Franchise Canada July/August 2022 by Franchise Canada

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SAVVY SIGN PRODUCTS AND SERVICES FRANCHISES

SPECIAL FOCUS ON CFA AWARD WINNERS

FRANCHISE LAWYERS ACROSS CANADA

JULY | AUGUST 2022

A Canadian Franchise Association Publication / FranchiseCanada.Online

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INSIDE:

THE FRANCHISE GUIDE YOUR ULTIMATE SOURCE FOR BUYING A FRANCHISE

DINER TO DRAGON Boston Pizza owner Jim Treliving on his franchising journey

Connect with the Leader in Home Services Franchising.

The Experts in Dryer Venting Services

Helping Franchise Owners Breathe Easier Lorem ipsum

Lawncare Can Lead to a Lifestyle of Freedom

An Industry Leader in Appliance Repair

Brush on a Brighter Future

A Franchise Built for Strong Entrepeneurs

Gain the foundation to begin your journey toward successful business ownership and a more flexible lifestyle with your free franchise guide today.

Discover which of our franchise brands is right for you. Visit: go.nbly.com/CFA • Call today: 866-687-1106 This advertisement should not be construed as an offer to sell any franchises. The offer of a franchise can only be made through the delivery of a franchise disclosure document by or on behalf of one of the Neighborly brands 1010 N. University Parks Dr. Waco, TX 76707, 254-745-2444. In addition, certain states regulate the offer and sale of franchises. We will not offer you a franchise unless and until we have complied with applicable pre-sale registration and disclosure requirements in your state. The filing of an application for registration of an offering prospectus or the acceptance and filing thereof by the NY Department of Law as required by NY law does not constitute approval of the offering or the sale of such franchise by the NY Department of Law or the Attorney General of NY. Not all franchise brands are available in Canada.

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CONTENTS FRANCHISE

JULY/AUGUST 2022

CANADA

Looking for a franchise? Discover

the best franchise business opportunities available now

Start a business for yourself with the support of a credible franchise system! With hundreds of franchise opportunities, LookforaFranchise.ca is the most comprehensive online directory of legitimate franchises available in Canada. We make searching for a franchise easy – you can find franchises by company name, location, investment, or industry. Begin your search now and realize the dream of running your own business.

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17 COVER STORY

Diner to Dragon Boston Pizza owner Jim Treliving on his franchisor success story, Dragons’ Den days, and the importance of treating franchisees like family

THE FRANCHISE GUIDE Your Ultimate Resource for Buying a Franchise

22 Finding the Right

Franchise Fit

24 The Process of

Opening a Franchise

26 Franchise Financing 101

28 Doing Your Due

Follow the Signs Business is booming for sign products and services franchises

Franchise Lawyers Across Canada Find the support you need to navigate the legal aspects of franchising as we introduce you to CFA member lawyers from coast to coast

Legal Aspects of Franchise Resales How to conduct proper due diligence when purchasing a resale franchise

SPECIAL FRANCHISE FOCUS

Diligence

31 Checklist for Franchisees

Canadian Franchise Association

www.cfa.ca | www.FranchiseCanada.Online

Special Focus: 2022 CFA Award Winners Explore the winners recognized by the Canadian Franchise Association's annual awards program

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

DEPARTMENTS

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

NEXT GENERATION IN FRANCHISING Healthy Choices Massage Addict franchisee Jordan Fox blends health and wealth for business success

LEADERSHIP PROFILE On the Cutting Edge Pizza Pizza CFO Christine D'Sylva shares a slice of innovation

A DAY IN THE LIFE Franchising with Care Comfort Keepers® franchisee Brenda Rosati shares a day in the life running her seniors home care business

THE FIRST YEAR Work in Progress CertaPro Painters franchisee Ken Ferguson reflects on his wins and learnings as a new business owner

ICONIC BRAND The Right Choice Choice Hotels builds its franchising empire on a bedrock of passion and care

101

SHOW ME THE MONEY 4 Franchises for $150K-$250K

102

FRANCHISE FUN Go Nuts for Franchising Founder of Maverick’s Donuts Geoff Vivian shares his passion for business, love for his family, and why brand growth is just the icing on the cake—or the topping on the donut

106

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

COLUMNS

10 CFA CODE OF ETHICS 11 INDUSTRY NEWS 104 ASK THE EXPERTS 109 MARKETPLACE 117 ADVERTISERS’ INDEX 118 GIVING BACK

CHECK OUT SEASON 6, NOW ONLINE!

LISTEN & LEARN

Tune in to the Franchise Canada Chats Podcast! Available on Google Play, iTunes, SoundCloud, Spotify, and Stitcher Radio

FranchiseCanadaChats.ca Visit www.LookforaFranchise.ca to find more information about the franchises featured in this issue.

Franchise Canada

July | August 2022

PUBLISHER’S MESSAGE

FOLLOWING FRANCHISING DREAMS

t the Canadian Franchise Association (CFA), our goal is to help everyday Canadians realize their dreams of business ownership through franchising. As the 12th largest industry in the country, franchising offers a plethora of opportunities to turn those dreams into reality, all with the support and community that a proven brand offers. If you are one of the many Canadians who want to go into business for yourself, you’ll want to turn to page 17 for inspiration. In this issue of Franchise Canada, our cover feature spotlights Boston Pizza chairman and owner Jim Treliving. He is the owner of one of Canada’s most iconic franchise systems, and he also spent many years sharing his business expertise as an investor on CBC’s Dragon’s Den. Read on for an in-depth look at his franchising journey and what he’s learned from his many years in business—and if you want to hear even more, be sure to check out the Franchise Canada Chats podcast episode featuring Treliving on FranchiseCanada.Online! This issue also contains The Franchise Guide, starting on page 21, which will take you through everything you need to know to get started in franchising. Whether you’re wondering how to find the right franchise opportunity which professionals you’ll need to help you, or want to make sense of the due diligence process, you’ll find the answers in this guide. We’ve also included a comprehensive checklist (page 31) of questions you’ll need to ask when considering a franchise opportunity. Any prospective franchisee will need a franchise lawyer to help them navigate the process of buying a franchise. On page 67, we’ve created a list of franchise lawyers across Canada to help you. And on page 80, lawyer Joseph Adler takes a close look at the legal aspects of franchise resales, sharing what you need to know if you’re considering buying an existing franchise location. While this issue is packed with resources for putting your franchise dreams into action, we also know about the importance of inspiration. That’s why you’ll also find success stories from other franchisees who have followed their dreams. There’s Manitoba-based CertaPro franchisee Ken Ferguson (page 95), for example, who recently completed his first year in business with the painting franchise and achieved expectation-breaking revenues. Or Brenda Rosati, who hired senior care service business

Comfort Keepers® to help her own mother and eventually became a Comfort Keepers franchisee (page 92). She shares what a typical day in the life is like for a franchise owner with this purpose-driven brand. We also share the story of Jordan Fox (page 86), a young massage therapist who turned to Massage Addict to help him achieve his dream of owning a multi-disciplinary clinic—a feat he was able to accomplish quickly with the brand’s support. Franchising is a great path to being your own boss, and it's not a solitary endeavour—in fact, franchising is all about sharing success. In the Iconic Brand feature on page 98, you’ll read about how hospitality brand Choice Hotels has supported its community of franchisees through difficult times, from the large-scale crisis of the COVID-19 pandemic to the personal challenge of a franchisee’s battle with cancer. And on page 118, you’ll find out how Dairy Queen is giving back to communities all over Canada through its Miracle Treat Day initiative and more. We hope this issue, packed with information, tools, professional advice, and success stories, serves as your Franchise Guide as you venture out on the first steps of your franchise journey. Be sure to continue your franchise research on LookforaFranchise.ca, where you can search franchise opportunities by industry, investment level, and more. You can also subscribe to Franchise Canada E-News and follow the CFA on social media for more educational and inspirational content. With the right tools, you can make your business dreams become reality through franchising. We look forward to welcoming you into our franchising community!

Sherry McNeil President & CEO, Canadian Franchise Association

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

CFA BOARD OF DIRECTORS BOARD CHAIR David Druker*, The UPS Store PRESIDENT & CEO Sherry McNeil*, Canadian Franchise Association 1ST VICE CHAIR Ryan Picklyk, A&W Food Services of Canada Inc. PAST CHAIR Gerry Docherty*, Good Earth Coffeehouse SECRETARY & GENERAL COUNSEL

PUBLISHER

Canadian Franchise Association (CFA)

Larry Weinberg*, Cassels Brock & Blackwell LLP

VP, CONTENT & MARKETING Kenny Chan

TREASURER Lyn Little, BDO Canada LLP

EDITOR Lauren Huneault (on leave),

CHAIR, FRANCHISE SUPPORT SERVICES

Joelle Kidd (interim)

Kirk Allen, Reshift Media

GRAPHIC DESIGNER Andrea Lee

CHAIR, LEGAL & LEGISLATIVE COMMITTEE

ADVERTISING SALES Om Mehta

Darrell Jarvis*, Fasken

AD COORDINATOR Andrea Lee

DIRECTORS

Steve Collette, 3rd Degree Training Chuck Farrell, Pizza Pizza John Gilson, COBS Bread Andrew Hrywnak, Print Three Franchising Corporation Rimma S. Jaciw, CFE, WSI Digital Joel Levesque, McDonald's Restaurants of Canada Ken Otto, Redberry Restaurants Gary Prenevost, FranNet John Prittie, TWO MEN AND A TRUCK Stephen Schober, Metal Supermarkets Family of Companies Frank Stanschus, Little Kickers Thomas Wong, Chatime Todd Wylie, Master Mechanic *Executive Committee member

CONTRIBUTING WRITERS

Georgie Binks, Suzanne Bowness, Roma Ihnatowycz, Gina Makkar, David Chilton Saggers, Stefanie Ucci, Jordan Whitehouse, Kym Wolfe FRANCHISE FUN ILLUSTRATION Sam Gorrie FOR ADVERTISING INFORMATION:

Om Mehta omehta@cfa.ca

TO SUBSCRIBE TO Franchise Canada

visit www.FranchiseCanada.Online or call 1-800-665-4232 ext. 238.

We invite your comments, questions and suggestions. Please contact us at editor@cfa.ca or https://cfa.ca/ franchisecanada/franchise-canadamagazine/. 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

© 2022, 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. Publications Mail Agreement No. 41043018

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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.

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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 contractual

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 LookforaFranchise.ca today.

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

INDUSTRY NEWS

Your source for what’s happening in Canadian franchising Sola Salons Accelerates Canada Expansion Sola Salons, the world’s largest and fastest-growing salon studios franchise, announced in April the signing of four franchise development agreements that will expand its presence in key territories across Ontario, including Toronto, Durham, Kitchener-Waterloo, Markham, Richmond Hill, Hamilton, and Barrie. These new signings will bring nine new Sola locations to Canada over the next several years, in line with the brand’s aggressive domestic franchise development plans. In the past year, Sola opened 53 new locations, signed 72 franchise agreements, and reached a milestone of 18,000 independent beauty professionals across North America. “While Canada just reopened salon businesses in late 2021 due to challenges the pandemic brought, Sola Salons continued to grow its international development, further showcasing the strength of our business model,” said Christina Russell, CEO at Sola Salons. “We are excited to continue to plant our roots in Canada through our membership with the Canadian Franchise Association, welcome new franchisees, and watch our existing owners grow throughout Canada.” Sola Salons is a recession-resilient franchise with an understanding of markets across Canada. The realestate rental model requires minimal staff, drives unparalleled occupancy, and is backed by more than 17 years of salon studio expertise. Sola supports a growing community of more than 18,000 independent beauty professionals across more than 600 locations by providing a turnkey solution for beauty professionals to explore a better life as an entrepreneur.

The model continues to grow in popularity, especially amid the pandemic as beauty professionals seek to go independent to offer their clientele more control over their salon experience. More than 2,000 new beauty professionals joined the Sola family in 2021 alone. Sola brings firstin-Canada market resources like its new BookNow engine, which allows customers to book online and customize their appointments with their independent hairdressers, nail technicians, estheticians, massage therapists, or other beauty professionals. Sola is driven by its desire to use real estate to help aspiring business owners achieve their dreams and is looking for franchisees who feel the same way. As part of its continued franchise growth strategy, Sola Salons will be targeting a number of markets across North America. Franchise opportunities in Canada include Alberta, British Columbia, New Brunswick, Nova Scotia, Newfoundland & Labrador, Ontario, and Saskatchewan. Famoso Neapolitan Pizzeria Reopens in South Surrey with Weekend Breakfast Trattoria Famoso Italian Pizzeria + Breakfast Trattoria, a prominent neighbourhood Neapolitan pizzeria located at The Shops at Morgan Crossing in South Surrey, B.C., recently made a comeback to the community with a fresh new makeover, along with its first-ever weekend Breakfast Trattoria for the brand. Famoso in Morgan Crossing has been a mainstay restaurant in the community since 2014 and has built a strong following among local residents as well as many visitors over the years. It closed at the onset of the pandemic, but this local pizzeria

is ready to welcome regular and new guests back to dine in at its fresh, casual, and authentic atmosphere. “We’re excited to reopen in this community. We love our guests and we want to move forward as the pandemic situation changes. By giving this restaurant a makeover, we are making a fresh restart to reconnect with the community again,” says CEO Frank Di Benedetto. Famoso is known for its authentic Neapolitan pizza, which has regularly won awards and has become a favourite with many. Staying true to keeping things authentic, it uses imported Italian dome ovens, ingredients imported from Italy, and traditional culinary techniques in pizza making that have gone unchanged for generations. To provide more variety and excitement for guests, it has added a new weekend and holiday Monday Breakfast Trattoria menu, which includes signature breakfast pizzas, Famoso style Frittatas served in skillets, and mouth-watering Famoso Benedicts, giving guests a wide array of exciting options to choose from. Azim Hajee, the new franchise owner and operator, holds an InterProvincial Journeyman and Red Seal Certification, and has years of experience as an executive chef. “I’m passionate about making delicious food and working in the restaurant industry. My team and I are looking

Franchise Canada July | August 2022

INDUSTRY NEWS forward to serving and reconnecting with our guests and the community here.” In addition to dine-in services, Famoso also offers fast takeout/pickup and online ordering with its own Famoso app, and convenient delivery services. Breakfast Trattoria will be available at selected Famoso locations. Variety the Children’s Charity of Ontario Reveals Its Newly Renovated Primucci Pavilion in Honour of Pizza Nova Founding Family Since 1963, the Primucci surname has been synonymous with pizza. On June 14, the entrepreneurial pizza makers were recognized for close to a quarter-century of support for Variety the Children’s Charity of Ontario with the reveal of its newly renovated Primucci Pavilion, the main lobby to its landmark Toronto facility. Part of the renovation includes a 22-foot-wide by 10-foot-high mural depicting children at play against the Toronto skyline with the words, “Share the love.” “Pizza Nova has been a deeply cherished partner since 1999,” says Karen Stintz, president of Variety. “We are delighted to honour them in this way. Their contributions have helped us to lovingly serve thousands of children and their families over the years. We could not be more thankful for their relentless and inspiring support.”

Over the course of a 23-year partnership, Pizza Nova has raised more than $2 million for Variety with the support of its customers, franchisees, and staff. This year’s contribution was announced at the reveal: $203,902 raised from the company’s 2022 ‘That’s Amore’ Pizza for Kids campaign. “We are blessed to be a part of this community and to be able to give back,” said Domenic Primucci, president of Pizza Nova. “The Primucci Pavilion captures an important element of the drive that has motivated us since day one—helping children, no matter their circumstances, to enjoy access to good, wholesome fun and activities. We made our first donation to Variety in 1999 and have never looked back. We’re excited about what’s to come and thank the board, the leadership, and the staff and volunteers at Variety for all they do for the children. They truly make the world a better place.” Variety announced the new name of the pavilion last June and has since completed its renovation of the space. Part of the renovations included the impressive mural, created by Ontario artist Nicole Lalonde. “We’re honoured by this new pavilion and beautiful mural,” said Sam Primucci. “But, truly, we’re here and have always come here to honour the people who work at Variety. We are privileged to be associated with each one of them. We look forward to continuing this partnership for years to come.” Through its programs, Variety helps enrich the lives of thousands of children living with physical and mental disabilities by providing an accessible facility at Variety Village, specialized programs, dedicated staff, and a community in which everyone is equal and welcome. DermaEnvy Skincare Expanding to Two Additional Markets in New Brunswick DermaEnvy Skincare, a growing laser, skincare, and medical aesthetics franchise based in Halifax, Nova Scotia, is continuing its national expansion with the announcement of its ninth and tenth clinics, both in

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

INDUSTRY NEWS New Brunswick. The brand awarded the franchise territories of Quispamsis and Fredericton to existing brand franchisee, Kristi MacKay. MacKay currently owns clinics in Charlottetown, Prince Edward Island and Saint John, New Brunswick. MacKay opened her first clinic in Charlottetown in September 2020 and has since acquired the Saint John clinic, making the announcement of two additional territories her third and fourth clinics. The 13-year police veteran’s success with the brand began when opening her Charlottetown clinic, after which time she acquired the previously corporateowned Saint John clinic. She continues to see impressive growth and demand in both communities despite the challenges of operating during a pandemic. With such a positive community response, Kristi has decided to retire in good standing from her policing career and dedicate her time to the growth and success of her growing franchise portfolio of DermaEnvy Skincare clinics. “I’m excited to bring the DermaEnvy Experience of affordable laser and skincare to the communities of Quispamsis/Rothesay and Fredericton,” she says. DermaEnvy Skincare strives to provide their clients with honest, affordable, and professional skin care delivered in an approachable and clinical environment. Offering medical aesthetics treatments such as laser hair removal, microneedling, IPL photo rejuvenation, laser tattoo removal, facials, and peels. The Fredericton clinic is in the planning phase with a targeted opening in late 2022. With existing clinic locations open in Moncton/Dieppe and Saint John, “the brand is very excited to have an even stronger brand presence in the province where it all began for DermaEnvy Skincare,” says Cohen MacInnis, president of Wellness Brands Canada Inc., the franchisor of the brand. The brand has been established in the New Brunswick market, with the very first DermaEnvy clinic location opening in Dieppe in 2016. “Our brand’s continued growth in Atlantic Canada in the past 24 months, despite the operational and logistical challenges of the pandemic, are a credit to the loyalty and determination of Team DermaEnvy,” says MacInnis. A&W Signs Country Agreement for Canada with Pret A Manger with First Shop Opening This Summer A&W Revenue Royalties Income Fund and A&W Food Services of Canada Inc. announced in June a signed country agreement with U.K.-based freshly made food and organic coffee chain Pret A Manger (Europe). The agreement sets forth the general terms and conditions granting A&W master franchisor rights to Canada for Pret A Manger. Pursuant to the agreement, A&W is moving forward with a two-year pilot of the Pret brand in Canada, during

which period it will introduce the Pret brand within A&W restaurants in select markets. The first shop to trial the Pret brand will be in Vancouver and plans to open this summer. “We are excited to introduce Pret’s fresh and delicious menu range in a select number of A&W restaurants this year. We believe Canadian consumers will respond very positively and come to love the Pret brand and all that it represents,” says Susan Senecal, CEO of A&W. “Last year, we set out our ambitions to expand into new markets and bring Pret to more people worldwide,” says Pano Christou, CEO of Pret A Manger. “I’m excited to confirm that Pret will be coming to customers in Canada this summer through our franchisee agreement with A&W. We know Canadians have long been calling for Pret in their community. Thanks to this new partnership, we’re finally able to bring our freshly made food and 100 per cent organic coffee to Canada as part of a two-year trial.” The A&W restaurant locations that will participate in the trial phase are expected to launch a Pret menu range and organic coffees in the second quarter of 2022. If the trial is successful, A&W will have the exclusive right to expand the Pret brand across Canada based on an agreed-upon development schedule.

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Franchise Canada July | August 2022

ADVERTORIAL

T F I G E TH

G N I S I H C N A R F OF

him as helped h e r o t s e w th hise shares ho e c n tail franc a e r V a m n ia u r L es to chisee hat it tak w wn™ fran o d r n C a , ld y o G unit Hallmark his comm LE KIDD h it w t BY JOEL c e conn

hether it’s a thoughtful card, a meaningful keepsake, or a beautiful artisanal item, gifts are always precious—and a way to show someone you care. That’s why, for Hallmark Gold Crown™ franchisees like Liam Vance, running a business is also a conduit for community connection. “Hallmark strives to create a retail experience that promotes connecting people and nurturing relationships,” says Vance. It was this corporate philosophy that drew Vance to Hallmark in the first place. He’d been an owner of retail business ventures since 2008, and in 2015 was looking for an opportunity to grow his portfolio. “I compared several options and after creating a friendship with another franchise owner in the region, I found the [Hallmark] concept and branding inviting and full of potential.” Vance notes that “people are always looking for connection,” and that the Hallmark brand offered ways to help foster relationships.

“That really connected with what I was looking for in a business.” For the brick-and-mortar retailer, a big part of this connection comes through the in-store experience. “Customers have the option to shop online. However, we’re noticing that, now more than ever, they’re craving the experience of coming into the store and talking with our associates to find inspiration, and help them connect to people in their lives in meaningful ways,” Vance says. “We’re more than your average store—just ask our many wonderful customers!” It’s a celebration Hallmark’s mission is also to bring people together. As a gift shop, selling the special items that people use to celebrate and show their care for one another is a given. Among the most popular items is the Keepsake Ornaments collection available only in Hallmark Gold Crown™ stores. Vance says, “these are curated, artist-based collector

pieces, and really resonate with our consumers on an emotional level. The excitement and anticipation for our July launch seems to grow every year!” Vance notes that franchisees also source and sell high-quality locally made products in their stores. In his case, these include Nova Scotiamade treasures: hand-poured, 100 per cent soy candles from Truro, stunning jewellery from Eastern Passage, and “decadent, melt-in-yourmouth delicious chocolate” from Antigonish. “We want our fellow community members to be successful alongside us,” he says. “It’s very important for our customers to know that we are independently owned and operated and live locally.” It can be hard finding great local gift options, and Hallmark stores occupy a niche that solves this challenge with the added purchasing power of a national brand. “We work hard to offer a wide variety of options to relate to our customers, all under one roof,” Vance says.

