPLACE

Join The UPS Store franchise network and count on the support from our experienced Home Office and in-field teams to get you to your grand opening and beyond. Many offer printing or shipping services, but our dedication to innovation and convenience are what keep The UPS Store at the top of our industry. With over 345 franchise locations across Canada (and continuing to grow), we have a proven track record of success! As a franchisee you will enjoy an established system to get your business started off on the right track; in-depth training programs and ongoing support to make sure you continue to succeed; and an internationally recognized and award-winning brand to help you build instant credibility in your community. The UPS Store is there at every stage of your franchising journey. Visit us at theupsstore.ca. We Print, Ship & More! Locations, North America: Over 5000 Locations in Canada: Over 345 Minimum cash investment: $100,000 Total cash investment: $174,000 to $198,500 plus working capital.

The Future is Wellness! Community-based, health-focused multi-media marketing. Our approach is simple. We help health-related local brands foster meaningful connections and provide them with multi-media marketing platforms that include: print, online directory & social media advertising, branding & visual identity, design, copywriting, and community management. Wellnessnews Choices for Healthy Living® is currently found in 11 communities in Manitoba, 9 in Saskatchewan, 2 in Alberta, and 8 in BC. Area developers, master franchises, multi and single-unit territories are now available for entrepreneurs who are looking for a homebased business that provides them with independence and flexibility to suit their lifestyle. Benefits include in-house creative design, an editorial team, a great reputation, initial training and ongoing support, very low overhead, and long-term residual revenues! Call today to find out if you qualify to own YOUR own exclusive publishing territory. Don’t miss out on this amazing opportunity to make a difference in your own life and in the lives of others. Scaling Franchise Fee Starting at 21,500 Investment Required: 36,320

For more information on The UPS Store opportunity, call 1-800-661-6232 or visit www.theupsstore.ca.

WELLNESSNEWS CANADA, INC. Website: WellnessnewsFranchise.com E-mail: opportunity@wellnessnews.ca • Phone: 1-800-840-4309

Associate your brand with the quality and credibility that only the Canadian Franchise Association (CFA) can offer by advertising in Franchise Canada.

Benefit from your CFA membership and reach sophisticated prospective franchisees Advertising in Franchise Canada gives you access to our readers – your target audience – in a trusted editorial environment.

Put your brand in the hands of discerning and educated Canadians who are looking for exceptional franchise opportunities. Your advertisement will reach readers across the country through a comprehensive distribution plan and a loyal subscriber base. Be seen across Canada and beyond In addition to being on newsstands and in bookstores across Canada, Franchise Canada is distributed in Air Canada Maple Leaf Lounges, reaching 350,000 affluent passengers in major cities around the globe. Align your brand with a winner. Franchise Canada is the only franchise magazine to be recognized for best newsstand sales by the Canadian Newsstand Awards and excellence in business journalism as the recipient of a Kenneth R. Wilson Award and by the National Magazine Awards: B2B.

FOR ADVERTISING CONTACT: Gwen Dunant TEL: 877-254-0097 | FAX: 416-695-1950 | EMAIL: gdunant@cfa.ca WEB: cfa.ca | FranchiseCanada.Online

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Franchise Canada is the voice of Canada’s franchising industry, and is here to help you make your dreams of business ownership become reality. Head to the recently redesigned www.FranchiseCanada.Online for franchisee success stories, videos, expert advice from industry leaders, and more engaging content to help you achieve your franchising goals: all in one easy-to-navigate location!

INVESTIGATING FRANCHISING? ALREADY A FRANCHISEE? Franchise Canada Magazine is your guide to franchise success.

