SEE OUR STORY ON PAGES 18-19 SEE OUR AD ON NEXT PAGE FOR MORE INFO, VISIT WWW.MAVERICKSDONUTS.COM/FRANCHISE JANUARY | FEBRUARY 2023 Donuts. Done. Different. Canada’s fastest-growing donut brand fills a hole in the industry
Geoff Vivian, Founder (left) and Jon Martin, Vice President (right)
Join Canada’s Fastest Growing Donut Brand! “Owning a Maverick’s is a dream come true!” Abbey, Franchisee www.mavericksdonuts.com/franchise
Subscribe for FREE at FranchiseCanada.Online POWER YOUR FRANCHISE SEARCH WITH A Canadian Franchise Association Publication / FranchiseCanada.Online TREND REPORT: WHAT TO EXPECT IN 2023 SOCIAL RESPONSIBILITY IN FRANCHISING SPECIAL FOCUS ON QUICK SERVICE RESTAURANTS JANUARY | FEBRUARY 2023 FRANCHISING: A Guiding Light Through Dark Times Despite economic uncertainty, Canadian franchising is set for continued growth in 2023
Request more information at www.esupplycanadafranchise.ca OFFI CE | JANITORI AL | IN DUS TRIAL Starting Your Own Business Has Never Been Easier Give your customers a locally-based alternative for purchasing their business supplies Financial Freedom Home Based Flexibility Be Your Own Boss Unlimited Opportunity Proven Business Model Marketing Support Support & Mentoring Proven Business Model Comprehensive Training Exclusive Territory Become an eSupply Franchisee
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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.
4 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online JANUARY/FEBRUARY 2023 CONTENTS Discover the best franchise business opportunities available now Start
business for yourself with the support
franchise system!
Get Started Today! • Information you can trust • Credible franchise opportunities • Narrow your search • Contact franchisors directly • Get the info you need LookforaFranchise.ca Looking for a franchise? FRANCHISE CANADA COVER STORY 24 Franchising: A Guiding Light Through Dark Times Despite economic uncertainty, Canadian franchising is set for continued growth in 2023 25 Q&A: Franchising Moving Forward 28 Gift Cards: Promos with Benefits for Merchants and Consumers 30 Canadian Economic Outlook 32 4 Consumer Trends That Will Shape Tomorrow 34 Empowering Female Entrepreneurs 35 Snapshot of a Prospective Franchisee 36 Socially Centred Franchising Three franchises with social responsibility and ecofriendliness at the heart of their brands 40 The Future of Food Service How three brands are using digital innovations to market, serve, and deliver food 60 Senior Care from Coast to Coast Franchises across Canada are providing additional assistance for seniors navigating the next stage of life 64 The Rewards of Resales Two recent Bimbo Canada franchisees on purchasing their business through a franchise resale SPECIAL FRANCHISE FOCUS 45 Special Focus: Quick Service Restaurants Learn why you should explore franchise opportunities in this growing and resilient sector 24
a
of a credible
opportunities,
Franchise Canada is published by the Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
82
HOME-GROWN & LOCALLY-OWNED 100% Canadian Franchise Systems 70
NEXT GENERATION IN FRANCHISING Lasting Impressions
SpeedPro Canada franchisee Kevin Burns learned about the business from watching his father. Now he’s taking the signage business into his own hands with the launch of his own franchise. 73
LEADERSHIP PROFILE Building Dreams Into Reality
How Hickory Dickory Decks founder Tom Jacques turned his summer job into a milliondollar franchise 76
A DAY IN THE LIFE A Fresh Perspective on Property
PropertyGuys.com franchisee Nathan Dautovich is thriving thanks to the brand’s unique model and diverse service offering 80 THE FIRST YEAR Sign of Success
Allegra Marketing Print Mail franchisee finds new rewards in the print industry through franchising
ICONIC BRAND Sweeping the Nation MOLLY MAID CEO Aaron Abrams and franchisee Linda Poirier reflect on the brand’s innovations over its more than four decades of franchise success 85 SHOW ME THE MONEY 4 Franchises for $500K+ 86
FRANCHISE FUN A Little Slice of Domenic Primucci
Pizza Nova president Domenic Primucci shares the secrets to a successful franchise business 92
FRANCHISE TUTORIAL Tutorials 19 & 20 This issue: • Intro to Leases & Subleasing from the Franchisor • Intro to Leasehold Improvements
January | February 2023 5 Franchise Canada
DEPARTMENTS 67
COLUMNS 10 CFA CODE OF ETHICS 12 INDUSTRY NEWS 88 ASK THE EXPERTS 95 MARKETPLACE 101 ADVERTISERS’ INDEX 102 GIVING BACK
Tune in to the Franchise Canada Chats Podcast! CATCH UP ON ALL 6 SEASONS NOW, BEFORE SEASON 7 LAUNCHES IN WINTER 2023! Available on Google Play, iTunes, SoundCloud, Spotify, and Stitcher Radio FranchiseCanadaChats.ca LISTEN & LEARN Visit www.LookforaFranchise.ca to find more information about the franchises featured in this issue.
A SHINING LIGHT THROUGH DARK TIMES
After a tumultuous couple of years, it’s more important now than ever before to look ahead at what we can expect in the coming year. Despite the economic uncertainty caused by high interest rates, inflation, increased costs, and labour shortages, the forecast for Canadian franchising remains bright, with continued growth expected in 2023. That’s because the franchise industry is resilient, with a strong business model built on support that allows franchise owners to be in business for themselves, but not by themselves.
If 2023 is the year you want to make your business dreams become reality through franchising, this Trends Issue is a great resource to help guide your journey. On page 25, we offer insight into the categories to watch in the coming year, including hospitality, beauty services, education, and more. We also outline why the time is right now (yes, even in this tough economic climate) to invest in a franchise.
The Trends Report also includes the latest Macroeconomic Outlook from the Royal Bank of Canada (RBC), along with an exclusive Q&A to learn more about what a recession would mean for the Canadian franchise industry and what consumer spending trends we can expect in the coming year (page 30). On page 32, we feature a special global trend report from Global Franchise magazine, which reveals four consumer trends we’re seeing around the world.
The past three years have brought a unique set of challenges to female entrepreneurs, and many institutions have recognized a need to create specific programs to help women overcome the barriers of entry into the business world. On page 34, we share a list of programs and resources available for female entrepreneurs.
Technology continues to shape the customer experience, and on page 40, we showcase three food service brands that have introduced digital innovation to cater to customer needs and streamline operations for franchisees.
Beyond digital tools, customers are value-driven, choosing to spend with brands that are focused on social responsibility. On page 36, we feature three brands that are putting their communities at the forefront, focusing on programs and practices to promote sustainability, diversity and inclusion, and philanthropy.
As some Canadian franchisees look to purchase their franchise through a resale rather than a new location, we share the stories of two Bimbo Canada franchisees on page 64. Both Ranvir Sohi and Bud Singh Gill invested in resale opportunities in 2022, and here they outline the advantages of purchasing from a previous owner.
If you’re looking for further assurance that franchisees can thrive in today’s economy, then turn to the many franchisee success stories found in this issue. For example, on page 76, you’ll meet PropertyGuys.com franchisee Nathan Dautovich, who has grown his business considerably in his 13 years as a franchisee. We also share the story of Allegra Marketing Print Mail franchisee Nicky Gillam, who was apprehensive about franchising at the start, and has now expanded to multiple territories after quickly realizing the potential of a B2B franchise (page 80). You can also hear from young SpeedPro Canada franchisee Kevin Burns, who recently celebrated his first year in business and is always looking for ways to help improve the franchise’s operations (page 70).
If this issue has inspired you to take the next steps toward business ownership, don’t forget that FranchiseCanada.Online is here to help. The website is your digital resource for franchise information, inspiring success stories, learning videos, podcast episodes, and more. Sign up for Franchise Canada E-News for franchising updates delivered right to your inbox, and follow the Canadian Franchise Association (CFA) on Facebook, Twitter, Instagram, LinkedIn, and TikTok.
The Canadian franchise industry is set to face continued economic challenges in 2023, but as the trends, resources, and success stories within this issue highlight, franchising remains the bright light to help business owners navigate through any dark times ahead. If you aspire to own your own business, now is the time to take control of your business future. We wish you all the best as you look to make your business dreams come true in 2023!
Sherry McNeil President & CEO, Canadian Franchise Association
6 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online PUBLISHER’S MESSAGE
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
Larry Weinberg*, Cassels Brock & Blackwell LLP
TREASURER Lyn Little, BDO Canada LLP
CHAIR, FRANCHISE SUPPORT SERVICES
Kirk Allen, Reshift Media
CHAIR, LEGAL & LEGISLATIVE COMMITTEE
Darrell Jarvis*, Fasken
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
Thomas Wong, Chatime
Todd Wylie, Master Mechanic
*Executive Committee member
out more about these companies at www.cfa.ca/sponsorship
PUBLISHER
Canadian Franchise Association (CFA)
VP, CONTENT & MARKETING Kenny Chan
EDITOR Lauren Huneault
EDITORIAL ASSISTANT Daniel McIntosh
GRAPHIC DESIGNER Andrea Lee
ADVERTISING SALES Om Mehta AD COORDINATOR Andrea Lee
CONTRIBUTING WRITERS
Georgie Binks, Suzanne Bowness, Lauren Huneault, Roma Ihnatowycz, Joelle Kidd, Gina Makkar, Daniel McIntosh, David Chilton Saggers, Andrew Schopp, 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/.
Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
© 2023, 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
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.
8
LAW FIRMS: SHOWCASED FRANCHISES
The CFA wishes to acknowledge and thank these National Sponsors for their support throughout the year.
Find
Open your franchise to more opportunity and receive preferred rates on debit and credit payment processing from Moneris. Call 1-888-552-0341 or visit m oneris.com/associations today. MONERIS, MONERIS & Design are registered trademarks of Moneris Solutions Corporation. All other marks and registered trademarks are the property of their respective owners. Get preferred rates for your franchise. With a wide range of industry-leading payment products and services, Moneris® has the solution you need to support your franchise.
CODE OF ETHICS
The 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. All 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.
10 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
Since opening in America in 2015, X-Golf has taken off. There are now over 60 locations spanning half of the states in the U.S.A. and for the first time ever, X-Golf ownership is now available in Canada. The X-Golf franchise model offers an exciting business opportunity for those ready to pursue a new venture in a unique, non-saturated, developing sports and entertainment industry. Each X-Golf location has the full support of our Head Office team. X-Golf has specialist resources to advise on each of the following franchise components:
Want to Become a Part of the X-Golf Franchise Family? Visit XGolfCanada.com for More Information. Real Estate Site Selection & Store Fit-Out Brand & Local Area Marketing Information Systems Implementation & Training Sales & Customer Relationship Training Supplier Relationships & Purchasing Discounts Business Development Sales & Support
INDUSTRY NEWS
Wendy’s New Franchise Recruitment Initiative, “Own Your Opportunity,” Comes to Québec Wendy’s Restaurants of Canada is seeking franchisees to expand the brand throughout Québec. The company has rolled out a new franchise recruitment initiative, Own Your Opportunity, that will create pathways for entrepreneurs in the province of Québec who want to grow and profit from becoming a Wendy’s franchisee. The initiative creates expanded restaurant ownership opportunities for all and supports the company’s goal of increasing restaurant ownership in Québec.
To support this initiative, Wendy’s has:
• Created more competitive liquidity and net worth requirements for all new franchise applicants.
• Introduced a new global restaurant design standard that is less expensive to build, featuring innovative design elements to simplify operations and the latest technology that work together to create better returns for franchisees.
• Created a Build-to-Suit development fund to fuel growth in underdeveloped trade areas, where Wendy’s secures and builds restaurants and hands over turnkey locations to franchisees.
• Opened more than 400 restaurants in Canada. With only 13 in Québec currently, the market is ripe with opportunities for entrepreneurs to seize.
• Launched Breakfast in Canada in May this year, creating tremendous growth potential for franchise owners.
Wendy’s is seeking new multiunit operators who are interested in a transformative opportunity with the path to prosper and the perspec-
tive to lead within a thriving and beloved restaurant brand. Wendy’s will be growing aggressively in prominent drive thru locations that are between 1,500–3,000 square feet in markets with a population of 7,000+ and vehicle counts of 10,000+. Wendy’s is particularly focused on convenience-driven highway locations. Québec is a top-performing province in terms of historical sales growth and boasts two of the top 10 most populous cities in the country. Québec’s unique diversity makes Wendy’s an exciting opportunity for an experienced multi-unit operator to develop and grow.
Ricky’s Restaurants Opens a New Location in Swift Current, Saskatchewan Ricky’s All Day Grill is opening a brand-new location in Swift Current, Saskatchewan. Previously a longtime Humpty’s restaurant location, Ricky’s is very pleased to be adding Swift Current to its long list of highly popular Alberta and Saskatchewan family-style restaurants.
Residents of Swift Current will surely welcome Ricky’s All Day Grill to their community, where they can enjoy a delicious sit-down breakfast, lunch, or dinner with family and friends. Folks on the go can quickly grab their favourite meals for takeout.
This newest addition to the Ricky’s Family Group is run by seasoned local restauranteurs Kosta and Angela Kanakis, who previously operated Humpty’s at this location for the past 10 years. “We are excited to be bringing a Ricky’s to the Swift Current community and welcoming residents with hearty breakfasts, lunches, and dinners served with a smile,” Kosta commented.
The new Ricky’s All Day Grill in Swift Current is a perfect place for sharing with family and friends. Plus, with fast express takeout, online ordering, and delivery services, guests can enjoy their favourite Ricky’s breakfast, lunch, or dinner in the comfort of their own homes.
Brian McCourt Lays Ground Across Canada with B-Protek Flooring Partnership
Canadian interior and exterior flooring expert, B-Protek, is pleased to announce its brand partnership with trusted contractor, design expert, real estate flipper, and television personality Brian McCourt.
B-Protek is known for its epoxy and innovative polyurea vinyl flake flooring for garages, exterior balconies, and stairs. Audiences across North America know Brian from his HGTV shows, which include Backyard Builds, Home to Win, and Family Home Overhaul. With his rare mix of designer-contractor services and his track record for flipping homes, Brian’s entrepreneurial spirit makes him a perfect partner for B-Protek, which is currently expanding with franchises across Canada.
The appeal of glossy, durable, and fashionable interior and exterior concrete floors has grown significantly with homeowners. B-Protek’s easy, affordable, one-day solutions are quickly becoming the Canadian industry standard, with 10 franchises in Ontario, Manitoba, and Alberta, and over 20 in Quebec to date. The business model was custom-built to suit entrepreneurs.
“This partnership strikes at the heart of two of my greatest passions: improving homes and building businesses. B-Protek’s flooring solutions appeal to my renovation mindset as
12 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
Your source for what’s happening in Canadian franchising
This advertisement should not be construed as an o er to sell any franchises. The o er 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 o er and sale of franchises. We will not o er you a franchise unless and until we have complied with applicable pre-sale registration and disclosure requirements in your state. The ling of an application for registration of an o ering prospectus or the acceptance and ling thereof by the NY Department of Law as required by NY law does not constitute approval of the o ering 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. Connect with the Leader in Home Services Franchising. Discover which of our franchise brands is right for you. Visit: go.nbly.com/CFA • Call today: 866-687-1106 Begin your journey toward successful business ownership and a more flexible lifestyle today.
they’re fast, easy, and affordable, as well as my design sense with their stunning results,” said Brian McCourt. “From a business perspective, I admire how Nicolas and the B-Protek team are expanding into new markets and offering reliable and growth-minded opportunities for entrepreneurs to get into the home improvement game.”
B-Protek has grown over the last eight years under the direction of CEO Nicolas Desjardins. A triathlete and sports enthusiast who has been in the coating industry since his university studies, Desjardins is focused on creating professional, passionate, and forward-thinking teams. He’s committed to empowering entrepreneurs and has built a proven business model with B-Protek.
“Brian is exactly the kind of partner that will help us take B-Protek to the next level across North America, as he shares our core values of Listening, Rigor, Commitment, and Collaboration,” said Desjardins. “Our expansion across Canada is infinitely strengthened by his public profile, but more importantly, by his belief in our flooring solutions, and in our business model. We sincerely believe that this partnership is key to helping us propel this business forward.”
Allegra Windsor Via Italia Celebrates 35 Years in Business
This October, Allegra Marketing Print Mail in Windsor celebrated 35 years in business as the go-to source for all print, mail, and marketing needs in the community.
The centre was founded in October of 1987 when owners Maria and Vito Lipari began their business venture together. The duo are both Italian immigrants who moved to Canada when they were children.
“This is such a milestone anniversary for us and our business partners,” said Maria Lipari. “Over the past 35 years, we have formed amazing relationships with our team and our clients, and for that,
we have the marketing and printing industry to thank. We’ve enjoyed working on many unique projects for our clients, and we look forward to continuing sharing our love for the industry through future projects with our community.”
Its dedication to success, growth, and the highest calibre of customer service have been the driving forces for the centre since it opened in 1987, and those principles ring true to the Liparis and their team’s leadership today. Since its inception, Allegra Windsor Via Italia has not only solidified its place in the Windsor region as a local business, but also its place in the community.
Allegra Marketing Print Mail continues to provide the same highquality promotional solutions. In addition to marketing consultation and graphic design services, Allegra features advanced printing technologies including full-colour printing, signs, posters, and banners, mailing services, and print management solutions.
Allegra is independently owned and operated, and is a member of the Alliance Franchise Brands network, a world leader in marketing and visual communications, linking more than 600 locations in North America.
Pizza Nova Donates $41,600 to Student Nutrition Ontario Pizza Nova marked its seventh year of partnership with Student Nutrition Ontario with a donation of $41,600. In November, Domenic Primucci, president of Pizza Nova,
presented a cheque to Student Nutrition Ontario at Cedarbrae Public School in Waterloo, Ontario.
Pizza Nova’s partnership with Student Nutrition Ontario (SNO) found proud beginnings in 2015 with ‘Coins for Breakfast,’ a program that supports Student Nutrition Ontario with in-store donation boxes throughout all participating Pizza Nova locations. To date, Pizza Nova has raised $223,142 for Student Nutrition Ontario.