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Community involvement goes beyond the walls of the shop, too. Vance’s location supports local charities such as the SPCA (Society for the Prevention of Cruelty to Animals), animal rescue organizations, food banks, homeless shelters in the area, and many other worthy causes. (If you haven’t guessed, Vance is an avid animal lover, with two cats of his own.) “We want to help give back to our hometowns,” he explains. Since Hallmark is well-known around Canada—and worldwide— as a brand focused on relationships and well-being, franchisees get a leg up on fostering these community connections, Vance notes. Hallmark Gold Crown™ locations are also able to feature their product online with e-commerce support, through a website and on social media, in a way that reflects their own market and helps create the strongest retail portfolio possible. Not to mention the brand’s loyalty program, Hallmark Rewards, which helps show customer appreciation through exclusive promotions. Weathering the pandemic—and coming out stronger When COVID-19 spread in March of 2020, it was a shock for retail businesses—not only did the pandemic cause supply chain disruptions, but public health guidelines to stop the virus’ spread meant these businesses couldn’t reach their customers. “There were months that we needed to close the stores, as we were deemed non-essential retail,” Vance recalls. “At that time, we weren’t sure what the duration of the closures would be, or how to manage the cost. […] It came as a shock, and I’ll be honest, it was a very stressful time in our lives.” But if there’s one thing the pandemic has made clear, it’s the value of innovation. Vance and his team developed an online space—www. maritimegifts.ca—to reach customers online during lockdown, offering

curbside pickup and reorganizing the stores to provide hand sanitizer and social distancing measures when they were able to reopen. The benefits of being part of a larger franchise system became clear when faced with challenges during the pandemic. “One of the biggest challenges that customers are noticing is the ongoing inventory delays caused by shipment and labour shortages worldwide,” Vance points out. “Hallmark has taken this matter to heart by placing orders for product earlier than usual, to be proactive in planning for success.” Vance says, “The future of retail has been forever changed, and we’re fortunate to say we’ve come back stronger than ever.” Gold Crown™ franchising Business ownership might not be for everyone, but Vance says he can’t imagine doing anything else. “Deciding to be a retail owner is understanding that there is so much potential to grow and develop, with the right tools,” he adds. “Going in understanding that you’re charting your own course, and having the right attitude, is half the work.” An ideal Hallmark franchisee has to be adaptable—an owner in a fast-paced retail setting has to wear many hats—and prepared for ever-changing consumer trends and expectations, Vance says. Communication and leadership skills are also essential. “[You have to] ensure that managers and store associates are given the right tools to succeed. Even more important than that is having a connection with them. The old adage that employees are not just numbers couldn’t be more true—as an owner, it’s vital to ensure employees feel safe, welcome, appreciated, and heard.” Hallmark has plenty of training and support to get new franchise partners on their feet. This includes an internal sales training program (called CARE) that helps staff learn sales skills and connect meaning-

fully with customers. The brand also has a team of Business Development Specialists to assist franchisees with ordering, communication on key events and activities, and ongoing feedback. At Vance’s location, “we work closely with Haley Brunelle on an almost daily basis to ensure the success of our business.” There are also marketing benefits: Hallmark uses social media platforms, influencers, and digital advertising to support the business, and provides marketing materials like in-store signage. There is also a centralized web-based ordering system, Hallmark Marketplace, used for most ordering purposes, which Vance says gives him “immediate access to product information, guides, and additional training.” When asked what advice he would give a prospective franchisee, Vance recalled what another franchise owner told him, at the beginning of his own franchise journey: “You’re not here because you want to become a millionaire—you do it out of passion and love for the product.” The sweat you put into your business is worth it, he says. “Retail has its successes and challenges, [but] what never waivers in the world we live in is the need for connection. The beauty in that is that people want to express their love, appreciation, support, and positivity, now more than ever,” says Vance. “It’s truly amazing that despite all the struggles we see in the world, something as simple as a card can change someone’s day in an instant.”

For Hallmark franchising information, visit www.hallmark.ca

COVER STORY

DINER TO DRAGON

Boston Pizza owner Jim Treliving on his franchisor success story, Dragons’ Den days, and the importance of treating franchisees like family BY STEFANIE UCCI

Franchise Canada July | August 2022

COVER STORY

anadian businessman Jim Treliving’s franchise journey began in 1968 with $5,000 in hand and big aspirations as a new entrepreneur. That hard-earned cash was used to split the cost of a new restaurant business with his then business partner, Don Spence. Together, the pair became the first franchisees of a new pizza restaurant that was taking their small community in Penticton, B.C. by storm. And so was born the Boston Pizza story. Two months later, Treliving and Spence were sitting in the basement of a furniture store below their restaurant that they used as overflow for seating on weekend nights. But without a liquor license for the basement, their overflow plan was a bust. Easy fix—they applied for one, and before they knew it, they had opened the first Okanagan night club. “We did [about] $52,000 in the pizza business for a year after we opened. In the nightclub, we did about $180,000 and that got us through. We built a second [nightclub] when we opened [another] Boston Pizza, in a basement again,” explains Treliving on an episode of the Franchise Canada Chats podcast. “Then we realized we were only going to have two of these, it was so much work … The [second] store was in Prince George, B.C., where I had been stationed as a Royal Canadian Mounted Police officer, and it took off. It was so busy; we could hardly keep up.”

The rest is history Boston Pizza was established in Edmonton, Alberta in 1964 by founder and Greek immigrant, Gus Agioritis. By 1983, Treliving and his former accountant and now business partner, George Melville, had opened 16 franchises of their own around B.C., becoming the brand’s biggest franchisees. “We got to open these stores and do really well. As we built them, we started coming closer to the lower mainland [in areas] like Chilliwack and Abbotsford, B.C.,” says Treliving. In 1983, then-owner Ron Coyle planned to sell the Boston Pizza business, and shared the news to Treliving while they were driving to the airport one day. “He said, ‘I’m going to sell the company. Why don’t you guys buy it?’ And I said, ‘sure, let’s do it.’ By the time we got to the hotel from the airport, we had agreed to buy the company. We didn’t have a number yet, just a rough idea, but weren’t happy with it and would negotiate,” notes Treliving. The brand had 32 franchises at the time, located throughout Edmonton, Winnipeg, Thunder Bay, Alberta, and B.C. Together, Treliving and Melville negotiated the total price of the franchise system for about $3 million that would be paid over time at a 10 per cent interest rate, explains Treliving. Jim and George together put in 50 per cent of the total price with financial support from

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

COVER STORY Treliving spent 15 seasons as an investor on the CBC television show Dragons' Den, helping Canadian entrepreneurs kick-start their businesses.

a lender as well as a close friend of Treliving’s, who contributed the other 50 per cent. Treliving repaid his friend as he could, and they were off to a lucrative start. Then Treliving and Melville decided to sell the 15 stores they owned so Treliving could focus solely on being a strong franchisor. They offered the restaurants to existing store managers. Under Treliving’s leadership, the brand experienced huge growth, and today there are more than 380 Boston Pizza locations in Canada, with additional franchises in the U.S. and Mexico. Along the way, the concept expanded as well. Boston Pizza’s original menu was pizza and pasta, notes Treliving. “Spaghetti and meatballs, ravioli and meatballs, and lasagna.” Quite the stretch from today’s offerings of more than 100 menu items that include apps and shareables, sandwiches, bowls and salads, desserts, and of course, a wide range of unique pizza and pasta dishes. “When we got to 14 or 15 locations, we just knew that this was going to grow like crazy. We were going into places that no one else was going to in Ontario,' says Treliving. But we went in small areas and grew … We were the major restaurant in those towns or cities.” Joining the Dragons In addition to his franchisor success, Treliving spent 15 seasons on CBC’s Dragons’ Den as an investor who helped Canadian entrepreneurs by using own his own wisdom and capital to kick-start their businesses. In 2021, having just turned 80 years old, he decided to step down as a Dragon to focus more on his role as owner and chairman of Boston Pizza. So, while choosing new franchisees to invest in the pizza brand is one part of his busy life, hearing pitches from budding entrepreneurs was another decade-and-ahalf-long adventure. When it came to knowing if a company had a solid business plan that made him want to invest, Treliving

trusted his intuition: “How does this person react when you ask them the questions?” He adds, “[There was] a local [business] from the Lower Mainland. They came onto the show with one truck that they brought up to the 10th floor where we shoot Dragons’ Den. [It was a] black and red vehicle called velofix. They pitched this [business of a] truck that comes to your house and fixes your bicycles. I looked at the guys and talked to them and they were genuine in my mind. I was going with my gut. Today, they’ve got close to 200 trucks, they’re all throughout the U.S. What they wanted was a franchise [expert] that had done this before, and that’s why they picked me.” Strong advice for franchisors With nearly 50 years’ experience as a franchisor, and more as a franchisee and entrepreneur, Treliving has gathered a wealth of knowledge to share with business owners of big and small brands. He emphasizes the importance of establishing strong systems for franchise partners and making sure they stick to them. “[We put] the systems in place, then we hired great people to run those systems. You can’t run it by yourself,” notes Treliving. “A lot of people, especially entrepreneurs, decide they can do everything. We had a head of marketing, operations, and HR. You have to have all those things in place. Then [after] you put those heads in, they must hire underneath them. We had four salesmen working out of Toronto for the eastern part of Canada. Their whole sole purpose was to sell franchises.” He adds that he and his partner Melville knew from day one that they each had separate jobs to make the business run smoothly and efficiently. And with expansion down south in the U.S. and Mexico, they also made sure to have infrastructure set up with full management teams, separate from the offices in Canada. “We have an office and president there in both countries … If you don’t put the infrastructure together, it’ll collapse on you.”

Franchise Canada July | August 2022

COVER STORY

Most importantly, Treliving says that his biggest advantage as a franchisor is “the talent [that] comes from the people you hire. I’ve heard people say to me many times, ‘you have a great structure with your people. They seem to love working there and doing the things they want to do.’ But it’s exciting because I don’t put hands on everything or question anything.” He adds, “You have to trust the people you hire. You can’t step into their booths, you can only ask them questions. To me, that’s part of the infrastructure that we have to do. I ask questions to our management team all the time, but I trust them … You’ve got to put the people in place that you know can do really well. And look after them. They become your family.” Feels like family As a welcoming and friendly casual restaurant for guests of all ages, the Boston Pizza brand has always had a special tie to family relationships. And that shines true in the way Treliving talks about his many franchisees spread wide and far. “We refer to it a lot as family. I can’t think of one franchisee across the country I wouldn’t stop in to see if I were in their area, that they wouldn’t say, ‘let’s go for a drink' or 'come to the house.’ That’s how we operate,” explains Treliving. When it comes to selecting new franchisees to join the Boston Pizza franchise, he adds, “I think you can look at somebody and how they talk to you, respond, and come across to you if you’re meeting them for the first time. How are they going to react to something in the business down the road? How do they treat people? I treat them as if they’re my partner, I don’t treat them as

an employee. I want to work with these people, and they want to work with me. Do they look me in the eye and give me a straight answer? That’s what I look at.” A CFA membership milestone In 2022, the Canadian Franchise Association (CFA) celebrates a 30-year membership milestone with the Boston Pizza brand. As an Association built on advocating and supporting the franchise business model, this relationship makes a vital impact in providing education, lead generation, advocacy, and much more. As Treliving notes, “The CFA is one of the best things that ever happened in this country ... We’re in the restaurant business—[but] we aren’t really in the restaurant business, we’re in the franchise business.” He adds, “The CFA has been huge for us. We talk to people there, they hear our problems, and it’s just a transfer of information back and forth that helps [everyone]. It’s not all about one person or one group. I’m not afraid of walking in and telling people, ‘this is what worked for this. I don’t know if that’s going to work for you.’ But at least we’re having the conversation, and that’s what the CFA is for … If you’re in the restaurant business or any business in franchising, you get into the CFA.”

Learn more at LookforaFranchise.ca

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THE

FRANCHISE GUIDE Your Ultimate Resource for Buying a Franchise

ranchising is an attractive and powerful way for Canadians to make their business dreams become reality and achieve success as small business owners.

It’s a popular way of doing business, because it offers business owners the advantage of a proven concept, as well as various kinds of support through the franchise system. Franchisees can be in business for themselves, but with the support and assistance of a franchisor, the advantage of the system’s past success, and access to the knowledge and experience of a network of franchisee peers. Whether it’s brand recognition from an established franchise system, a successful concept, or proprietary products or services, being a part of a franchise system brings advantages that you just don’t get when starting a business from scratch. That’s why we say that 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. Joining a franchise system also gives you a network of peers upon whose knowledge and experience you can draw. Even with this end goal in mind, the road to owning a business can seem overwhelming when you’re just taking your first steps. So where to start? As you embark 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, finding your franchise fit, understanding franchise finance fundamentals, and conducting proper due diligence. You’ll also find a handy checklist of questions to ask the franchisor and other franchisees to ensure you find the right opportunity for you. So read on, and learn how to take your first steps on your franchise journey!

Franchise Canada July | August 2022

THE FRANCHISE GUIDE

Finding the Right Franchise Fit With dozens of franchise opportunities out there to choose from, how to you know which is right for you? We take you through tips to meet your franchise match

he franchise industry in Canada is booming. With new franchise systems coming onto the scene and established brands continuing their growth across the country, there are more options than ever for those wanting to join a system as a franchisee. From accounting to winemaking, franchises can be found in virtually every business category. This wide range of opportunities provides prospective franchisees with a great amount of choice, and a lot of questions they need to answer. One of the biggest questions prospective franchisees ask is: how do I find the franchise that best suits me? Here are three things any prospective franchisee can do to help find a franchise system that fits with their goals and passions. 1. Look in the mirror Before you start to look at franchises, you should take a good look at yourself. This will help you to focus in on what you want and need from a franchise system, and

to identify the skills and qualities you can bring to your potential role as a franchisee. First, consider what you’re passionate about and how it could translate as a business—if you love animals, for instance, perhaps a pet grooming franchise would be of interest. As you identify ways that your passions could fit with your business goals, don’t forget to think about things that you absolutely don’t want to do. For example, if you have a passion for food, but dislike early mornings, it might make more sense to focus your investigations on restaurant franchises that don’t serve breakfast and open later in the day. Your friends and family members might be able to lend a hand as you come up with your lists. Even if you’re considering franchising as a way to move in a new direction from your current line of work, you’ll want to take stock of the skills, qualities, education, and experience that you’ll be bringing to your franchise endeavour. Not only will franchisors be interested in your background, but having a good resume of your strengths can also help you zero in on your franchise fit.

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

THE FRANCHISE GUIDE If, for instance, you have a history of success in sales and marketing, maybe a business consulting franchise would work. Or, you could translate those skills into generating business for your franchise in a completely different sector that’s in line with your passions. Another piece of the self-evaluation puzzle is a little more concrete. Once you’ve considered your passions and skills, you’ll also need to take a hard look at your financial situation. It’s important to know your net worth and assess whether your resources are readily available (unencumbered) or tied up in other assets (such as a house or car). An accountant who specializes in franchising can help you evaluate your finances and determine if you have the required resources to finance the franchises in which you are interested. (More on accountants and other valuable experts below!) 2. Get the facts By the time you’ve created a good overview of what you could bring to the role of franchisee, you’ll probably be itching to start investigating and evaluating the franchise systems that meet your criteria. There are many ways to go about this. One of the easiest and most popular is the internet. Sites like the Canadian Franchise Association’s (CFA) LookForAFranchise.ca provide search tools to help you find franchises by category, investment level, and location. You can also request further information and materials from individual systems. Franchise publications (like the one you’re currently reading) can offer additional insight into franchise brands and the people who are making them a success. As well, they may introduce you to franchises that you had yet to discover or hadn’t previously considered. Face-to-face communication can give you even more insight into the franchises you’re interested in. Attending a franchise tradeshow—like one of the Franchise Canada Shows taking place in Montreal, Toronto, and Vancouver this fall—is a great way to meet with many representatives from franchise brands in a relaxed environment. Individual franchise systems may also hold their own ‘discovery day’ seminars to help prospective franchisees learn more in a live setting. Once you’ve zeroed in on the franchises at the top of your consideration list, you’ll want to visit their locations, if possible, and familiarize yourself with their products and/or services. Another important step will be to meet with key team members at their head offices. This can give you a feel for the company culture and the people and personalities you’d be working closely with if you joined the system as a franchisee. It will be up to you to decide how comfortable you are with the system’s culture and people—be sure to listen to any ‘gut feelings’ you get.

Take the Franchise Fit Quiz! The CFA has developed on online quiz to help you determine which franchise category is best suited to your personality, goals, and lifestyle. Take the quiz now and start narrowing your franchise search!

3. Call in the experts As you move along in your research, creating a team of franchise experts will help ensure your search stays on track, and that your eventual franchise business gets off to a great start. Here are a few professionals you’ll want to recruit. Keep in mind that many of these relationships can continue once you’ve established yourself as a franchisee. • A s mentioned, a franchise accountant can help you assess your net worth, and can help in creating a business plan and cash flow for your business. • A franchise consultant can guide you in your selfevaluation and can point you toward franchises that might meet your needs. • A franchise lawyer can help you review any documentation and contracts and offer advice on issues such as irregularities or points of negotiation. • A franchise banker can assist you in creating a business financing package, including loans and other financial products. • A franchise insurance provider can help ensure you have the insurance coverage you need to protect your franchise business. CFA’s franchise support services members include professionals from these disciplines and more, all of whom specialize in providing products and services for the franchise industry. The Supplier Directory offers information and contact details. Investing in a franchise business is an important decision; like all business ventures, there is some risk involved. One of the best ways to mitigate risk is to make the most informed decision possible, which is why it’s vital to do your due diligence before signing on the dotted line. Evaluating and assessing your own goals and strengths, fully investigating franchise systems, and assembling a solid support team to assist you should put you well on your way to finding your franchise fit.

Franchise Canada July | August 2022

THE FRANCHISE GUIDE

THE PROCESS OF OPENING A FRANCHISE

So you’ve found your dream franchise—now what? Here’s your step-by-step guide to opening a franchised business

ranchising is a great way to make your dreams of owning a business come true, but there are several essential items to consider before putting pen to paper. Carrying out proper due diligence ensures the success of a business and signing the franchise agreement is only the beginning of the work needed to get a franchise started. Here, you’ll find the list of steps that franchisees normally take before opening their own business to the public. These steps begin after signing the franchise agreement, and take business owners on the path to the grand opening day, when they can begin serving their customers and community. Site selection: Finding the perfect location in a community ensures that a franchisee can reach a steady and loyal clientele in their community. The site selection process can work differently across different brands. For example, if the site has been secured prior to signing the franchise agreement, the site details will be included in the franchise disclosure document. These details include demographics, traffic counts, information from the landlord, and any other relevant information pertaining to the location.

If the site has yet to be selected, the franchisee may sign a commitment agreement instead of a franchise agreement, and then the site selection process will take place. When the site is found, they will then sign the franchise agreement, which will include the site details. Alternatively, some franchisees will sign the franchise agreement before the site is selected, and when the site is found, will sign an addendum outlining the location details. In either case, the franchisee will receive a new disclosure document including the site details, and will sign the acknowledgement of receipt for the site. After that comes signing the lease, or a sub-lease if the location will be rented by the brand’s head office. If the franchisee is responsible for building out their new location, they will look to hire a local engineer or architect who ideally has experience with building a similar type of business in their community. This ensures that the builder has knowledge of the building requirements according to their municipality. As the site is under construction, the franchisee will be working with the architect, the engineer, the general contractor, and the various tradespeople to get the site built to the specifications outlined by the franchisor. The

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

THE FRANCHISE GUIDE next step is to start to work with the franchisor to hire staff and ensure the key staff are trained. Hiring: As small business owners, franchisees are responsible for staffing, and get the final say in who they hire to join their new team. However, the hiring process can vary depending on the company involved. A franchisor may provide general advice and hiring criteria to look for, such as the type of experience a prospective employee should have. In other situations, a job fair can be used for the hiring process, which will consist of the franchisee and a team member from head office interviewing candidates together. The hiring process is vital for franchisees because they should onboard staff who will represent their brand respectfully while helping to grow the business by providing excellent customer service and building repeat clientele. As franchisees make the staffing decisions, they are also responsible for keeping the ship afloat and ensuring that their staff numbers are maintained, and team members are satisfied. This includes making important decisions regarding training, disciplining, firing, and wages while ensuring that they are not under or overstaffed. Additionally, as a small business owner, a franchisee should be educated in the provincial employment standards and labour laws that outline how much their employees are legally entitled to earn. Wages are more than just the pay cheque that employees receive, and include taxes, benefits, and workers compensation. Training: The training process kicks off when the franchisee attends and graduates from training school with the franchise brand. This can last from a few days to a number of weeks or months, depending on the industry and size of the brand. The next step is to train the franchisee’s employee team up to the standards and guidelines of the brand. This is usually done by the franchisor, who has a training team that will go on site to educate the new staff about day-to-day operations and policies. This can take from one week up to one month. Most often, brands use a “train the trainer” technique, which consists of selecting key staff members to train, who then use their learning to educate the rest of the team. Training is all done before the grand opening, during which time supplies will be continuously arriving to the site. The staff and training team should work together to organize the location and get it ready for the big day. Once the employees start working, it’s up to the franchisee and their key staff, often the manager and/or assistant manager, to provide guidance and support to

their team about how to operate, rather than the franchisor being on-site to oversee operations. The goal of training is to ensure that customers receive the same experience and high-quality product that they know and love at every franchised location. Thorough training equips franchisees and their team with the knowledge of the brand that they can replicate to provide successful results for their business. Marketing: To ensure continued success, franchisees will need to work with the franchisor to make sure that a strong marketing plan is in place for their location. Larger brands normally have a national advertising and marketing plan created by the head office team in collaboration with their Franchise Advisory Council (FAC). The franchisee is typically responsible for their own local store marketing, as they will have a connection to their community. An established franchisor will often provide franchisees with a local store marketing tool kit, which can typically be accessed through the franchisee intranet. This tool kit can include checklist items to complete such as approaching a local school to set up a new program or joining a Business Improvement Association on behalf of the brand. When it comes to smaller brands, there will generally be more collaboration between the franchisor and franchisee to come up with a marketing plan that will work for the franchisee’s location. While it’s ultimately up to the franchisee to create their local store marketing plan, head office can also provide assistance. For example, they can send someone trained in operations or local store marketing to the location for a day to help with community outreach programs and other marketing techniques. Additionally, a marketing manager can work with business owners to create a grand opening plan, including organizing a “Friends and Family” event before opening to increase customer outreach. It’s important to remember that every franchise is unique and may have different steps, people to meet along the way, and rules and regulations to follow during the opening process and while the business is up and running. The steps to opening a franchise may seem daunting, but franchisees are provided with abundant support from head office during the process to ensure they succeed. Once a solid location is picked, staff are hired and trained, and marketing promotions get underway, franchisees are set up to find success with their new business endeavour!

Franchise Canada July | August 2022

THE FRANCHISE GUIDE

FRANCHISE FINANCING 101

From securing financing to building a business plan, here’s what you need to know about financing your franchise

hen investigating franchise opportunities, it’s easy to get caught up in the search. With so many unique 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 that you can set realistic expectations for your franchising future. Here are some of the important financial steps you need to take to make your franchise dreams become reality. Ask yourself: can I afford this? Assessing your means is an important first step when considering investing in a franchise opportunity. In fact, “Can I afford this?” is one of the most important questions 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 don’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 like 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. Finding 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 investment’s total cost. 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. 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. Building a business plan 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

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THE FRANCHISE GUIDE 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? It might be tempting to outsource your business plan to someone else, but remember, ultimately this responsibility lies with you—you need to understand and present your plans for the business, not someone else’s. 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. Here's a brief description of what should be included in your business plan. - E xecutive summary: The summary should describe the franchise you intend to purchase, including the background and track record of the franchisor. - Management team profile: The most important part of a business plan for many lenders, the profile should describe your skills and experience, and why you’re suited to own and operate the franchise—as well as the same information for any other members of your management team. - Description of products and services: Here you should provide specific details about the products or services you will be providing, how you’ll deliver them, and what sets you apart from your competitors. - Core market information: This section should describe your core market sector, current competitors and future prospects, your strengths and weaknesses, your existing customer base, and an estimate of the market share you plan to achieve. - Description of operations: This section should explain how you’ll produce/deliver your products or services and describe your location and the premises where you’ll operate. - Other supporting documents: You’ll want to include your resume (and those of your management team), job descriptions, credit reports, letters of reference, letters of intent, and leases or contracts and other legal documents that pertain to the franchise you’re purchasing. - Financial information: The financial section should address the business’ potential viability and include monthly budget and cash flow projections. It should also describe your financial situation and include a personal net worth statement. An accountant or financial advisor can be particularly helpful in preparing this section of your business plan. Prepare for unexpected costs 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 to make sure 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.

How can I improve my chances of securing financing? n Once you have a full understanding of your personal financials and financing requirements and have crafted a great business plan, there are a few ways to help secure that loan when you meet with your lender: n Establish 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. n Be 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. n Present yourself well and dress professionally when meeting with your lender. n Plan 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. n 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.

Franchise Canada July | August 2022

THE FRANCHISE GUIDE

DOING YOUR DUE DILIGENCE The important legal aspects to consider before buying a franchise

ranchising is about sharing success—the business model makes for a mutually rewarding relationship between franchisors and their franchisees. But because the franchise business model is also built on contracts and other documentation, the relationship can be a complex one. Luckily, there’s help for prospective franchisees in wading through the paperwork: here, we take you through the legal aspects you need to consider before you begin, including the rights and obligations of the franchise relationship. Franchise legal counsel 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.