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WHAT’S NEXT

DON’T MISS OUR SEPTEMBER/OCTOBER 2020 ISSUE! The Food Issue There’s no question that the COVID-19 pandemic has impacted Canadian businesses, and those in the food industry are certainly no exception. Food franchises, however, remain a stalwart of the franchise business model, making up the largest category in franchising. As the Canadian economy starts on the path to recovery, food franchising has lots to offer prospective franchisees who want to make their business dreams become reality. Take a bite out of the Franchise Canada Food Issue as we dig in to what you need to know about franchising in the food industry. From a look at how food franchises are adapting in our current economy to inspiring franchisee success stories, the September/October 2020 issue of Franchise Canada is sure to give you a taste for what franchising can offer.

WATCH FOR THESE APPETIZING FEATURES IN OUR SEPTEMBER/OCTOBER 2020 ISSUE:* FOOD SERVICE FRANCHISE INNOVATION: The COVID-19 pandemic has had a major impact on the restaurant industry, but Canadian food services franchises are rising to the challenge. In this feature, we highlight food service franchises that have adapted by introducing innovative business practices to help meet changing customer needs. BEST FRANCHISEE OF CANADA: Multi-unit Subway Canada franchisee Kelly-Anne Pelley was recently named the Best Franchisee of Canada and participated in the Best Franchisee of the World competition in Italy. Here we share Pelley’s story, including the secrets behind her franchising success and her experience at this global franchisee competition.

PIZZA FRANCHISES ACROSS CANADA: Pizza has proven to be a takeout and delivery staple in Canada. If you want to get in on a piece of the pizza franchising pie, this article is a great place to start! We map out pizza franchises from coast to coast, focusing on the qualities that make each franchise unique in the market. FRANCHISING MEETS MARKET NEEDS: As the Canadian economy begins to reopen, franchised businesses have the perfect opportunity to step in to fill any gaps. In this article, we explore how the franchise business model is built to quickly meet market demand with established businesses run by local business owners.

PLUS A DIGITAL-EXCLUSIVE SPECIAL FRANCHISE FOCUS ON COMMERCIAL AND RESIDENTIAL SERVICES! IN EVERY ISSUE: • Industry News • Show Me the Money • Franchise Tutorials • Leadership Profile • Giving Back • Home-Grown & Locally-Owned • Ask the Experts • Day in the Life • The First Year • Franchise Fun *Editorial subject to change

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ADVERTISERS’ INDEX BMO Bank of Montreal............................... 34 www.bmo.com/franchise

Global Pet Foods.... Inside Back Cover www.globalpetfoods.com

PropertyGuys.com........................................... 53 www.propertyguysfranchise.com

Chuck’s Roadhouse Bar and Grill®........ ........................................................................................ 4 & 5 www.chucksroadhouse.com

International Franchise Association ............................................................................................... 76 www.franchise.org

Second Cup.............................................................. 33 www.secondcup.com

Dairy Queen Canada.. .................................. 63 www.dq.ca

M&M Food Market.. .............................................. 3 www.mmfoodmarket.com/en/ new-shopping-experience

Elite Trade Painting. . ...................................... 29 www.elitetradepainting.com/franchise

The UPS Store............ Inside Front Cover www.theupsstore.ca

Prep’n Sell...................................................................... 7 www.prepnsell.com

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GIVING BACK

Helping Hometown Heroes

The Firehouse Subs Public Safety Foundation of Canada provides funding to first responders and public safety organizations BY ANDREW SCHOPP STEP INTO ANY FIREHOUSE SUBS location and it’s clear right off the bat where the franchise’s heart is. With the tools of the trade, uniforms, and other police and fire memorabilia lining the walls of the quick service restaurant’s fire station-themed décor, every Firehouse Subs location is a celebration of the men and women serving their community as first responders. Even the franchise’s extensive menu of submarine sandwiches has nods to first responders, boasting subs with names like the “Hook & Ladder” and “The Engineer.” Launched in 1994 in Jacksonville, Florida by brothers Chris Sorensen and Robin Sorensen, both former firefighters, Firehouse Subs serves up a wide range of hearty submarine sandwiches packed with quality meats, cheeses, and toppings. It was after lending a hand in the aftermath of Hurricane Katrina in Mississippi in 2005 that the Sorensens decided to take the franchise’s commitment to honouring first responders a step further with the formation of Firehouse Subs Public Safety Foundation in the U.S. “They have always been cognizant of the needs of first responders,” explains Robin Peters, executive director of the U.S. Foundation. “After Hurricane Katrina, they went into Mississippi and that whole area that was devastated. They were there for over a week, feeding first responders and volunteers. It was a gamechanger for them. Heading back from that disaster, they were excited to do more, as we were in a position to create a foundation to help first responders across the country.” The Foundation is dedicated to providing lifesaving equipment and