“We strongly believe in making our food with quality ingredients and love. And it is important for us that children across Ontario start their days with a nourishing, sustaining breakfast and have successful days at school,” said Primucci. “We are grateful to our loyal customers for their generosity—they help keep children well fed and able to focus at school.”
There are 4,450 Student Nutrition Programs serving nearly one million students across the province each school day.
“Pizza Nova’s generous donation through the ‘Coins for Breakfast Program’ is greatly appreciated,” said Catherine Parsonage, chair of Student Nutrition Ontario. “There are so many children in need across this province and school nutrition programs play a crucial role in ensuring that children have access to the nourishment they need to start their day.”
Minuteman Press Franchise in Windsor, Ontario Moves to New Location and Celebrates Grand Opening
Lakshmi Bhamidipati is the owner of the Minuteman Press franchise in Windsor, Ontario, which she has owned for five years and has been operating in Windsor since 1979. On November 9, Bhamidipati held a grand opening and ribbon-cutting ceremony to celebrate the move to her new location.
The chief guest for the grand opening event was Brian Masse,
14 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
INDUSTRY NEWS
Member of Parliament, who presented Bhamidipati with a Certificate of Appreciation in recognition of Minuteman Press in Windsor. The event was also attended by Windsor City Councillor Kieran McKenzie, Minuteman Press International Regional VP Kevin Wittal, and other distinguished community members, friends, and colleagues.
When she first came to Canada in 2006, Bhamidipati worked for various companies, including with Minuteman Press. She says, “I gained some
local experience and knowledge and then started my own graphics company in 2014. Before starting my company, I worked for Minuteman Press for three months. I liked the setup and help provided by the franchise. In August of 2017, I decided to buy the business and become the proud owner of the franchise.”
“All my life I was on the other side of printing. Minuteman Press gave me the opportunity to do the printing and to see the results of my designs on paper. As I have the designing knowledge and an eye for details in print quality, I pride myself on keeping our customers happy.”
Today, Bhamidipati has four fulltime and three part-time employees as she has grown her business. Bhamidipati says, “The Windsor business community is looking for a one-stop print shop. We are able to do all of the main jobs.”
When asked what advice she would give to other business owners, Bhamidipati says, “I was born in a middle-class family with big dreams. My dream was to be selfemployed one day. Dreams don’t become reality through magic. It takes determination and hard work. I focused on my dream and kept working hard towards my dreams. If you have a dream and work hard, I am proof you can accomplish it.”
Cadence Franchising Announces the Launch of its New Business Servicing North American Franchise Sales Teams
Cadence Franchising is on a mission to help franchisors meet and exceed their growth targets by delivering exceptional sales experiences to franchise buyers and sellers. Founded by Corey Nicholson and Cindy Hill, Cadence is
16 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
INDUSTRY NEWS
an experienced franchise sales and marketing team that provides technology-driven lead nurturing services designed to boost interest from qualified entrepreneurs and investors.
Cadence is dedicated to finding innovative ways to maximize investments in lead generation, increase candidate conversions, and expand franchise networks. They deliver strategic solutions and services to: i. franchisors – from emerging to iconic, ii. brokers – from independents to large networks, iii. lead generators – from online marketplaces to trade show organizers, and iv. entrepreneurs – from first-time buyers to experienced investors.
Corey Nicholson, CFE, Founding Partner & CEO, Cadence Franchising Inc., says:
“Our purpose is simple—to grow networks of franchisees faster and better. As franchise development specialists with CRM and Marketing Automation expertise and a wide network of value-added relationships in the North American franchise world, we are uniquely positioned to help franchise systems of any size create exceptional experiences for their sales teams and prospective franchisees.”
Cadence is laser-focused on modernizing the franchise recruitment experience for franchise buyers and sellers. Using its preferred tech stack and team of recruitment specialists, Cadence engages in personal and meaningful conversations with prospective franchisees to increase interest and brand rapport.
Cindy Hill, CFE, Founding Partner & COO, Cadence Franchising Inc., says:
“We are passionate about using our skills to help entrepreneurs realize their dreams of business ownership. We’re looking to grow our company with a team, clients, and partners who share that passion and stand by our value system. Our core values include being respectful, dependable, meticulous, modern, and transparent. These are very important to us and will stimulate our growth.”
Franchise Canada January | February 2023 17 YOUR BUSINESS. YOUR SUCCESS. YOUR PIZZA PIZZA. FRANCHISES AVAILABLE www.pizzapizza.ca/franchising franchisinginfo@pizzapizza.ca INDUSTRY NEWS
THE FUTURE IS SWEET FOR MAVERICK’S DONUTS
BY LAUREN HUNEAULT
Maverick’s Donuts is taking a bite out of the baked goods sector in Canada, bringing its oneof-a-kind donuts to Canadian communities through franchising. The company launched its first location in Ottawa, Ontario in 2016, and has since grown to 11 franchise locations, mainly based in Ontario.
Jon Martin, vice president of franchise development, says the brand’s offering is what sets it apart. “Maverick’s Donuts spent many years refining its products. Unlike most bakeries, we offer a mix of cake donuts and yeast products, along with a superb coffee/espresso program and soft serve ice cream,” he explains. The unique cake donut recipe, pre-mixed and shipped to franchisees, has no preservatives, and uses only the highest-quality ingredients.
Martin, who’s also a franchisee within the Maverick’s system, notes that the brand’s model focuses on quality first, with franchisees making the products fresh in-house every morning to ensure customers receive the best experience when they come in-store.
According to Martin, the benefits of franchising with Maverick’s Donuts “are quite simple. We offer a deliciously fun product that appeals to all age groups and crosses cultures. Our products have good margins, and with many sales channels including weddings, corporate logo donuts, special events, birthdays, fundraisers, and more, franchisees can build their business in so many ways.”
On the flip side, the challenge lies in getting franchisees engaged with their community to sell their product. While social media is a great source of revenue for the brand, notes Martin, franchisees are more successful when they connect with their community through speaking with local organizations, participating in local events, and building key relationships.
“Maverick’s provides all the marketing tools and strategies, and franchisees are expected to use these tools in their local community,” says Martin, who adds that the brand is ready to help franchisees as soon as they sign the franchise agreement,
starting with location selection and the construction process.
Baked goods for community goodwill
Martin notes that the ideal Maverick’s Donuts franchisee doesn’t need to have any experience in the food industry, as franchisees receive full training and support. They should, however, have “a desire to operate the business, a positive attitude towards customers and employees, and the ability and desire to be an active part of their local community to help with selling their product in the community.”
One such franchisee who’s focused on providing the ultimate customer experience is Stacie McGill, who purchased the Alta Vista location in the Ottawa area in January 2022. McGill found her way to Maverick’s Donuts after 10 years as a general manager with Tim Hortons, followed by another 10 years as a commercial insurance broker.
She decided to go back to her quick service roots when a Maverick’s Donuts location became
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Maverick’s Donuts is growing its presence in local communities through franchisees
available in her area. “When we saw that there was an opportunity to become a franchisee, we were very excited, as this was right up my alley from when I worked at Tim’s,” says McGill, who operates the store with her husband, Daine. “We love the hustle and bustle of a fast-paced environment and enjoy building a team that shares the same values and goals as we do.”
McGill says the strong support they received from the Maverick’s head office team was a major comfort as they started their franchise journey. “They’ve helped us navigate any difficulties and answer any questions that we’ve had,” she explains. “Being a part of the franchise system is like having an extended family; we never feel alone and have open communication and assistance from the franchisors and other store owners.”
Forward-focused franchisees
Even with this strong sense of community, the past years have been challenging in two main ways, notes McGill. Inflation is at the top of the list, with suppliers applying cost increases multiple times throughout the past year. The other is hiring staff.
The McGills, however, have risen to the challenge and implemented their own solutions. “We’re working on overcoming the increases by making sure that we’re promoting the brand to increase sales and
making sure that we’re providing our customers with quality products to ensure that they’ll return and recommend us to their friends and family,” she explains. “As for hiring employees, we do offer competitive wages and benefits for full-time employees. The employees that we currently have really enjoy working for us; we provide a fun and enjoyable environment and recognize the staff for their hard work.”
With more and more ambitious franchisees like the McGills joining the team, Martin says the future for Maverick’s Donuts is very bright. “Our short- and long-term goals are much the same: find quality franchisees in good markets around Canada, ensuring the quality of their products and their business success along the way. We currently have 11 locations open with an additional 22 locations already awarded. We expect that number to increase in 2023, with the goal of being in three to four provinces by year-end.”
McGill says she’s also interested in being part of that continued expansion. “The next step for us would be to own another Maverick’s; we see how the brand is growing and enjoy being a part of their success.”
Find the passion and put in the hard work
Martin says that, above all else, franchisees need to be passionate about what they do to succeed as a franchise owner of any brand,
including Maverick’s Donuts. “Find something you’re passionate about, and if that’s owning a bakery and being part of a family and community that emphasizes quality and fun, then Maverick’s might be the perfect fit. Producing our donuts and coffee is hard work, but a real joy for our franchisees.”
From the franchisee perspective, McGill says, “Our advice as business owners is there will be lots of ups and downs. Never be afraid to ask lots of questions and don’t hesitate to ask for advice from the franchisors. They’ve been where you are and understand the ins and outs and how to increase revenue during slow times. We truly believe that being an owner/operator working in the shop daily will only help your business grow. Our employees love that we’re working alongside them!”
Ultimately, franchising with Maverick’s provides the opportunity to build your own business and make valuable connections within your community.
“The thing that we enjoy the most about owning Maverick’s is the fact that this place is ours, and you get what you put into it,” says McGill. “We love offering our products to events such as charities, weddings, and other special occasions. Promoting the brand has been fun and exciting, as we are a new company and there are still so many people who have never heard of Mavericks Donuts before.” n
To learn more about the Maverick’s Donuts franchise opportunity, please contact Jon Martin, VP of franchise development, at franchise@mavericksdonuts.com or 1-888-555-DONUT ext. 113 ADVERTORIAL
STAGECOACH: A BUSINESS THAT TRULY PERFORMS
At Stagecoach Performing Arts, we teach children Creative Courage For Life through weekly singing, acting, and dancing classes. 2023 will mark 35 years since the first Stagecoach school opened in Surrey, United Kingdom, and today, Stagecoach operates in eight countries with over 300 franchisees running their own schools. This growth has led to over one million children and young people discovering the benefits of the performing arts through Stagecoach.
Our classes give students the opportunity to find their confidence, make new friends, and develop skills they’ll value their whole lives, such as teamworking and communication. Each school is in a territory owned and managed by a franchisee, who also acts as a school’s Principal. Our franchisees manage a team of teachers who deliver high-quality, fun, and engaging performing arts classes to students aged four to 18 years old.
Who are our franchisees?
Stagecoach has expanded over the years to be a far-reaching network of professional franchisees with a passion for both the performing arts and children’s services. Whilst many of our franchisees come from performing arts backgrounds, having worked in the industry themselves or previously taught in a Stagecoach school, we invite interest from prospective franchisees of any background. Some of our current franchisees have taught in mainstream schools, been a Stagecoach parent before joining the business themselves, or come from a corporate background. We’ve seen franchisees from all walks of life run successful schools and many have built up their work with us to a multi-territory position with thousands of students in their schools every week.
What our franchisees say “I’m busy all of the time, but I do it because I love it. I’ve always had a
passion for performing arts and my career led me down the route of teaching. I decided to start my own Stagecoach franchise, as I had spent years working for them as an acting teacher and I love the way Stagecoach nurtures every child individually. We recently bought our first home, something which couldn’t have happened without Stagecoach. We’ve even managed to start saving for our children’s education. Being able to look after my family is really important but I’m only fully content when I see my students thriving too.” – Tosha Doiron, Principal of Stagecoach Mississauga and Oakville, ON
Why franchise with us?
At Stagecoach, we support all new franchisees, whether they’ve opened their school in a brandnew territory or are taking over an existing one, with a set programme to help them get started. New franchisees are provided with an online training course, a regional franchise manager to support them throughout their time as a Stagecoach Principal, assistance with securing a venue and DBS-checked teachers, an Educational Framework that communicates the goals of the Stagecoach brand whilst still providing our schools the freedom to adapt content and lesson plans to their students’ needs, and a head office team to support with all areas of their school and the Stagecoach brand, including events, education, marketing, IT, and operations.
In 2022, we introduced The Stagecoach Way with a book for our
franchisees which distils the essence of what makes Stagecoach unique. The publication enabled us to share the philosophy, ethics, and processes that define our work. It was created to ensure every Stagecoach student experiences the same engaging environment wherever they are in the world and to empower our franchisees to run their schools with our shared culture and values.
Once established, we regularly support our franchisees with buying additional territories and opening new schools in their areas, with our top franchisees enjoying a six-figure income from their business. Expansion opportunities are truly limitless with Stagecoach.
Since it started operating, Stagecoach Performing Arts has had continuous growth through the amazing work of our franchisees. Despite a challenging couple of years for the performing arts industry, we have continued to grow from strength to strength and have even opened in an eighth country. If you’d like to join the network or enquire about available territories near you, please fill out the enquiry form at stagecoachfranchise.com and our team will be in touch. We strive to make a difference to the lives of students and to the communities our schools operate in. Though Stagecoach Performing Arts provides performing arts education, the benefits and opportunities our schools give to our students build their confidence and prepare them for all life’s challenges, whether in or outside of the performing arts world. n
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To learn more, contact stagecoachfranchise.com or franchiserecruitment@stagecoach.global
INVEST IN YOUR FUTURE AND GIVE THE NEXT GENERATIONS CREATIVE COURAGE FOR LIFE. over franchisees across countries with schools and classes worldwide delivering hours per week 3,000 8 300 5,000 Find out how you can change your future, and theirs, by buying a Stagecoach Performing Arts franchise. Creative Courage For Life® stagecoachfranchise.com franchiserecruitment@stagecoach.global
How to Choose Your Payroll Service Provider
BY NETHRIS
Employee remuneration is more than simply the act of paying employees. According to a 2020 survey conducted by the Canadian Payroll Association (CPA), 43 per cent of Canadian employees admit that they live pay cheque to pay cheque. When entrusting the management of your payroll to an expert in the field, you must make sure to delegate this task to a trusted partner who understands your team’s needs and who grows with your business. Backed by 45 years of experience in payroll management, our experts have identified four criteria to consider when making your choice.
Managing your payroll, but how?
When it comes to the payroll, you have several choices. Some options, like software, only take care of the calculations but not the transfer of funds. To do so, you can either do the payroll yourself, ask an accountant, or turn to a payroll service provider. However, before deciding, you need to evaluate the advantages and disadvantages of each option. Since payroll is a complex field subject to specific regulations, it’s important to determine your needs,
especially if you have particular provincial obligations.
To avoid the headache and administrative burden of managing your payroll, you can turn to an expert in this field: a payroll service provider. This decision is accompanied by many benefits ranging from saving time to peace of mind. By entrusting your calculations, deductions, and salary payments to a professional, you save time and can dedicate yourself to growing your business.
How do you choose a payroll service provider? This is a very pertinent question because there are many options available on the market. Here are four things to keep in mind when the time comes for you to decide.
Easy to use
At first glance, ease of use might seem like an obvious and trivial point of consideration. But when it comes to choosing a payroll solution, it’s actually quite important. Chances are you didn’t choose to be a business owner with the primary ambition of managing payroll or the many documents that go along with it. By choosing to use a payroll service provider, you’re also choosing to save time.
Ask yourself the following questions: Are the options well organized? Do the headings make sense to you? If the solution seems intuitive, you’re probably on the right track.
We also invite you to pay attention to the user experience. Because this tool will be an integral part of your business activity, quality is an essential point. As an employer, payroll represents one of your business’s largest expenses. It’s therefore important to use a solution that’s user-friendly and efficient.
You should consider your employees, whose satisfaction is directly affected by compensation and proper payroll management. Your business depends on your employees, without whom it couldn’t grow. Since they’ll also be using the chosen solution, it’s important that it’s clear and attractive to them. After all, they’ll certainly have the option of accessing their profile to view their payroll data and to create requests.
It’s usually possible to ask for a demonstration. This may allow you to get a first impression. During your appointment with a representative, you’ll be able to view the solution’s interface and try it out in a simulation.
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All-in-one solution
If you’re an entrepreneur, you probably need tools to effectively manage other aspects of your business, such as time, human resources records, and group insurance. Although strictly speaking, these elements aren’t compensation, they’re closely related to payroll management.
Generally, a payroll service provider can suggest an array of integrated and practical tools to help facilitate your work. These are related solutions that complement your payroll management and make your daily operations a lot easier. All in all, these complementary options could benefit you.
Think about it: good time management positively affects optimization within a business. For example, you could allow your employees to track their hours worked in digital timesheets that are accessible from anywhere, and to view their availabilities in a smart calendar. You can also validate the information in just a few clicks, which allows payroll to be automatically processed.
A payroll provider can suggest customized tools that simplify more than just payroll. Perhaps the management of your human resources or group insurance plan is a burdensome administrative task. Centralizing training and recruitment management, as well as the task of making changes to your employee files, would make things much easier. Think of the many things a solution can do for you, like handling the calculations for your group insurance plan.
Also, keep in mind third-party software that you may use daily as an entrepreneur. It’s important to make sure that the software you choose supports the import and export of data either to or from programs that you use; for example, when the time comes to do your accounting. Generally speaking, a payroll provider offers you the opportunity to compliment your work, and this is something you should consider.
Improvements to security Payroll management involves the management of sensitive and
confidential data. The security of this information is very important, so you should definitely make this a criterion of choice.
Which technologies are used? Inform yourself about the infrastructures. For example, the physical facilities must be capable of supporting the amount of electricity required to store large amounts of data. Additionally, monitoring and security systems are required to allow for a rapid response in the event of a problem.
We also recommend verifying the jurisdiction of the location where your data is being hosted, as Canada imposes very high standards. Moreover, if your business is located in Canada, it could be even more secure to choose a payroll provider whose data is also hosted there.