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. You can also turn to page 67 of this issue, where you’ll find a list of Franchise Lawyers Across Canada, 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? 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,

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THE FRANCHISE GUIDE 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: nB ackground on the franchisor and the key players within the system, such as its directors and officers nA ny history of litigation, civil action, convictions, bankruptcies, etc. of the franchisor and/or its directors and officers nA summary of the trademarks and other intellectual property nA summary of the costs and fees required to start and run the franchise business nA n outline of the training and ongoing assistance provided by the franchisor nA list of current and former franchisees and their contact information nF inancial statements and other fiscal information

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THE FRANCHISE GUIDE 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. Another way to find out about earnings potential is to speak with existing franchisees in the system. 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. 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 how the relationship between franchisees and franchisors functions. 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 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. 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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Checklist for Franchisees Investing 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. W ho are the officers, directors, and shareholders of the franchisor? 2. W hat 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)? i) If so, who is the parent company? Who are the shareholders of the parent company? ii) Has that franchisor or any of its affiliates ever franchised other concepts? iii) If so, which concept(s), and how successful are they? 4. W hat other companies are related to the franchisor? What role do these companies have in relation to the franchised business? i) 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: i) 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? ii) bankrupt or insolvent in the last six years? iii) charged (or have a charge pending) 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? i) 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.)

Franchise Canada July | August 2022

THE FRANCHISE GUIDE 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? 13. If the franchisor is young and has had previous limited experience in franchising, which franchise consulting company helped them build their support systems and business processes? 14. Has the franchisor tailored its disclosure documents to address the specifics of the offering that it intends to make to you? For instance, has it included a copy of the lease, if a lease exists, and all other agreements pertaining to the franchise offering? SECTION 2: THE FRANCHISOR’S RELATIONS WITH ITS FRANCHISEES 1. W hat is the franchisor’s reputation for relations with its franchisees, customers, and suppliers? 2. How does the franchisor qualify, screen, and choose its franchisees? i) Have your qualifications been reviewed? ii) Ask yourself: why do you feel you’re a good match? 3. W hat are the franchisor’s plans for future development, including product, service, and/or technology innovation? i) For expansion and/or diversification? ii) How will these plans affect your dealings with the franchisor? 4. Does the franchisor allow for/promote multi-unit operators? i) What proportion of franchisees own one unit? Two to five units? Seven to 15 units? 16+? ii) Does one franchisee have a disproportionate ownership of franchise units? iii) Does the franchise agreement contain any provisions for acquiring additional units?

5. How does the franchisor monitor franchisee operations to help improve performance? How much is by automated CRM and how much by manual reporting? i) Does the franchisor periodically inspect all of the franchises? ii) What are the franchisee reporting requirements? iii) Does the franchisor subject the franchisees to periodic audits of books and records? iv) Does the franchisor have a KPI dashboard or scorecard to help franchisees focus on the right activities and information as they launch and grow their business? 6. Is there a franchisee association or advisory council (FAC)? i) If so, who belongs: how many members are voted by the franchisees, and how many are appointed by the franchisor? ii) Does the franchisor relate well with the association or council? 7. Does the franchisor keep advertising funds in a separate account/entity? i) Will the franchisor regularly provide franchisees with a statement of how the advertising funds are disbursed? ii) Will the franchisor use the advertising fund to promote existing locations or fund expansion efforts? iii) Has the franchisor documented how the advertising funds will be used? 8. Does the franchisor solicit franchisee input into marketing strategies, new product development, etc.? i) What amount of control does the FAC have regarding how the ad fund revenues are deployed? 9. Does the franchisor account for the unique needs of different marketing (geographic) areas as it implements its marketing strategies? 10. Do all franchisees and corporate stores pay into the advertising fund at the same rate? 11. W hat support did the franchisor provide to franchisees during the COVID-19 pandemic? i) Was any financial support or royalty waivers provided as part of COVID-19 support? ii) Was the franchisor quick to make changes as necessary to operations, as a result of the quickly changing market? iii) How was the communication from the franchisor to the franchisees during the initial phase of the pandemic? 12. Has the franchisor provided you with a list of all of its franchisees? 13. W hat is the failure/turnover rate for franchisees? i) Has the franchisor terminated any of its franchise agreements in the last three years? If so, how many, and for what reason? ii) What are the reasons for the failure/turnover?

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THE FRANCHISE GUIDE 14. Has the franchisor litigated with any of its franchisees in the past? i) What was the outcome of such litigation? 15. Is there any pending litigation by or against the franchisor or any of its associates? i) What is the status, nature, and likely outcome of such litigation? 16. How does the franchisor describe its corporate culture and will you be comfortable with this culture? 17. On a scale from one to 10, how well does the franchisor encourage sharing of best practices and new process innovations between franchisees? 18. Does the franchisor have a recognition program for exceptional performance and if so, what does this program involve? 19. How innovative is the franchisor? i) How important is innovation to the franchisor’s industry? ii) What successful innovation has the franchisor introduced since it began its business? iii) 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. W hat 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. W hat 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. W hat is the anticipated occupancy cost of the premises? i) Rental payments or purchase cost of real property? ii) Anticipated construction costs for the premises? 7. W hat is the general timeline between site selection and opening? 8. W hat other costs may be incurred? 9. Does the franchisor assist in the financing of the franchise?

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Franchise Canada July | August 2022

THE FRANCHISE GUIDE 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? SECTION 4: FRANCHISED PRODUCT OR SERVICE 1. W hat makes the franchisor’s product or service unique? i) Does it satisfy a need? ii) Is it marketable in your territory? iii) 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. W hat 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? i) Who owns the trademarks, copyrights, or patents? ii) Are the trademarks, copyrights, or patents registered in Canada or have trademark applications been filed for their protection? iii) If the trademarks are in the process of being registered, is there any opposition or other barriers to the registration of the marks? 9. A re 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? i) On a scale from 1 to 10, how competitive is the cost with third-party suppliers? ii) If supplies are interrupted, can purchases be made through alternate suppliers? iii) Will the franchisor be receiving volume discounts or rebates? If so, will these savings be passed on to the franchisees? 11. How has the pandemic affected the supply chain? i) How much risk is there of supply chain disruption, should we experience future pandemic waves? ii) How does the franchisor enable franchisees to protect profit margins when the supply chain experiences sharp or unforeseen increases? 12. Innovation: i) How often does the franchisor update product/ service offerings? ii) Do the innovation advances come from the franchisee base, or from head office? iii) How are the innovations field-tested to prove viability? 13. 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? 14. How often does the franchisor require your premises to be renovated or upgraded and what is the estimated cost of these renovations/upgrades? 15. Will you be able to renew the franchise agreement without completing renovations? SECTION 5: SALES TERRITORY AND LOCATION 1. Is your franchise territory exclusive? i) If not, would there be some other form of territorial protection? ii) If so, what are the parameters of the exclusive territory granted to you? iii) Will there be other outlets opening near your territory which may undermine your sales? iv) Would these be company-owned or owned by other franchisees? v) Can you get a first right of refusal for any adjoining territories? vi) Does the franchisor sell its products through other channels of distribution? vii) 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?

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THE FRANCHISE GUIDE 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? 4. W hat is the franchisor’s policy regarding the sharing of customers’ online purchases through the franchisor’s website when customers are domiciled within the franchisee’s DMA? i) What is the percentage of revenue per sale? SECTION 6: QUESTIONS TO ASK CURRENT FRANCHISEES 1. What was your total investment in the franchise? 2. Were there any unexpected costs? If so: i) What were they for and how much were they? ii) Were they unique to that individual, or is it something several franchisees experienced? 3. A re 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? 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. W hat are the most important things a new franchisee needs to know about business generation (prospecting, digital and traditional advertising, networking and community engagement, etc.)?

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THE FRANCHISE GUIDE 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. How did the pandemic affect your business? i) If you were affected by mandatory lockdowns and/or capacity limits, how quickly did your business return to relative normal once those restrictions were removed? ii) On a scale from one to 10, how well did the franchisor support and work with the franchisee base to come up with system innovations that helped you get through the pandemic? iii) What were some of those innovations? 14. W hat have you done to make your franchise successful, and would you recommend this franchise? 15. 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? 16. Have you ever had a serious disagreement with your franchisor? What was the disagreement about? How was it settled? 17. If you have experienced financial difficulty in operating the franchise, how has the franchisor supported you through the difficult time? 18. W hat is the time investment for the franchisee (high amount of owner involvement, or more self-sufficient operations)? 19. Knowing 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? 20. K nowing what you know now, would you do it over again? Why or why not? 21. How effective are the marketing and advertising programs implemented by the franchisor? i) Does the franchisor provide a periodic report on the marketing expenditures? ii) Are you satisfied with how the marketing contributions are spent? 22. Do the corporate outlets contribute to the marketing fund? 23. A re you aware of other franchisees who are not happy with the system or who are struggling with their franchise? 24. 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?

SECTION 7: THE FRANCHISE AGREEMENT 1. Have you retained a franchise lawyer with expertise in reviewing franchise agreements? 2. A re 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. A re you required to purchase supplies from the franchisor or other designated suppliers? i) If so, what and how much? ii) Are there any minimum purchase quotas? iii) 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. What is the length of the contract term? i) Is the term renewable, and on what basis? ii) Are 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? i) Is the lease for the same period as the franchise contract?

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

THE FRANCHISE GUIDE ii) Can the lease be renewed, and on what terms and for what time period? iii) Can you change locations? If so, on what conditions? iv) 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? i) Will the franchisor provide design and construction specifications, and/or monitor the construction? ii) 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? i) Does this require the franchisor’s consent? ii) What are the conditions of such consent? iii) How is the sale price determined? iv) Is there a pre-determined valuation formula? 20. Can you terminate the contract? i) If so, what are the termination conditions? ii) What are the costs and/or penalties? 2 1. 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? i) Will your survivors, for example, be entitled to operate and maintain ownership of your franchise in such an 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): i) 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? ii) Was the disclosure document provided as one document at one time and fully up-to-date as of the date of disclosure? iii) Have you retained a franchise lawyer with expertise in reviewing disclosure documents? iv) Have you retained an accountant with expertise in franchising matters to review the franchisor’s financial statements? v) 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? vi) Has the franchisor complied with the disclosure requirements of the relevant disclosure statutes (subject to certain exceptions) 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? vii) 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: i) 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 2022

If you’ve read this far and want to learn more, visit

LookforaFranchise.ca On the Franchise Canada page on LookforaFranchise.ca, you’ll find all the brands featured in the pages of this issue in one easily accessible space! Starting a business on your own can be a daunting and difficult challenge. Owning a franchise provides you with a unique opportunity to have the support and backing of a franchise system every step of the way. LookforaFranchise.ca consolidates the most reputable and credible franchises in the industry, all in one place. From business, home, food, health, hospitality and so much more, you’ll find endless opportunities to go into business for yourself. After reading the franchisee success stories, expert insights, and franchisor profiles in this issue, explore the brands behind the stories. Follow the link below to find every franchise brand featured in the July/August issue of Franchise Canada on one convenient page! Listings include franchise descriptions, the amount needed to invest in the franchise, and a “Tell Me More” option that will provide you with more information regarding the business. All franchise systems listed here are members of the Canadian Franchise Association, solidifying their credibility as a business. Uncover your passion and find the perfect business for you!

https://cfa.ca/lookforafranchise/franchisecanada/

is pleased to present

a Special Franchise Focus on

2022 CFA AWARD WINNERS

Franchise Canada July | August 2022

Thank You! We are so honoured and humbled to have been awarded the 2022 CFA Gold Award of Excellence and Franchisees’ Choice Designation. At Driverseat, our passion is for our franchise partners, their success, their growth and ultimately, their unit economics. Receiving the Franchisees’ Choice Designation award is the most rewarding recognition this team receives. After six consecutive years of having received this designation, we are more motivated than ever to ensure we support, lead and motivate the most passionate franchisees in Canada. We are humbled and proud of the team and appreciate the CFA and all they do to build a supportive franchise culture.

On the Road to Success Through Franchise-wide Growth 2022 has been record breaking for Driverseat, seeing unparalleled demand for franchise opportunities and in client inquiries. Demand for Driverseat’s unique and extraordinary transportation solutions continues to grow at exponential rates, giving our clients the “wow” experience every time they ride with Driverseat. Our Head Ofﬁce team executes our vision every day with the understanding that everything we do has to, in some way, beneﬁt our franchise partners and supports their growth. Through ongoing education, implementation of updated tools and technologies, and the support of our entire franchise network, our franchisees are seeing unprecedented revenue growth system-wide.

The Communities we Have Seen Growth in this Year: Ontario:

- Brantford - Grimsby - East London - West London - South London - North Bay - Stratford/ Woodstock - St. Catherine’s

British Columbia: - Abbotsford - Chilliwack - Kamloops - Langley - Mission - Surrey - White Rock

Contact Driverseat today to discuss franchise opportunities in your area! www.driverseatinc.com/franchise franchise@driverseatinc.com

Pennsylvania: - Philadelphia

CELEBRATING FRANCHISING EXCELLENCE Established in 1992, the Canadian Franchise Association (CFA) Awards of Excellence celebrate the best of Growing Together™ and the symbiotic partnership between franchisors and franchisees that leads to shared success. Regardless of the size or concept, a strong relationship between the franchisor and franchisee is vital to a franchise system’s success. The 2022 CFA Awards of Excellence in Franchising, Franchisee of the Year, Franchisees’ Choice Designation, CFA Recognition Awards, and Membership Milestones awards recognize the brands that have earned top marks from the franchising community. They recognize their success in not only exceeding the expectations of their franchisees, but also for finding innovative ways to reach their customers. Featuring the winners of the 2022 CFA Awards, this special franchise focus highlights the extraordinary franchises that have excelled in the delivery of service to their customers and support for their franchisees, as voted by their peers. Read on to learn more about these exceptional, award-winning brands and their franchising accolades!

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

Own the Fresh Choice in Franchising

Edo Japan serves fresh, delicious Japanese-style fast food at more than 160 locations making us one of the most popular and successful franchise chains in Western Canada.

Now accepting franchisee applications. edojapan.com/franchising or franchise@edojapan.com Canadian owned and operated.

SPECIAL FRANCHISE FOCUS

2022 Franchisees’ Choice The Canadian Franchise Association Announces the 2022 Franchisees’ Choice Designees

hat do the franchise systems featured on the following pages have in common? While they are all unique concepts and operate in a variety of business sectors and industries, these franchises have the distinction of being named as Franchisees’ Choice designees, receiving high rankings from their franchisees. The Franchisees’ Choice designees are Canadian Franchise Association (CFA) member franchise systems who voluntarily took part in an independently-administered survey. Their franchisees were asked to rate the franchisor in key areas of the franchise business model, including leadership, business planning and marketing, training and support, ongoing operations, and the relationship between the franchisor and franchisee. “The true strength of a franchise system lies in the mutually-rewarding relationship between a franchisor and its franchisees,” says Sherry McNeil, president and CEO of the CFA. “Being a Franchisees’ Choice designee is a high honour because the high rankings in franchisee satisfaction come directly from the franchisees themselves.” In the due diligence process of investigating a franchise opportunity, speaking with existing franchisees about the opportunity being explored is essential. For prospective franchisees, the Franchisees’ Choice designation identifies that a franchise brand has received solid endorsement and ratings from its franchisees in areas such as: • Franchisee selection process • Franchise information package • Leadership • Training and support • Operations and improvements • Franchisor-franchisee relations Regardless of any awards or recognitions a franchise system may receive, CFA and Franchise Canada strongly recommend that prospective franchisees conduct thorough due diligence to help ensure that a franchise is the right fit for them. Learn more about the due diligence process in The Franchise Guide on page 28 and at www.FranchiseCanada.Online! Find out more about the Franchisees’ Choice designation and this year’s recipients at www.cfa.ca/cfa-awards.

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

THE FRANCHISEES’ CHOICE LOGO Franchisees’ Choice winners receive a special logo to identify them as having achieved high rankings in franchisee satisfaction. As you explore franchise opportunities as part of your due diligence process, be on the lookout for this logo to discover the franchise systems that have been recognized for placing an emphasis on building first-class relationships with their franchisees.

FIRST NATIONAL PAVEMENT MAINTENANCE FRANCHISE B2B BUSINESS MODEL / ESTABLISH REPEAT ROUTES / DRIVE RECURRING REVENUE / SELL SAVINGS!

Pavement is an Asset, and it’s Everywhere

$29B Industry, Unsophisticated Competitors, Recession Resistant

Market Leading Technology

Proprietary ‘Preventative Pavement Maintenance Program’, Innovative Solutions, & Diverse Service Offering

We Save Businesses Money

B2B, Recurring Revenue, Simple Trade & Safe Equipment, & Semi-Absentee Opportunity

Founded by Franchisees, Built for Franchisees Fully Integrated IT Suite, National & Regional Account Opportunites, Thorough Support Systems

Strong Financials

Startup Costs Investment Range: $139,050 - $195,973 (Lease) $176,008 - $264,496 (Buy) Financial Performance Gross Sales*: $1,975,661 Gross Sales Less Cogs & Disclosed Expenses*: $684,084 (35%) *Corporate Location in Calgary

Avg Gross Sales (All Locations): $836,030 Net Worth: $250,000

Low Startup Cost with Unlimited Profit Potential, Lease or Buy Investment Option, Strong Revenue Potential

Recognized by the Franchising Industry

CFA Awards of Excellence Winner, Seen on CBC’s Dragon’s Den, 100% Recommendation Rate from Franchisees

For Canada Franchise Information www.everlinefranchise.com or 866-516-2969

Liquid Capital: $75,000

SPECIAL FRANCHISE FOCUS

The 2022 Franchisees’ Choice Designees Are: (in alphabetical order)

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

A BUSINESS BUILT on

SERVING PEOPLE in their time of need

Are You Ready To Own A Prosperous Business With Unlimited Growth Potential And Make A Difference In Your Community? At Paul Davis, we are dedicated to making a difference in the lives of our customers. We have over 55 years of expertise in essential cleaning & restoration in fire, water, mould, and storms. We are leaders across North America in emergency services and property damage restoration.

WHY PAUL DAVIS? • 350+ Franchise Locations • 50+ years Industry Innovators • Franchisee Governance System

WATER

• Local Marketing and Network Support • Onsite Training and Continued Development

Are YOU ready to

MAKE A DIFFERENCE?

FIRE

CONTACT

Dan Hopkins

Director Franchise Development (437) 991-1345 daniel.hopkins@pauldavis.com

MOULD

pau ldavisbu sin e ss.ca

FRANCHISE

EXCELLENCE

YEARS

IN A ROW!

STORM

SPECIAL FRANCHISE FOCUS

Celebrating an Ongoing Commitment to Franchise Excellence A number of franchises have earned the Franchisees’ Choice Designation multiple years in a row, demonstrating an ongoing commitment to franchise excellence and strong franchisor-franchisee relations. In recognition of their achievement, the CFA has created special logos that these franchise systems can use to display their consistently high scores from their franchisees. The 2022 Franchisees’ Choice 12-Year Designees Are:

The 2022 Franchisees’ Choice 11-Year Designees Are:

The 2022 Franchisees’ Choice 10-Year Designees Are:

The 2022 Franchisees’ Choice 9-Year Designees Are:

The 2022 Franchisees’ Choice 8-Year Designees Are:

The 2022 Franchisees’ Choice 7-Year Designees Are:

The 2022 Franchisees’ Choice 6-Year Designees Are:

The 2022 Franchisees’ Choice 5-Year Designees Are:

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

FRANCHISORS:

DON’T SELL TO PRIVATE EQUITY It took huge effort and a long time to build your franchisor to scale. Now that you have achieved profitability – and the riskiest phase is over – keep your equity and reap the economic rewards of continuing to scale the business. Diversified Royalty Corp’s royalty transaction is a liquidity option that provides: LIQUIDITY OF A PRIVATE EQUITY DEAL

100% CONTROL RETAINED

GET THE MOST OUT OF YOUR FRANCHISOR BUSINESS Diversified Royalty Corp. is a TSX-listed company engaged in the business of acquiring top-line royalties from well-managed, multi-location businesses and franchisors in North America.

SCAN THIS CODE TO LEARN MORE OR VISIT US AT DIVERSIFIEDROYALTYCORP.COM

SIGNIFICANT UPSIDE VALUE OF NEW STORE GROWTH

LEADING FRANCHISORS IN CANADA HAVE SUCCESSFULLY COMPLETED OUR TOP-LINE ROYALTY TRANSACTION

SPECIAL FRANCHISE FOCUS

Awards of Excellence The highest standard of franchising excellence in Canada, the CFA Awards of Excellence recognize franchise brands that have demonstrated superior franchise relations, leadership, business planning, marketing, training and support, ongoing operations, and communications in the Traditional Franchise and Non-Traditional Franchise categories.

GRAND PRIZE WINNER TRADITIONAL FRANCHISE Inspiration Learning Center – Tutoring And Private School

GRAND PRIZE WINNER NON-TRADITIONAL FRANCHISE EverLine Coatings and Services

NON-TRADITIONAL FRANCHISES 6-15 FRANCHISEES

NON-TRADITIONAL FRANCHISES 16-29 FRANCHISEES

NON-TRADITIONAL FRANCHISES 30+ FRANCHISEES

GOLD Driverseat

GOLD EverLine Coatings and

GOLD New Creations

SILVER Metropolitan Movers BRONZE Prep’n Sell

Services

SILVER CertaPro Painters BRONZE TWO MEN AND A TRUCK

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

SILVER Paul Davis Restoration

Canada

BRONZE WP Creations

WE ARE PROUD TO BE RECOGNIZED FOR THE OUTSTANDING CONTRIBUTION MADE TO OUR COMMUNITIES THROUGH OUR HARVEST PROGRAM.

MAKING A DIFFERENCE.

ONE BUCKET

AT A TIME.

SPECIAL FRANCHISE FOCUS

Meet the CFA’s 2022 Franchisees’ Choice Designees! Are you looking to partner with a top franchise that’s committed to your success? If so, you’re in the right place! Find the full list of winners at cfa.ca/ lookforafranchise/ top-franchises/ TRADITIONAL FRANCHISES 6-15 FRANCHISEES

TRADITIONAL FRANCHISES 16-29 FRANCHISEES

GOLD Inspiration Learning Center –

GOLD Symposium Cafe Restaurant

SILVER Lice Squad.com

SILVER MaxWell Realty Inc.

BRONZE Ctrl V

BRONZE Willowbrae Academy

TRADITIONAL FRANCHISES 30-99 FRANCHISEES

TRADITIONAL FRANCHISES 100+ FRANCHISEES

GOLD Triple O’s

GOLD Pizza Nova

SILVER Motel 6

SILVER Oxford Learning

BRONZE Wendy’s Restaurants

BRONZE A&W Food Services of

Tutoring And Private School

of Canada

& Lounge

Canada Inc.

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

“I am honoured to receive the CFA Lifetime Achievement Award. Helping entrepreneurs start and build their own franchises in their local community brings me great pride and I thank the CFA for their recognition.” U. Gary Charlwood, KGSJ CFE

Delivering the gold standard in Canadian real estate.

Global Strength. Local Success. With a presence in 60 countries worldwide, Uniglobe Travel provides the benefits of a global network combined with flexibility of an entrepreneurial led business.

We’re redefining & streamlining the property management industry across North America.

Looking out for your best interest.

For franchising opportunities, please visit https://www.charlwoodpacificgroup.com

SPECIAL FRANCHISE FOCUS

Membership Milestones Every time a franchise joins and renews their CFA membership, they amplify the voice of the collective. They commit to excellence in franchising. And they help the CFA represent more than 700 brands from coast to coast as the authoritative voice of franchising. Membership milestone achievements honour members for their ongoing commitment to the CFA’s pursuit of strengthening franchising in Canada. Congratulations and thank you to the following members, who are celebrating membership milestones in 2022.