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resources to first responders and public safety organizations. As of April 2020, the Firehouse Subs Public Safety Foundation has granted more than $50 million to the budgets of 4,263 first responders and public safety organizations throughout the U.S. In 2015, the Canadian branch of the Foundation was launched shortly after the franchise opened its first restaurant in Oshawa, Ontario. In just a short amount of time, the Firehouse Subs Public Safety Foundation of Canada has provided close to a million dollars in grant funding to public safety north of the border. According to Peters, the success of the Foundation in Canada has been boosted by the enthusiasm of franchisees – all of which are in Ontario at the moment as the franchise looks to expand into the rest of the country. “The culture of philanthropy is part of the brand’s philosophy,” she explains. “I have to tell you, these Canadian Firehouse Subs franchisees are the best of the best. They embrace it and are excited to be a part of not only a great restaurant concept, but also to give back to the community.” It makes sense that the franchise owners of the 33 Firehouse Subs locations in Ontario have bought

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into the franchise’s commitment to supporting first responders. When looking to bring franchisees on board, they must have a passion for community service. Giving back to the community is a big part of the brand and the onboarding process for new franchisees, Peters adds. As the franchise pursues aggressive expansion throughout the Great White North, they’ll be looking to grow on the tremendous success the Foundation has seen in Canada in just five years. In addition to providing funding for badly needed, and quite expensive, lifesaving equipment to public safety departments, they’ll also look to establish the brand as a beacon of public safety in the communities they serve. “What we look to do is – while providing life-saving equipment – educate and support programs that help save lives, but also educate citizens. Whether it’s fire safety or CPR training, our goal is to impact and save lives,” says Peters. From what she’s seen from the group of Canadian Firehouse Subs franchisees so far, Peters has little doubt that the brand will meet its philanthropic goals. “I’ve been in the non-profit world for more than 30 years, and have been inspired by the Canadian restaurants and their commitment to the foundation,” she explains. “From the owner of the business – the franchisees – right down to the person at the cash register. They understand it and they embrace it. Because of that, they raise more money for the community and first responder departments. I cannot put into words how committed they are.”

Simba, Construction

Bella, Franchising

Chester, Marketing

Shredder, Administration

Goldy, Accounting

Smokey, IT

Bun Bun, Operations

Frank, Distribution

Milo, Franchisee

Wiskers, Manufacturing Partner Wiskers, Manufacturing Partner

Charmander, Front Line Staff

“We Are In This Together, And We Will Emerge Better And Stronger.” During the unprecedented events of COVID-19, our family of stores have faced some of the most difficult challenges as business owners. As an essential service to Canadians and their pets, our franchisees nationwide have had to learn, adjust and retool day-to-day operations while supporting their customers, staff, and communities. It’s often mentioned around the corporate office how we’ve been fortunate to build Global Pet Foods with business owners who are resilient, savvy, and engaged beyond measure. Few words can express the pride and gratitude we have for all our Franchise Partners and Staff who, throughout this adversity, have exhibited loyalty to our brand and stayed true to the Mission and Values we stand for. Pets are undenibly part of the family.

The Special Franchise Focus Goes Digital

Want to learn more about best-in-class franchises? Check out the July/August DIGITAL Special Franchise Focus on Award-Winning Franchises at www.FranchiseCanada.Online!