Affected by the pandemic, businesses have integrated the concept of remote work into their practices, and workers understand the importance of security and compliance. While many businesses claim to follow established security principles, we recommend double-checking this point to find a solution that complies with higher security standards.
How can you identify these standards? There are certifications which guarantee that certain requirements are met, and businesses that have them usually mention it on their websites.
The ISO 27001 certification is an example. It’s an international standard on how to optimally manage information security. Certified businesses are able to identify threats and resolve them, thereby protecting the data. Although this certification isn’t mandatory, it reinforces the level of confidence that one can have in a service.
Keep in mind that you and your payroll service provider will build
a business relationship based on trust. The professional you choose must be knowledgeable about the rules that govern payroll and manage a properly trained information security team. Therefore, make sure that the people processing your data are aware of the need to protect it.
The importance of support
As an entrepreneur, you probably face regular challenges in managing your business, which is why customer service is important. Although there are various types, not all of them are adapted to your situation and needs.
Don’t hesitate to ask questions about the solution’s limitations. Are there additional fees, or specific schedules? How can I contact someone?
We recommend that you choose a solution with unlimited support where experts are always available to answer your questions. You should assume that you’ll build a long-term relationship with your payroll provider, so you have to be able to rely on them.
Your payroll provider isn’t only there for when you have questions. They should provide you with yearround support. Ask them what options they offer to make your life easier. Quite often, the offer of services will include the latest version of the solution and updates so you don’t have to worry about it yourself. Indeed, this is a long-term partnership.
As you’ll have understood, choosing to work with a payroll provider comes with many benefits that you may not enjoy if you decide to do your payroll another way. Get to know the different tasks throughout the year that are stressful for an entrepreneur, and see how your payroll service provider can help. n
ADVERTORIAL 1 888-650-6291 nethris.com/cfa
FRANCHISING: A Guiding
It’s always exciting to enter a new year, when the anticipation is high, and we have great expectations for the months to come. In 2023, concerns about the economic climate might threaten to dampen that excitement, but as the Canadian franchise industry has proven time and time again, franchising thrives in difficult times. In past recessions, and during a once-in-alifetime global pandemic, franchising has remained a guiding light for those looking to build business success, taking them through dark times with help from the systems and support of strong brands.
In this franchising trends package, you’ll find reports on the industry thriving against all odds, through new developments in the food service sector, an increased focus on social responsibility, and changes in consumer
spending options that business leaders should take heed of. We also highlight international perspectives on consumer trends taking shape around the world.
As our FranNet consultants report, franchising remains resilient through times of economic uncertainty, and they offer advice for sectors set to grow throughout the next year, along with a grounding perspective for incoming and prospective franchisees. Finally, Franchise Canada provides a list of resources for women in franchising, reflecting the increase of tools to help women turning to franchising to be in business for themselves.
Read on to learn more about how franchising is helping Canadian entrepreneurs navigate through difficult times to make their business ownership dreams come true!
24 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
Light Through Dark
Despite economic uncertainty, Canadian franchising is set for continued growth in 2023
Times
Q&A: Franchising Moving Forward
As a franchisee, you’re faced with decisions that shape the direction and fate of your franchise journey. As the world changes quickly, and amid much economic uncertainty, it’s especially important to look ahead to what these changes will mean for the Canadian franchise industry, so you can best position your business for success.
Franchise Canada spoke to two franchise consultants to hear their outlook on the top trends for the coming year. From industries that are primed for growth, to grounding advice on the state of the economy, our experts provide their thoughts on the upcoming year in franchising and what it will mean for prospective franchisees from one side of the country to the other.
Read on for insights from Gary Prenevost, president, FranNet of Southern Ontario and Eastern Canada, and Grant Bullington, franchise specialist, FranNet Western Canada.
What are the franchise categories to watch in 2023? Which industries/sectors are you seeing the most growth in?
Gary Prenevost (GP): Given increased risk and uncertainty, we anticipate continued strong interest in service businesses: tutoring/supplemental education, home improvement and home maintenance, beauty, and hair care. Food service is also always popular.
Children’s education suffered tremendously as school boards and teachers struggled to adapt to the virtual classroom; that struggle is still going on as our educators strive to determine the right blend of virtual and in-person learning. Parents are investing heavily in their children's education.
Most experts agree that home improvements add value to the property, even though some economists are forecasting a decline in home values. Canadians are still investing in optimizing their home, much of this being driven by the blended home/office work week that so many companies are adopting.
The beauty and hair care industries have historically been consistent performers, regardless of economic conditions; some budget brands see a sales increase during economic downturns. Tie in the feel-good aspect of pampering themselves to look better and you can see why consumers are spending more on themselves here.
Grant Bullington (GB): There are two ways to predict industries and categories that will see growth. The easiest (and possibly safest) method would be to look back and see which ones have been performing over the last year or two. Residential services and repairs, business services, education, and personal services (esthetics, hair care, etc.) were either strong performers throughout COVID or have strongly recovered.
I expect that we will also see the prevailing appetite for these lower cost and lower risk options to continue, particularly given the anticipation of an economic recession. Residential service franchises like painting or residential cleaning, for example, have a relatively low initial investment, launching with the absolute minimum equipment and contractors required. But they are highly adaptable to demand fluctuations. One could aggressively add contractors to meet demand, giving the ability to adapt to stagnating or declining demand with a high degree of precision. From a risk standpoint, there is considerably lower monthly overhead compared to businesses with a real estate component (i.e., expensive retail lease). Nor are there as many costs associated with winding down this type of business early (i.e., selling your vehicles vs. breaking a lease).
Another method would be to look at categories that, prior to COVID, were performing well and had a strong
Franchise Canada January | February 2023 25
FRANCHISING: A GUIDING LIGHT THROUGH DARK TIMES
Consultants Gary Prenevost and Grant Bullington look toward this year’s franchising trends, the industries set for growth, and why franchising is a good option in tough economic times
base of independent and franchised locations, and then investigate where the erosion of independent locations skews disproportionately compared to franchised. If it’s an industry or category that’s expected to perform, there may be a temporary window opening in the marketplace. One example would be the fitness industry. COVID was not friendly to this industry and many independent fitness gyms and studios haven’t fared well. As Canadians’ fitness habits and goals haven’t changed, the demand remains strong, so it might be a suitable time to explore this category. This second approach, however, involves a higher degree of speculation and is inherently riskier.
What do you foresee as the biggest franchising trends in 2023?
GB: Prior to COVID, most of my clients were in career transition and exploring franchise ownership as an alternative to returning to employment. It seems that this has reversed and in the last two years, almost all my clients have been looking into franchising while gainfully employed. I predict we’ll see more people confidently entering franchises in reaction to the “quiet quitting” trend and exiting employment.
GP: I see a lot of interest in lower-cost, service-based franchises, in part due to current economic uncertainty, and in part due to new access to capital. The Canada Small Business Finance Program (CSBFP) increased the 75 per cent guarantee cap from $350,000 to $500,000. This additional $150,000 can be used to pay for franchise fees and the working capital of the business. This enables the financing of many home and mobile service-based franchises with sub-$250,000 investment levels, which, before July 2022, had very limited funding options.
COVID has taught most of us how precious our lives and relationships are; this has led many people to redefine their values, priorities, and how they want to engage with their careers. 2022 saw a hot job market, so new franchise sales were soft across many industries. Given the looming economic uncertainty, it’s doubtful that the job market will remain hot; in fact, we should expect some big layoffs. Many of these people will consider franchise ownership, either as a full-time career, or as a semi-absentee wealth-building hedge against future uncertainty.
Food is also always a growth focus. What’s particularly popular at present is quick service restaurant (QSR) “street food,” where franchisors are bringing international flavour profiles to Canada. A caution here though—you’ll want to make sure the business model is strong enough to endure through consumers’ fickle changing tastes.
Generally, what do you expect the Canadian franchise industry to look like in 2023?
GP: The convergence of funding, the CSBFP, and an economic downturn should pique attention as franchise sales are typically counter-cyclical and do incredibly well during economic downturns. While the increased access to capital will create additional interest in franchise sales, this will be softened by the increased borrowing costs, more stringent mortgage lending requirements, and tightening scrutiny on how the banks assess risk.
The labour shortage will continue to be of particular concern, especially for businesses that rely on hourly, transient workers (i.e., QSR, retail product stores) as the shift is away from these jobs to higher-paying ones. In some cases, the increased labour costs needed to attract and retain staff might erode the profitability of the business and alter the financial modelling.
Prospective franchisees should anticipate that the cost of goods will continue to remain high in 2023, impacting construction projects and inventory, depending on the business category. Other goods will also remain higher than normal. Profitability forecasting needs to take this into consideration.
GB: Both new and established franchisors survived a crisis and are poised for growth, especially considering the amount of private equity activity and acquisitions over the last couple of years. Micro-emerging and emerging franchisors might seem independent, but upon closer inspection, you’ll see that many are backed by multi-brand franchisors with resources, experience, and bench strength. These organizations are positioned to expedite their expansion and can make for compelling investment opportunities. Also noteworthy is banks’ willingness to lend. It’s great that they’re lending, but I recommend you factor the increased cost of borrowing into your budget.
26 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
FRANCHISING: A GUIDING LIGHT THROUGH DARK TIMES
“I see a lot of interest in lower-cost, service-based franchises, in part due to current economic uncertainty, and in part due to new access to capital.”
Gary Prenevost , FranNet of Southern Ontario and Eastern Canada
GB: When compared to launching an independent business, joining a franchise offers access to a proven system for starting and scaling a business. Of course, not all independent businesses are doomed to fail, nor will franchising guarantee your success. However, aligning with an established franchise hedges your bets considerably. A core element of a franchise is their established system to successfully launch. There are many major decisions to make, including: which location is best, who to hire, when to hire, how to market, and how much it will cost. Getting even one of these wrong could be disastrous. And let’s not forget the tacit benefit of being with a group of fellow franchisees who can provide an additional level of support and guidance.
GP: Franchising provides proven marketing and operational systems that have been tested by numerous people in multiple markets (assuming the franchisor has been operating for a while). New franchisees have these processes to follow, instead of the costly trial and error path that first-time entrepreneurs must experience. In addition to the proven systems, good franchisors provide an abundance of initial training to get the new franchisee up and running, then provide ongoing coaching and support to help them optimize and grow their business. The collective of peer franchisees who run the same business is available to new franchisees, which further compresses the learning curve and time to profitability. Some degree of recognized branding is an asset. Take caution here though: if the new owner can’t do the work it takes to deliver the brand promise at or above customers’ expectations (leading people, managing operations, executing the marketing plan, etc.), it doesn’t matter how strong the brand is, that owner won’t succeed.
What advice do you have for prospective franchisees who are considering getting started in 2023?
GP: Align your franchise search to your best talents. Passion paired with the work ethic it takes to run the business is the biggest determinant of success.
Be cautious, not afraid of the impending economic downturn. If our next recession keeps in pattern with history, people who start their business during the downturn will be best poised to ride the front end of the next growth curve, instead of waiting until the recession is over and missing the first year of that new wave.
Also bear in mind that some businesses will fail, freeing up in-demand retail space. That space will be rapidly consumed by people who do their research and make their franchise buying decisions within the next six months or so. Involve your spouse or partner in your research from the very start, even if they’re not going to be involved in the business. Your new business will compete for time, attention, and money, so make sure you have full alignment and support before you buy.
GB: Growth in franchising tends to peak when the economy is at its peak and when times are extremely uncertain. This includes during recessions. Economists are predicting one in mid-2023. Why wait until then to plan your next move? Many franchisors continue to report strong growth: adding franchisees and increasing their average unit volume. But not all franchisors. In addition to confirming that the sector and franchisor is a compelling choice, ensure that you are the right franchisee for the system! Be sure that you truly understand the full scope of your roles and functions as the owner of the business and confirm that you not only can but will perform them to a high degree.
Gary Prenevost is one of Canada’s leading franchise experts. He and his team have helped over 2,000 people search for their optimum franchise. Gary’s book, The Unstoppable Franchisee: 7 Drivers of Next-Level Growth, will be released in February 2023.
Grant Bullington is the president of FranNet of Western Canada. He and his team have been helping serious prospective franchisees find and research opportunities since 2009. Grant is also the host of the Franchise Scout podcast.
Franchise Canada January | February 2023 27
Why is franchising a strong option for entrepreneurs who want to start their own business in the current economic climate?
A GUIDING LIGHT THROUGH DARK TIMES
FRANCHISING:
“Growth in franchising tends to peak when the economy is at its peak and when times are extremely uncertain. This includes during recessions. Economists are predicting one in mid-2023. Why wait until then to plan your next move?”
Grant Bullington, FranNet Western Canada
Gift Cards: Promos with Benefits for Merchants and Consumers
BY KIPLING MACARTNEY, DIRECTOR OF EMERGING SOLUTIONS & VALUE-ADDED SERVICES AT MONERIS
From increasing revenue to retaining customers, businesses big and small can benefit from offering gift cards all year round. It’s a great way for businesses to stand out, offer flexibility and convenience to shoppers, and keep customers wanting more. And during uncertain times, giving customers different options to make a purchase is a must. 2020 saw a significant jump in merchants participating in various gift card programs via physical, digital, and promotional cards to adapt to the pandemic’s impact on the global marketplace. And since 2017, the rate of gift card users has remained steady, signifying that there is still a demand for gift cards amongst consumers.
Bottom line: gift cards aren’t going anywhere, and they’ll continue to serve and fulfill the needs of both merchants and shoppers. Here are a few reasons why businesses should take advantage.
Increased customer engagement
Gift cards are a great tool to leverage customer engagement—whether they’re used to promote business to prospective customers, or to thank loyal shoppers for their continued support. Providing free or promotional gift cards (think coupons or promo codes) can be a great way to entice new customers. Gift cards can also be used to reward customers who frequent a business, encouraging them to return and make another purchase in the future. Studies found that 70 per cent of Canadian shoppers were more likely to shop where they had some form of a promotional card. And with the return of in-store shopping, the use of promotional gift cards has soared since 2020, almost matching pre-pandemic levels.
Projected growth in the industry
The gift card industry is projected to grow by more than eight per cent from 2020 to 2024. This is, in part, driven by consumer confidence and spending trends in various sectors. Although rising interest rates and inflation have impacted the pace of consumer spending in Canada, the accumulative savings that many were able to build over the last three years might help to offset these challenging periods and make room for personal spending. We saw this in 2022, when pandemic restrictions slowly eased mid-way through the year, and shoppers returned to shopping in-store, dining at restaurants, travelling, and coming back together for in-person celebrations. As the economy slowly rebuilds, participating in gift card programs can encourage customers to return to their favourite businesses and, in turn, increase sales.
Flexibility for customers and merchants
From independent businesses to large-scale franchises, gift cards offer an abundance of options and flexibility to customers and merchants. Not only can gift cards be customized to your business needs, but they can be tailored to maximize an individual’s shopping experience. For instance, gift cards can be filled with almost any amount, encouraging large purchases or recurring visits. Sixty-three per cent of Canadians who receive a gift card will spend more than the value of the card, and 40 per cent will redeem the card’s full balance over several visits. Gift cards can also be accepted at multiple locations for either a single merchant or multiple merchants under the same brand, giving shoppers various options. The best part? Gift cards can be offered for almost any
28 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
Gift cards offer an easy way for businesses to generate sales and engage with customers
FRANCHISING: A GUIDING LIGHT THROUGH DARK TIMES
industry, from retail and restaurants to entertainment, trades, and professional services.
From the merchant side, gift cards offer direct cash flow from customers, and are a great source of immediate income. Gift cards can also be designed so a merchant’s name, logo, and contact information are included, acting as ‘free’ advertising to prospective shoppers.
Keeping up with digital trends
The pandemic accelerated the need for merchants to diversify their payment options, making checkout easier and more convenient for shoppers. It also opened the floor for merchants to innovate how they accept existing forms of payment, including gift cards. Today, e-gift cards can be saved on digital wallets and uploaded to gift-card-friendly apps. They can be reused, and customers now have the option to check their gift card balance online rather than going into a store to find out. While 70 per cent of Canadians are still buying gift cards in-store, millennials are increasingly purchasing digital gift cards.
In 2020, the number of merchants who participated in gift card programs rose significantly, as many opted to roll out digital and online promotional gift cards in
response to the rise of online shopping throughout the pandemic. Overall, digital gift card solutions are a method for businesses to offer an easy and seamless checkout experience for customers. Improving your business’ online shopping experience, which could include participating in a strong digital gift card program, will be an important way to cater to future shopping trends.
Gift cards are, ultimately, a versatile payment option that continues to evolve with the changing marketplace. Beyond holidays and birthday celebrations, gift cards have a unique role in giving customers the ability to support the business they love, while also being rewarded.
Moneris is Canada’s largest provider of innovative solutions for mobile, online, and in-store payments, processing more than one in three transactions. Serving businesses of every size and industry, Moneris offers hardware, software, and solutions to help transform the way businesses grow and operate, in payments and beyond. For more information, please visit www.moneris. com and follow @moneris.
MONERIS and MONERIS & Design are registered trademarks of Moneris Solutions Corporation.
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ONESource Moving Solutions is expanding across Canada.
Franchise Canada January | February 2023 29 SENIORS | PROFESSIONALS | FAMILIES
“We take the stress out of changing your address.” Essential Service • Home Based Business • Low Investment And Start Up Costs Room for Lots of Growth • Covid-19 Resistant Want to learn more about this exciting Franchise Opportunity? email: franchising@onesourcemoving.ca www.onesourcemoving.ca This advertising is not an offering of a franchise. An offer of a franchise can only be made by a franchise disclosure document.
FRANCHISING: A GUIDING LIGHT THROUGH DARK TIMES
Canadian Economic Outlook
Rate-hiking cycle ending as recession edges closer
The Canadian economy continues to inch closer to a recession in 2023. Early signs of easing inflation pressures are raising odds that the downturn will be ‘mild’ by historical standards. Unemployment dropped to record lows (since at least 1976) over the summer and has edged up only slightly since. But headwinds from aggressive central bank interest rate hikes are gaining strength. Housing markets have already retrenched sharply since spring. And consumer spending is expected to soften further as high inflation and rising debt payments cut into purchasing power.