40 YEAR MILESTONES • Mary Brown’s Chicken

35 YEAR MILESTONES • Grinner’s Food Systems Limited • Lapointe Rosenstein Marchand Melançon, LLP • Mister Transmission (International) • Regis Corporation

30 YEAR MILESTONES • Boston Pizza International Inc. • ServiceMaster of Canada • SmartChoice Benefits

20 YEAR MILESTONES • Booster Juice • Canadian Franchising Group • Home Instead, Inc • Pizza Pizza • PropertyGuys.com Inc • The Entrepreneur’s Source®

15 YEAR MILESTONES • Alliance Franchise Brands • BE Franchise Group/ Batteries Expert • Business Alliance Inc • CKE Restaurants Holdings, Inc. • Hodgson Russ LLP • Insurance Portfolio Inc • Papa John’s Pizza • Pizza Depot • Pro Fleet Care Franchising Inc • Second Cup Ltd. • Winmark Corporation

10 YEAR MILESTONES • AUDAX LAW • BUILD IT • Crowe Soberman LLP • Garfinkle Biderman LLP • Gino’s Pizza • InXpress Canada • Orangetheory Fitness • Quality Credit Reporting • Servpro • Sherrard Kuzz LLP • SpeedPro Canada • Stikeman Elliott LLP • The Mitchell & Abbott Group Insurance Brokers Limited • Willowbrae Childcare Academy

25 YEAR MILESTONES • Blaney McMurtry LLP • Cassels Brock & Blackwell LLP • Charlwood Pacific Group • FranNet Canada • Mr. Greek Restaurants

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

5 YEAR MILESTONES • 30 Minute Hit Ltd. • American Express Canada • AscendantFX Capital Inc. • Astley Gilbert Limited • A XIS Integrated • Beyond the Classroom Systems Inc. • Chorizo Fresh Mex • Cinnaholic • Ctrl V Inc • Dine Brands Global • Dipchand LLP • Diversified Royalty Corp. • Federated Insurance Company of Canada • Frank Zaid FRANlegal Support Services • Goldfish Swim School Franchising LLC • LIVE WELL Exercise Clinic (Franchise) Inc • Meridian Credit Union • Mitchell Sandham Inc. • Spiritleaf Inc. • Stagecoach Theatre Arts (Canada) Limited • Twisted Indian Wraps • Vixen Spa Inc.

THANK YOU TO OUR

FRANCHISEES WE APPRECIATE OUR FRANCHISE COMMUNITY FOR YOUR CONTINUED SUPPORT IN BUILDING OUR SUCCESSFUL BRANDS. Over 90 Years in the Restaurant Business

A partnership with our iconic White Spot & Triple O’s brands means that our franchisees benefit from a system built on the guest first philosophy, culinary and marketing expertise, high standards, rigorous training programs, multi-departmental support and more. Together we take pride in being able to serve guests of all ages great tasting, quality meals for breakfast, lunch and dinner throughout BC, AB and Ontario. We wouldn’t be where we are today without our dedicated franchise community. Thank you, we look forward to many more years. LET’S TALK ABOUT A DELICIOUS PARTNERSHIP Real Estate Inquiries Dylan Toigo P. 604 874 5606 C. 604 644 8286 E. dylant@tripleos.com

Tripleos.com | Whitespot.ca

Franchise Inquiries Karen Dosen P. 604 326 6701 E. karend@tripleos.com

SPECIAL FRANCHISE FOCUS

Franchisee of the Year The CFA Franchisee of the Year Award is presented to franchisees who have demonstrated an overall star quality within their franchise. Awards are presented to Gold, Silver, and Bronze franchisees in the Traditional category (brick and mortar locations) and in the Non-Traditional category (mobile or home-based franchises), all of whom have been franchising with their brand for at least two years.

TRADITIONAL FRANCHISES

NON-TRADITIONAL FRANCHISES

GOLD Carolyn Genest, Days Inn by Wyndham

GOLD Sylvie Levesque, Paul Davis Restoration

(award accepted by Jesse Tiefenbach, pictured above right) SILVER C hris Vlemmix, SpeedPro Canada

(pictured above)

SILVER John Bailey, Two Men and a Truck

BRONZE Naghmeh Razmpoosh, Oxford Learning

Centres

Recognition Awards The CFA’s Recognition Awards celebrate individuals and franchise systems for their outstanding achievements, contributions, and philanthropic endeavours to the franchise community. CFA DISTINGUISHED FRANCHISE SUPPORT SERVICES/ SUPPLIER AWARD This award recognizes a person or a company for their efforts and contributions in supporting the franchise industry and the Canadian Franchise Association at large. Elements taken into consideration include: • Participation in and support of the CFA, its Purpose and Mission • Demonstrated benefit to the community • Involvement throughout the franchise community

HALL OF FAME AWARD The Hall of Fame Award is presented to a CFA member franchise in recognition of outstanding performance. Winners typically have strong brand recognition and solid business performance. They exhibit leadership in the franchise community, including helping to encourage excellence in franchising through the sharing of best practices, speaking engagements, mentoring other members of the community, and raising the profile of franchising.

CFA OUTSTANDING CORPORATE CITIZEN AWARD Given to a franchise system that has demonstrated genuine and ongoing concern and support for a community or social service group(s). Award recipients are selected based on their philanthropic innovation, support, and impact to the community, whether on a local, regional, national, or global scale.

LIFETIME ACHIEVEMENT AWARD This award recognizes exceptional achievement and contribution to Canadian franchising and the community at large through demonstrated excellence throughout one’s lifetime and career in franchising.

DIVERSITY AND INCLUSION CHAMPION AWARD This award recognizes a company or individual for extraordinary leadership and contribution towards improving and promoting diversity and inclusion within their workplace and the franchise community in Canada.

VOLUNTEER LEADERSHIP EXCELLENCE AWARD The Volunteer Leadership Excellence Award is presented to an individual who embodies the spirit of this award through their passion and leadership in their volunteer activities with the CFA.

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

SPECIAL FRANCHISE FOCUS

JOIN THE POWER OF A GROWING BRAND WITH CERTAPRO PAINTERS® • Largest residential and commercial painting franchise in North America. CFA Distinguished Franchise Support Services/ Supplier Award: Sherrard Kuzz LLP One of Canada’s leading employment and labour law firms, Sherrard Kuzz LLP has been recognized nationally and internationally for their work representing employers in a wide range of industries, size, and complexity. The team of employment and labour lawyers at Sherrard Kuzz LLP have worked tirelessly on behalf of not just the Canadian Franchise Association but the entire franchise community to fight common employer, a threat which has uniquely impacted the franchise business model in recent years. The Sherrard Kuzz LLP team have used their expertise, knowledge, and professionalism to assist the franchise industry, its members, and the Association, as well as more than a dozen organizations across North America.

• 30+ years of experience with proven system-wide growth. • Support every step of the way with field and online training, technology and resources.

800-693-5859 certapro.ca/franchise

Each CertaPro Painters® business is independently owned and operated.

Franchise Canada July | August 2022

SPECIAL FRANCHISE FOCUS Diversity and Inclusion Champion Award: McDonald’s Restaurants of Canada McDonald’s Restaurants of Canada can trace its origins back to the early 1970s. This longstanding brand has also been a pioneer in diversity and inclusion in Canadian franchising. Today, its Diversity, Equity & Inclusion program is deeply rooted in the values of McDonald’s and encourages the representation and inclusion of all genders, backgrounds, ages, abilities, languages, and more within its employees and leaders worldwide. McDonald’s seeks to lift up underrepresented groups within the industry. Moving forward, McDonald’s plans to increase the representation of women within its leadership roles worldwide to 45 per cent by 2025, and aims to achieve gender parity in leadership roles globally by the end of 2030.

The Entrepreneur's Source® is honored to receive another accolade. For nearly 40 years our nationwide team of coaches has helped individuals define their goals, explore the possibilities of business ownership, and guide them through the process of education and discovery - all at no cost.

EST. 1984

We welcome you to connect with us and find your unique path. theentrepreneurssourcediscovery.com/blog/

Category: Business Coaching and Consulting

THE ENTREPRENEUR'S SOURCE® 464 HERITAGE ROAD, 3RD FLOOR SOUTHBURY CT 06488 Career Ownership Coach® and its variants are trademarked property of The Entrepreneur’s Source® © 2022 The Entrepreneur‘s Source

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

SPECIAL FRANCHISE FOCUS Hall of Fame Award: Wendy’s Restaurants of Canada A longstanding member of the franchising community, Wendy’s Restaurants of Canada opened its first Canadian store in 1975. Today, the brand now has more than 400 locations across the country, and recently opened its 1,000th location internationally. Wendy’s has demonstrated strong business performance through nine years of consecutive same-restaurant sales growth, as well as the addition of more than 50 new locations nationwide in recent years. The brand has plans to accelerate its growth in Canada to create more jobs and serve more customers. Wendy’s Restaurants of Canada is a longtime and active member of the CFA, and a consistent participant in CFA’s educational and government relations programming.

GR AZ IE T O OU R

F R A NC H IS EES Proud recipient of the Gold Award of Excellence as well as the Franchisee Choice Designation Award for 12 consecutive years

Franchise Canada July | August 2022

SPECIAL FRANCHISE FOCUS Lifetime Achievement Award: U. Gary Charlwood, Charlwood Pacific Group At the age of 25, U. Gary Charlwood arrived in Canada with a young family and a dream but very little to his name. Less than 10 years later, he stepped into the world of franchising, purchasing the Canadian master franchise rights to CENTURY 21 in 1975. Five years later, Charlwood founded Uniglobe Travel, which went on to become one of the most recognized names in the travel industry. Today, the Charlwood Pacific Group owns the master and territory franchise rights to leading brands in real estate, travel, property management, and mortgage brokerage businesses in Canada and around the world. Gary is a sought-after, international authority on franchising and entrepreneurship, serving as Chairman of the International Franchise Association (IFA) and winning accolades including the IFA Entrepreneur of the Year award and inductions into the Halls of Fame of the American Society of Travel Agents, the IFA, and the CFA. Charlwood has achieved great success while bringing together communities of people and organizations, creating something greater than the sum of the parts.

SINCE 1991

BAI helps franchises grow • Our Registered Franchise Consultants® work internationally to find and refer qualified candidates to you. • We are the industry leader in providing exceptional value to our franchise partners through our commitment, expertise, and support. • Performance Based - Results Driven! You do not pay thousands of dollars each year in membership fees to partner with us. We benefit when you gain a new franchisee.

253-328-6926 • info@businessallianceinc.com • Learn more at businessalliance.com

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

SPECIAL FRANCHISE FOCUS CFA Outstanding Corporate Citizen Award: KFC Canada As a business, KFC Canada has made it a mission to serve “finger lickin’ good” meals to hungry guests. But the brand has also pioneered a program that delivers food to those who need it in local communities. Through its KFC Harvest Program, KFC restaurants across the country donate surplus chicken to local charities, providing essential protein needed for balanced meals. KFC Canada has donated more than 182,000 pounds of food to more than 240 unique charities across Canada, helping feed the 850,000 Canadians who rely on food donation centres each month. This program has helped combat critical food shortages at food banks and helped to create a healthier and safer environment by addressing food waste.

PROUDLY CELEBRATING

30 YEARS

OF PARTNERSHIP WITH THE CANADIAN FRANCHISE ASSOCIATION! FRANCHISING OPPORTUNITIES AVAILABLE COAST TO COAST WITH Canada’s #1 Casual Dining Brand What sets us apart:

• We famously do not collect royalties on alcohol sales • Industry leading low food costs • Over $1 billion dollars in annual system wide sales • More than 55 years in business • Over 380 locations across Canada • Exciting franchising opportunities available!

Bostonpizzafranchise.com

Franchise Canada July | August 2022

SPECIAL FRANCHISE FOCUS CFA Volunteer Leadership Excellence Award: Rick Chittley-Young, MNP With a longstanding history of service to the CFA as treasurer on the CFA Board of Directors, Rick ChittleyYoung has helped lead the Association through more than a decade of growth and evolution. A partner and business advisor with MNP, Chittley-Young draws on more than 25 years of experience helping owner-managers achieve their personal and business goals, and expertise in accounting, tax planning and compliance, and a broad range of business issues. Along with bringing this experience and knowledge to his role as treasurer, Rick has generously offered his time and expertise in all areas of the CFA’s work. His continued volunteerism in educational programming, advocacy, and events, as well as his ambassadorship on behalf of the CFA community, have truly helped the CFA grow and develop.

Our Franchisees have spoken! 2022 AWARDS OF EXCELLENCE & 2022 FRANCHISEES’ CHOICE DESIGNEE

Thank you

for rating us highly for our leadership, business planning and marketing, training and support, ongoing operations, and franchisee relations. We are proud to receive these honours from the CFA and our very own franchisees. Our franchisees’ hard work and dedication is the reason for our continued success!

Be part of an award-winning franchise that has been highly rated by its franchisees. For more information, visit www.joinmaxwellrealty.ca

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

Follow the Signs Business is booming for sign products and services franchises BY KYM WOLFE

Franchise systems that offer sign products and services have certainly been busy over the past two years. As an essential service, these companies produced much of the ever-present signage during the pandemic that reminded us to keep our distance and wear a mask, directed us in curbside pickup, or asked COVID-19 screening questions. When many businesses were struggling with supply chain challenges, franchise systems could rely on their vendor/supplier relationships and purchasing clout to keep the raw materials flowing to their shops, sometimes sourcing substitute products to ensure they could keep up with the demand. That reality has led many independent sign companies to convert their business into a franchise, as a way of tapping into the business advisory support, bulk purchasing power, and brand awareness that the franchise business model can offer. Franchise Canada spoke with three different B2B (business to business) sign franchises about their experiences delivering services consistently, even in unprecedented times. As B2B shops, all three operate during daytime hours from Monday to Friday, offering franchise owners excellent work/life balance and quality of life.

Franchise Canada July | August 2022

FOLLOW THE SIGNS

FASTSIGNS International, Inc. FASTSIGNS has locations across Canada and offers a scalable business model, enabling franchisees to add staff and equipment as their sales grow, says Mark Jameson, chief support and development officer. “You start with 1,300 to 1,500 square feet and two employees, plus the owner, and a robust equipment package that will allow 75 to 80 per cent of business to be done in-house,” he explains. The company has strong relationships with vendors, enabling franchisees to sub-contract the other 20 to 25 per cent until they reach a point where demand justifies adding equipment and staff. “That keeps our franchisees lean and profitable.” While the vast majority of FASTSIGNS stores were kept busy during the pandemic, some franchisees who focused mainly on large events and mass gatherings like conventions, trade shows, or sporting events were negatively impacted by COVID restrictions. “We printed and sold not only directional signage, but safety shields, masks, and other items related to the pandemic, and moved quickly to sell online,” says Jameson. “This year we have had double digit year-over-year sales—we feel much of it is pent up demand after more than two years of being restricted.” Many new FASTSIGNS franchises are independent sign companies that convert their business, or related businesses like printing shops that co-locate a FAST-

SIGNS at their existing premises. There are also opportunities for new builds across Canada, mainly outside of the Greater Toronto Area and British Columbia. Ideal franchisees often have a sales background, says Jameson. “Sales is the driver of our business.” He advises people exploring franchise ownership to research their options, compare facts, and talk to existing franchisees. “Ask, what is the ratio of centres closed versus opened? What support [does the franchisor] provide?” New FASTSIGNS franchisees receive four weeks of training—one week at the mentor location closest to where the franchisee lives, two at Dallas headquarters, where they learn the foundations of all parts of the business, and one week with the support team onsite at the franchisee’s store. There’s online training and ongoing support from FASTSIGNS too, as every location has an assigned business consultant and marketing services manager. Chances for success are high, says Jameson, if new franchise owners “use the support, follow the FASTSIGNS system, and engage your community and team.”

Learn more at LookforaFranchise.ca

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

FOLLOW THE SIGNS

Left to right: Image360’s Calgary South location; Centre owners Emma Southwood and Dan Kolody; Kolody at work

Image360 Signage is one of a broad range of visual communications products and services that Image360 offers to the business community. The brand is one of five franchise concepts operating in Canada by Alliance Franchise Brands LLC, a company that focuses on marketing, print, signs, and graphics communications services. The first Canadian Image360 opened in Windsor, Ontario five years ago, and there are now four independently owned and operated locations in Ontario and Alberta. The brand is looking to expand across Canada through new “greenfield” start-ups, the brand conversion of existing independent signage or printing companies, and co-branding with existing businesses that offer complementary products and services. When COVID restrictions were introduced, the franchise quickly developed vertical marketing packages for 20 different industries to support its Image360 locations and the businesses they serve. Many of these packages included acrylic barriers with custom graphics. “We became an even more integral part of the community, helping businesses be COVID-compliant, helping them deliver a message to their clients about safety protocols or changes in operations, and ensuring their customers would be safe,” says Mike Cline, chief development officer. The company put a “COVID” section on its website, and when their clients clicked through, they could find the contents of each package of COVID-related resources listed by industry. Thanks to the franchise’s relationship with suppliers, Cline adds, “franchisees were able to offer PPE sourcing to help their clients acquire masks, gowns, hand sanitizer, and other items.” Despite the obstacles to opening a new business during the pandemic, the company launched two Canadian franchise locations.

Mike Cline, chief development officer for Alliance Franchise Brands

Cline says the most successful Image360 franchise owners would be relationship-oriented, enjoy networking, and be focused on growing their business and their community. Initial training for new franchise owners takes place at Alliance Franchise Brands’ home office in Maryland for up to three weeks. This is followed by 15 days onsite at the new franchisee’s centre through the opening weeks, which includes operational training and a heavy emphasis on sales and business development. Ongoing live and virtual training is also available throughout the year. “To support our franchisees, we have more than 100 headquarters employees who are subject matter experts in different areas, from operations, R&D, and accounting to sales and marketing,” says Cline. “Starting any new business requires time and effort, but as things ramp up and operational flow steadies, the work/quality of life balance is a great reward,” he says.

Learn more at LookforaFranchise.ca

Franchise Canada July | August 2022

FOLLOW THE SIGNS

SpeedPro SpeedPro is a Canadian-owned company with locations from coast to coast that offer clients custom-made solutions to their signage needs. “Relationships are the foundation of our business,” says Stuart Burns, SpeedPro’s president. “We are specialists with a laser focus—we do signage, and we provide value through problem solving: complete solutions, on time and on budget.” During the pandemic the company produced social distancing markers and other COVID signage and gave them to regular clients. “These were commodities, and we provided them to help businesses in our communities re-open safely,” says Burns. For many customers, the pandemic was an opportunity to rebrand and refresh custom-made signage. Idle trucks got fresh vehicle wraps; storefronts got facelifts. SpeedPro’s website became its showroom, and online visitors increased exponentially. “We gained market share in many communities and had four record months in the last half of 2020 and three record months in 2021,” says Burns. Within the network of SpeedPro locations across Canada, “the perspective is that we are all partners,” he says. When one SpeedPro store is dealing with a corporate client that places orders for all its business locations across Canada, that owner will contract the closest SpeedPro in each city to install the signage.

Some new SpeedPro franchisees are new to the signage sector, and others are conversions by independent sign shop owners. SpeedPro looks for franchise partners who have experience and skills in business development in a B2B environment, and who embody SpeedPro’s values: enthusiasm, persistence, reliability, and integrity. SpeedPro has a unique three-week training model for new franchisees. The company closed its training school in 2006, deciding it was more effective for trainers to travel to the new franchisee to support their learning and the launch of their SpeedPro business. Three corporate trainers, each with a different area of expertise, each spend one week at the franchise location, covering different specific aspects of operating a SpeedPro location. Each trainer provides individual coaching afterwards for as long as is needed. “The journey from opening day to profitability can be challenging,” says Burns. For new franchise owners who share SpeedPro’s values, “I am confident we can work with you to shorten the journey to success.”

Learn more at LookforaFranchise.ca

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

Franchise Lawyers Across Canada Find the support you need to navigate the legal aspects of franchising as we introduce you to CFA member lawyers from coast to coast. As a prospective franchisee, it’s important to find a franchise lawyer who can work with you through the due diligence process and help you understand the legal elements of franchising. Here, Franchise Canada has collected a list of lawyers with the appropriate franchise experience to support you as you get your business up and running. To help you find the right lawyer, we’ve highlighted CFA (Canadian Franchise Association) members from across Canada. These lawyers have expertise in all legal matters related to franchising, and can help you on your way to starting your own business. Read the profiles on the next page to learn more!

Franchise Canada July | August 2022

FRANCHISE LAWYERS ACROSS CANADA

Achkar Law Founded in 2016, this firm seeks to provide legal services to its clients using simplified language and practical solutions to resolve complex issues. Achkar Law is a labour, employment, and Human Rights law firm that serves the province of Ontario, and its skilled lawyers have industry-specific experience providing proactive advice and litigation services.

Learn more at LookforaFranchise.ca

Alexander Holburn Beaudin + Lang LLP Leading Vancouver-based law firm Alexander Holburn Beaudin + Lang LLP assists clients in all facets of Canadian franchise law through its franchise practice. The firm acts primarily for franchisors and master franchisees, and offers services spanning from initial structuring of new or expanding franchise systems to ongoing operational advice, litigation and dispute resolution, and advocacy.

Learn more at LookforaFranchise.ca

Alepin Gauthier Avocats Inc., Attorneys at Law This established firm 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. Alepin Gauthier has been involved in franchise law since 1979, making the firm one of the key players in this field. Its team represents both franchisee and franchisor clients.

Learn more at LookforaFranchise.ca

AUDAXLAW PC This Toronto-based boutique law firm offers experienced and cost-effective representation to franchisors, individual franchisees, and master franchisees in all aspects of franchising. With the slogan “Relationships Matter,” the firm works on a personal level with its clients to provide the practical and legal advice best suited to achieving their business objectives.

Learn more at LookforaFranchise.ca

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

FRANCHISE LAWYERS ACROSS CANADA

Blaney McMurtry LLP

Borden Ladner Gervais

A full-service law firm, Blaney McMurty LLP provides legal services for all aspects of franchising through its corporate/commercial practice. The firm was ranked a “Top 10 Regional Law Firm” by Canadian Lawyer Magazine for 2021-2022. The Toronto-based firm can help clients through the process of buying a franchise, financing their business, or resolving business disputes.

This full-service national law firm has offices in Montreal, Ottawa, Toronto, Calgary, and Vancouver. Borden Ladner Gervais provides practical legal advice and assistance in the preparation and negotiation of franchise documentation and the resolution of franchise disputes.

Learn more at LookforaFranchise.ca

Cassels Brock & Blackwell

Dale & Lessmann LLP

Lawyers at Cassels Brock & Blackwell provide knowledgeable advice on all legal and practical aspects of franchising, including franchise agreements, disclosure law compliance, dispute resolution, and litigation. The full-service business law firm has offices in Toronto, Vancouver, and Calgary. The group’s chair, Larry Weinberg, is past chair of the Ontario Bar Association’s Franchise Law Section and has received multiple awards.

Dale & Lessmann LLP advises domestic and international businesses on all matters related to franchising, including franchise law, business law, M&A, real estate, litigation, distribution, licensing, advertising, and trademarks. The firm represents franchisors in the drafting, review, and negotiation of all franchise agreements, disclosure documents, and other related franchise documentation, and provides support in connection with brand protection. The firm’s franchise law team has been recognized as leaders in Canadian franchise law by such rankings and publications as Lexpert, Franchise Times, Best Lawyers, Who’s Who Legal and Chambers.

Learn more at LookforaFranchise.ca

Franchise Canada July | August 2022

FRANCHISE LAWYERS ACROSS CANADA

David Kornhauser c/o MacDonald Sager Manis Operating with the slogan, “QUESTIONS ABOUT FRANCHISING? We have the answers. WE KNOW FRANCHISING,” franchise lawyers David Kornhauser and Michael A. Kleinman offer comprehensive services for franchisors, franchisees, and franchisee groups. They believe that “it is essential for professional advisors to understand the unique dynamic between franchisor and franchisee, as well as the respective rights and obligations imposed on each by franchise legislation and documentation.”

Learn more at LookforaFranchise.ca

Dentons Canada Dentons is the world’s largest law firm and the only law firm in Canada with a recognized global franchise practice in markets across Canada, USA, Europe, Latin America, Asia, Africa, Australia, and the Middle East. Its multi-disciplinary legal and business advisors provide comprehensive solutions on all matters impacting a franchise business from inception through to exit, including: preparation of franchise agreements, disclosure documents, corporate governance, tax planning, financing, intellectual property, privacy/data, real estate, employment, and dispute resolution. The firm launched Dentons Franchise Advisory in 2021, adding to its more than 75 years of franchise experience.

Learn more at LookforaFranchise.ca

Dickinson Wright

Dipchand LLP

With more than 500 lawyers, practicing across more than 40 practice areas, including franchising, Dickinson Wright has an unwavering focus on providing unmatched client service and high-quality legal advice. The team of experienced legal professionals has been recognized by numerous industry endorsements. A full-service law firm operating across Canada and the United States, it offers seamless, cost-effective legal services.

This Toronto-based law firm represents both franchisees and franchisors. Dipchand LLP has a wealth of experience in the establishment of franchise systems, including disclosure packages, trademarks, and litigation surrounding the Arthur Wishart Act. For franchisees, the firm offers reliable guidance on complex legal issues related to acquisition of franchised units; industry, market, and area assessment; leasing and property; franchise agreement assessment; employees; and more.

Learn more at LookforaFranchise.ca

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

FRANCHISE LAWYERS ACROSS CANADA

Fasken Martineau Dumoulin LLP One of Canada’s leading business law firms, with more than 700 lawyers located across Canada, Europe, and Africa. Partner Darrel Jarvis has been recognized for his expertise in franchise law, and brings a background of experience as an executive with one of Canada’s leading franchisors. He is also a member of the CFA’s Legal and Legislative Affairs Committee.

Learn more at LookforaFranchise.ca

Garfinkle Biderman LLP Founded in 1948 as a one-man operation, Garfinkle Biderman LLP has grown into a fully fledged firm with specialists in every area of law. Its franchise team represents businesses from across a broad spectrum of industries, including brick-and-mortar and non-traditional businesses alike. The firm offers a wide range of services for franchisors, franchisees, area developers, master franchisees, suppliers, and more.

Learn more at LookforaFranchise.ca

Gowling WLG

Hodgson Russ LLP

With multiple offices across Canada, Gowling WLG is one of the country’s largest full-service law firms. It offers expertise in franchising, licensing, distribution, and intellectual property law, both domestically and internationally. Its presence across the country means this firm has expertise in provincial franchising legislation and can help clients navigate legal issues related to franchising across the country.

One of only a few U.S. full-service law firms with offices in Canada, Hodgson Russ specializes in advising Canadian companies on a wide variety of legal matters related to operating in the U.S., including franchise and distribution law. Canadian franchisors can turn to this firm for advice on U.S. franchise law compliance (including disclosure document preparation and registration), intellectual property, cross-border structuring, state and local tax issues, and immigration matters.

Learn more at LookforaFranchise.ca

Franchise Canada July | August 2022

FRANCHISE LAWYERS ACROSS CANADA

Hoffer Adler LLP As “Lawyers Focused on the Needs of their Clients,” this firm has represented franchisors, master franchisees, franchise associations, and franchisees of more than 540 franchise systems. Partner Joseph Adler served as Secretary/General Council of the CFA (2012-2015) and was an executive member of the CFA board of directors (2007-2015). His partner, Lloyd Hoffer, is an experienced franchise litigator. Both are listed by Lexpert as leading franchise lawyers in Canada.

Learn more at LookforaFranchise.ca

KMB LAW KMB Law is a business law firm with more than 40 years of experience assisting clients on a wide range of legal services to assist franchisors and franchisees in all facets of the franchise relationship. KMB has extensive experience providing advice in all legal and business aspects of franchising, including: drafting and reviewing franchise, master franchise, and development agreements; preparing franchise disclosure documents; drafting and reviewing equipment leases, supplier, and other operational agreements; and providing sound legal strategy for expanding and new franchise systems.

Learn more at LookforaFranchise.ca

Jones Law Professional Corporation This Toronto-based law practice has been internationally recognized for experience and expertise in franchising, trademark, and privacy law. Jones Law Professional Corporation focuses on the national and international distribution of goods and services, particularly in China and other major economies in East and Southeast Asia (such as Japan, Korea, Thailand, Vietnam, and Malaysia). Advice on copyrights, licensing, competition law, and e-commerce is also offered.

Learn more at LookforaFranchise.ca

Lapointe Rosenstein Marchand Melançon, LLP One of the largest independent law firms in Quebec, LRMM specializes in business and corporate law, insurance, franchising, licensing, intellectual property, tax, finance, real estate, bankruptcy and restructuring, mergers and acquisitions, labour and employment, and civil, commercial, and class action litigation. In all areas, the firm delivers high service standards, practical insights, and strong expertise.

Learn more at LookforaFranchise.ca

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

FRANCHISE LAWYERS ACROSS CANADA

Lavery, de Billy LLP

Law Works P.C.

This Quebec-based firm’s Franchise and Distribution Section offers advice for structuring, launching, and guiding franchise and distribution systems in all industries. Lavery provides 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.

This Toronto-based boutique law firm offers expertise in franchise and business litigation, arbitration, and mediation. Having acted as counsel in many precedentsetting court decisions in Ontario, Law Works can offer expertise in franchise litigation and appeals. The firm also represents parties in all aspects of franchise arbitrations and franchise insolvencies.

Learn more at LookforaFranchise.ca

Lawrence, Lawrence, Stevenson LLP Lawrences has been providing exceptional legal services for more than 90 years, since it was founded in 1924. As part of Lawrences’ Business Law Group, lawyers advise both franchisors and franchisees on all aspects of franchising, including: compliance with franchise laws and regulations, updating or preparing disclosure documents and franchise agreements, buying and selling of franchises, renewal and termination of franchises, commercial leasing, and more.

Learn more at LookforaFranchise.ca

Lindsey MacCarthy LLP With offices in Vancouver, Calgary, and Toronto, Lindsey MacCarthy LLP (LinMac) is one of Canada’s premier tax and business boutique law firms. With a broad range of experience working with both start-up and established franchisors and franchisees on a wide variety of franchising matters, LinMac approaches clients’ business and legal concerns in a pragmatic, cost-effective, and creative way.

Learn more at LookforaFranchise.ca

Franchise Canada July | August 2022

FRANCHISE LAWYERS ACROSS CANADA

Lintott Law

Mann Lawyers LLP

This experienced law firm represents both franchisees and franchisors on all legal aspects of franchising. The Calgary-based firm offers advice and guidance to franchisees throughout the investment process, including navigating franchise disclosure documents and franchise agreements. Lintott Law can also help with renewals, leasing, and other issues for new or existing franchisees.

Mann Lawyers is a full-service law firm, providing a broad range of legal services and representation to a diverse clientele. Services offered include aspects of franchise and business law like incorporations, contract drafting and negotiation, sales and acquisitions, and commercial real estate acquisitions and leasing. The firm offers professional, timely, and innovative legal services, working collaboratively between departments to meet clients’ needs.

Learn more at LookforaFranchise.ca

McCarthy Tetrault LLP

McInnes Cooper

McCarthy Tetrault’s Franchise and Distribution Group is a national full-service team that advises and represents private and public companies in Canada and the U.S. in all areas of law that affect franchise and distribution networks. Areas include corporate-commercial, intellectual property, competition, real estate, tax, product liability, litigation, privacy, and regulatory compliance.

This business law firm advises franchisors and franchisees on all aspects of franchise law and routinely assists with the preparation and review of franchise agreements and disclosure documents. Providing strategic counsel to industry-leading clients from Canada and abroad, they relentlessly focus on client success, talent engagement, and innovation. With six locations in key economic centres across Atlantic Canada, the firm is positioned—both in size and experience—to offer clients a full range of legal and professional services.

Learn more at LookforaFranchise.ca

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

FRANCHISE LAWYERS ACROSS CANADA

McKenzie Lake Lawyers LLP With offices in Ontario and B.C., McKenzie Lake is dedicated to client service through effective, efficient, and innovative legal services. Clients range in size from individuals investing in franchised businesses to multi-unit franchisees, area developers, master franchisees, and franchisors operating and expanding internationally.

Learn more at LookforaFranchise.ca

McMillan LLP This leading business law firm serves public, private, and not-for-profit clients across key industries in Canada, the U.S., and internationally. McMillan’s franchise and distribution lawyers are experienced in all aspects of franchising, from drafting franchise agreements and disclosure documents to litigating and resolving franchise disputes. Areas of experience include litigation, competition, financing, environmental, insolvency, labour and employment, securities, and tax law.

Learn more at LookforaFranchise.ca

Miller Nash LLP

Miller Thomson LLP

Miller Nash attorneys work with franchise systems operating in a broad range of specialty industries, all with the goal of helping clients get as much value as possible out of their system. With offices in the U.S., the firm has helped many Canadian brands expand into the U.S. market, and can answer common questions and concerns that arise for brands that are growing internationally.

With 12 offices across Canada, Miller Thomson has the largest footprint of any national firm. Miller Thomson advises Canadian and international franchisors in respect to franchise compliance, intellectual property, dispute resolution, mergers and acquisitions, financings, reorganizations, and complex commercial matters.

Learn more at LookforaFranchise.ca

Franchise Canada July | August 2022

FRANCHISE LAWYERS ACROSS CANADA

MLT Aikins This full-service law firm offers its services from six key centres across the western provinces—Winnipeg, Regina, Saskatoon, Calgary, Edmonton, and Vancouver—making it “Western Canada’s Law Firm.” Its size and geographic scope ensures it can meet the needs of clients from individuals to large business enterprises.

Learn more at LookforaFranchise.ca

Osler, Hoskin & Harcourt LLP Osler’s national franchise group has the unmatched legal expertise to help build and protect clients’ franchise systems. The firm continually adapts to meet its clients’ changing commercial and litigation needs, from expanding expertise in new legal frontiers to adopting innovative technologies. These innovations include Osler Dash™, an automated end-to-end solution to the franchise disclosure and contracting process.

Learn more at LookforaFranchise.ca

Morrison Brown Sosnovitch LLP This business law firm has extensive experience providing value-added legal services to both franchisors and franchisees in all aspects of franchising. The advisory team is dedicated to helping clients find the right business and legal solution, by providing top-notch skills with a good range of experience to meet all circumstances so that franchise clients receive informed and practical advice with good value.

Learn more at LookforaFranchise.ca

Pitblado Law 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 multiunit agreements), the purchase and sale of franchises and franchise systems, and franchise default and termination. The firm offers competitive rates and broad expertise.

Learn more at LookforaFranchise.ca

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

FRANCHISE LAWYERS ACROSS CANADA

Plave Koch PLC

Robins Appleby LLP

This small entrepreneurial law firm’s nationwide practice is focused on franchise law, distribution, litigation, domain names, trademarks, FTC matters, and technology. Representing more than 250 brands across a wide range of industries, the firm has one of the largest franchise transactional and litigation practices in the U.S. The Virginia-based firm has 10 experienced “big law” partners (each with more than 20 years of experience representing franchisors), and has been in business since 2007.

Robins Appleby LLP is a trusted and highly regarded law firm, focused on helping clients face important issues in their business. Using a client-centred, personalized approach, the firm’s lawyers offer services for franchisees and franchisors, including franchise disclosure and legislative compliance, system development and management, and assisting franchisees with the evaluation and purchase of a franchise opportunity.

Learn more at LookforaFranchise.ca

Sherrard Kuzz LLP

Sotos LLP

Sherrard Kuzz LLP is one of Canada’s leading employment and labour law firms exclusively representing employers. The firm is consistently recognized nationally and internationally by Canadian Lawyer®, Chambers Global®, Lexpert®, Best Lawyers®, Who’s Who Legal® and Legal 500®, and as a 5-Star Safety Law Firm for excellence in occupational health and safety by Canadian Occupational Safety®. Sherrard Kuzz LLP has extensive experience acting for a wide range of franchise organizations across several industries such as retail, hospitality, health care, service, transportation, and more.

As Canada’s leading franchising, licensing, and distribution law firm—with more than 20 legal professionals devoted to the industry—Sotos LLP provides a complete range of specialized franchise law related services to all businesses engaged in franchising across all industry sectors while servicing their day to day corporate, commercial, real estate, employment, litigation, and intellectual property needs.

Learn more at LookforaFranchise.ca

Franchise Canada July | August 2022

FRANCHISE LAWYERS ACROSS CANADA

Stikeman Elliott LLP

Teplitsky, Colson LLP

With Canadian offices in Toronto, Montreal, Ottawa, Calgary, and Vancouver—as well as New York, London, and Sydney—this highly regarded firm serves business clients from coast to coast. Stikeman Elliott is recognized internationally for its sophisticated business law practice and has extensive knowledge across industries including food and beverage, hospitality, communications, and technology.

This Toronto-based firm’s franchise team is led by partners Ian Roher and David Altshuller, both highly recognized as experienced and respected franchise litigators. The team of expert advisors and problemsolvers prides itself on being creative and fearless advocates for the interests and rights of their clients. They have experience and franchise-related expertise in commercial leasing, real estate, construction, employment, and professional negligence disputes.

Learn more at LookforaFranchise.ca

Torkin Manes LLP

Wises

As a full-service law firm, Torkin Manes is able to draw on expertise from a cross-section of practice areas across the firm, providing advice in all areas of business related to franchising. The Toronto-based law firm helps clients grow their businesses through franchising and advise them throughout the lifecycle of their business.

Wises is Oakville, Ontario’s business and trademark law firm. The firm’s team acts for franchisors and franchisees, serving their corporate, franchising, leasing, and trademark needs. Wises offers professional advice and strategic guidance to franchisees throughout the process of investing in a franchise, from financial planning to evaluating the franchise disclosure document.

Learn more at LookforaFranchise.ca

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

FRANCHISE LAWYERS ACROSS CANADA

Witten LLP This Alberta-based business law firm offers advice and support in all areas of franchising matters, including agreements and disclosure document preparation, compliance with the Alberta Franchises Act, leasing, trademarks, litigation, and dispute resolution. Witten’s lawyers advise and assist a wide range of franchising clients representing international, national, and local franchisors and franchisees.

Visit our Learning Videos page to learn more about the basics of franchising and hear insights from legal experts.

Learn more at LookforaFranchise.ca

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Franchise Canada July | August 2022

LEGAL ASPECTS OF FRANCHISE RESALES How to conduct proper due diligence when purchasing a resale franchise BY JOSEPH ADLER, HOFFER ADLER LLP

he first question most, if not all, prospective franchisees ask of a potential franchisor is, “How much money can I make?” This is a very reasonable question, given that many prospective franchisees are investing their life savings in purchasing their franchise. Very seldom, however, do franchisors provide their prospects with a satisfactory response. Many will claim that they’re “prohibited” from providing any such claims, though they’re not forbidden from doing so by franchise disclosure legislation. The franchise disclosure legislation, in fact, permits such financial performance representation disclosures, even when they do not compel them. Some franchisors will voluntarily provide historical claims, but they are in the minority, at least in Canada. One possible way that a prospective franchisee may obtain historical sales information is by requesting to purchase an existing, operating franchise. This way, the prospective franchisee could obtain historical sales and expense information from the existing owner of the franchise, whether the selling owner is a franchisee, the franchisor itself, or an affiliate of the franchisor. A prospective franchisee in this resale scenario should receive from the franchisor not only a disclosure document that provides insights into the brand and system in question, but also particularized information regarding the franchised business being offered for sale.

Unlike a typical scenario involving the sale of a new franchise, the disclosure document will also contain certain documents pertaining to the sale of the existing business, such as an asset purchase agreement and other asset purchase related documents, the real property lease, other material contracts, and sales information within the possession of the franchisor. In effect, there are three transactions involved in a resale scenario. The first involves the franchisor, whose consent is almost always required for the franchise transfer. The second transaction will often require the landlord’s approval, or, at a minimum, written notice to the landlord, depending on the transfer conditions set out in the lease. The third involves the actual asset purchase and sale transaction with the transferring franchisee who wishes to sell the franchise. So, while the prospective franchisee in a resale scenario is afforded more opportunities to obtain critical information regarding the franchise being purchased, they need to understand that they will inevitably incur increased due diligence costs and professional fees (legal, accounting, business consultant, etc.). This investment in additional cost is often very worthwhile, particularly when a prospective franchisee gains the benefit of an existing location and lease, customers, staff, and cashflow. If you are interested in purchasing a resale, here are some legal issues to consider:

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LEGAL ASPECTS OF FRANCHISE RESALES 1. As a prospective franchisee, you should recognize that most franchisors will reserve a right of first refusal, which would mean that the applicable franchisor may wish to purchase the franchise from the existing franchisee on the same terms and conditions as set out in the offer you made. 2. Franchisors will typically impose various conditions of transfer, so the offer may not necessarily proceed to completion if the franchisor refuses to grant its consent to the transfer. This means, in effect, you might be investing time and money to close the deal but end up being denied approval by the franchisor due to transferor’s issues beyond your control. 3. One of these transfer conditions may involve the refurbishment of the franchise, the cost of which would need to be incurred by either the transferor or the transferee, impacting the purchase and sale price. 4. Franchisors often require that their prospective franchisees sign their “then-current form of franchise agreement.” This sounds rather innocuous, but this condition may have significant ramifications, especially if the then-current form of agreement

significantly varies the core financial terms between the franchisor and franchisee. You should therefore review not only the transferor’s franchise agreement, which will impact the transfer itself, but also the franchisor’s then-current form of agreement, which will dictate your relationship with the franchisor going forward. Purchasing an existing franchise certainly has its benefits, though prospective franchisees should investigate the underlying reasons for the transferor’s desire to sell the franchise. Conducting the appropriate due diligence is therefore even more critical in a resale scenario, given the additional legal steps that are required to successfully close the deal. Want to learn more about the pros and cons of buying a resale? Check out the first article in our resale series here. Joseph Adler is a founding partner of the franchise law boutique firm of Hoffer Adler LLP (www.hofferadler.com). His firm has represented over 540 franchise systems, including franchisors, franchisees, and franchise associations.

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Franchise Canada July | August 2022

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100% CANADIAN FRANCHISE SYSTEMS

In addition to a sound concept, a certain daring is needed if a franchise system is to become the success its founders hope it will. Certainly these domestic systems have displayed that daring, and their growth proves it. BY DAVID CHILTON SAGGERS

Blo Blow Dry Bar

Vanessa Yakobson, CEO and partner at Blo Blow Dry Bar, says there are 95 franchises in her system—and she wants to have more than 150 by 2023. “We’re very keen on expanding in the Toronto market,” says Yakobson, who already has franchises there and in the surrounding suburbs. There are others in Vancouver (where Blo Blow Dry began) and Victoria. “We’d love to be in Ottawa, Calgary, and Edmonton, as well as other markets across the country,” she continues, adding that there is also room for growth in the U.S., where 75% of the brand’s locations can be found. Customers don’t get haircuts or colour services at Blo Blow Dry Bar, but the brand offers five signature blow out styles (including a wash) as well as custom looks for special occasions like weddings. The brand rounds out its offerings with beautiful retail products and makeup services. Yakobson explains that her customers range through ages and life stages—from young women to brides and beyond—and spend an average of more than $50 a visit. There is also a Blo Mane Squeeze membership plan with discounts and other perks. “Our franchisees understand the business proposition based on the value of the services we offer, and many of our female owners resonate with the concept as customers,” says Yakobson. Many of her franchisees are women, although the system attracts male owners and lots of couples, too. As for the qualities she looks for, franchisees must enjoy delivering exceptional service to customers and be comfortable engaging with their community. A hair care background isn’t necessary, says Yakobson, and many of her franchisees are first-time business owners. Staff management skills are crucial, however: “We want great team leaders,” she emphasizes. In-person training takes place at the brand’s head office in Toronto prior to several weeks of remote training leading up to the opening. The week before a store opens, a stylist and a business coach go on-site for more instruction. Blo Blow Dry uses new builds and renovated spaces in plazas and on streetfronts. The sweet spot for a store is between 800 and 1,000 square feet, and interior

design is modular and adaptable. The cost of a franchise ranges from about $220,000 to $325,000. Yakobson concedes that the COVID-19 pandemic had a marked effect on her system. “The Ontario market was the worst in North America but has now had a strong rebound.” Rather than sit tight, her team helped her franchisees with a focus on retail sales, and some relief on royalties. COVID shutdowns also allowed Blo Blow Dry to work on future projects and strategic priorities, and to introduce new services. As a result, the system’s revenues are up beyond what they were pre-pandemic. The benefits of investing in the system are numerous, says Yakobson. The business model is popular and has been around for 15 years. And, she says, Blo Blow Dry has a collaborative culture and a very supportive head office.

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Franchise Canada July | August 2022

Inspiration Learning Center

Angel Kuang started her business in 2003 with just a thousand dollars. Now, her system, Inspiration Learning Center, is a Canadian Franchise Association Awards of Excellence winner, taking home the Grand Prize in the Traditional Franchise category for 2022. “I am ambitious,” says Kuang with a laugh. Before moving to Canada in 2001, Kuang worked as a teacher in China. She learned about franchising the practical way, by working in a sandwich shop in Toronto in 2002, before starting graduate studies in economics at Lakehead University in 2003. She started Inspiration Learning Center that year, and began franchising the business in 2009, with her first location in Mississauga, Ontario. She now has 10 franchises altogether, two of them corporate; an area developer has two franchises in Vancouver, B.C., there is one franchise in Windsor, Ontario, and the rest are in the Greater Toronto Area. “I’m looking to grow again,” says Kuang, from her office in Markham, Ontario. “I’ve had inquiries from Quebec,” she continues, “and there are opportunities in Mississauga. I would like to launch six franchises a year.” The principal quality Kuang looks for in potential investors is an understanding of education and the ability to convey that understanding to parents. Franchisees don’t need a teaching background, but they must love children and have good communication skills. Training takes two weeks either online or at the corporate location, with another three days of on-site instruction. The

cost of a franchise ranges between $100,000 to $300,000. “I think our concept is the most reasonable in the market,” says Kuang. Inspiration tutors children of all ages, provides educational consulting, and also runs an online bookstore. Franchisees themselves hire their tutors, Kuang notes. Kuang’s first students were the children of Eastern Europeans, then by advertising in a Chinese language newspaper she attracted others from that community. Now, she says, Inspiration tutors students from everywhere, in all subjects. Kuang says that while the pandemic hit her system hard, she also knew how to manage the upheaval. “I foresaw it. I switched everybody to Zoom immediately. There was no issue for existing franchisees.” She also started to invest in social media, and arranged with Harvard University and MIT to have some of its students act as online mentors to Inspiration’s students. In addition, Inspiration has introduced the Singapore math program. As for the benefits of her system, Inspiration is safe, successful, and good for the parents of her students, because they too become educators, says Kuang, ever the teacher.

Learn more at LookforaFranchise.ca

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New Creations Mobile Restoration

Put a dent or a scratch in an item of no real consequence and most people will shrug. But if it’s a million-dollar, gold-leaf chandelier that’s had a whack, then its owner’s reaction is likely to be rather different. It was, and the owner “called us to restore it,” says Josh Stevenson. He’s the president and owner of New Creations Mobile Restoration in Port Coquitlam, B.C., a gold winner this year in the Canadian Franchise Association’s Awards of Excellence in the non-traditional category for systems with more than 30 franchises. New Creations, started by Stevenson’s father in 1988, will fix cosmetic damage to any item and repair minor structural problems, too. Its customer base is made up of moving companies, property managers, insurance carriers, RV dealers, car dealerships, and hotels, just to name a few of the industries served. Stevenson says “next generation” franchising began in 2017, noting he has 50 locations in his system, just one of them corporate, in every province except Quebec and Newfoundland. As for expansion, Stevenson says there are still opportunities around the Greater Toronto Area and in many rural areas across the country. The typical New Creations franchisee is a middleaged person working as an owner-operator. A franchisee should be good with their hands and a problem solver, says Stevenson, and someone who doesn’t like waste. Business experience and sales ability are useful, too. Training takes three weeks in either Port Coquitlam, B.C.; Calgary, Alberta; Saint John, New Brunswick; or Vancouver, Washington, coupled with on-site instruction during launch week. Stevenson says an investor can “get started for less than $100,000.” Franchisees will also need to own or rent a suitable truck or van.