While there are risks ahead with this outlook, there are early signs that inflation pressures may have peaked, and central banks could be close to the end of their ratehiking cycle.
Inflation is easing up on both sides of the border
Price growth is still running well above central bank targets, but increases have been smaller and less-broadbased in recent months. The global supply chain crunch that drove much of the initial surge in inflation is easing. Commodity prices remain high, but have declined after surging earlier this year when Russia invaded Ukraine. Oil prices are running 40 per cent below their early June highs, and wheat prices are down 50 per cent from peak levels earlier this year.
Broader measures of inflation are still too high, but have also eased up in both Canada and the U.S. Monthover-month increases in price growth, excluding food and energy products, fell to 3.7 per cent (annualized) over the last three months in Canada, down from a peak of more than eight per cent on that basis in the summer. U.S. core (excluding food and energy) price growth has been higher. But that’s increasingly due to surging home rent prices that are the delayed result of past market hikes and a lag in new leases. The Bank of Canada’s Q4 Business Outlook Survey hinted that the re-pricing frenzy as pandemic lockdowns eased may have run its course, as businesses pay closer attention to competitive pressures before passing along cost increases to customers.
Central banks
Consumption2.39.5-1.01.90.0-0.7-0.80.31.52.02.22.65.14.80.61.1 8.0-14.4-8.21.7-2.5-1.5-1.00.51.22.32.53.58.5-3.1-2.71.1 -12.41.80.0-2.0-1.51.01.11.51.42.3 8.2-0.50.7 3.22.5-3.92.01.0-1.3-1.00.01.51.91.52.31.10.2-0.10.9 NPISH3.82.00.10.0-0.50.31.62.02.62.55.18.61.81.2 Government-0.64.62.11.90.0-0.7-0.80.31.52.02.22.65.13.70.71.1 expenditures0.5-2.05.34.11.51.01.51.51.32.22.73.36.41.62.11.8 fixed investment2.2-3.5-4.00.22.52.02.52.52.62.62.62.60.90.00.82.5 investment8.8-31.5-15.4-10.0-5.0-1.8-1.00.53.84.55.35.9 structures4.34.42.8-0.6-0.41.52.22.32.62.94.3 equipment6.03.01.00.02.02.32.52.83.20.8 Intellectual-7.61.52.5-3.5-1.00.52.12.02.22.59.98.00.41.1 5.17.41.02.01.01.02.51.02.01.72.12.24.00.11.81.8 Exports3.02.4-0.61.50.2-0.3-0.10.81.82.32.63.05.82.70.41.5 Imports-7.68.18.65.02.21.32.01.01.32.02.51.43.25.51.6 Inventories-1.5-1.61.6-1.10.01.61.72.73.03.17.88.01.41.7 20.154.756.427.016.56.05.03.02.94.15.95.9-4.1 gross product 2.83.22.90.5-0.5-1.00.20.51.52.02.62.85.03.50.41.3
Year- -
Pre-tax-1.7-1.6-0.20.10.50.40.10.10.40.81.11.4-5.7-0.90.30.9 profits rate6.90.8-10.7-2.3-1.7-0.71.22.22.55.85.15.25.25.66.06.66.86.86.86.86.77.45.36.36.8 CPI5.87.57.26.75.23.12.42.12.42.32.11.93.46.83.22.2 ex. External4.05.15.45.34.93.93.13.12.92.72.52.42.45.03.72.6 account balance -44.4-19.1-17.6-13.5-10.9-7.9-11.3-15.2-18.4-20.7-6.7-12.3-12.5-16.4 Housing0.10.4-1.6-0.7-0.6-0.5-0.4-0.3-0.4-0.5-0.6-0.7-0.3-0.5-0.4-0.6 Motor244271282250249243236235229224219214271262241221 (mill.,1.621.581.501.511.501.491.491.491.501.501.511.531.681.551.491.51
Source:average RBC
are getting close to hitting pause on
further rate hikes
With inflation still running well above target, early signs of slowing price growth won’t be enough for central banks to ease off on the monetary policy brake. But, they do suggest interest rates are close to levels that are ‘restrictive’ enough to slow economic activity and inflation in the year ahead. After a 50 basis point hike at the December meeting, we expect the Bank of Canada is now free to pause at the current overnight rate of 4.25 per cent, as the lagged impact of interest rate increases todate slow economic activity.
‘Mild’ recession still expected Pausing interest rate hikes won’t prevent a Canadian recession in the year ahead. A mild downturn is probably already a given, in light of the current restrictive level of interest rates. This will soften consumer spending in the quarters ahead. In Canada, the share of household disposable income eaten up by debt payments will spike higher, to record levels, by the end of next year.
Global supply chain pressures are easing, but so
is the manufacturing sector outlook
Though ocean shipping costs and times are still above pre-pandemic levels, they’ve eased substantially. The cost of shipping a container from China to the U.S. west coast has fallen by more than 90 per cent from peak levels last year. After running full-out for much of the last couple of years, closely watched manufacturing PMI surveys in most major economies (including Canada’s) are pointing to a contraction in the sector in the year ahead.
30 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
FRANCHISING: A GUIDING LIGHT THROUGH DARK TIMES
Canadian, US and Financial market forecast tables December, 2022 rbc.com/economics Real growth in the economy Quarter- -quarter annualized % change otherwise indicated Economic forecast detail Canada Q4
CONTRIBUTED BY RBC (PUBLISHED ON DECEMBER 14, 2022)
To access the full report, including charts, visit cfa.ca/franchisecanada/RBCOutlook
indicators
% change otherwise
labour Productivity
Immigration and business investment will be key to the next economic recovery
Every recession in history has been followed by a recovery. We expect higher immigration and business investment will be key to fuelling a return to growth later next year and into 2024. Labour shortages have been the heaviest weight on economic growth. And while those shortages might ease in the year ahead as the unemployment rate rises, they’ll re-emerge as the economy recovers. The ongoing retirement of the baby boom generation is creating structurally lower supply of workers. That
EXCLUSIVE Q&A
Franchise Canada had the opportunity to connect with RBC economist Carrie Freestone, for further insight into what we can expect in 2023, especially as it relates to the Canadian franchise industry.
Franchise Canada (FC): We hear a lot about an upcoming recession. What can we expect in 2023, especially as it relates to franchising?
Carrie Freestone (CF): We are expecting a mild to moderate recession in the first half of 2023, when elevated inflation levels and interest rates north of four per cent begin to weigh on consumer demand. The good news is, inflation will likely continue to trend lower into 2023.
The Bank of Canada’s preferred core measures have reported month-over-month declines since inflation peaked in July, and the breadth of inflation has continued to narrow, as well. With the Bank of Canada likely having reached its terminal rate for this cycle (at 4.25 per cent as of the Bank’s December meeting), inflation is expected to continue to trend lower and average 3.2 per cent in 2023.
Labour markets remain exceptionally tight. To date (as of November), there are 60 per cent more job openings than
means more upward pressure on wages, and potentially structurally higher interest rates than we were used to pre-pandemic.
Increased immigration targets will help boost labour supply and the longer-run productive capacity of the economy. But higher wages also add an incentive to businesses to boost the production capacity of the existing workforce through increased investment in productivity-enhancing equipment and technologies.
Authors: Craig Wright, Robert Hogue, and Nathan Janzen
there were prior to the pandemic. This will limit the degree of labour market softening that we will witness in 2023. The unemployment rate is expected to peak at 6.8 per cent in 2023. With many industries already staffed for a recession (such as the hospitality sector), job losses will be limited.
FC: Based on consumer spending over the past year, are there any categories that you see continuing to trend strong in 2023?
CF: Much of the pullback in consumer spending in 2023 is likely to come from discretionary spending on merchandise. Higher inflation and rising debt servicing ratios will erode consumer purchasing power in the first quarter. We will likely observe manufacturing activity soften alongside discretionary goods spending. The wild card will be hospitality sector demand. There is substantial pent-up demand for travel and hospitality services, built up during the pandemic when those services were often less available for purchase. While hotel accommodation spending has already fallen from its summer peak, restaurant spending remains strong into December.
FC: Are Canadian consumers carrying a large debt load as we head into 2023? What does this mean for businesses?
CF: Yes, Canadian households owe approximately $1.82 for every $1 of disposable income as of Q3 2022. For now, debt payments are still relatively low because a lot of that debt was financed at lower fixed rates. But monetary policy has a lagged impact. While interest rates have risen by 400 basis points in less than a year, debt servicing ratios will continue to trend higher into 2023 and 2024. By mid-2023, we anticipate Canada will report a record high debt servicing ratio, at which point the average Canadian household will devote more than 15 per cent of their income to debt payments.
Higher debt payments are demand destructive and will result in eroding demand for consumer goods and services. Real wage growth is still negative, as year-over-year wages are significantly below headline inflation. At the same time, key essential goods like groceries are up over 11 per cent. With this in mind, as Canadians have to pay more to service their debt, they will have a smaller share of take-home pay to devote to discretionary spending.
Franchise Canada January | February 2023 31
FRANCHISING: A GUIDING LIGHT THROUGH DARK TIMES
4 Consumer Trends That Will Shape Tomorrow
A deep dive into four global trends driving change across all sectors
BY CHARLOTTE SMITH
Originally published in Global Franchise Magazine
Living in a post-pandemic world has undoubtedly changed the way consumers go about their everyday lives. Over the past two years, many of us have found that our ambitions have changed or evolved in ways we might previously not have imagined. While on a personal level, we may have decided to take positive steps to improve our health and well-being, from a business perspective, goals that had previously been compartmentalized as long-term ambitions had to be realized even faster. Competitive brands have succeeded in speeding up digital transformations to reach customers for whom brand loyalty has dwindled and convenience is king.
Digital transformation and progression and meeting consumers’ changing expectations and needs have undoubtedly played a pivotal role in the growth of franchising in the past two years. In the face of enormous pressure and uncertainty, many franchisors have chosen an investment in new innovations over stagnation: optimizing processes and systems, breaking down silos, growing loyalty, helping communities, and working towards a better future.
In franchising, these opportunities—and our ability to jump to them—have resulted in tremendous growth and expansions. Furthermore, the pandemic unveiled a pool of talent ready to take the plunge in switching from employee to business owner.
According to the 2022 Economic Forecast for Franchising, 2021 was an exceptional year for franchising in the U.S., and this recovery trend has continued in 2022, bolstered by a strengthening labour market and steady consumer spending. But while the franchising sector continues to trend upwards alongside overall economic progression in the U.S., the overall pace of growth has moderated (due to headwinds in the economy), to a steadier and more sustainable rate.
There are certainly challenges looming large on the horizon, not least of which are rising competition and upheaval caused by global events. The tsunami of troubling news surrounding the state of the global economy reflects the struggles of many consumers, who face myriad waves of financial obstacles—not least of which is an uncertain future.
According to a recent global report by Dynata, Staying Ahead of the Downturn, many people are pessimistic about economic conditions—and perception matters, as consumers have the power to influence economies. Almost half of those surveyed “strongly” or “very much” believe we’re entering a recession (regardless of official determinations or economists’ assessments) and 56 per cent said their national leaders aren’t doing enough to fight inflation. Fifty-three per cent of consumers globally are struggling “at least slightly” to afford basic needs and almost one in four consumers globally think their personal finances will worsen. Furthermore, one in five consumers around the globe (around 19 per cent) feel “burdened” by debt, this number being higher in the U.S., Canada, and Australia.
To cope with climbing costs and the threat of a downturn or recession, many consumers are re-evaluating their lifestyles and looking at ways to reduce their overall spending—especially on non-essential purchases— as well as exploring more thrifty means to save dollars, like the secondhand market.
1. Values still matter. But the picture isn’t as simple as those conveyed by general statistics. There are generational as well as national nuances in consumer behaviour when it comes to spending decisions. While seven in every 10 baby boomers are spending less now on dining, entertainment, clothing, and travel than they were at the beginning of the year, many consumers, especially
32 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
FRANCHISING: A GUIDING LIGHT THROUGH DARK TIMES
younger generations, remain willing to spend extra on products and services that reflect their values, or are perceived as healthier and/or environmentally friendly.
According to market research by Adyen (The Retail Report 2022 ), impact is an important loyalty driver in the U.K., with 63 per cent of consumers believing brands have a responsibility to ensure their stock is ethically sourced and produced, and 43 per cent preferring brands that stand up for causes they believe in. And 26 per cent want to donate to good causes while they’re paying.
Gen Z and millennials, as well as consumers in China and U.S., are among those most likely to say they “almost always” or “often” pay more for something that represents their values. More than half of “values-driven” consumers also report frequently spending more on things that are local, sustainable, and have a brand that they perceive as “authentic.”
2. Choice is making consumers more discerning. The last few years have seen foundational shifts in consumer behaviour, from the changing role of the store in the purchase journey, to shoppers willing to try new brands. A brand-new Think with Google report has unveiled data that proves consumers are window shopping online more, not only searching for specific items by a particular brand but also seeing what’s available more widely, with generic queries like ‘best takeaway’ growing faster than branded queries.
Just as they do in bricks-and-mortar stores, consumers want to inspect what they’re purchasing, and there’s been a more than 40 per cent increase in search interest on YouTube for terms containing ‘review.’ Images, videos, and ads displayed on Google Search all help to build a 360-degree view of products and services.
More choice means more fickle consumers. With people spending more time window shopping online, they’re tempted by new brands more often. The online environment is also facilitating more brand trials than in store.
3. Omnichannel is the expectation. More shopping was done online during the pandemic, and that shift changed how people behave today. Consumers are now more likely to turn to the internet than a few years ago to do their shopping research, with 30 per cent of retail consumers saying they browse online most or every time they purchase in-store and 24 per cent going into a store most or every time they purchase online. Even when visiting the mall, consumers are searching online ahead of visits. As a result, omnichannel shopping is more widespread than ever.
Once they’ve narrowed down their options with online research, consumers are using the internet again to find out where to go—for example, “24-hour pizza restaurant near me.”
Both businesses and consumers now have a taste for what’s possible with tech—and now there’s no going back. Sixty-one per cent of consumers believe that retailers should deliver the same cross-channel flexibility they provided during the pandemic (The Retail Report 2022, Adyen), so it makes sense that linking online, in-app, and in-store payments with a single system—unified commerce—has proved to enhance both brand resilience and customer satisfaction. In fact, Adyen’s research shows that globally, unified commerce increases businesses’ performance by nine per cent.
4. Consumers are embracing YOLO like never before. According to global market research by Mintel, consumers are seeking sources of joy as the continuing pandemic and other local and global crises—from political unrest to environmental threats—have caused them anxiety and stress. “Consumers need to allow themselves to feel much-needed joy and happiness,” summarizes its Global Consumer Trends 2022 report. “Consumers are looking for fun and playfulness in all areas of life. They have a new sense of appreciation for finding joy in everyday things and being in the moment.”
The pandemic prompted us to hit the reset button in many different parts of our lives. It acted as a catalyst not only for business and digital innovation—somewhere in the background, it spurred a form of personal innovation, too. According to the global GWA survey, Connecting the Dots: “What we’re seeing today are seismic changes in the collective mindset. In the past year, we’ve seen U.S. consumers feeling bolder, more adventurous, and empowered.”
Meanwhile, there’s a diminishing need to be careful and responsible: treating oneself and indulging are in the top three things that have become more important to consumers in the past year (39 per cent say this), behind saving money (53 per cent) and spending time with loved ones (47 per cent), signalling a pent-up desire to give in to temptations. “In practice, this may mean a number of things—from letting go of the safety net and normalizing quitting, to pursuing new experiences, ventures, and passions,” the report concludes. “One fruitful way for brands to stand out next year would be to align their messaging and tone of voice with this new outlook. You only live once (YOLO) campaigns that nurture consumers’ new aspirations are likely to resonate.”
Charlotte Smith is an editor and writer for Global Franchise. Published every month, Global Franchise magazine is the trusted resource for business decisionmakers looking to keep up with international franchise news, insight, analysis, and opportunities. Learn more at global-franchise.com.
Franchise Canada January | February 2023 33
FRANCHISING: A GUIDING LIGHT THROUGH DARK TIMES
Empowering Female Entrepreneurs Resources for women in franchising
While it’s always been clear that women face both different and greater obstacles than men in the working world, the pandemic only exacerbated these challenges over the past three years.
To try to address this disparity in Canada, institutions have developed programs and resources to help women realize their entrepreneurial ambitions.
Read on for a list of resources intended to help address the specific challenges facing women who want to become entrepreneurs and rise through the ranks of the Canadian franchise industry.
The Women Entrepreneurship Knowledge Hub
A one-stop source of knowledge, data, and best practices developed by the Government of Canada, specifically created with women entrepreneurs in mind. The Hub collects, analyzes, and disseminates statistics and research on female entrepreneurship. Other activities include reporting on the progress of women entrepreneurs in Canada. ised-isde.canada.ca/site/women-entrepreneurshipstrategy/en/women-entrepreneurship-knowledge-hub
Export Development Canada: Women in Trade
Offering resources for women entrepreneurs competing on the global stage, EDC helps womenowned and –led businesses with exports through credit insurance, risk management, and cash flow, by providing a deep well of expertise, featuring guides, webinars, and success stories with insights and practical advice on international trade. https://www.edc.ca/women-in-trade
Business Development Bank of Canada (BDC): Woman Entrepreneur
The BDC provides free resources, including access to networking opportunities and partnerships that can provide business benefits. The BDC also provides case studies of successful women-owned businesses as well as articles and exclusive content on maintaining business growth. https://www.bdc.ca/en/i-am/woman-entrepreneur
Visa She’s NEXT
Visa’s in-house platform for female small business owners offers grant opportunities to remove the disproportionate barriers faced by Black women founders. It also features how-to guides full of tips for starting, scaling, and running a successful business, and a series on customer insights. https://usa.visa.com/run-your-business/women-smallbusiness.html
Canadian Women in Food
Creating meaningful learning initiatives, engaging with the industry to create connections, and providing opportunities for members to market and promote their businesses, Canadian Women in Food gives everyone a seat at the table. https://www.canadianwomeninfood.ca
Women’s Enterprise Organizations of Canada (WEOC)
Providing resources for women-identifying and nonbinary entrepreneurs across the country, including membership for established enterprise leaders and loans of up to $50,000 for emerging business professionals. https://weoc.ca
Women of Influence+
Women of Influence+ aids organizations with everything from talent recruitment and event sponsorship to targeted marketing. It also offers leadership programs, workshops, and keynotes, allowing working professionals to make connections. https://www.womenofinfluence.ca
BMO for Women
The only bank-owned recognition program for women in North America, BMO celebrates successful women who have given back to their communities or achieved success in business. BMO also financially supports women, with the new Celebrating Women Grant Program. https://bmoforwomen.com
Female Success Stories
Learn more about women who are thriving in the Canadian franchise industry at https://cfa.ca/franchisecanada/women-in-franchising/
34 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
FRANCHISING: A GUIDING LIGHT THROUGH DARK TIMES
Snapshot of a Prospective Franchisee
Many Canadians are looking to go into business through franchising in 2023. Here’s a breakdown of the characteristics of these future franchisees.
(Note: some numbers may not add up to 100 on account of multi-section responses or because some respondents answered unknown or chose not to respond)
What kind of franchise are they looking for?
Food - Quick service restaurants (QSR) 57%
Consumer products and services 27% Retail 23% Food – Full service restaurants 22% B2B 20%
Health/Beauty/Fitness/Senior Care 15% Children’s products and services 14% Automotive 13% Other 12% Food – Coffee, baked goods 4%
Male 33% Female 8%
How old are they?
18-30 8% 31-40 11% 41-50 9% 51+ 6%
How educated are they?
High School 9% Trades/ Vocational training 2% College/University 51% Graduate Degree 38%
How much money do they have to invest?
Where do they live? ON 60%
BC 14% MB 2% QC 5%
AB 10%
Atlantic Provinces 3%
Under $50,000 31% $50,000-$150,000 31% $150,000-$250,000 27% $250,000-$500,000 21% $500,000-$1,000,000 4% $1,000,000+ 2%
When are they looking to invest?
Now 35%
Within 1 year 47% 1-2 years 7% 2-3 years 4% 3 years + 1%
Franchise Canada January | February 2023 35
FRANCHISING: A GUIDING LIGHT THROUGH DARK TIMES
Socially Centred Franchising
Three franchises with social responsibility and eco-friendliness at the heart of their brands
BY GEORGIE BINKS
Being a part of a successful business is great, but for many, partnering with one that also takes social responsibility seriously is even better. These three franchises do everything from helping others to making everyone feel included and promoting sustainability with their products.
36 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
A&W Food Services of Canada
From delicious Teen Burgers to fundraising for MS, A&W Canada is a 100 per cent Canadian-owned and operated brand that has become a leader in the QSR industry, differentiated by its commitments to doing what’s right for people and the planet. Also known as “The Home of the Burger Family,” the franchise has expanded its offering to include blended frozen beverages and espresso drinks with the A&W Brew Bar.
As for social issues, Ryan Picklyk, senior director, real estate & franchising, says the company focuses on making a positive impact in five key areas: food, environment, animal welfare, people, and community. “We believe sourcing simple, great-tasting ingredients, farmed with care, is the right thing to do,” says Picklyk. “From using compostable packaging to fundraising, to supporting Canadians living with multiple sclerosis, in partnership with our franchisees, we strive to make a positive impact nationally in all the communities our restaurants operate in.”
Picklyk says the system is unique in its close, longterm relationships between head office and its franchisees. “We value franchisees’ input. They are an instrumental part of key decision making for the future of our business. One of the biggest benefits to any new A&W franchisee is the community they immediately join by becoming a franchisee.”
With more than 1,000 locations, the franchise is made up of drive-thru operated locations, urban stand-alone locations, locations in shopping centres, and more.
An ideal franchisee must possess strong leadership and communication skills to help connect with everyone from guests to staff. Picklyk’s advice to future franchisees is to ask a lot of questions and never hesitate to ask for help. A&W offers both online and in-restaurant support for franchisees at any time.
In addition to local initiatives, the company has a national partnership with the Multiple Sclerosis Society of Canada. A&W also began partnering with Second Harvest in 2016, donating unused ingredients from the company’s supply chain to charitable organizations. The company is also committed to reducing single-use waste.
“The benefit of these initiatives to franchisees is it’s easy for people to get excited about our brand,” says Picklyk. “They also help franchisees attract and retain staff. These initiatives resonate with many Canadians across the country and are simply the right thing to do. This desire to make our world a better place by giving back to the communities our restaurants serve is inspired by the guests we serve. Canadians want to do business with brands that have a positive impact.”
Learn more at LookforaFranchise.ca
Franchise Canada January | February 2023 37
CENTRED FRANCHISING
SOCIALLY
COBS Bread
The best part of the day at COBS Bread might just be the end of the day, but that’s not because work is over. It’s because the franchise’s “End of the Day Program” kicks in.
“At the end of the day, all unsold bread is donated to local charities and our bakers start fresh again the next morning,” explains Vevette Villahermosa, director of marketing for COBS Bread. “In 2021, an approximate retail value of $63M was donated to local charities across the country. We are so grateful to the organizations who work with us to distribute our product to members of our community who are in need.”
Going forward, Villahermosa notes, “The franchise will continue our longstanding End of Day Giving program, as well as our annual Doughnation Day campaign, where bakeries fundraise for a local community charity.”
COBS Bread has more than 150 locations across Canada. Villahermosa says, “Our bakers rise early in the morning to prepare and bake hand-crafted bread and flavourful treats fresh every day.”
Villahermosa says the franchise works with many suppliers across the globe, and they review their environmental and people management practices when deciding who to partner with. “We request they recognize our goal to reduce our carbon footprint and help us achieve our goals.”
In terms of sustainability, COBS Bread’s goal is to use only recyclable packaging at all of its bakeries by 2025, as well as LED lights in all new bakeries as they open and renovate, in order to reduce electricity consumption.
The benefits of owning a COBS franchise include a robust franchise network, built-in training, and support from the very start, says Villahermosa, adding that it also offers flexibility. Franchisees can concentrate on operating their businesses while the support office provides advice and resources in all areas of the business to help them excel, including customer engagement strategies.
COBS Bread franchisees are hands-on in all aspects of their business, including baking, but don’t need any previous baking experience. They receive a full baking education, alongside comprehensive sales and business management training.
Villahermosa says the ideal franchisee is a selfstarter who takes a hands-on approach to growing a business and building a team. “They commit to highquality results and have a passion for fresh baked bread and treats!”
Learn more at LookforaFranchise.ca
38 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
SOCIALLY CENTRED FRANCHISING
FASTSIGNS
For Mark Jameson, FASTSIGNS’ chief development officer, the brand’s 2022 convention was a crowning moment, when the brand showcased its recently formed diversity and inclusion committee.
“We introduced the committee on stage, we talked about what diversity meant for individuals, and we created this amazing video about diversity and inclusion,” says Jameson. “We set up signs people could pick up: ‘This makes me comfortable; I love everybody; I want to feel welcomed.’ It was a series of words that let people make their own statement on why diversity was important to them, their business, their employees.”
FASTSIGNS, which has been in Canada for more than 20 years, has 750 locations in eight countries. It sells signs, graphics (wall, floor, and vehicle), and visual solutions to businesses. The diversity and inclusion committee is comprised of a diverse group of eight FASTSIGNS franchisees from across the brand’s global network, with a goal of helping to promote diversity and inclusion.
“A number of our franchisees felt with a lot of things happening in the world and with a very diverse employer base, very diverse customer base, it was time to have some very open conversations around diversity and inclusion,” explains Jameson. “We launched it in September of 2021, and it has really allowed us to have conversations about why diversity and inclusion is so important to really every business.”
The company also posted a diversity and inclusion statement on its job board. “With everyone having a difficult time hiring, we thought what better way to communicate that FASTSIGNS was a great place to work for
everybody.” For franchisees, the company added it to its website.
“The benefit is it makes our franchises a great place to work,” says Jameson. “Our customers come from all sorts of diverse backgrounds. We want to welcome everyone.”
Jameson says there are many other benefits for franchisees looking to join the FASTSIGNS network. For example, the company has daytime hours from Monday to Friday, which means few nights and weekends. “Our franchisees have an amazing work-life balance.”
The company also offers 50 per cent off franchise fees for veterans and first responders, and provides four weeks of training, webinars, and online learning.
The challenges in operating a FASTSIGNS franchise are similar to most businesses: hiring and retaining good employees, and working around supply chain issues and rising costs.
At the same time, sales are growing. “Even with COVID, they (the franchises) were considered essential in most markets. Everyone needed a way to communicate with their customers,” says Jameson.
Going forward, Jameson notes the company is trying to offer green products that are more environmentally friendly.
As for diversity and inclusion, “It makes FASTSIGNS feel like we’re welcome to everybody, it’s good for business, and it’s great for recruiting and retaining employees.”
Learn more at LookforaFranchise.ca
Franchise Canada January | February 2023 39
SOCIALLY CENTRED FRANCHISING
BY JORDAN WHITEHOUSE
As the founder of modern management Peter Drucker once put it, businesses must “innovate or die.”
This might sound harsh, but there’s some truth it. Just ask the bosses at some of the world’s top food service companies, where digital innovation has been key to dealing with rapidly shifting customer demands.
Franchise Canada spoke to leaders from Wendy’s, Pizza Hut, and McDonald’s to find out why new technology is so important for them right now.
They told us about pizza-delivering robots, self-serve kiosks, loyalty programs, and more—each of which is helping their companies and their franchisees not only survive but thrive in the new world of food service.
40 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
THE FUTURE OF FOOD SERVICE How three brands are using digital innovations to market, serve, and deliver food
McDonald’s Restaurants of Canada
Innovation has been a cornerstone of McDonald’s since the brothers Dick and Mac McDonald perfected their Speedee Service System back in 1948, continuing to shape the brand’s offering and programs in the decades that followed. In 2015, that innovation took a bold digital turn with the introduction of new technology meant to transform the guest experience.
Self-serve kiosks were probably the most noticeable new tech back then, but since 2015, the company has rolled out other digital tools like the McDonald’s Mobile App in 2017, drive-thru digital menu boards, and its rewards program, MyMcDonald’s Rewards, in 2021.
So why the increased focus on digital? “Canadians live in an increasingly digital world, and we must meet them there,” says Lara Skripitsky, vice president and chief technology and operations officer at McDonald’s Canada. “We want our guests to interact with McDonald’s when, where, and how they want.”
The kiosks were brought in to allow guests to browse the menu and order at their own pace. They also provide an alternative option for ordering when it’s busy, says Skripitsky. Likewise, convenience and personalization are at the heart of the app and MyMcDonald’s Rewards, she adds. The app offers mobile ordering and pickup via curbside, drive-thru, table service, and front counter, while the rewards program helps guests earn rewards towards free food and beverages.
When taken together, these three innovations help McDonald’s and its franchisees strengthen connections with guests and elevate the entire experience, says Skripitsky. “Ultimately, our digital channels drive a great guest experience and loyalty, which translates into future visits to our restaurants.”
But these aren’t the only technologies driving growth across the company, says Skripitsky. Take McDelivery, for instance, which the company launched in Canada in 2017 with the help of Uber Eats, SkipTheDishes, and DoorDash. Since then, it has made McDonald’s the leader of food delivery in Canada.
As for the future of tech at McDonald’s, it’s a clear part of the company’s global growth strategy. In its most recent strategic plan, one of the three growth pillars includes doubling down on the three Ds—digital, delivery, and drive-thru.
“Technology is the future of our business, and as our digital ambition accelerates, McDonald’s will continue to invest in modern technology to drive the business into the future,” says Skripitsky.
Learn more at LookforaFranchise.ca
Franchise Canada January | February 2023 41
THE FUTURE OF FOOD SERVICE
Pizza Hut Canada
If you ordered a pizza in downtown Vancouver last fall, you might have noticed something a little different about your delivery driver—they weren’t a person at all.
In September, Pizza Hut partnered with autonomous sidewalk delivery company Serve Robotics to test out robot delivery. Customers living within half a kilometre of Pizza Hut’s Robson Street location were asked if they were open to having their food delivered by one of the two four-wheeled bots, named Raja and Hugo. If they said yes, they could use the Pizza Hut app to track the robot as it approached and use a one-time pin to retrieve their order from the robot’s secure compartment.
“It was a great moment of delight,” says Manish Dhankher, chief customer officer at Pizza Hut Canada. “We had incredibly high satisfaction scores from customers.”
As headline-grabbing as the pilot program was, it was more than PR, says Dhanker. It was partly aimed at franchisees and one of their biggest pain points right now. “Labour continues to be a big, big challenge. We take pride in the delivery drivers who service our brand, but we think this will help us during our busiest periods and during our off-peak periods like late night, as well.”
Eye-catching innovations like this are nothing new for Pizza Hut. In 1995, the brand introduced stuffed crust pizza. In 2001, it famously delivered a pie to the International Space Station. And over the past several years, as the company has shifted from casual dining to quick service, it has invested heavily in technology like a new website and mobile app, as well as smart kitchens, and rewards and loyalty programs.
As much as these technologies make the customer experience better, they make franchisees happy too, says Dhanker. “Any time you become a franchisee of any brand, what you really appreciate is the profit that
you take home from the business and how happy your people are, working in the outlet.” Technology is helping Pizza Hut franchisees on both fronts, he says.
That could soon include delivery robots. Although there are challenges with rolling out robots across a country with vastly different climates and bureaucratic hurdles, Dhanker is hopeful. “We've tested the waters, we've got our learnings, and we would definitely like to test this again sometime this year in another province.” Learn more at LookforaFranchise.ca
42 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
THE FUTURE OF FOOD SERVICE
“ANY TIME YOU BECOME A FRANCHISEE OF ANY BRAND, WHAT YOU REALLY APPRECIATE IS THE PROFIT THAT YOU TAKE HOME FROM THE BUSINESS AND HOW HAPPY YOUR PEOPLE ARE, WORKING IN THE OUTLET.”
Wendy’s Restaurants of Canada
Wendy’s chief marketing officer international, Liz Geraghty, says the company is focused on digital innovation to reach more customers, more often. “We’re trying to not only follow customers, but also lead them on a journey, to give them these seamless, intuitive experiences that make it easier and more convenient than ever to access Wendy’s.”
Case in point: the recent launch of the Wendy’s Rewards loyalty program in Canada. Using the Wendy’s mobile app, customers can earn 10 points for every $1 spent on food and drinks. Those points can then be redeemed for free menu items and other rewards when they return.
“Digital customers are some of our most loyal, and business through digital channels is very profitable for franchisees,” says Geraghty. “So, as we can get customers to use channels like the Wendy’s app and leverage Wendy’s Rewards more often, it builds our sales, it builds frequency, and it builds our relationship with our customers and our local communities.”
The loyalty program also allows franchisees to get to know their customers even better, adds Geraghty. “People tend to be incredibly consistent in what they order,” she says, “and the app picks up on that. That helps to personalize the app experience, which in turn makes the restaurant and ordering experience more efficient for franchisees.”
Wendy’s Rewards is one part of an increasing focus on digital innovation for the company. Recently, for example, Wendy’s completed an integration with a number of food delivery apps that pushes orders directly to its POS systems. Before, app orders were taken on tablets and then had to be re-entered on the POS. “That one was really, really supported by our franchisees,” says Geraghty.
Another one welcomed by franchisees was the August announcement of Wendy’s new global restaurant design standard, aka “Global Next Gen.” New restaurant builds will now include features like dedicated delivery pick-up windows and parking areas, mobile order shelving, and new technologies that allow restaurants to handle more digital business than before.
That digital business is booming. During the company’s Q3 earnings call in November, Wendy’s said that digital sales hit 15 per cent of total sales outside the U.S. “It’s done nothing but grow,” says Geraghty. “And loyalty was really the next logical step for us, because it rewards our best fans for coming to us more often. We’re very excited about what this can do for us overall.”
Learn more at LookforaFranchise.ca
Franchise Canada January | February 2023 43
THE FUTURE OF FOOD SERVICE
9 EDUCATION TRACKS INCLUDING EMERGING FRANCHISOR · FINANCE · FRANCHISEE FRANCHISE DEVELOPMENT · INDUSTRY TRENDS · INTERNATIONAL MARKETING · OPERATIONS · REAL ESTATE FEB. 26 -MAR. 1, 2023 LAS VEGAS, NV Don’t miss the INTERNATIONAL RECEPTION and visit the INTERNATIONAL NETWORKING LOUNGE to build new relationships with franchising leaders from across the globe. Reserve your place at the #1 Franchising Event of the Year. From business development and networking to education tracks for every specialty in franchising, the IFA Annual Convention delivers value and business opportunities. REGISTRATION NOW OPEN! INTERNATIONAL GROUP SPECIAL REGISTER FOR 9 GET THE 10th REGISTRATION FREE! FRANCHISE.ORG/CONVENTION
Franchise Canada January | February 2023 45 is pleased to present a Special Franchise Focus on QUICK SERVICE RESTAURANTS
Franchise with Canada’s Undisputed Fried Chicken Leader
70+ YEARS IN BUSINESS, approximately 27,000+ international restaurants in over 145 countries and territories, and more than $23 billion in yearly sales. KFC (a subsidiary of Yum! Brands, Inc) is undoubtably the world’s largest, most iconic and most influential fried chicken brand and is steadfast in its drive for record growth. Opening a new restaurant every three hours globally in 2022 and achieving positive system sales growth secures KFC’s position as the fastest-growing chicken quick service restaurant (QSR) in the world. Here in Canada, KFC holds the crown as the country’s undisputed fried chicken leader, delivering the world-renowned 11 Herbs & Spices to Canadians for 65+ years through 630+ restaurants spanning across every single province and territory. The brand has clearly got a Finger Lickin’ good recipe for success.