During the worst of the pandemic, Stevenson says New Creations “stayed pretty strong overall.” Since his system is primarily business to business, workplaces were usually empty and franchisees could work on-site. Differing COVID lockdown rules were dealt with by franchisees themselves, since they know their own territories best, he continues. The benefits of a New Creations franchise, says Stevenson, are its proven success, its low overhead—you just need a smart phone and an app—its low cost of entry, strong support from a family-owned business, and the wide variety of items to fix, says Stevenson. (But of course, there’s no guarantee of a million-dollar chandelier.)

Learn more at LookforaFranchise.ca

Franchise Canada July | August 2022

NEXT GENERATION IN FRANCHISING

Healthy Choices Massage Addict franchisee Jordan Fox blends health and wealth for business success BY GINA MAKKAR

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

NEXT GENERATION IN FRANCHISING

ith an entrepreneurial spirit and a desire to make a positive impact without the confines of traditional nine-to-five environments, the new generation of business owners are leaving their mark on franchising. Jordan Fox is one such entrepreneur. When he graduated from the D’Arcy Lane Institute of Massage Therapy in London, Ontario, he knew he wanted to open a multidisciplinary clinic that would offer massage alongside a variety of health services. After practicing for several years, he began researching options, and learned that Massage Addict, a nationally recognized franchise brand with an anchor in massage, was expanding its offerings to include reflexology for a multidisciplinary approach. He was intrigued. “I knew that was just the beginning,” says Fox. He approached Massage Addict about starting a franchise location in his local town of Essex, Ontario, and learned that an established clinic was available in Windsor, 20 minutes from home. He knew it was meant to be. A system that’s got your back Fox says he chose franchising because he wanted to capitalize on seven years of massage therapy experience by partnering with a proven and successful concept that would allow him to expand his skill set. Massage Addict was just what he was searching for, having grown and evolved to include new and exciting treatments that reflected the multidisciplinary approach Fox wanted. Armed with the right industry experience, Fox sought out a financial partner with business knowledge to help springboard his success. He approached his parents, Steve and Victoria Fox, 30-year veterans of their own financial planning business. “I needed a financial partner, and they were looking for smart investments.” He presented his parents with a business plan, and in September 2018, he became the owner of Massage Addict in Windsor. Not long after, he expanded and opened a second location in Tecumseh. “I’ve always had the support of Steve and Victoria when I needed it, although their primary focus continues to be their financial planning business,” he says. As it did for so many business owners, initially the COVID-19 pandemic clipped the wings of Fox’s business. Four months of closed doors created stress and uncertainty, and he says there were days when it was difficult to remain hopeful. “Thankfully, having the support of the franchisor made things much easier. We kept our heads up, used the time to clean, organize, and freshen up the clinic with some paint and deep cleaning. We kept in constant communication, supporting our teams and helping them navigate their own challenges of the pandemic. This strengthened our relationships and brought us even closer together.”

Massage Addict quickly adapted its concept by creating content for both clients and therapists that could be accessed remotely, such as stretching routines and tips to bolster health after remaining at home and indoors for an extended length of time. In addition, Massage Addict partnered with Dexterity Professional Development to provide free, and unlimited access to an online repository of learning modules which allowed therapists to remain active and expand their knowledge and skill set from home, positioning them for greater success when the restrictions eased, and they returned to work. Despite the challenges initially created by the pandemic, Fox’s Windsor clinic continued to grow, with all six treatment rooms in constant use. When the unit next door became vacant, he quickly jumped at the opportunity to expand the footprint and double the capacity to accommodate the growing clientele. “This allowed us to overcome the limited space without having to move locations,” he notes. Healthy growth Along with the success of the Windsor clinic, Fox and his team have been enthusiastic about the continued milestones the brand is achieving. Massage Addict opened it’s 100th location in 2020 at the height of the pandemic, and continues to grow across Canada, with noted expansion plans in British Columbia, Alberta, and Quebec. As the pandemic wound down, a renewed interest in self-care became a primary focus for the pandemic-weary as they looked for ways to manage pain, stress, and anxiety. “We’ve been able to celebrate many milestones with Massage Addict, such as the addition of acupuncture and chiropractic services,” says Fox. “It’s been an abso-

Franchise Canada July | August 2022

NEXT GENERATION IN FRANCHISING

lute pleasure growing with Massage Addict in becoming a multidisciplinary clinic. We’re now proud to offer massage therapy, acupuncture, chiropractic care, and reflexology.” Of the many benefits of becoming a Massage Addict franchisee, Fox says one of the most integral is the support of the system. “It helps guide you through the challenges you’re going to face, and their model is proven to be successful, with over one hundred locations.” Fox says he sees the brand’s growth not only in terms of size, but diversity as well. “I see the business growing and become even more stable by having multiple revenue streams and continuing to expand the services we offer.” It helps that as seasoned professionals, the franchisor team has often already encountered and developed solutions to navigate and overcome challenges that arise and can quickly provide proven solutions. “It’s kind of like artificial intelligence. It’s a system that continues to learn and grow, getting more efficient and smarter the longer it exists,” says Fox. While his massage therapy training focused on providing safe and effective treatments, Fox says, it didn’t equip him with the skills for building business success. The franchise system helped close that gap by providing the framework and guidance needed, marrying the best of both worlds. Through monthly calls with a franchise business consultant, Fox reviews and identifies areas that need improvement and develops strategies to put plans into action. With support in place, Fox can continue to grow his business while practicing the massage therapy that he loves and collaborating with like-minded individuals. Even more support comes from other franchisees within the system, who share their experiences and best practices with one another. “It’s an amazing feeling to be able to support new franchisees and have the support of franchisees that have more experience than I do.”

A new generation of wellness providers As a young person working within a franchise system, Fox says the experience has provided many learning opportunities that often present themselves as challenges. “There are lots of areas where I didn’t have experience in dealing with challenging situations. This is where the franchise system provides support or the opportunity to learn and grow. Having the support of a franchise allows me to overcome most of the business challenges that I may not have thought of.” The success doesn’t stop after the doors open. In addition to providing massage therapy care, Fox often spends his days building relationships with RMTs, acupuncturists, chiropractors, reflexologists, and other health professionals. He also frequently evaluates the business to identify successes and improvements to ensure that he continues to foster a positive work environment and provide the best in care to clientele. Fox’s advice for potential franchisees? Trust the system. “It’s a system that’s already proven to be successful. You have a team to help you learn and guide you along the way.” He adds that building strong relationships and listening to and actioning feedback from the team and the franchisor is critical to success. “Work hard for your team, and they will work hard for you,” he says. He also suggests providing feedback to the franchisor. “Diversity is crucial, and everyone brings something unique to the table. Your feedback can help the brand grow and will likely benefit many people!”

Learn more at LookforaFranchise.ca

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

LEADERSHIP PROFILE

ON THE CUTTING EDGE Pizza Pizza CFO Christine D’Sylva shares a slice of innovation BY ROMA IHNATOWYCZ

Franchise Canada July | August 2022

LEADERSHIP PROFILE

hristine D’Sylva was always a whizz at numbers, so zeroing in on a career in accounting was not exactly a leap of faith. It also came as no surprise when KPMG, one of the ‘Big Four’ accounting firms, signed her on straight out of university. But it was D’Sylva’s desire to look beyond the numbers that set her up for a less predictable future: a highlevel career as a C-suite executive at a major Canadian pizza chain. “I admit I love numbers, and that’s why I entered accounting. But I stayed in accounting because it opened the door to business,” says D’Sylva, who in January 2021 became chief financial officer of Pizza Pizza Limited. “Those numbers gave me a really solid grasp of business. It’s about looking at all aspects of a business to see where it is profitable and how you can make it a success. And I love that.” Prior to joining Pizza Pizza, D’Sylva had been employed by KPMG for three years, joining the firm shortly after she graduated from the University of Waterloo with a Master’s degree in accounting. She had also held co-op placements at KPMG while completing her studies. “I was young and I was eager,” says D’Sylva. “I worked on accounts ranging from real estate to technology and I was also involved in recruiting and training, so it added a lot of pieces to my career.” Pizza Pizza, however, presented D’Sylva a unique opportunity to help build and grow a business in a hands-on manner. The challenge and the opportunities appealed to her. As well, the iconic fast-food brand resonated with her on a personal level. Growing up in an immigrant family—her parents originally hailed from India—D’Sylva remembers ordering pizza in what became a much-loved weekend ritual. “Every Friday night when I was growing up we had pizza for dinner— it was a treat,” she recalls. “My mom and dad worked all week and pizza was part of the weekend celebration. We’d all sit down as a family to enjoy it.”

Valued addition D’Sylva joined Pizza Pizza in 2007, not long after the company’s IPO in 2005, as it began to require more financial oversight and improved public reporting. Brought on board as an assistant controller, she was given some significant responsibilities early in her tenure. Just six months into her new job, she conducted due diligence on the company’s strategic acquisition of the Pizza 73 brand in Alberta. D’Sylva was also heavily involved in the overhaul and conversion of the company’s accounting system. Her hard work ethic, skill, and talent did not go unnoticed, and she steadily rose through the ranks. She was promoted to director of finance and investor relations, a position she held for nine years, then VP of finance and investor relations, and finally, the coveted position of CFO. Her career climb is all the more impressive considering that at one point, D’Sylva was the only female director employed by the company. “Five years ago, when I went on a retreat to San Diego for the company’s directors, I was the only female next to 23 males!” She adds that much has changed since then. It’s Pizza Pizza 2.0 right now. We have at least six female directors and I’m on the executive team. I’ve grown in this company and now I have a seat at the executive table, and that’s very exciting.” D’Sylva says she’s always felt valued, supported, and encouraged by an executive team that prioritized an environment of mutual respect. This accounts for the large number of dedicated, long-time Pizza Pizza employees, she adds. “In my department there are people who have been working here for 20 years, and the previous CFO had been here for more than 25 years. We have a lot of longstanding employees, and I think it’s because we respect our employees and support each other. That’s my biggest career lesson: treat people with respect, value them, and appreciate them for what they are doing, and your business will be successful.”

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LEADERSHIP PROFILE

Eye on technology D’Sylva also credits the company’s rapid adoption of upand-coming food service trends for its success. “We’ve always stayed on the cutting edge of technology and food innovation,” she notes. “We were the first adopters of a centralized single-number call centre, for example, and we won a Webby Award for our pizza ordering app in 2011. There are some companies that only created their apps when COVID hit, whereas we’ve always been pushing the envelope.” Pizza Pizza’s success has indeed been phenomenal, with the brand reaching an iconic status in its home country. Today it has more than 625 stores—plus 100 Pizza 73 locations—in Canada. In addition to its traditional franchised locations, the company has non-traditional locations spread across sports venues, theme parks, colleges, and universities. At one point, just about every Canadian could recite the Pizza Pizza phone number thanks to a jaw-droppingly successful jingle that aired regularly on many media channels. “There was a joke in the ’80s and ’90s that Canadian customs officers would ask people to recite the Pizza Pizza phone number to confirm they were Canadian,” laughs D’Sylva. “The brand connected with people, and as a result it developed a longstanding valued relationship with Canadians.” Pizza Pizza franchisees come from a varied mix of backgrounds and reflect the diversity of Canada. Franchisees undergo an intensive six-to-eight-week training program that includes instruction at the Pizza Pizza Innovation and Learning Centre as well as on-site coaching at a franchise location, followed by ongoing recertification and e-learning. Creating a dedicated team of franchisees is critical, as is developing a strong support team at the head office. That tight bond with franchisees and customers helped Pizza Pizza withstand the brutal economic hit delivered by the pandemic. It was able to hit the ground

running with home delivery and pick-up, which historically accounted for 60 per cent of its business in traditional franchised locations. While it lost much of its walk-in business, things are now bouncing back. Same store sales are up 13 per cent in the first quarter of 2022, compared to the same period last year, says D’Sylva, and business is starting to pick up at its non-traditional locations too as COVID-related restrictions ease up and venues re-open. The company also continued to expand throughout the pandemic, opening new restaurants in B.C. and Quebec, where it has a smaller footprint. “We now have over 20 restaurants in B.C., where we started with around five at the beginning of the pandemic, and we have almost 60 restaurants in Quebec,” says D’Sylva. “Those are areas of focus for us in terms of our national expansion program. Overall, our goal is to grow our traditional store network by five per cent every year.” The company is also embarking on its first global foray, into Mexico, and will open a restaurant in Guadalajara later this year. D’Sylva says her own professional success is only as great of the success of those around her, and it’s this attitude that she credits for her career achievements. “I’m not your typical accountant,” she says. “Yes, I love numbers. But I also love talking and interacting with people, and that’s what I love about my current role and what I get to do. It’s about the business, the strategy, figuring out why things are happening and about working with people and helping them succeed. I’m successful if the people around me are successful.”

Learn more at LookforaFranchise.ca

Franchise Canada July | August 2022

A DAY IN THE LIFE

Franchising with Care

Comfort Keepers® franchisee Brenda Rosati shares a day in the life running her seniors home care business BY GEORGIE BINKS

f there’s one thing Brenda Rosati knows from experience, it’s to take your mother’s advice. The co-owner of the Comfort Keepers® franchise in Brampton/Mississauga recalls personally hiring Comfort Keepers in Orangeville (a neighbouring territory) when her mother came to live with her. “At certain times, we had to go out and I didn’t want to leave her alone. I was really happy with the care they provided for her,” Rosati explains. “One night my mom said, ‘Brenda, you’re really good at this. You should go and work for Comfort Keepers.’ So, after she passed away, I did.” Rosati started as a caregiver for the brand, which provides in-home care for seniors. Over 14 years, she worked for multiple Comfort Keepers offices in various capacities, then joined the Brampton/Mississauga office in January 2019 as the general manager. She became a franchisee and co-owner in October 2021. “I loved it … I could tell the clients I knew how they felt caring for their moms and family, as well as knowing what it was like to be a caregiver,” she says.

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A DAY IN THE LIFE

These days, Rosati gets an early start—at 6:45 in the morning. As she enjoys her morning coffee, she reads through emails, planning her day. “I make sure our clients are covered for the day, as well as the next few days. If not, I follow up with the scheduler. I set some goals as to how we’re going to get those clients covered. Then I look at HR information with applicants, see if we need to bring any more people on, or if there are any applicants who need second interviews.” Rosati often meets with clients who are seeking care for family member. “I go out and do an in-home Care Consultation, talk to them about our services and what we can offer, talk about our personal support workers or nurses we would have on staff and give them their background and qualifications. We talk about what they can do when they come into the home. I also drop by facilities to see if they need more support, or build on our relationship.” The next task is looking at business development, setting up meetings with clients or facilities. That’s done by phone, email, or by going to the facility. Rosati began working for the Brampton/Mississauga office in January 2019 and became a co-owner/franchisee in October 2021, a year and a half into the pandemic. When COVID-19 hit, in addition to providing care for seniors in their homes, the franchise started providing staff to long-term care facilities and retirement homes. “It was very hectic, with pretty substantial needs there. [Care homes] didn’t have enough staff so they were asking for ours. We went in as an agency to support whatever needs they had.” While her business tripled providing that support, it also lost residential clients. “Although our hours increased in long-term care facilities, [the pandemic]

hurt our business. Clients didn’t want our staff coming into their homes,” Rosati recalls. She adds that as the pandemic recedes, “Some have come back.” Overcoming obstacles In terms of what constitutes a typical day for a Comfort Keepers franchisee, Rosati says you have to be prepared for an untypical one—things can change in a minute. “One of the biggest challenges is when you have everything in place for the day, not a crazy day, then a staff member calls in sick or with COVID. They have to be off 10-14 days and you have to replace them. This [has been] really hard because we don’t have a lot of extra staff.” In fact, staffing was a huge challenge of the past two years. Rosati found herself having to replace staff who got COVID, or left because they were scared of getting it again. “Or they wanted to get out of the business because they didn’t want to be in a business where they were always exposed to it. We lost caregivers that way,” she says. Despite the challenges, Rosati says the rewards are numerous. “Highlights are when you get a call from a client and they want your support or you get a call from a facility and they want your staff to come in and help. It’s always so rewarding when we get a new client, we’re able to help, and they’re happy with the staff. Also, when you get a contract and you’re able to support the facility with the number of people they need, that’s a highlight. Or when they call and say, ‘we want another 200 hours a week,’ or a client calls and says they want 24-hour care.” Rosati says making clients happy is what she loves best. “When a client calls and gives positive feedback about the caregiver you’ve sent them, that makes me the happiest because I know I did something right with that

Franchise Canada July | August 2022

A DAY IN THE LIFE

client.” She also loves hearing continual positive feedback about a staff member from clients or facilities. To be a successful franchisee at Comfort Keepers, Rosati says it’s necessary to care about the clients. “I’m passionate about helping people and getting people the care they need—and also helping caregivers get the career they want. I’m empathetic and a good listener when people talk to me about issues and problems, and what they need for their parents.” To be in this business, “You need kindness and compassion,” she says. Growing a business and a community Rosati feels her professional experience in management has been an asset for running the business, as her work now includes managing people, expenses and schedules, and her time. Being able to multi-task has also helped her. “You need organizational skills but also be able to drop what you’re doing to fix a problem.” She says prospective franchisees should have good business skills, a health care background, and have had seniors in their life so that they understand their challenges. Rosati is very confident about the future of Comfort Keepers. “Senior home care in general is such a growing business—it’s a great business to get involved in because more family members and children of elderly parents are recognizing facilities are not a great living environment for their parents. They want to stay in their own homes, but they can’t often do that because family members are working and can’t take care of them.” What sets Comfort Keepers apart is its philosophy of care, which the brand calls Interactive Caregiving™. This practice encourages caregivers to do things with the clients, as opposed to for the client, depending on what is achievable for that individual. Interactive Caregiving™

allows for clients to have meaningful participation in their care, providing them with a sense of autonomy, maintaining dignity, and encouraging independence. Rosati says other benefits of the franchise are the support from the head office team, as well as the power of the brand itself, as Comfort Keepers has been in Canada for nearly 20 years, and is growing. She says Comfort Keepers also offers the opportunity to get together with other franchisees, attend conferences, and connect through Zoom calls. “I’ve benefited a great deal from these calls.” For new franchisees, patience is important. “It’s going to take some time to build up their business. Don’t be discouraged. Keep knocking on doors and making calls and sending emails,” she says. “Even if you send 50 emails and you get two back saying they will meet with you, then at least that’s two.” Rosati recommends new franchisees connect with other people for advice, feed off client support, and make use of the head office team. She also touts the importance of listening to other franchisees’ challenges, and how they have overcome them. “Sometimes I get discouraged, but I think, ‘We’ve got to keep trying.’” Rosati says what’s really kept her going has been a good sense of humour. “I find, when you’re working with other people, if you laugh and you make them laugh it [gives them] a better outlook on things—especially for support staff. We laugh together and we can come up with solutions together.”

Learn more at LookforaFranchise.ca

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

THE FIRST YEAR

Work in Progress

CertaPro franchisee Ken Ferguson reflects on his wins and learnings as a new business owner BY STEFANIE UCCI

anadians interact with franchises every day, and many of these brands have unique and catchy names that act as great conversation starters. Among those with snappy brand names is CertaPro Painters, a residential and commercial painting company that provides professional painting services for projects of all sizes. CertaPro has been in business for more than 30 years and is committed to “providing certainty in an industry that’s notoriously unreliable,” explains franchisee Ken Ferguson. “In general, trades, and especially painters,

often have a reputation for doing things on their own schedule, not returning phone calls, et cetera. CertaPro is trying to be the opposite of that. The ‘Certa’ in CertaPro [stands for] certainty.” A clever brand name indeed! “We try to make people feel at ease and relaxed from the beginning. We have some unique things that are specific to our brand that take the concept of certainty to the next level,” he adds. “We’re providing certainty not just for our customers, but also for the painters. We’re trying to create certainty and trust that we’re going to deliver on our promises.”

Franchise Canada July | August 2022

THE FIRST YEAR

Having just wrapped up his first year running his Winnipeg, Manitoba-based location, Ferguson notes that CertaPro was pivotal in his franchise success, helping him exceed business goals right from the start. Setting the tone Ferguson joined the CertaPro brand with both painting and practical, hands-on business experience, which made for a smooth ride into franchise ownership. But, he notes, anyone can go into business with CertaPro—even if their only previous painting experience comes from DIY projects. Nor do they need a post-secondary degree. Ferguson says he didn’t end up finishing university, though he did gather some valuable experience while there. “I ran a student painting franchise while in university, and it gave me a lot of business experience. Because I did that and I performed well within that structure, I ended up becoming a regional manager,” Ferguson explains. “That allowed me to gain a lot of experience with selling, conflict resolution, leadership, and other things that go along with running a business. And then I transitioned to a general manager role, which was actually almost like being a franchisee.” After that, Ferguson says he dipped his toes into the commercial real estate world for a little bit as he continued his career journey. Fast forward eight years to deciding to go into franchise ownership, and he says that CertaPro just seemed like the right fit. “I looked into other [brand] options and I felt like the culture [at CertaPro] was a lot stronger. The overall performance of the business is a lot better. Every company has their core values.

But what I learned about CertaPro is that they really mean what they say, specifically with respect to continuous improvement.” Ferguson explains that as part of the onboarding, CertaPro provides “a really well-done learning experience online through Zoom.” Typically, training would’ve been completed at head office in Philadelphia. But due to COVID, the company was able to pivot effectively to online platforms while onboarding new franchisees across North America. “They got me connected with a general manager who’s specialized for the startup process. And this is another really cool feature about CertaPro: I’m used to seeing businesses get kind of lumped up geographically, like in Central Canada or Western Canada. Rather than matching you with geographic similarities, CertaPro matches you with people who are at the same stage in their business,” he says. Thanks to his previous experience and familiarity within the industry, Ferguson was able to fast-track some of his initial training while getting ready to open his doors. He explains that head office onboarded him into a more advanced group of franchisees fairly quickly, connecting him with those who have been operating their businesses for a bit longer. Brush off the challenges Ferguson says that he still faced some challenges when getting his business up and running. “I think that sometimes when starting a business, people can be tempted to move fast and skip steps. They just want to open the doors and start collecting revenue. That was a challenge: getting all the right insurance in place, all the certifica-

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

THE FIRST YEAR

tions, equipment lined up, getting everything branded, and making it feel like this is a CertaPro franchise, not just a guy painting stuff called CertaPro. Really getting the brand launched well was challenging for me.” Luckily, head office had partnered Ferguson with other franchise owners facing the same difficulties and growing pains, and he says that it was incredibly helpful to be surrounded by a group of people jumping through the same administrative hoops and navigating red tape at the exact same time. “[CertaPro] has a great culture. It makes getting up and going to work really easy,” Ferguson says. “The systems they have in place for marketing sales are incredible. We very easily differentiate ourselves from the competition. We stick out and we’re different. People want to work with us and sales aren’t hard with this brand. And as a result, the biggest challenge is building the operation as quickly as the sales come. It’s a great problem to have.” Passing with flying colours Ferguson’s experience has been “extremely rewarding,” he says, adding that his franchise is “already the most recognized painting company in Winnipeg after one year of operation.” Achieving this accomplishment is due largely to the company’s reputation and initial training, he adds. “You’re able to have a turnkey business going pretty quickly.” And that’s not all for Ferguson’s new business wins. He adds that his first year of revenue was more than $500,000—all while getting his franchise up and running! This year, his business is trending towards more than $1 million in revenue.