KFC is not about novelty for novelty’s sake. KFC is an internationally recognized brand and the original fried chicken expert, with distinctive deep roots through its original founder, Colonel Harland Sanders. His Finger Lickin’ Good, Original Recipe for success is still at the core of the brand’s identity, which will
always be focused on serving handbreaded, 100 per cent Canadian farm-raised chicken, free of added hormones or steroids, with the same 11 herbs and spices that have defined the brand for generations. While holding true to its core, KFC continues to pioneer innovation and growth in parallel and strives to champion the future of food service while finding innovative ways to engage with all Canadians, everywhere, every way.
Digital is the way of the future, and the brand is prioritizing investments in high-tech, automationbacked smart kitchens, new order tracking systems, premium ordering kiosks, and a unique mix of access modes which support the brand’s innovative ambitions to lead the industry forward. Additional digital enhancements are also expected to the brand’s drive-thru service, its in-house and third-party delivery services, and its app-based ordering systems to ensure KFC is well positioned to continue serving Canadians through any circumstance. The brand also partnered with I-AM, a U.K.-based global design powerhouse sure to help leapfrog KFC into the future of restaurant design
through the development of a revolutionary, digitally focused, and omni-channel design prototype for new and existing locations.
Through its forward-thinking focus on restaurant expansion, restaurant design, digital capabilities, menu, and sustainability, plus a unique approach to franchisor-franchisee-community relationships, KFC has emerged as a premium, high-potential investment opportunity for the franchise community, and a preferrable choice for Canadian landlords, commercial developers, and real estate brokers.
If you’re looking for your next investment and are eager to own your own business, KFC Canada wants to hear from you. Ambitious hypergrowth plans in the Canadian market through 2026 include intensification and diversification of brand expansion strategies, which would see the introduction of new restaurant formats including flagship, urban-core, delivery/carry-out, and non-traditional models like gas stations, highway stops, airports, and campuses, all which present new and exciting high-potential investment opportunities for new partners of the brand. n
ADVERTORIAL
KFC is currently recruiting new franchisees in Quebec, British Columbia, Toronto, and all small-town markets nationwide. To join Colonel Sanders’ Canadian family today, visit KFC.CA/Franchise
FRANCHISE WITH CANADA’S UNDISPUTED FRIED CHICKEN LEADER Franchise Application: KFC.CA/Franchise Real Estate Inquiries: KFC.CA/Real-Estate JOIN COLONEL SANDERS’ CANADIAN FAMILY. WE’VE GOT THE FINGER LICKIN’ GOOD RECIPE FOR SUCCESS. BE PART OF A GLOBALLY ICONIC BRAND BACKED BY 7O+ YEARS IN BUSINESS, 27,000+ RESTAURANTS IN 146+ COUNTRIES, AND $23+ BILLION IN SYSTEM SALES. We’re developing the restaurants of the future, with a uniquely digital focus. We’re exploring automation, smart kitchens, premium ordering kiosks, new order tracking systems, and a variety of innovations that will have us well-positioned to continue serving Canadians high-quality, fresh, Canadian farm-raised chicken under any circumstance. KFC is is prioritizing recruitment in Quebec, British Columbia, Toronto and all small-town markets nationwide.
FRANCHISING FINDS A WINNER WITH SCORE PIZZA
Unlimited toppings, stone-fired, and ready in minutes. It’s pizza, reinvented!
Pizza is Canada’s ultimate comfort food, but Score Pizza is redefining your typical pizza night. Score Pizza began in 2016 in Kingston, Ontario’s downtown, spending its first three years perfecting its systems and recipes before entering the franchising world. Score Pizza focuses on providing guests with a truly unique and customizable experience, allowing everyone to get exactly what they like. Choose from a selection of unlimited, fresh toppings, finish your thincrust pizza with one of our signature drizzles, and watch your pizza cook in our stone-fired oven and come out in just MINUTES! Pair your delicious pizza with an ice-cold beer, wine or choose from a selection of housemade beverages. At Score Pizza, there’s something for everyone!
Score Pizza is a Canadian-focused brand with special attention paid to allergies and alternative eating habits, from our house-made dough to gluten-free and vegan options, along with a delicious selection of stonefired sandwiches and build-yourown salads.
is a young and passionate team of industry leaders in the fast-casual and franchising sector.
Score Pizza is looking for likeminded individuals who are embedded in their community and want to share the theatrical, build-your-own experience with pizza lovers across Canada. Score Pizza offers advanced operational systems, tailored training programs, community-driven marketing, and experienced site selection and construction. As Score Pizza continues its Canada-wide expansion, we’re looking for operators who are excited about the brand and are looking to bring something new to their area. We’re excited to guide our franchisee through a system that celebrates individuality, believes in a community-based approach, and truly loves our stonefired product. Score your own franchise today!” n To
Score Pizza currently has 15 units across Ontario and Nova Scotia, and is growing across Canada. Score Pizza is looking for multiunit and single-unit franchisees, who are interested in serving their community the best pizza and customer service experience around. What separates Score Pizza from other pizza brands is its unique ability to serve a high-quality product in under 10 minutes. Score Pizza has a dedicated management team, with a combined 60+ years in restaurant management and leadership. Alongside the experience
contact
ADVERTORIAL
learn more,
contactus@scorepizza.ca or www.scorepizza.ca
Score Pizza is a fast-casual, stone-fired pizza concept seeking Score Pizza is a fast-casual, stone-fired pizza concept seeking passionate, qualified franchisees who are looking to build a passionate, qualified franchisees who are looking to build a successful franchise business with a co successful franchise business with a co Canadian brand. Canadian brand.
Score Pizza is creating craveable experiences by providing stone-fired, thin crust pizzas with unlimited toppings for on price, ready in minutes! With an open kitchen and bar concept you can watch as your stone-fired creation is made before your eyes. Score Pizza also offers fired sandwiches, build your own salads and house made lemonades. Pair your meal with urite craft beer or wine for a quick take-out experience.
we
Score Your Own Score Your Own
contactus@scorepizza.ca www scorepizza ca @scorepizza Contact Us!
What
provide Advanced operational systems Community driven marketing strategy & advertising Hands on training & support Experienced site selection and construction
FFranchise ranchise
Steven Vanloffeld
WingsUp! is a quick service takeout and delivery restaurant concept specializing in chicken wings and other comfort food items. For over 30 years, we’ve served countless consumers across Southern Ontario, and kept them coming back for more with our stellar service and delicious food. Our efficient economic model allows us to be the fastest-growing chicken wing QSR franchise in Canada. With 100 per cent of our locations owned by franchise partners, we offer an excellent opportunity for entrepreneurs looking to be leaders in guest satisfaction.
The dedication to always fresh, never frozen Canadian chicken is at the heart of WingsUp!’s success. The focus is, and always has been, on taste and quality, from their batter mix and blend of spices, to 18 sauce and seasoning flavours, right down to the finishing touches.
“Our model has always been a small footprint takeout and delivery concept,” says Darren Czarnogorski, President of WingsUp!. “We firmly believed that in both high and low business cycles, there will always be a demand for high-quality takeout and delivery comfort food. By offering a truly fresh and satisfying comfort food experience, we stand out from other restaurants in the take -
out and delivery space, and have carved out a very loyal following.”
WingsUp! evolved with consumer trends while remaining true to its vision of freshness, quality, and convenience. E-Commerce evolved the business and made huge changes to how it operates since its inception— most notably how customers place their orders. “As the market evolved, we noticed that less and less people interacted with us over the phone or in person,” says Czarnogorski. “With the new technology giants like Netflix and Amazon proving that people want to place orders online and consume them at their home, we understand that our customers are no different,” he adds, citing that 65 per cent of all orders currently come from online channels. “We expect that to grow to 90 per cent in the next few years.”
With 30 locations throughout Ontario, and seven new locations in various stages of development, WingsUp! is growing fast. “Last year, we opened 12 new locations in
Ontario and the good news is that we still have some prime territories available here, as well as our upcoming expansion into Alberta,” says Czarnogorski.
Franchisees are drawn to the concept because of the company’s dedication to fresh high-quality comfort food, small footprint locations, great online presence, and a profitable unit economic model. Everything starts with the training system. This is one of the most important aspects of the model, says Czarnogorski. “Training is the foundation of our business and sets the stage for the location’s performance.”
From day one, the team works together with its Franchise Partners to set them up for success. This includes regular guidance on local marketing, as well as ongoing operational support. Czarnogorski says the opening of every new store is exciting. “We love joining a new community, and the opportunity to connect with the people in a new area. We want people to feel at home at our locations. We find that our guests become very excited about our concept opening in their neighbourhood, and we’re always seeing locals pop in to see how we’re coming along during construction. Highquality comfort food is something everyone is passionate about.”
To learn more, contact franchiseinfo@wingsup.com or (289) 834-2027 ADVERTORIAL
WingsUp! After more than 30 years serving Southern Ontario, WingsUp! is seeking franchisees to help spread its wings
n
Franchising Takes Flight with
ABOUT US: WingsUp! is a quick service takeout and delivery restaurant concept specializing in chicken wings and other comfort food items. For over 30 years, we’ve served countless consumers across Southern Ontario, and kept them coming back for more with our stellar service and delicious food. Our efficient economic model allows us to be the fastest-growing chicken wing QSR franchise in Canada. With 100% of our locations owned by franchise partners, we offer an excellent opportunity for entrepreneurs looking to be leaders in guest satisfaction. BENEFITS: • Over 30 Open Locations (With 7 more in Progress) • Turnkey Operation with Modern Store Design • Prime Locations with Low Rent (800 - 1200 sq. ft) • Custom Online Ordering System • 65% of Orders Made Online • No Previous Experience Required • Full In-House Marketing Department • High Quality Product (289) 834-2027 FRANCHISEINFO@WINGSUP.COM CONTACT US
Take a Slice of These Two Franchising Opportunities
Become a part of a proven brand with a heritage of quality and success! Mamma’s Pizza has been serving the Greater Toronto Area since 1957, and is ready to expand its reign over the rest of Ontario and Canada. The brand stands the test of time because of its elite blend of tradition and technology. Combining cutting-edge space planning with design to be operationally efficient, leads to rolling out the red carpet for delicious slices and pies, made with the finest, fresh ingredients according to Mamma Lidia Danesi’s traditional recipes.
aged to support local initiatives in their communities.
Joining the Mamma’s Pizza franchise gives you access to internal recipes, procedures, training, a central customer help line, brand marketing, and the ongoing support of a dedicated and professional team that’s ready whenever you are.
Although takeout is the main vehicle for growth, sit-down restaurant options between 1,000 and 1,500 sq ft. provide flexible options for franchisees and clientele.
With plans to expand across Ontario, this is a prime opportunity for professionals in the restaurant space to fulfill their leadership potential. No experience? No problem! Mamma’s Pizza has a comprehensive training program for all franchisees that covers all aspects of managing a store.
locations throughout the GTA, and across Canada. Pizza Depot also features enticing, unique specials that push tastes forward like butter chicken, veggie deluxe, or tandoori chicken pizza, loaded fries, and its wings, with over 50 flavours to choose from.
Prospective franchisees can know that they’re supported by their franchise partners through all development phases, from the moment they sign on. The training process for Pizza Depot covers store operations, accounting for small businesses, customer service skills, sales, and marketing support, through the pre-opening and after the location opens, and the innovative store design keeps locations looking new and aesthetically pleasing.
Those recipes are the same now as they were when Mamma could be seen making pizzas from a window in Toronto. Fresh dough is made daily, and is topped with fresh, homemade sauces and gourmet toppings, including specialty cheeses like goat, feta, and gorgonzola. The range of pastas, bowls, salads, and sandwiches rounds out their offerings.
Becoming a Mamma’s Pizza franchisee means being a proud supporter of national charity drives like Easter Seals, helping children with disabilities improve their quality of life. Franchisees are also encour-
Pizza Depot has been building a community around its delicious pizza and wings for over 20 years. This quick service operation uses strict guidelines for preparation, so every outgoing order has consistent quality throughout its wide franchise landscape. The in-store atmosphere is ideal for customers who wish to interact with team members at their chosen location face to face, while a robust network of stores means takeout and delivery are widely available, and creates opportunities for franchisee connections in communities all over Canada.
Franchising with Mamma’s Pizza or Pizza Depot means excellent potential for entrepreneurship and growth. Pizza Depot is a recognizable brand with over 40
Don’t have a location in mind? Pizza Depot has a site selection and development team scouting new locations, negotiating leases, and enlisting construction teams to finish the store’s interior and exterior to the Pizza Depot style.
Community is at the heart of the company, with Pizza Depot encouraging franchisees to participate in local charity events and seek out opportunities for giving back. Pizza Depot actively sponsors various sporting, cultural, and entertainment events. Connecting with the public is an essential element of Pizza Depot’s community culture.
For prospective franchisees with a passion for food, a drive toward entrepreneurship, and the desire to open their own restaurant, Mamma’s Pizza and Pizza Depot have opportunities for you. n
For more information, visit www.mammaspizza.com or www.pizzadepot.ca ADVERTORIAL
Pizza
delivering franchise
With more than 65 years in the pizza business, Mamma’s
and Pizza Depot are still
success
Steven Vanloffeld
Quick Service Restaurants: Fast and Fresh Franchising
The quick service restaurant (QSR) sector is reacting to the next wave of consumer desires, providing a range of options for prospective franchisees
Quick service restaurants (QSR), known generally as fast food, have undergone a lot of changes lately. That’s because they’re constantly updating their products and programs in response to consumer preferences and tastes. For example, as more brands and customers realize it’s possible to serve nutritious food with speed, the image of a tray full of fried fare is becoming a side choice, rather than an entire menu.
In Canada, the quick service industry is expected to grow to $56.9 billion by 2027, with Restaurants Canada predicting that sales at quick service restaurants will increase 14 per cent through 2023, and food service sales expected to grow to a record $86.3 billion, accounting for post-COVID demand.
But quick service restaurants provide more than just fast and easy meals; they’re a wide economic supplier, as well. Eighty per cent of respondents to a Restaurants Canada survey said they see fast food restaurants as a vital source of employment and an important source of first jobs.
Furthermore, new quick service formats promise franchisees plenty of options in this sector. Ghost or cloud kitchens, for example, allow multiple brands to operate under one roof with one employee, allowing consumers a range of choices while keeping rental and labour costs low for franchisees. Concepts like these
are expected to hold a 50 per cent share of worldwide drive-thru and takeout foodservice markets worldwide by 2030, according to Statista.
Paired with the pandemic-related increase in takeout apps like SkipTheDishes and Uber Eats, the quick service model is realizing new developments for success in a tech-forward future. But Canadian restauranteurs are becoming wary of third-party apps. In a survey of Canadian restaurant operators, 73 per cent responded that over the next five years, third-party delivery will continue to grow at double-digit rates, with a majority highlighting that they benefit from wider customer reach and easier ordering process. However, nearly three-quarters of operators rated experiences with third-party apps “poor” or “very poor” on account of high commission fees, according to MenuMag.
Quick service restaurants are also adapting to wellness culture. Beyond zero-sugar or glutenfree offerings, many takeout joints now offer alternative milks, plant-based meats, and even reduced salt options for health-conscious consumers.
Read on to learn more about the new developments in quick service and why prospective franchisees should consider investing in the QSR industry!
54 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online Franchise Canada November | December 2019 51 Franchise Canada November | December 2019 51
SPECIAL FRANCHISE FOCUS
OPA! of Greece’s Next Generation
FOR 25 YEARS, OPA! OF GREECE, has been serving authentic Greek food across Canada. Founded in Calgary, Alberta in 1998, OPA! is celebrating their milestone 25th anniversary this year and continues to stay true to the philosophy that they built the business on—serving fresh, authentic dishes prepared with simple, nutritious ingredients. With a contagious energy for food and family, OPA! is now Canada’s largest and fastest-growing Greek food franchise, with more than 100 locations nationwide from British Columbia to Ontario, and multiple new locations slated to open in the next year.
OPA!’s franchise model is built around setting franchisees up for success, offering support, training, and guidance for owners, along with the established marketing and reputation
of the OPA! brand. The systems, knowledge, and tools needed to succeed are available to all aspiring franchisees with the drive and dedication to build their business. With a shared passion for preparing and sharing good food, OPA! franchisees play an important, hands-on role in the business at a local level, with many franchisees becoming multi-unit owners as they see the brand flourish under their care.
OPA! is always looking for new ways to innovate and offer additional value to customers and franchisees. New this year, OPA! fans can now place orders for takeout or delivery via OPA!’s new dedicated app. The app features a new loyalty program, that provides users with special
rewards and discounts, while encouraging repeat customers. The introduction of the OPA! app is indicative of the eatery’s desire to remain at the forefront of innovation, maximize convenience for consumers, and turn customers into fans through a positive brand experience.
OPA! remains excited to continue to pursue opportunities for further growth together with new franchise partners and other key stakeholders.
For more information, please visit https://opasouvlaki.ca/franchise/
JOIN CANADA’S FAVOURITE GREEK RESTAURANT CHAIN #1 Greek franchise in north America 25 years in business 100+ franchised north American units 20 million pita wraps served every year 50 million customers served every year Visit OPASOUVLAKI.CA For more information on franchising, contact: Sergio Terrazas | sterrazas@opasouvlaki.ca
SPECIAL FOCUS ADVERTORIAL
A supersized sector
From April 2021 to March 2022, the food service industry at large saw pandemic shutdowns at a rate of 150 to 300 permanent closures per month:
Despite this: quick service restaurants in Canada experienced
8.2%
market growth in 2022 (Ibis World)
Canada’s quick service market is expected to reach $56.9 billion
by 2027 (ResearchandMarkets.com)
In 2020, the average Canadian got
6.3% of their daily food intake from quick service restaurants (BC FoodWeb)
Value-focused food service
But the economic outlook has consumers tightening their belts: 32 per cent of poll respondents say they’ll visit quick service restaurants “a lot less often” due to the increased cost of living. (Restaurants Canada)
Food prices have grown the most of all home goods through 2022’s major inflationary period.
Still, quick service restaurants’ sales are projected to increase about 13 per cent through 2023. (Restaurants Canada)
And forecasted to grow to $43.3 billion by 2026. (Restaurants Canada)
Food service sales overall are expected to grow to a record $86.3 billion, accounting for post-pandemic consumer demand. (2022 State of Online Ordering Report)
Consumers are focused on ‘ value’ more than ever, putting off luxury purchases and choosing less expensive brands. (Food Business News)
Serving it up sustainably
There’s also a small but growing drive for healthy and ethically produced foods: 29 per cent of respondents to a Restaurants Canada poll reported that healthy options are important.
16 per cent look for locally grown products, while 7 per cent seek out organic food.
Eating habits have also changed, post-pandemic, as customers demand healthier, nutritious options go hand in hand with convenience.
From diet culture to wellness: Alternative milks, plantbased meat, and reduced salt options everywhere, even zero-sugar soft drinks
Functional beverages: using CBD or adaptogens in a drink
QSR giants like Restaurant Brands International (Burger King, Tim Hortons) have implemented sustainable practices, switching to biodegradable plastic for kid’s meal toys by 2025 in Canadian Burger King locations.
RBI is also committing to eliminating deforestation from all their brand’s supply chains by 2030. (MenuMag)
56 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online SPECIAL FRANCHISE FOCUS
FRESH IS TASTIEST™ is our philosophy at Sunset Grill. Our guests are loyal to our brand and love our food because we use the freshest ingredients, we cook-to-order, and source local products whenever possible. We provide a warm and friendly community atmosphere in our Californiainspired open kitchen restaurants.
For years, our owner-operators have enjoyed a healthy work-life balance with our oneshift-operation model. High profit margins (up to 20 per cent on net sales) lead to excellent returns and building of a saleable asset.
We set you up for success with our award-winning formula. Specialization in the marketplace, streamlined
operations, comprehensive training, ongoing professional guidance, exclusive territory, and low staff turnover are just a few of the benefits you’ll enjoy when you become a part of the Sunset Grill family of franchises.
The numbers speak for themselves—we’ve enjoyed consecutive years of same-store sales growth and are committed to continuing this trend with the introduction of delivery services and other technological innovations that will increase revenue and streamline the ordering process for our guests.
With 100 locations across Canada and growing, join the breakfast revolution today and let us find you a home at Sunset Grill. ■
Visit us: www.sunsetgrill.ca
Email us: franchising@sunsetgrill.ca
Call us: 905-286-5833
Sunset Grill. “A business that works for you.”
SINCE 1985 FAMOUS ALL DAY BREAKFASTTM 100 LOCATIONS AND GROWING UP TO sunsetgrill.ca
SPECIAL FOCUS ADVERTORIAL
Welcome to the Home of the Original Famous All Day Breakfast™
Canada’s leading full-service breakfast restaurant franchise
Delivery decisions
New concepts, like ghost or cloud kitchens, will become increasingly popular, providing several brands under one roof, and operating with a reduced footprint.
Delivery services are experimenting with the concept as well. SkipTheDishes rolled out Skip Express Lane this year, promising 25-minute deliveries of food, as well as household and grocery items. Skip Express Lane has launched in four provinces since starting in July 2021.
Food delivery services will
continued growth in this sector: Services like Grubhub, DoorDash, and Uber Eats mean that almost any restaurant can deliver.
73%
of respondents agreed that over the next five years, thirdparty delivery will continue to grow at double-digit rates.
When selecting somewhere to order delivery or takeout: (2022 State of Online Ordering Report)
27% of respondents turn to a logistics platform like DoorDash;
However, 74% of operators rated third-party delivery “poor” or “very poor” for high commission fees. (MenuMag) 21%
go to a restaurant’s website or app;
17% of consumers search for restaurants using a search engine;
13% go to a preferred restaurant directly.
58 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
play a vital role in the
SPECIAL FRANCHISE FOCUS
with a recipe for success
for a communal feeling of success and achievement. With the Support Office’s help, franchisees and their staff have a leadership team ready to provide guidance and coaching through collaborative processes.
INGREDIENTS,
roots, and a Puro Promise, Pizza Nova is one of Ontario’s leading pizza franchises, with over 150 locations and concession stands. Great quality, consistent goodness, and a strong company culture makes a recipe for success.
Customers are the number one priority at all Pizza Nova locations. Offering a tailored customer experi -
ence allows for all customers to feel they’re part of the Pizza Nova family. Serving pizza and smiles throughout the province, the goal is to ensure customers feel valued.
Fostering a culture of family and togetherness, Pizza Nova franchisees are supported and valued in all that they do. Training is an integral part of the franchisee experience
Community involvement is a strong focus of the company. Giving back is important, and many members of the Pizza Nova family embody generosity through their work. Pizza Nova is a proud supporter of many charities, and franchisees give back to local organizations, staff, and clients. Having strong community ties gives purpose to franchisees, and it has become an essential element of the Pizza Nova business and culture.
Visit us: w ww.pizzanova.com
SUCCESS SERVED BY THE SLICE 416-439-0051 franchising@pizzanova.com YOUR FRANCHISE OPPORTUNITY AWAITS 150+ Locations in Ontario & Growing Ongoing Training & Support Extensive Marketing & Advertising Programs State of the Art Call Centre TORONTOBLUEJAYS™ and all related marks and designs and photograph are trademarks and / or copyright of Rogers Blue Jays Baseball Partnership. Used under license. official pizza of the Toronto Blue JaysTM
FRESH
Italian
SPECIAL FOCUS ADVERTORIAL
opportunity
A franchising
SENIOR CARE
FROM COAST TO COAST
Franchises across Canada are providing additional assistance for seniors navigating the next stage of life
Much has been made of Canada’s aging population, with Statistics Canada reporting that the 85-plus age group is one of the fastest-growing generations, up 12 per cent since 2016. Support services that help maintain the lifestyles of our aging loved ones will become increasingly valuable as more baby boomers enter this older phase of life.
Senior services franchises offer a range of in-home or mobile services that align a duty of care with any franchise dream. Some of these brands specialize in meal planning and provision, while others assist with moving and downsizing or provide general living assistance. Read on as Franchise Canada explores brands that are making the golden years a little bit brighter while giving a new meaning to customer care.
60 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
Always Best Care Senior Services
Always Best Care was founded in the United States in 1996 and began offering franchises in 2007. The franchise offers a combination of non-medical in-home care services, primarily to seniors, and assisted living placement services as the core business model. Franchises may also provide skilled nursing services.
Members of the baby boomer generation have an overwhelming desire to remain independent and to age in place. With current and future advances in medicine, these individuals are setting the stage for unprecedented growth in non-medical in-home care, home health care, and assisted living facilities. Opportunities abound for business-minded individuals to earn money while serving seniors and the community at large. With its recent expansion into Canada, Always Best Care still has prime territories available.
Comfort Keepers
Comfort Keepers provides award-winning in-home care for seniors and other adults in need of assistance. A Comfort Keepers franchise is more than an entrepreneurial business: starting a Comfort Keepers franchise is an opportunity to build a business with purpose and make a positive impact in the lives of others.
Comfort Keepers franchisees come from many walks of life, but all have a common goal of helping people retain their dignity and independence and thrive. Strategic franchise partners receive support, resources, and comprehensive training, delivered by a dedicated Canadian team. Franchisees benefit from ongoing training, the annual Canadian conference, online training, regular webinars, business development training, and annual business reviews.
Learn more at LookforaFranchise.ca
FirstLight® Home Care
Do you have a calling to serve others and the desire to find a career with purpose? Welcome to FirstLight ® Home Care, a franchise that is designed for those who are on a mission to help people in their communities and build a brighter future for themselves. This home care franchise is unlike others because it takes a different approach than its competitors. FirstLight ® is driven by its values, by its mission, and by its Culture of Care. FirstLight ® is looking for driven, compassionate, and dedicated individuals who share its values to bring its services into new communities throughout Canada. Backed by extensive experience in both home care and franchising, FirstLight ® has the people, processes, and systems you need to launch your new business and find success.
Learn more at LookforaFranchise.ca
Heart To Home Meals
Heart To Home Meals delivers delicious and nutritious meals, soups, and desserts to the homes of seniors. The food is prepared with seniors in mind and caters to their special dietary needs and restrictions. With the financial backing of the global organization apetito, Heart To Home Meals is prepared to expand and provide a unique service to the fastest-growing consumer segment.
Beyond the initial onboarding process, Heart to Home Meals franchisees receive ongoing support from the brand’s franchise development manager, learn about national and local marketing campaigns, gain access to a full IT and CRM system and ongoing innovation, and can participate in the sharing of best practices across the franchisee network.
Learn more at LookforaFranchise.ca
Learn more at LookforaFranchise.ca
Franchise Canada January | February 2023 61
COAST
SENIOR CARE FROM COAST TO
Home Instead
Home Instead is looking for franchisees to join its network of more than 1,200 independently owned and operated franchised businesses providing more than 90 million hours of in-home care services to aging adults around the world. Home Instead offers the rare combination of providing an outstanding business opportunity and a meaningful career.
Home Instead provides new owners with a thorough training program, including preliminary operational guidance, a weeklong training class at global headquarters, access to a business advisory team, access to industry training resources, and multiphased training that covers specialized areas such as in-home safety, senior care education, and Alzheimer’s education.
Just Like Family Homecare
The Just like Family brand stands for caring and loving caregivers who work closely with their clients and with the client’s family. It strives to be a supportive member of the family network by easing responsibilities as needed, opening lines of communication, and offering methods of coping in times of struggle. Just Like Family understands the endurance it takes to care for a loved one and continued duties outside of the home. Its caring staff offers clients 100 per cent peace of mind.
Benefits of franchising with Just Like Family Homecare include the availability of prime territories, protected territories, growth opportunities to multiple franchise units, great training and ongoing coaching, peer support, established processes, IT platform, and marketing best practices.
Learn more at LookforaFranchise.ca
Living Assistance Services
Living Assistance Services is seeking motivated partners/ entrepreneurs to operate their own home care business in Canada. It provides much-needed care for Canada’s rapidly growing population of seniors, allowing them to remain where they most want to be—at home! The Living Assistance Services business has the demographics and ongoing support to ensure financial success. Also, the heartfelt experience and genuine happiness you’ll receive by making a difference in the lives of seniors will last you a lifetime.
Learn more at LookforaFranchise.ca
ONESource Moving Solutions for Seniors, Professionals and
Families
ONESource provides professional move managers who can plan, coordinate, and organize every detail of your moving process. ONESource move managers have experiences and resources that save you time and reduce stress, offering a menu of services customized to meet your needs and budget. It provides a one-stop solution that ensures everything is done to guarantee a positive transition.
ONESource provides franchisees with one week of intensive training on the job; quarterly meetings with other ONESource franchisees; the right to use ONESource trademark, marketing materials, contracts, forms, and processes; and ongoing support. Franchisees should have strong ethic, character, and people skills.
ONESource Moving Solutions “takes the stress out of changing your address.”
Learn more at LookforaFranchise.ca
Learn more at LookforaFranchise.ca
62 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
CARE FROM COAST TO COAST
SENIOR
Qualicare
As one of Franchise Business Review’s top-rated franchises in franchisee satisfaction, Qualicare provides an ideal opportunity to start a homecare agency. Franchisees can invest in a rapidly growing market and make an impact. Qualicare owners provide fundamental non-medical and nursing services, but the brand’s unique 360° approach allows it to truly be the difference in clients’ lives.
Qualicare offers an affordable start-up model with high returns on investment, and provides customized support for every stage of your business, whether it’s initial training, the start-up phase, or the growth phase. Qualicare franchisees don’t need a medical background, as long as they want to make a difference.
Right at Home Canada
Right at Home is one of the largest and most trusted in-home health care companies, globally. With a focus on wellness for seniors and those in need of assistance, Right at Home provides a full continuum of care, and prides itself in offering the Right Services, in the Right Place (home, hospital, or retirement community), by the Right People.
As a Right at Home Care Office owner, you will benefit from more than 25 years of global experience and 10 years in Canada. Right at Home has a robust system, coaching, support, and mentoring to help you provide exceptional care to your clients and enjoy a socially responsible, rewarding, and peopleorientated business.
Learn more at LookforaFranchise.ca
Stallion Movers
Stallion Movers specializes in providing seniors moving services. It’s changing the way the industry runs and focuses on the customer experience first. It’s built an entire network of partnerships with seniors’ homes and retirement communities, offering everything from moving seniors to light move management/downsizing. The franchise team can actively start conversations with retirement homes in each franchisee’s area to help them start their business. With a strong reputation and even better referrals, the brand is confident franchise owners can use its template and training to kick-start their own personal seniors’ moving business under the Stallion Movers brand.
Learn more at LookforaFranchise.ca
Transition Squad Downsizing Services
Transition Squad is a full-service downsizing company. Franchisees are project managers who help clients downsize (typically seniors, their executors, and empty nesters), find a good home for their belongings, and maximize their sale price. Transition Squad offers a menu of downsizing services and packages them based on each client’s individual needs; however, its core specialty is to help clients sell their belongings through its own online auction platform and estate sales. Other revenue streams include clearing out the premises, donation management, and packing/moving services.
With Transition Squad’s partnership philosophy, franchisees work with Head Office to build the territory together. Head Office provides many of the back-office services, so franchisees can focus on meeting with customers and executing projects.
Learn more at LookforaFranchise.ca
Learn more at LookforaFranchise.ca
Franchise Canada January | February 2023 63
COAST
SENIOR CARE FROM COAST TO
The Rewards of Resales
Two recent Bimbo Canada franchisees on purchasing their business through a franchise resale
BY JOELLE KIDD
Canada’s largest and oldest bakery started as Canada Bread, but after being acquired by Grupo Bimbo in 2014, it now falls under the banner of Bimbo Canada. Whatever the name, the business has been going strong for more than 110 years, producing and distributing more than 1,000 products across 18 brands including Dempster’s, Bon Matin, Villaggio, Stonemill, and POM.
These quality products, strong distribution networks, and relationships with major Canadian retailers mean franchisees can step right into the business with the support of longstanding national brands behind them.
This is one of the many benefits of choosing franchising for an aspiring entrepreneur. But prospective franchisees may also be wondering whether to invest in a new franchise or purchase a ‘resale’—an existing business sold by the current franchisee.
Here, Franchise Canada shares the stories of two Bimbo Canada franchisees who purchased their business in the past year through a resale.
64 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
Ranvir Sohi, St. John’s, NL
A little over a year ago, Ranvir Sohi was living in India, working at an agricultural equipment company. Today, Sohi is a proud business owner in St. John’s, Newfoundland & Labrador, where he runs two Bimbo Canada franchises. It’s a big transition, but one that’s gone smoothly for Sohi. “I really like it here,” he says of Canada.
Sohi moved to Canada in 2021 so that his wife could continue her studies. He got a job working for a Bimbo Canada franchisee as a driver, and when his employer decided to sell the business, he asked if Sohi wanted to buy it.
“I said, ‘Yes, I’m really loving my job and I want to be part of the Bimbo Canada franchise network,’ so I bought my franchise from him,” says Sohi. “It has been really good so far.”
The resale process made going from an employee of a franchisee to independent business owner an easy transition for Sohi. “I was used to the work … and [my employer] said, ‘I believe in you, you will do great,’” Sohi remembers. “So I said, ‘yes, this is my chance, I should grab it now.’”
Already familiar with the route and the ins and outs of the business, Sohi was confident he could manage the franchise’s day-to-day operations. To find out more about the franchise’s finances and do his due diligence, Bimbo Canada provided all the material details of the business—how much revenue the franchise is making, how many stores it delivers to, number of stops and kilometres along the route, expenses, and more—and a franchise disclosure document, which contains all the information a prospective franchisee needs to know about the business and its prior performance.
Sohi’s familiarity with the business gave him confidence in buying the franchise, but he notes that Bimbo Canada was also very supportive as a franchisor. “They’re really helpful,” he says, noting that the company offers finance plans for a range of down payments.
Sohi recommends working for a current franchisee or distributor to make sure it’s a good fit. He says those interested in a Bimbo Canada franchise must have driver experience, meet licensing and safety regulations, must have their own truck, and, importantly, be an earlymorning person.
A typical day on Sohi’s Bimbo Canada route means waking up around 3:00 a.m. After sorting the products and loading the trucks, franchisees and distributors go out on the road to make deliveries and stock merchandise, ending around 12:30 or 1 p.m. Sohi’s routes have between 12 and 18 stops, he says.
The benefits of owning his own franchise rather than working as an employee have been huge, he notes. “Firstly, my revenue—I’m making really good money with this now, as compared to [when I was] an employee. And now I have a secure business.”
Since stores rely on Bimbo Canada’s deliveries of quality bakery and snack products, the business was designated an essential service and never shut down during COVID lockdowns, Sohi says. In fact, when shutdowns closed boat service to an island on their route, the government provided the previous franchisee with helicopter service to make deliveries.
“I’m enjoying the franchise system,” Sohi says. “I feel more secure [than I would] with an independent business.” He’s even snapped up a second franchise.
The two businesses are keeping him busy, though he still has an eye toward the future. “If I might get a chance to grow my business, I will grab it, but now I’m going to give some time to just two franchises.”
But he’s had lots of interest in the business from friends and family members, he adds. “I always recommend that they become part of the Bimbo Canada network. [It’s] a lot of work, but it pays off at the end of the day.”
Franchise Canada January | February 2023 65
THE REWARDS OF RESALES
Ranvir Sohi (left)
RESALES
Bud Singh Gill, Winnipeg, MB
New Bimbo Canada franchisee Bud Singh Gill bought his franchise at the end of September 2022. The first months have been a whirlwind, but he’s happy to own his own business. “It gives you freedom—you’re your own employer, you can do your own thing,” Singh Gill says.
Singh Gill originally went to school for mechanical engineering but had trouble finding work in his field. After moving to Winnipeg, Manitoba from Ontario in 2017, he got into the trucking industry, first working as an office administrator, and then driving long haul. After a few years, he was looking for a change. “I wanted to change my lifestyle, stay more in the city, and keep myself physically and mentally fit,” he says.
Researching businesses for sale brought Singh Gill to Bimbo Canada. “I knew starting something from scratch, something new, would be a little too much for a firsttimer,” he explains. When he found a franchised business opportunity through a resale, it was a perfect fit. “For a first-timer I think buying through a resale is a better option, because I could work with the previous owner, look through his day-to-day plan and how he managed the business, and [become] quite familiar with the operation.”