It also helps to be surrounded by long-term thinkers, he says. “Sometimes with running a business, it can be really easy to just get focused on getting things moving a little bit too fast. I had people coaching and mentoring me who said, ‘Hey, this is a marathon. Don’t think about this summer—think about what you want this business to look like five to 10 years down the road.’ There’s a lot of wisdom and good business acumen all the way throughout the company.” When it comes to advice for finding success with franchising, Ferguson says to consider that there’s a lot of saturation in the franchise market. When you narrow down your search to one brand in particular, he says, you should figure out what makes it special and fully understand its differentiators and economic edge before putting pen to paper. After that, “make sure that you’re financially stable going in. We had the luxury of not panicking due to ups and downs in revenue, which allowed us to do things the right way and exceed our goals,” says Ferguson. “It could be really tough for people looking to franchise if they scrounge up their last couple of dollars to pay the franchise fee and then they can’t live for the next year, right? Having a mindset of availability while starting a business is a lot of work. But if you have the right mindset for it, it’s one of the most rewarding things that you can do.”

Learn more at LookforaFranchise.ca

Franchise Canada July | August 2022

ICONIC BRAND

THE RIGHT CHOICE

Choice Hotels builds its franchising empire on a bedrock of passion and care BY JORDAN WHITEHOUSE

t was Christmas Eve 2020 when Dharmesh Patel received the diagnosis: he had pancreatic cancer. It was a shock, of course—to Patel and his family, but also to his friends at Choice Hotels Canada. Patel and his brother Ravi had owned the Quality Inn in Leamington, Ontario since 2014, and both had developed deep personal connections with the team at the parent company over the years, including CEO Brian Leon. So, when Leon heard the news and learned that Patel would be having surgery that March, he made a commitment: if Patel successfully pulled through the surgery, he’d do one hundred sets of one hundred push-ups. Patel did make it through, and not long after waking up, Leon was Facetiming him, doing his first set with his dog trying to distract him in the background. “He probably shouldn’t have made me laugh, but he did,” remembers a smiling Patel. “But that’s the level of personal commitment that Brian and his team have to their franchisees. And that’s a big part of why we’re with Choice. I would recommend this brand to anybody.” Brian Leon, CEO of Choice Hotels Canada

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

ICONIC BRAND

A history of innovation Choice Hotels Canada is now one of the largest lodging franchisors in the country, with more than 330 independently owned and operated properties from coast to coast. Each of those properties caters to a different market segment—upscale, mid-scale, extended stay, or economy—and each falls under one of eight brands: Ascend Hotel Collection, Comfort Inn, Sleep Inn, Quality Inn, Clarion, MainStay Suites, Econo Lodge, or Rodeway Inn. The company is a master franchisee of Choice Hotels International, which got its start in Florida in 1941. The first Canadian property opened in 1955 in Summerside, Prince Edward Island and is still in operation today. Fast forward 30 years to 1989 and Canada’s first Comfort Inn locations opened in Cornwall and Niagara Falls, Ontario. Three years later, Choice really began its meteoric rise, growing to 54 hotels in Canada and then 173 properties in 1993, after entering into a joint venture with Journey’s End. After adding a remarkable 18 new hotels in 2021, Choice Canada now has more than 330 hotels. Innovation has been a cornerstone of the company since the very beginning, says Leon. As an example, he points to the fact that Choice became the first hotel chain to offer guests 24-hour, toll-free reservations in 1970. In 1984, it was the first to offer non-smoking rooms in every hotel, and in 2011 it was the first hotel franchise to develop an app for iOS. “When you look at the evolution that’s happened over time here, a huge part of it is our value proposition to our franchisees,” says Leon. “What is it that our franchisees need from us today that’s different than what it used to be?” Those needs are rapidly changing, says Leon, but a big one over the past five years has been a focus on revenue management. In many industries, prices are set and may gradually change, but it’s a lot more complicated in the hotel business. Room rates go up and down based on a number of factors, including ever-fluctuating demand

levels triggered by the informed traveller who knows how to get the best value for their money. Through hundreds of booking sites, even on-the-go booking powered by rapidly changing mobile technology, travellers have a lot of options. It can be incredibly difficult for franchisees to figure out what they should charge at what time, to give the consumer the best value while getting the best rate for a room in a highly competitive market. To address this, over the last year, Choice has rolled out ChoiceMAX, a revenue management system (RMS) built on advanced pricing and inventory management algorithms. Based on these algorithms, it recommends to franchisees what their rates should be to stay competitive. On the franchisee’s end, the simple mobile and desktop interface has allowed Choice’s franchisees to quickly adopt the system and make the most of its functionalities. It’s all about passion ChoiceMAX is just one example of the types of innovations Choice is committed to exploring for its franchisees, says Leon, many of whom come from a variety of backgrounds. Some have a lifetime of experience in the hospitality business and want to be very hands-on with their Choice property. Others come with less experience and choose to delegate hotel management to a third party. There is one common denominator for success, however, says Leon: passion. “More than anything, you need people who have a passion for hospitality and for the guest experience. If we have that, everything else we can make sense of.” It’s clear that Dharmesh Patel has that passion in spades. He’s a second-generation hotelier, and he still remembers cleaning rooms at his parents’ first motel in Leamington, Ontario at the age of six. “By the time my brother and I were in high school, we had two motels in town. It was my mom and my brother managing one, and then my dad and myself with the other one. We were kind of competing against each other,” he adds with a laugh.

Franchise Canada July | August 2022

ICONIC BRAND

“WITH CHOICE, THE REASON WE’VE STUCK WITH THEM IS THE PEOPLE. IT’S LIKE A FAMILY.” Franchisee Dharmesh Patel

He still likes the competitive aspects of the business, but it’s the people he loves most, he says. “The hotel business is all about people, and you meet so many different, fascinating people. And with Choice, the reason we’ve stuck with them is the people. It’s like a family. Brian and his team are absolutely amazing. They’re great people to work with, very open, receptive, and approachable. They all know me personally, they all reach out, and they all genuinely care.” This same sense of family also extends to his staff, he adds. “Our staff love being a part of Choice, and we wouldn’t be successful without them.” Leon says that many franchisees tell him they love that this is a Canadian company. “We’re part of Choice International, but we’re a separate entity in Canada. We have a full team here in Canada providing support across all functional areas—from marketing to sales to hotel development.” Beyond the pandemic That local support was huge during the pandemic, says Patel. “They definitely stepped up.” During the first few months, for example, Choice helped franchisees navigate the different government supports available to them. Leon says the corporate team also tried to be as creative as possible to help franchisees. That meant weekly and sometimes daily meetings with its franchise advisory board to work together on issues such as finding different customer streams. “If there was a bright spot for us [in the pandemic], I’d say it was that there’s never been a time in the history of our company where we had collaborated more with our franchise community,” says Leon.

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This isn’t to say the challenges of the pandemic are over. Supply chain issues and labour shortages are still top of mind for many in the industry. But Leon is hopeful that as we move through the post-COVID adjustment period, these challenges will prove to be short-term ones. In the meantime, he says the hotel industry is still a great one to be a part of and that franchising in general is a great opportunity for many people to get into business. But he has some words of advice for prospective franchisees: be careful. “I think sometimes people have a tendency to think, ‘Well, if something is a franchise, then it’s kind of guaranteed success.’ And that just simply isn’t the case. So, try to find a business area that you’re interested in, and don’t just jump in. Understand the economics, and absolutely talk to other franchisees of the system or the industry.” Patel agrees, but adds that if it turns out the hotel industry is for you, Choice is a great option. “I won an award last year and when I went in to the office to get it, there was Brian doing his last set of push-ups for me. I can’t even do one push-up and this guy did one hundred sets of one hundred push-ups. You won’t find another hotel franchise CEO that’s going to do that for his franchisees.”

Learn more at LookforaFranchise.ca

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

SHOW ME THE MONEY

4 FRANCHISES FOR $150K-$250K Franchising is about diversity, and 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, including figuring out a budget that fits with your financial situation and goals. Here, Franchise Canada showcases franchise systems in which you can invest for $150K-$250K. ActionCOACH

PerCurra

With more than 25 years of experience and tens of thousands of happy clients, ActionCOACH Canada is part of the world’s largest business coaching franchise. ActionCOACH offers coaching services to help businesses grow, meet their goals, and find solutions to challenges. Its coaching services use a customized, personal approach to help businesses see results. ActionCOACH is the only Canadian franchise to guarantee a six-figure revenue to its franchisees. The business model allows for unlimited scale and growth, and offers the option for absentee ownership.

PerCurra is an award-winning home care company that offers an extensive range of services to adults who require at-home support to live their life, their way. Services are offered for people with a range of needs due to learning or physical disabilities, mental health, or other health issues. The franchise system minimizes financial risk by building a base of many individual contracts rather than fewer Local Authority agreements, and by marketing services directly to users. Franchisees with PerCurra benefit from joining a market-leading business in a $5.4 billion dollar industry, with the stability of long-term clients and the opportunity for growth. PerCurra is currently looking for a master franchise partner in Canada.

Learn more at LookforaFranchise.ca

Bioped Footcare Centres This footcare franchise has been serving individuals who seek relief from foot and lower-limb bio-mechanical conditions for more than 40 years. Bioped Footcare Centres carry high-quality orthotics and orthoticfriendly footwear, leg bracing, and gradient compression stockings. Orthotics are evaluated, designed, and custom-made at on-site labs by certified Pedorthists. Bioped is built on a “total patient care experience,” to create a fully customized treatment for its clients. Franchisees join a network of more than 75 franchise clinics across Canada with a strong marketing system and ongoing franchisee support.

Learn more at LookforaFranchise.ca

Servpro Canada This fire, water, mould, and other clean-up and restoration services franchise responds to property damage emergencies of all types and sizes, from small individual disasters to multi-million dollar large-loss events. Founded in 1967, the brand has become an industry leader in North America, with more than 1,900 locations across the U.S. and Canada. Franchisees with Servpro benefit from a proven business model, a strong brand reputation, customer service, training, and ongoing support within the franchise system. The brand is always seeking selfmotivated, proactive, and service-oriented franchise partners to help in its mission of helping customers in their greatest moment of need.

Learn more at LookforaFranchise.ca

Franchise Canada July | August 2022

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FRANCHISE FUN

GO NUTS FOR FRANCHISING Founder of Maverick’s Donuts Geoff Vivian shares his passion for business, love for his family, and why brand growth is just the icing on the cake—or the topping on the donut

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Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

FRANCHISE FUN It all started with an Ottawa donut shop in 2016. There, Geoff Vivian and his team spent four years perfecting recipes for delicious donuts and building a reputation as the renegades of the bakery world. “[We] provide a delicious, consistent donut base with fun and creative toppings,” Vivian says. When the pandemic hit in 2020, Maverick’s Donut Company refined its concept and began expanding, and it has quickly grown into a franchised brand with locations in Ottawa and more to come soon throughout Ontario. Vivian describes himself as a visionary who is also accommodating and supportive—an ideal mix for a leader at the helm of a franchise system! Here, he digs in to the importance of family, top franchising advice, and his dreams for taking Maverick’s international (look out, U.S.A.!). “Our recent and continuous growth is a recent success we are very proud of,” he says. The most interesting thing I’ve done recently is… engaged with prospective franchisees at two Toronto-based franchise shows.

The hardest thing for me to do is… make my wife happy! But all joking aside, balancing family responsibilities with work responsibilities.

The accomplishment I look forward to the most is… raising my children to be wellrounded individuals with values that I have instilled.

In its best form, work is… personally and financially rewarding.

My favourite drink is… Glenfiddich on the rocks—except that I can’t drink it because it wakes me up at night.

My personal motto is… work hard—because when do I ever get a chance to play hard?

A good franchisee… represents the brand with hard work and dedication. A good franchisor… provides support and remains creative with the product line.

If I could change one thing… I would have started Maverick’s Donut Company earlier. But then again, everything happens for a reason.

My top advice for prospective franchisees is… make sure that ownership has a daily presence within the store.

The person who has had the most positive influence on me as a businessperson is… my uncle Eric.

My top advice for new franchisors is… to let franchisees know both the upside and the downsides of the franchise, and understand that acknowledging a potential failure will help ensure that it doesn’t happen.

One necessary item on my life’s “to do” list is… begin franchising in the United States.

Canadian franchising is… an exciting way to connect likeminded businesspeople. The most positive influence on my life as a person is… my mom. She instilled in me a strong work ethic, honesty, and integrity.

The most important thing in life is… family.

The key to success is… hard work.

One of the most enjoyable things to do is… play hockey with my children.

I’d like my friends to describe me as… loyal.

Learn more at LookforaFranchise.ca

Franchise Canada July | August 2022

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Q A

ASK A LEGAL EXPERT What are the main differences between a franchise and a license agreement—and which should I choose? IF YOU’RE CONSIDERING PARTNERING with a recognized brand to establish a new retail business, or expand an existing one, you may be faced with the decision of choosing between a franchise arrangement versus a license arrangement. While these two business models share certain common features, they’re not the same, and it’s important that you understand the legal and functional differences before making your decision. Whether a relationship constitutes a franchise has significant legal and business implications. Franchising is regulated at the provincial level in Canada. There are currently six provinces (British Columbia, Alberta, Manitoba, Ontario, Prince Edward Island, New Brunswick, and Newfoundland) with enacted franchise legislations in Canada. Parties operating franchises in these provinces will be subject to applicable provincial franchise legislation, including pre-sale disclosure obligations and a statutory duty of fair dealing, among other rights and obligations. A company will typically start franchising once its business concept is established and proven and its brand enjoys a level of recognition or goodwill in its sector. Such businesses are attractive to entrepreneurs seeking to leverage the goodwill of a recognized brand, the efficacy of established, proven operating systems, and a higher level of support. Occasionally, a fast growth or emerging business with aggressive expansion aspirations will dive into franchising immediately to accelerate its growth. Extra care and diligence should be applied when considering such franchise opportunities. A license, on the other hand, is a grant from one party (a “licensor”) to another (a “licensee”) whereby the licensor permits the licensee to use certain intellectual property. A commercial license is typically restricted to the use of the licensor’s intellectual property in the course of the licensee’s business, and can include the trademarks owned by the licensor as well as its processes and trade-secrets or a product. Unlike franchises, there is no legislation in Canada specifically regulating the grant of a license. Accordingly, the relationship between a licensor and licensee will be governed by established contract law principles and the terms of the agreement executed by the parties. A company licensing its intellectual property to third

parties under a license agreement may direct how its intellectual property can and can’t be used, but it won’t typically require adherence to a particular operating system or business model, nor will it provide the level of support received under a franchise agreement. In a licensing model, the entrepreneur pays to use the intellectual property, but is generally free to structure and operate its business as it chooses. Whether the differences highlighted above between licensing and franchising are a “pro” or a “con” will depend entirely on the particular circumstances and personality of the entrepreneur assessing the opportunity. There’s no right or wrong choice, and one model isn’t necessarily better than the other. At their core, both models allow an entrepreneur to operate a business using another party’s intellectual property. To determine which model is best for you, ask yourself the following questions: 1. What is your goal? What do you hope to achieve? 2. What is your personality and business style? Are you a risk taker or risk averse? Does the idea of starting your own business excite or terrify you? 3. Consider your type of business and the predominant business models in your selected industry. 4. Is the company you are considering well known in your jurisdiction? 5. Does the company have an established operating system and a proven record of success? 6. How much control do you want to retain over your business? Do you want a high level of control and autonomy, or do you prefer the security of working within an established system and having the main elements of your business planned for you? 7. How much support will you need? 8. How much money are you able to invest? 9. How quickly do you want to go to market? 10. A re the additional legal protections afforded under franchise laws important to you? As you answer the above questions and consider the differences of franchising and licensing through the lens of your specific circumstances, goals, and personality, the most appropriate model for you will become apparent.

Helen Fotinos Partner, Lead of Franchising and Distribution for Canada Dentons LLP 416-863-4547 helen.fotinos@dentons.com

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Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

Ilan Levy Associate, Franchising & Distribution Dentons LLP 416-863-4511 Ilan.levy@dentons.com

Q A

ASK A FRANCHISE EXPERT

As a new franchisor, what type of support should I provide to my franchisees? IF YOU’VE DECIDED TO FRANCHISE YOUR BUSINESS, you may be wondering how much support you will need to provide to help your franchisees succeed. Let me start by saying that supporting your franchise owners at a high level is extremely important, for several reasons. Firstly, it’s going to help you maximize your potential. Increasing the revenues that your franchisees collect increases your royalties. Secondly, it’ll help you to build strong relationships with your franchisees and increase the respect that they have for you, which will allow you to implement changes if you need to and give you a greater level of influence with your franchisees. It’ll also ensure that your franchisees validate well for you in the sales process. Validation is the term that we use in franchising to mean whether your franchisees say great things about you—and those recommendations will help you to sell franchises going forward. And finally, it’s going to help you reduce the chances of any litigation in your system. But bear in mind, when we’re talking about support, one size does not fit all. Some companies, for example, will have physical locations; some companies don’t. Some companies are going to expand much more aggressively as franchisors. Some might do multi-unit offerings, some might do area development offerings, some might do other kinds of offerings as well. The industry you belong to is also going to determine the level and type of support you’ll need to provide. For example, if you’re in the restaurant industry, you may need to provide a lot more support, because if your franchisee’s not welltrained you can poison your patrons. I break the kind of support you provide your franchise into two basic buckets. The first is the onboarding bucket: what you’re going to do to help franchisees when they first get started. These are things like site selection, lease negotiation, facility design, construction, and initial training. This can come in the form of remote training, on-site training, training at your head office, and grand opening support. In each of these areas, it’s important that you document the processes that franchisees are expected to follow, and the support resources that are available to the franchise owners. Franchisees who are first-time business owners, in particular, are going to look to you for detailed guidance about how to get started. Areas like site selection and lease negotiation are very important if you have a site-dependent business. Be sure that if you’re going to be involved in this, that prior to accepting any location that the franchisee wishes to pursue, it’s important that they’ve completed their due

diligence and that you’ve completed whatever due diligence is part of your process. Make sure that the LOI (letter of intent) that they submit and the lease they sign contains the use clauses and other terms that are going to help protect your brand, your intellectual property, and their interest as well. When it comes to ongoing support, this encompasses areas like business coaching, training, ongoing marketing research and development, supply chain management, and finding new and better pricing. It’s also important to implement benchmarking, especially looking at KPIs (key performance indicators) within the system, to measure your franchisees’ success. Make sure that when you’re talking to your franchisees, that they understand what kind of ongoing support and training you’re going to be offering. The ongoing support that you provide your franchise owners should focus on helping them to continually increase revenues and control their costs. Additionally, your job is to make sure that you establish your credibility as an effective business coach for them. In order to understand your franchisees’ needs, you should make sure that you have detailed data coming from the franchisees, from a POS (point of sale) or CRM (customer relationship management) system, and that you’re getting monthly financial statements from the franchisee. If you develop credibility with your franchisees through a strong, relational system of support, you’re going to be able to implement changes in the system and improve your franchisees’ performance, which will in turn help grow the system much more quickly and with a greater level of quality. This article was adapted from Franchise Canada’s How to Franchise Your Business video series. Watch the full video and find more helpful content here!

Mark Siebert CEO iFranchise Group www.ifranchisegroup.com

Franchise Canada July | August 2022

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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

Canadian Franchise Association 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 110)

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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

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

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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

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

MARKETPLACE

Big Frog is more than a business; it’s a lifestyle! Big Frog Custom T-Shirts & More® is a franchise concept specializing in custom decorated apparel with more than 88 locations opened or in development in the U.S. Big Frog’s goal is to become the world leader in the $20 billion garment decorating industry. Using high tech direct-to-garment printing, it is the only chain or franchise of its kind. Big Frog has a strong history of success and wonderful validation from its franchise owners. This exciting opportunity is now available in Canada! Franchise Units in the US: 80+ Franchise Units in Canada: 1 Business Since: 2006 Franchising Since: 2008 Franchise Fee: $29.5K Investment: $190K+ Training: Training manuals, online courses, 1 week in Florida, 1 week onsite at your store Available territories: AB, BC, MB, NB, NL, NS, NT, NU, ON, SK, YT, US

Boston Pizza International is proud to be Canada’s number one casual dining brand, serving communities from coast-to-coast since opening its first restaurant in Edmonton, Alberta in 1964. Today, BPI operates in Canada, The United States and Mexico and has been recognized as a Platinum Member of Canada’s 50 Best Managed Companies and has been a Franchisees’ Choice Designation winner for eight consecutive years. Boston Pizza offers guests two experiences under one roof – a family-friendly casual dining restaurant and a separate sports bar with a lively atmosphere. While we’re famous for our gourmet pizzas made with our signature hand pressed dough, our extensive menu satisfies every appetite with our mouth-watering pasta dishes and a wide variety of, salads, entrées and desserts. The casual atmosphere makes Boston Pizza as fun for families as it is for solo-dining, teams and groups of all ages. With $1 billion in system-wide sales, Boston Pizza has more locations, serving more guests annually than any other casual dining concept in Canada. Each year, more than 40 million guests are served across more than 380 Canadian locations.

Address: 13083 – 156 Street NW, Edmonton, AB T5V 0A2 Phone: (587) 525-8000 Web: bigfrog.ca Email: info@bigfrog.ca Contact: Tom Suggitt, CEO

“The Great American Franchise Resource”

CENTURY 21 Canada is the master franchisor in Canada for the CENTURY 21 real estate brand. The CENTURY 21 System is your edge. You will be a part of a vibrant and growing global real estate network that is in 86 countries and territories with approximately 12,500 offices and over 147,000 agents.

Business Alliance, Inc. is North America’s premier franchise brokerage since 1991. We help our franchise partners grow their brand and bring qualified prospective franchisees to them! Our Registered Franchise Consultants® become your sales force and paid upon an executed franchise agreement. No annual or membership fees as we are performance driven, having complete control of your cost of goods to bring a new franchisee on board! Contact: Gina Johnson, CFE, Vice President Email: gjohnson@businessallianceinc.com Web: www.businessallianceinc.com

Bostonpizzafranchise.com

Franchise Fee: $10.5K-$21K Investment Required: $50-150K In Business Since: 1976 www.century21franchise.ca

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MARKETPLACE

Business Professionals, explore a better fit than you ever imagined! CertaPro Painters® is the largest residential and commercial painting company in North America. We consistently deliver extraordinary experiences, whether it’s on a large commercial project or in a residential home. This experience has made CertaPro Painters® North America’s Most Referred Painting Company®. We have spent nearly 30 years continuously improving each aspect of our business so there has never been a better time for you to reap the rewards of our efforts. CertaPro Painters® offers a business model that is highly scalable - without high overhead costs. You can grow your operation by developing commercial accounts and by adding key staff to build your infrastructure. CertaPro® provides many options, even if your goal is to have a professionally managed business that does not require your presence to grow. Take a closer look at the business model, earning potential and culture of the Market Leader and you’ll immediately see the CertaPro® difference. Call us today at 800-693-5859 or visit certapro.ca/franchise. Transform your future! Each CertaPro Painters® business is independently owned and operated.

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.

FRANCHISE WITH AN ESSENTIAL BUSINESS • A trusted brand – Nearly 700 locations worldwide and 35+ years’ experience franchising • A robust model – COBS Bread is built on providing exceptional product, friendly service and a welcoming environment for all customers • Community focused – All bakeries donate to hundreds of local schools, groups and charities across Canada • Authenticity – COBS Bread operates with honesty and transparency • No initial franchising fee for new bakeries • Flexible financing options Awards 2015 Recipient CFA Award of Excellence in Franchising, Silver Award Winner 2010 & 2012 Recipient CFA Award of Excellence in Franchising, Bronze Award Winner 2011–2022 Recipient CFA Franchisees’ Choice Designation Contact the COBS Bread Franchising Team E franchise@cobsbread.com P 1 866 838 COBS (2627) W www.cobsbread.com/franchising

Diversified Royalty Corp. (“DIV”) is a multi-royalty corporation, engaged in the business of acquiring top-line royalties from well-managed multi-location businesses and franchisors in North America. In business since: 2014 CFA member since: 2017 Phone: (604) 235-3146 Web: diversifiedroyaltycorp.com Email: greg@diversifiedroyaltycorp.com Contact: Greg Gutmanis, CFO & VP Acquisitions

www.dq.ca Contact: Tammie Verna at tammie.verna@idq.com or 905.637.4741

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Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

MARKETPLACE

Shuttle Services Driverseat is an award-winning system, that specializes in transportation solutions. Our franchise partners provide shuttle services through their team of Chau eurs, while they work on business development in their community. Driverseat franchise locations o er transportation to airports, for winery/brewery tours, non-emergent medical transport and weddings in mid-sized commercial shuttle vehicles. • Total capital required - $42K to $68K • $20K – $30K franchise fee (include in the total capital required) • $6 billion industry • Home based • No need for inventory • No capital real estate leases • Comprehensive training program • Award winning support • Innovative technology platform • Canadian owned and operated

Edo Japan has been in the business of serving Japanese-inspired food, made fresh and by hand with high-quality ingredients and Edo’s famous teriyaki sauce, for more than 40 years. Serving more than 10 million meals annually, our Canadian-owned and operated franchise is experiencing explosive growth and we are now accepting applications for multi-unit and single unit operators across the country. As one of the most popular and successful fast-casual restaurant franchises in Western Canada, prospective franchisees can look forward to high sales and an excellent return on investment. Franchise Units in Canada: 164 Franchise Fee: $35K Investment Required: $500K-$600K Available Territories: BC, SK, MB, ON In Business Since: 1979 CFA Member Since: 1995 www.edojapan.com/franchising

Contact

• 1-855-DRIVE-90 • franchise@driverseatinc.com • www.driverseatinc.com

EverLine Coatings is North America’s fastest growing line striping and pavement maintenance service business. We help property owners and managers keep their parking lots safe and appealing to customers with professional line painting and pavement maintenance programs. Pavement is an asset, and it’s everywhere! Virtually all public and private property owners with existing asphalt assets require our services. Our business model is primarily B2B - we sell savings through maintenance rather than replacement! Franchisees establish a route to deliver a service that drives recurring revenue. Our services include sealcoating, crack filling, line striping, asphalt repair, custom stenciling, parking lot accessory installation, and more! This is a franchise system founded by Franchisees, built for Franchisees. We have the expertise and support systems in place to ensure Franchisees ramp-up quickly and scale! Franchise Units in Canada: 20 Corporate Units in Canada: 1 Franchise Fee: $49,500 Investment Required: $139,050 - $195,973 (Lease) $176,008 - $264,496 (Buy) Available Territories: BC, ON, NL In Business Since: 2012 CFA Member Since: 2016

“When you care enough to send the very best.” Hallmark is one of the world’s most recognized brand names and is known as an industry leader in its product development and merchandising innovation. Hallmark Canada’s Gold Crown network of stores represents its premiere retail destination of choice for greeting cards, personal expression products and gifts. Hallmark offers first-class marketing support, exclusive training, customer-awareness benefits and merchandising services to help build a business that our franchisees take pride in. Franchise units in Canada: 70 In business since: 1916 Franchising since: 2001 Franchise fee: None Start-up capital required: Varies Investment required: Varies Training: Yes Available territories: Opportunities nationwide CFA member since: 2008 Phone: (800) 268-3230 Email: franchisecanada@hallmark.com Web: www.hallmark.ca

www.everlinefranchise.com

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MARKETPLACE

With people spending more time at home, they are investing more in their outdoor living spaces. PROFIT FROM A PROVEN SYSTEM. Are you looking for • An opportunity to be your own boss? • The ability to work from home and create your own schedule? • A healthy and creative work environment? A Hickory Dickory Decks franchise offers: • Entry into a multi-billion dollar home renovation and improvement industry • A strong reputation and buying power • A proven training and support system • Industry leading technology and marketing Now expanding across Canada! Prime territories still available. Contact Hickory Dickory Decks today. www.decks.ca/franchise 1-800-263-4774

Famous for our Original Recipe, unique 11 Herbs and Spices and exclusive cooking style, KFC has become the largest and most recognizable Quick Service Chicken Restaurant Brand in Canada and around the globe. We are looking for enthusiastic, capable, committed partners to join the KFC Canada family in both owneroperator and multi-unit formats across the country. We have special interests in QC, ON, AB and BC with a high priority in Quebec. Franchise units in Canada: 620, Other: 23,000 In business since: 1953 Franchise fee: $52K USD Start-up capital required: $350K-$450K+ Investment required: $650K-$1M+ Training: 4-6 weeks initial & ongoing Available territories: All of Canada Contact: Zaid Kharouba, Associate Franchise Development Manager Phone: (416) 664-5310 Email: zaid.kharouba@yum.com Web: www.kfc.ca/franchise

After over forty years of providing easy-to-prepare, top quality foods, M&M Food Market has become a trusted and iconic Canadian brand that customers have come to rely on for a uniquely convenient and welcoming shopping environment which has never been more relevant than during the recent COVID-19 pandemic. Canadians were looking for help to serve real food that fit with the reality of their busy lives when eating at home has never been more prevalent. As the only national food retailer in Canada with a full food portfolio of products that have absolutely no artificial colours, flavours or sweeteners, our Real Food Promise has remained a key differentiator that sets us apart from our competition. We offer innovative products for those looking for new and different meal solutions including more than 35 gluten free products spanning every category, our customers can trust they’ll find something that suits their dietary needs. The initiatives that we implemented during our recent brand transformation such as our new store design, food innovation, digital marketing and eCommerce (including in-store, curb-side pick up and delivery) along with our industry-leading loyalty program have put M&M Food Market in a position to be able to continue to serve our loyal customer base when they need us the most. Reach out today to find out about the opportunities we have nationally where you can be your community’s M&M Food Market brand ambassador! For more information, visit our website at www.mmfoodmarket.com/en/franchising or call us at 1-800-461-0171.

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Massage Addict is Canada’s first and largest membershipbased provider of massage therapy, chiropractic care, acupuncture, reflexology, and custom orthotics. The health and wellness industry continues to experience significant growth, resulting in a large demand for high quality therapeutic services. As a trusted brand with over 100 clinics nationwide, Massage Addict has a proven business model that fulfills this need. Proven System for Success • • • • • •

Recurring revenue Low investment and start-up costs Quick return on investment Best-in-class support Straight forward in-clinic business model 100% Canadian owned and operated

To learn more about franchise opportunities with Massage Addict contact: Michael Mutsaerts, VP Franchise Development Franchiseinfo@massageaddict.ca or by visiting MassageAddict.ca.

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

MARKETPLACE

A True Canadian Success Story MaxWell Realty is a proud Canadian real estate company established in Canada and growing since 1999. Founded on the principal of serving our customers with genuine care, while providing superior real estate service throughout the entire buying and selling process. Our vision is to be the customer’s first choice when looking for real estate services. MaxWell is where entrepreneurs grow strong businesses through local support. MaxWell, Where Real Estate Happens™.

Benefit from over 40 years of our brands’ collective experience delivering training and systems for digitally savvy marketing, cutting edge technology and easy to follow operations. Gain the foundation to begin your journey toward successful business ownership and a more flexible lifestyle. Discover which of our franchise brands is right for you. Visit: go.nbly.com/CFA • Call today: 866-687-1106

Franchise Units in Canada: 18 Franchise Fee: $25K Available Territories: All of Canada In Business Since: 1999 CFA Member Since: 2019 www.JoinMaxWellRealty.ca

All-in-one Payroll and HR Management Solutions for SMEs

BECOME A DIFFERENCE MAKER – JOIN OUR TEAM

Are you a small franchise business owner? Nethris offers all-in-one management solutions to make your work easier. We automate payroll preparation and processing and simplify HR, time and benefits management. Already over 19,000 Canadian SME owners use our affordable, easy to use and secure cloud solutions to free themselves from administrative tasks that prevent them from growing their business. Contact Nethris to receive a free demonstration and learn how you can better manage your employees.

• Paul Davis Restoration provides emergency mitigation, construction and contents cleaning services to homes and businesses affected by water, fire, wind and environmental damage

In business since: 1976 CFA member since: 2010 Phone: (888) 650-6291 Web: nethris.com/cfa Email: payroll@nethris.com

• Leader in the $6 Billion Canadian Property Restoration industry for over 30 years • Powerful, recognizable brand supported by national television advertising campaign, a proven franchise system and an experienced management team • As an ESSENTIAL business, that is both COVID-proof and recession-resistant • Over 60 locally owned and operated franchises across 10 Canadian provinces and over 300 across North America • Our Vision: To provide extraordinary care while serving people in their time of need For franchise information contact: Dan Hopkins, Direct of Franchise Development 416-299-8890 ext 118 Daniel.hopkins@pauldavis.com

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MARKETPLACE

The Pizza Nova story began in 1963 when a young Italian family opened the very first Pizza Nova restaurant. Still family-owned, we have helped hundreds of families open and operate our 145+ locations across Ontario and specialize in hand-tossed, Artisan-style pizzas that are complemented by an extensive menu of proven favourites. Our 59+ years of success continues as a direct result of our uncompromising commitment to providing quality ingredients and product innovation. In 2015 we became the first Canadian pizza company to introduce pepperoni sourced from beef and pork raised without the use of antibiotics or added hormones. We have since expanded our ‘Raised Without Antibiotics’ profile to include bacon, chicken wings, chicken pollini, grilled chicken, and smoked ham. In 2021, we introduced the first pea protein-based pepperoni as a plant-based alternative to our diverse menu, as well as plant-based chick’n bites, thus further expanding our reach to include vegans, vegetarians and flexitarians alike. We provide comprehensive training, easy ordering from our HAACP approved commissary, location identification & design, operations support and innovative marketing initiatives that bring customers through your door. Pizza Nova is the Official Pizza of the Toronto Blue Jays™, Toronto International Film Festival, and the CNE. For more information on Franchise Opportunities please contact Meraj Jamal, Franchise Development Manager Phone: 416-439-0051 ext. 1016 Email: meraj@pizzanova.com

Grab Your Slice of Life! Pizza Pizza began in December 1967 in a 300 square foot store in Toronto at the corner of Wellesley and Parliament Street. Since then we became the biggest pizza chain in the country. Our success stems from our customer focus. Our commitments to freshness, quality, and innovation have led us to the top of the pile in the pizza industry. Pizza Pizza delivers on its goals time and time again as we strive to make the best pizzas around at reasonable prices. Moving forward, we will continue to hold our leading position through community involvement and environmental stewardship. Consider what Canada’s most successful pizza chain has to offer you: • A commitment to quality, • Comprehensive training freshness, customer • Site selection, lease satisfaction and innovation negotiation and professional • Superior marketing and architectural design promotional support • Knowledgeable support staff • State-of-the-art technology • Administrative systems • Ongoing professional • We supply the ingredients development • Be your own boss! Franchising information: franchisinginfo@pizzapizza.ca www.pizzapizza.ca/franchising

TORONTO BLUE JAYS™ bird head design and all related marks and designs are trademarks and / or copyright of Rogers Blue Jays Baseball partnership, used under licence.

The Entrepreneur’s Source® is an international coaching firm and #1 franchise coaching organization dedicated to empowering individuals to achieve their personal and professional goals through business ownership. The Entrepreneur’s Source® is recognized as the industry leader in franchise education, coaching and knowledge of opportunities throughout North America. Franchise units in Canada: 1; US: 143 In business since: 1984 Franchising since: 1997 Franchise fee: $75K USD Training fee: $25K USD Total Investment required: $117,600 - $125,900 Training: Initial and ongoing Available territories: All of Canada, US CFA member since: 2002 Phone: 800-289-0086; 512-789-1814 Web: www.theentrepreneurssourcediscovery.com Email: tlusby@franchisesource.com Contact: Torrie Lusby, Franchise Development

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 360 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. Proud to have been designated as an Essential Business at a time Canadians needed us most. Visit us at theupsstore.ca. We Print, Ship & More! Locations, North America: Over 5000 Locations in Canada: Over 360 Minimum cash investment: $100,000 Total cash investment: $186,000 to $207,500 plus working capital. For more information on The UPS Store opportunity, call 1‐888-875-0007 or visit www.theupsstore.ca.

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Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

MARKETPLACE

WHITE SPOT HOSPITALITY White Spot White Spot White Spot isWhite an iconic brand; communities Spot isBC an iconic BCserving brand; serving communities for over 90 years. for over 90 years. their award-winning FamousFamous for their for award-winning Legendary Burgers with "secret" Triple Legendary Burgers “secret” sauce, 'O' sauce,with the family casualTriple dining‘O’ chain continues to grow and maintain relevance withchain guestscontinues of all ages atto their full and serve restaurants across BC the family casual dining grow and Alberta, breakfast, lunch, dinner, late-night maintain relevance withfor guests of all ages at their full & take-out. White Spot isacross the proud of the Award oflunch, Excellence for 2019, serve restaurants BCsilver andwinner Alberta, forCFA’s breakfast, a 6 year Choice recipient andthe a Platinum Club Member dinner, late-night & Franchise take-out. White Spot is proud gold winneras of one of Canada's Managedfor companies. of the CFA’s Award of Best Excellence 2021, a Franchise Choice recipient and a Platinum Club Member as of one of Canada’s Best Triple O’s Managed companies.

FRANCHISE CANADA 116-5399 Eglinton Ave W, Toronto, ON M9C 5K6 Web: FranchiseCanada.Online Email: editor@cfa.ca Contact: Joelle Kidd, Editor Franchise Canada is a complete multi-channel media outlet, committed to delivering the best content to help prospective franchisees achieve their dreams and create their franchise futures. Franchise Canada properties include the magazine, print directory, website, tradeshows, podcast, videos, e-newsletter, Triple O's Restaurants, launched in 1997 by BC's iconic brand White Spot, e-blasts, and social media. Through all of these channels, Triple O’s is a premium QSR concept serving high quality, fresh and local ingredients Franchise Canada reaches an audience of over 750,000 per year. Triple O’s Restaurants, launched in 1997 byburgers BC’s iconic including 100% fresh Canadian beef made with "Secret" Triple 'O' For advertising information, contact brand White sauce, Spot,fresh is a cut premium QSR concept serving hand scooped local Kennebec fries and premium Om Mehta at omehta@cfa.ca. Triple O's has experienced steady growth in high quality, milkshakes. fresh and Since local inception, ingredients including In Business Since: 2000 brand salesbeef and number of units. One of Canada's Best Managed 100% fresh Canadian burgers made with Companies (Platinum Franchise Choice recipient, Triple “Secret” Triple ‘O’ sauce, freshClub cut Member), local Kennebec O's is also a three time gold winner in theSince CFA Award of Excellence fries and premium hand scooped milkshakes. program. inception, Triple O’s has experienced steady growth in brand sales and number of units. One of Canada’s Best Managed If you Companies are interes(Platinum ted in beiClub ng pMember), art of a leFranchise gend, conChoice tact: Krecipient, aren Dosen 604Triple O’s is also the gold winner of the CFA Award of Excellence 326-6701 or karend@whitespot.ca program for 2022. If you are interested in being part of a legend, contact: Karen Dosen 604-326-6701 or karend@whitespot.ca

If you’ve read this far and want to learn more, visit

LookforaFranchise.ca On the Franchise Canada page on LookforaFranchise.ca, you’ll find all the brands featured in the pages of this issue in one easily accessible space!

cfa.ca/lookforafranchise/ franchisecanada/

Franchise Canada July | August 2022

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WHAT’S NEXT

DON’T MISS OUR SEPTEMBER/OCTOBER 2022 ISSUE! The Food Issue The past two years have been difficult ones for the food industry, with pandemic restrictions, labour shortages, and economic downturns presenting challenges for dining concepts. Despite all this, many franchises have continued to thrive—and even grow their business—in the food service space. It might have something to do with how much Canadians love dining out. Whether by drive-thru, delivery app, or in a sitdown dining room, customers across the country flock to their favourite franchise restaurants for the meals they love. In the September/October issue of Franchise Canada, we’ll spotlight some of these favourite brands, including a close look at Canadian-owned food service franchise systems that have their roots in this country. We’ll also take a look at QSR (quick service restaurant) franchises delivering international flavour to diners through global cuisines, and some new systems responding to consumer taste by bringing the flavours of Asia to Canada. We also highlight pizza franchises and cafés across the country. In addition, this issue will provide tips from experts on how to franchise your business, as well as advice for prospective franchisees on whether to invest in an emerging or established franchise brand. Check out the September/October issue for this content and more, including success stories from franchisees and expert advice from franchising professionals!

WATCH OUT FOR THESE EXCITING FEATURES IN OUR SEPTEMBER/OCTOBER 2022 ISSUE:* CANADIAN-OWNED EATS: Our cover feature in this issue will showcase food service brands that have their roots in Canada. Every franchisee is a local business owner, and these homegrown franchise systems are also owned and operated in the country—and beloved by Canadians! GLOBAL FOOD SERVICE FLAVOURS: Multicultural tastes and a desire to “travel” through food have made international cuisines a popular category for consumers. For prospective franchisees interested in investing in a food service brand with far-flung flavour, we explore different franchise systems that pull recipes and inspiration from around the world.

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PIZZA PARTY: Simple, portable, and tasty, pizza has proved to be a perennial favourite for diners. For business owners, it’s a pandemicresistant food service industry that’s primed for delivery! We’ll highlight some of the many iconic franchise brands serving up pizza pies to their communities. COFFEE & BAKED GOODS FRANCHISES ACROSS CANADA: Canadians are always eager to pick up their morning cup of joe. See which franchises across the country are serving up a caffeinated kick and sweet treats to get Canadians moving.

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

PLUS, A SPECIAL FRANCHISE FOCUS ON AUTOMOTIVE 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 • Next Generation in Franchising • Franchise Fun *Editorial subject to change

ADVERTISERS’ INDEX Big Frog.........................................................................12 www.bigfrog.ca

Edo Japan.. ................................................................43 www.edojapan.com/franchising

Neighbourly................ Inside Front Cover go.nbly.com/CFA

Boston Pizza International..................... 61 www.Bostonpizzafranchise.com

EverLine Coatings.. .......................................... 45 www.everlinefranchise.com

Nethris..............................................................................9 www.nethris.com/cfa

Business Alliance, Inc. . . ............................... 60 www.businessalliance.com

Hallmark. . ............................................................ 14-15 www.hallmark.ca

Paul Davis. . ................................................................. 47 www.pauldavisbusiness.ca

CENTURY 21 Canada...................................... 53 www.charlwoodpacificgroup.com

Hickory Dickory Decks.................................. 13 www.decks.ca/franchise

Pizza Nova . . ............................................................. 59 meraj@pizzanova.com

CertaPro Painters®.......................................... 57 www.certapro.ca/franchise

International Franchise Association .............................................................................................. 82 www.franchise.org

Pizza Pizza................................................................ 29 www.pizzapizza.ca/franchising

COBS Bread............................................................. 16 cobsbread.com/franchising

Dairy Queen.. ........................................................... 35 www.dairyqueenfranchising.com

Diversified Royalty Corp. ........................ 49 www.diversifiedroyaltycorp.com

Driverseat........................................................ 40-41 www.driverseatinc.com/franchise

BRANDS SUPPORTING KIDS AND FAMILIES

KFC Canada.............................................................51 www.kfc.ca/franchise

The Entrepreneur’s Source®.. ................ 58 www.theentrepreneurssourcediscovery. com/blog/

M&M Food Market.. .............................................. 3 www.mmfoodmarket.com

The UPS Store............................................................ 7 www.theupsstore.ca

Massage Addict.................................................. 33 www.MassageAddict.ca

Triple O’s......................................................................55 www.Tripleos.com

MaxWell Realty Canada........................... 62 www.joinmaxwellrealty.ca

White Spot................................................................55 www.Whitespot.ca

EDUCATION FRANCHISES ACROSS CANADA

SPECIAL FOCUS ON HEALTH AND BEAUTY MAY | JUNE 2022

A Canadian Franchise Association Publication / FranchiseCanada.Online

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GIVING BACK

A Sweet Way to Give Back

Dairy Queen Canada’s Miracle Treat Day and franchisee fundraisers raise money for children’s hospitals BY SUZANNE BOWNESS EVERY SUMMER, Dairy Queen Canada sets a date when its cool treats are even sweeter—because they come with a way to give back. This year in Canada, August 11 is the day to circle on calendars, when the franchise’s annual Miracle Treat Day means all net proceeds from the purchase of any Blizzard Treat will be donated to local children’s hospitals. As communities embrace a return to normal activities post-pandemic this summer, Miracle Treat Day is a tradition that many are happy to take up again. Originating from American Dairy Queen and Dairy Queen Canada’s longtime relationship with the Children’s Miracle Network, which dates back to 1984, the fundraiser aims to put money back into the community with local donations. Since the fundraiser started, it’s raised $46 million in Canada and more than $166 million between the U.S. and Canada. Those funds have been directed to 170 children’s hospitals across Canada and the United States. More than 10 million sick and injured children visit a Children’s Miracle Network member hospital every year. “We see almost 100 per cent participation from our franchisees across Canada, which really shows their commitment,” says Candida Ness, Dairy Queen Canada’s vice president of marketing. In 2021, the effort raised $1.8 million for Canadian children’s hospitals. “And even outside of Miracle Treat Day, a lot of our DQ restaurants fundraise all year long. They also go out into the hospitals to deliver Blizzard Treats to kids in the hospitals.” The brand’s franchisees have earned recognition for their aboveand-beyond fundraisers in their communities. In 2021, Raymond

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Hardisty, who works at DQ Wasaga Beach, Ontario, won the DQ Beacon of Hope Award for raising more than $100,000 for the cause. A former leukemia patient at SickKids Hospital, Hardisty has worked at the DQ restaurant for 13 years and is clearly beloved in his community, where he also sells balloons and does bottle drives in his fundraising efforts. “He is a person who gives back from the heart,” said DQ Wasaga Beach owner Sherry Schaap in a video created to honour the award. “I do it for the hospital as a token of gratitude for all the years that they have helped me and my family through my health crisis,” said Hardisty in the video. Dairy Queen Canada’s franchisees’ impressive fundraising numbers extend across years—and across the country. In 2020, Sherry and Joe Schaap won the DQ Miracle Maker Award for raising over $37,800 in support of SickKids Hospital in Toronto, and multi-unit Edmonton owners Marc Cardinal and Scott Fylyshtan raised over $85,000 in

Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

support of Stollery Children’s Hospital. “Every year, we try to hit a new fundraising goal,” says Ness. “We actually have four franchise owners in Canada who have raised over $1 million each, which is remarkable.” While the pandemic meant that Miracle Treat Day was put on hold in 2020, Ness says that Dairy Queen Canada came up with new ways to fundraise in 2021. “Franchise owners came to us with a lot of great ideas on how they could fundraise outside of Miracle Treat Day, including a buy-one-get-one-free offer for fans who donate five dollars to the local children’s hospital. Miracle Treat Day is something that franchisees get really excited about, and a real organic buzz occurs. Franchise owners, crews, and fans really look forward to the day.” Ness says that partnering with local children’s hospitals is a great fit with the community-based brand. “DQ restaurants are places where people gather with their friends and family, so there’s a really nice synergy. It just makes perfect sense for us to be connected to local children’s hospitals.”

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Franchise Canada July/August 2022

Articles inside

GIVING BACK

MARKETPLACE

INDUSTRY NEWS

Finding the Right Franchise Fit

Doing Your Due Diligence

ASK THE EXPERTS

Franchise Financing 101

THE FRANCHISE GUIDE

The Process of Opening a Franchise

CFA CODE OF ETHICS