In fact, Singh Gill was able to work with the previous franchise owner for a month to get used to the ins and outs of running the business.
From the first meeting to signing on the dotted line, the process of buying the business took about three or four months, Singh Gill recalls. He and his brother, who provided some accounting services, looked through the previous owner’s financial statements. “When I was confident that, yes, it’s a profitable business, then I did all the paperwork,” he recalls. This involved an application with Bimbo Canada, including a credit check, licenses, and other documents. “Once the documentation was complete, they had a trainer that [helped me] for three weeks. After that, I was a new franchisee.”
Taking on a new business for the first time is a challenge, Singh says. “The first couple weeks I was thinking, ‘oh man, what have I got myself into?’ I was doing the easier things the harder way and making myself some longer days [...] but now I’ve figured it out and cracked the code.”
A typical day for Singh Gill starts in the early morning, when he arrives at the warehouse to pick up his wares. His part-time employee builds the load for the day, and they load it onto the truck. He gets to his first stop around five or six a.m. His route, which takes him around Winnipeg and southern Manitoba, includes stops at Walmart, Sobeys and Safeway locations, and Co-op grocery stores, as well as drop-offs at restaurants like A&W, Dairy Queen, and Smitty’s.
Another challenge for any franchisee is the upfront financial investment. In Singh Gill’s case, buying a
resale helped ease the financial transition. “It’s a lot of money to start a franchise [...] I went to a few banks, and they wouldn’t give me loans because it’s a bigger amount,” he recalls.
His brother was able to chip in, helping him with a partial down payment. But luckily, Singh Gill was able to negotiate a loan with the previous owner of his franchise. “Instead of paying a lump sum, I took a loan from him. So I’m paying him in installments, which actually helped me a lot [since] the interest rate is so high right now—he offered me a loan at a lower interest rate [than the bank].”
Singh Gill’s business is fresh, but he’s already finding it rewarding. “I don’t have to work under somebody, no one’s giving me orders,” he says. The business is solid, and he owns his own truck.
Asked if he has any advice for prospective franchisees, Singh Gill notes the importance of doing your research. “I would say it takes a bit of courage to get into business, and it’s not easy. But my advice for someone who is looking to buy a franchise is, [...] just do your homework, see if it’s beneficial, and once you think it is, go for it.”
“I won’t lie, initially, it will be hard work. You’ll have to be responsible. But it’s rewarding for sure.”
Learn more at LookforaFranchise.ca
66 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
THE REWARDS OF
100% CANADIAN FRANCHISE SYSTEMS
BY
Skill Samurai
In the future, employment growth will come from high tech and applied high tech. And the key to a bright future is getting in early. That’s where Skill Samurai comes in. Originating in Canada, the system offers children from ages seven to 18 STEM (science, technology, engineering, and math) and computer coding programs.
Mathieu Kernaleguen, a Saskatoonbased area developer, says that the system was rebranded as Skill Samurai in 2020, and now has three franchises in Ontario: Toronto, Oakville, and Guelph. Furthermore, “I am looking for great entrepreneurs in my market [of Saskatchewan and Manitoba], as well as the rest of Canada,” he notes.
Skill Samurai has two different models for franchisees: mobile and brick-andmortar learning centres. In the mobile model, they host classes and instruction in schools, community centres, libraries, and similar venues, usually after school. They also host camps during summer and other school holidays. Kernaleguen says his primary focus is expanding in Saskatoon and Regina in Saskatchewan and throughout Winnipeg.
The cost of a franchise varies from $106,000 to $350,000. Online training takes two weeks, and is followed by another week in person, in either Ontario or Texas (Skill Samurai has already experienced success in the U.S. and Australia). Ongoing training includes a weekly coaching program and clientele development plans.
As for the qualities he looks for in investors, Kernaleguen says the ideal candidate will have some business acumen and strong sales and marketing savvy, as well as networking skills and a customer service focus. Many of those interested in a franchise are retired teachers, educators who aren’t currently teaching, people employed or previously employed in IT, and people who understand the need to teach the younger generation real skills of
the future. You don’t need to know how to code to own a Skill Samurai franchise. Potential franchisees are evenly split across genders. Typically, college and university students do the teaching. They’re hired by the franchisee, who also finds the brick-and-mortar real estate, usually seeking the sweet spot of 1,000 to 1,400 square feet.
The benefits of a Skill Samurai franchise include the lower cost of entry, says Kernaleguen, along with minimal competition, multiple revenue streams, and a huge curriculum of 150 different courses.
Although the COVID pandemic had an impact on the Skill Samurai system, Kernaleguen says “everything pivoted from in-person to virtual.” Now, however, students are back in class. “Parents want their kids to do the courses in-person.”
Learn more at LookforaFranchise.ca
Franchise Canada January | February 2023 67
An innovative idea, a unique concept, and an unfilled need in the market are crucial to franchise success, irrespective of the service or product. These systems have certainly taken those three essentials to heart, and go a long way to ensuring a flying start for prospective franchisees.
HOME-GROWN & LOCALLY-OWNED
DAVID CHILTON SAGGERS
Mr. Lube Canada
When Cliff Giese, an entrepreneur from Edmonton, took his car in for an oil change in the mid-1970s, he was shocked when it wasn’t ready for him in a reasonable time. Oil changes should be quick, he thought. You should be able to get one done while you wait. He founded Mr. Lube on those principles of efficiency and good service.
The brand found success because clients realized the value in their quicker technical service, which is faster than that of competitors. The brand began in 1976, but in 1981 their franchising engine revved up, and now there are 166 locations across Canada, with expansion continuing.
Shelley Gable, director of franchise development, says Mr. Lube’s focus is on continued national expansion.
For prospective franchisees, the initial training program takes approximately three months to complete and includes both online and in-store instruction. It covers everything, including operations, accounting, marketing, and human resources. While some training is led by the corporate team leads, existing franchisees also take on new franchisees in a mentorship-style role.
As for ongoing support, every franchisee has access to Mr. Lube University, an online training portal. The company also has a Manager’s Centre of Excellence, where managers and franchisees can go to work on both their technical and customer service skills. Plus, the company has several committees that franchisees can participate in and reach out to, such as the Operations Advisory Council, which strategizes on new services, processes, and protocols.
Today, Mr. Lube technicians offer a full range of fast maintenance services, from batteries, belts, and sparkplugs to tires, to name a few. The company also keeps an electronic version of the owner’s manual for every
vehicle on file, making it much easier for customers to trust that technicians are keeping their vehicle’s maintenance on schedule.
Although automotive experience isn’t necessary, new franchisees usually come with some sort of business background and/or mechanical expertise. Knowledge of the local market, and a willingness to learn are essential, and strong interpersonal skills and flexibility are an asset.
“Ours is a triple-faceted business of retail, service, and technology, which requires people who can adapt to working with their hand and tools, and who are mechanically sound,” says Gable.
That ability to be flexible has been key for franchisees during the pandemic. In order to reduce costs for franchisees, Mr. Lube worked with vendor partners and landlords to negotiate better rates for their franchisees and formed a team from human resources to provide regular updates on restrictions and regulations, says Gable. Mr. Lube also launched an in-vehicle cleaning system for car vents during the pandemic. “Of utmost importance to us is the ability to pivot and be proactive to better serve our customers, being our franchise partners and their customers.”
Karim Kara, a multi-unit Mr. Lube franchisee, agrees, adding that prospective franchisees should pay particular attention to franchises that are sustainable through difficult economic times, such as a pandemic, and that are evolving as the world evolves. “I think Mr. Lube ticks all these boxes. You always want to invest your money where it’s secure long-term, and I believe that’s right here.”
Learn more at LookforaFranchise.ca
68 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
Mamma’s Pizza
Yes, there really was a mamma. Her name was Lidia Danesi, and it was her pizza, served up at the Monte Carlo Restaurant in Toronto starting in 1957, that led the brand to the success it enjoys today.
“Mamma’s is Toronto all the way,” says Bikram Singh, director of brand development for the now corporately owned business. “She [Danesi] was known as Mamma, Queen of Pizza.”
There are now 15 Mamma’s franchises, one of which is corporately owned, while the remaining are franchised. Most are in the Greater Toronto Area (GTA), Singh says from the headquarters in Brampton, Ontario. There are two more locations in the works, and a new concept store opened recently in Brampton. “We plan to take the brand across different parts of the GTA and Ontario. We are already in Whitby and are soon opening in Courtice, also looking at new locations all the way towards Niagara. We are also open to conversations about opening in other provinces.”
Mamma’s Pizza operates in the gourmet pizza segment. Its dough and ingredients are made from scratch every day and the pies are baked in a stone oven. It’s mainly a takeout business, but Singh says a couple of locations offer dine-in seating, as well. The cost of a franchise is $250,000 to $350,000. The comprehensive training is four weeks, unless head office feels a specific franchisee requires more. In-person training takes two weeks and then a team goes in-store for another two weeks with the new franchisee, who’ll also benefit from spending a day working at a franchise that’s already up and running.
Previous exposure to business is a distinct advantage, says Singh, who also looks for a strong work ethic and community involvement when assessing potential
investors. There have been franchisees in the past who owned multiple units and numerous locations are family affairs, operated by family member teams.
Mamma’s target customers fall into two broad categories, including the legacy customer who grew up on the pizza, and the new generation customer looking for a gourmet touch and quality ingredients. It’s this latter group that may appreciate the new revamped look and feel. Also, the new technology that has been introduced in store is for a new-age franchisee, making it easier for them to operate the location. They still use the stone oven, but now it’s automated and easy to operate. It cooks faster, too, and allows for the efficient reheating of individual slices. “It gives a perfect slice,” says Singh. “Also, there are other cooking systems in sync with what’s on offer today.”
The benefits of investing with Mamma’s Pizza are many, notes Singh. There’s the longevity of the brand, the success of the product, and a strong understanding of the industry. Yes, he explains, it’s a heritage brand, but it’s also in sync with today’s new trends.
During the COVID outbreak, Singh says it was the system’s responsibility to support its franchisees. That support meant providing flexibility on royalties and advice on government support, and allowing third-party delivery. About 99 per cent of the brand’s locations were open throughout the pandemic, Singh explains, and in the downtown core, the same franchisees are still in business at the same locations.
Learn more at LookforaFranchise.ca
Franchise Canada January | February 2023 69
Lasting Impressions
SpeedPro Canada franchisee Kevin Burns learned about the business from watching his father. Now he’s taking the signage business into his own hands with the launch of his own franchise.
BY GINA MAKKAR
NEXT GENERATION IN FRANCHISING
Afirst impression is a lasting impression, and in the world of advertising, creative print solutions can draw attention and propel branding and visual communications to the next level.
With more than 170 studios throughout North America, SpeedPro Canada has been a leader in the businessto-business (B2B) large-format printing sector for more than 30 years. Innovative and dynamic printing solutions include eye-catching vehicle graphics, vibrant displays, striking signage, and more.
Franchisee Kevin Burns first learned about SpeedPro from watching his father, Stuart Burns, who’s been president of the franchise for many years. After graduating with a Bachelor of Management degree and major in marketing from the University of British Columbia, Kevin started as a sales representative at Labatt Breweries of Canada and worked his way up to district sales manager. When a Winnipeg franchise territory became available for purchase in February 2021, Burns was able to realize his entrepreneurial dream and became the next generation of SpeedPro franchising.
As an owner, Burns works with his team to help bring big ideas to life and manage client projects from start to finish. “We conduct a consultation on-site to determine what the project will be and manage the process from production to installation.”
Even though the sector was deemed an essential service, opening during the pandemic came with its own unique challenges. Travel restrictions and quarantine mandates created barriers, spurring the franchise to dream up creative solutions for areas like training. Like many other businesses, they pivoted to embrace online solutions, conducting sessions remotely via Microsoft Teams and Zoom. They also took advantage of a Manitoba job grant to garner additional coaching and training to better position themselves to cull prospects while many companies couldn’t work in person.
At a time when trade shows and events were suddenly on hold and gatherings halted, Burns says his team rose
to the challenge, logging multiple record months and achieving many of the key success metrics recognized by SpeedPro. “We just celebrated one year in business, and it’s a big milestone,” says Burns.
All signs point to support
He adds that although the learning curve is steep, there’s comfort in working within a franchise system. For him, one of the big advantages of a seasoned system is the wealth of knowledge it brings. “People say ‘can’t you just send it to print?’ It would be nice if that’s all we were doing, but there’s so much more to it,” says Burns. “I feel like I’ve said this at least 20 times: I have no idea how someone can just start up their own independent signs and graphics shop. The amount of opportunity for error when building something from scratch, the waste would be so high. SpeedPro Canada offers a direct number for franchise support that I’ve used at least two or three times a week since we opened. They walk me through issues from start to finish, so I don’t have to make a very expensive and costly mistake on my own.”
In addition to being at the forefront of the industry, another benefit of SpeedPro ownership is the technical knowledge and support the brand offers. When technical difficulties arise or materials underperform and produce undesired outcomes, the franchise’s connection with national suppliers also allows franchisees to pivot and continue operating seamlessly. Innovation is also at the forefront of the brand’s success. “In a world that’s finding more and more reasons to be on the go, we’re able to provide branding assets to physical pieces that already exist.”
Burns says he appreciates the seamless marriage of flexibility and structure that comes with business ownership. “Coming from a corporate background, you’re expected to be working at certain hours of the day. It’s an expectation because there’s a lot of visibility associated with being seen in the office. Now, as a business owner, the flexibility has been awesome. It’s really up to me to drive my business as fast as I want.”
Franchise Canada January | February 2023 71 NEXT GENERATION IN FRANCHISING
The structure of following a tried-and-true professional system is also a benefit, especially when things don’t go according to plan. “There are different people to call on, whether it’s our head office or the network of other owners. The owners across the network are all very supportive and are always happy to help.”
New ways to wrap your world
As life returns to normal post-pandemic, franchisees are beginning to enjoy the benefit of in-person site visits and new product presentations again. In fact, a new product is in the works that will allow SpeedPro franchisees to offer architectural finishes that cater to the subtleties of their clients’ brands. “It’s like reskinning. In the same way that we wrap vehicles, we can now wrap desks in their offices or create a feature wall that has the look of marble or wood. It’s taking physical items that exist but transforming them to fit the brand.”
As a next-generation franchisee, Burns brings a unique perspective to the world of printing services. “Sometimes, the clients that are older look to me not only to provide them with marketing and branding advice, but they also see me as belonging to a larger portion of their target market.”
Cross-generational learning is essential, as the parties share the same goals and work toward a common denominator, creating synergy as a business passes from one generation to the next. In a recent meeting where the team shared best practices and ideas, Burns revealed
his studio’s success in using different cloud-based platforms and integrating an online management system for quoting. The systems allow clients to communicate via portals and are tailored to each client’s specific needs. “They can see proofs and share revision requests and manage back-and-forth communication.”
Post-meeting, Burns assisted other franchisees in setting up their own systems. “It was really cool, because I call them all the time with my own questions because they are so experienced. It was nice to see that there was something I could help them with.”
As for Burns’ advice to prospective franchisees? Understand the finances of a business operation and spend time at a franchise location to observe its daily operations and truly grasp the concept.
“I went to a very successful existing franchise and spent the day there from start to finish. We went to a site visit, and we measured. We ran the printers. Just by shadowing, it was eye-opening; I learned a lot. I think it’s really important for someone that is interested in a business to go into that franchise and spend the day there.”
Learn more at LookforaFranchise.ca
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NEXT GENERATION IN FRANCHISING
BUILDING DREAMS INTO REALITY
How Hickory Dickory Decks founder Tom Jacques turned his summer job into a million-dollar franchise
BY ROMA IHNATOWYCZ
While its name may have been inspired by a children’s rhyme, Hickory Dickory Decks has little to do with child’s play. On the contrary, the company’s founder Tom Jacques had big business firmly on his mind from the moment he started the company as a young man in his twenties.
Jacques was determined to grow his deck-building business into a large franchise chain, and, despite initial scepticism from sideline observers, he achieved his goal. Today there are 82 Hickory Dickory Decks franchises across Canada, plus a location south of the border in Bangor, Maine, and the number is still growing.
“Franchising was the idea, right from the start,” says Jacques, who launched the company in 1987 with a partner who subsequently left after a few months. “Many people told me it couldn’t be done, that you couldn’t franchise a custom-made, highly skilled product.”
More than 35,000 decks later, Jacques has proved his naysayers wrong. To those who know him, it comes as no surprise. An eternal optimist, with a strong entrepreneurial bent, Jacques was already embarking on business ventures at a young age—and succeeding in turning a healthy profit.
As a business student at McMaster University, Jacques started a new retail business with a close friend, selling Safe Home fire extinguishers door to door. “It’s something everybody needed but nobody had,” explains Jacques. “We were importing the number one fire extinguisher, Kidde, into Canada, and we soon had 45 people working for us.”
LEADERSHIP PROFILE
While successful, Jacques viewed the fire extinguisher venture as a “university gig,” and was determined for more. Jacques saw the potential in the local housing market and started buying homes in and around Hamilton, renovating them and renting them out to other students. Short on cash but big on ideas, he financed his first house purchase on his credit cards.
“I basically cashed out all my credit cards for a down payment and had 30 days to renovate the house,” says Jacques. “I didn’t even know how to renovate! And back then there was no Google—I learned from Reader’s Digest Home Improvement. I ended up selling half of my first house to my brother for more than I paid for it.”
His real estate holdings grew to seven houses, and with his appetite whetted, he was eyeing executive positions at big firms as his next career move. With his Bachelor of Commerce degree in hand, he signed on for a fulltime position with IBM, attending the tech company’s one-year sales training course to start. When IBM cancelled the course seven months in, Jacques left to start Hickory Dickory Decks.
Niche down, scale up
The idea of a decking business appealed to the young entrepreneur on multiple fronts. “One, it was about working outside; two, it was quite creative; and three, nobody was doing it,” says Jacques. “There was no specialist company in the deck-building business. Back in the 1980s, it was mainly general contractors and landscapers who were building the odd deck.”
Initially, Jacques
and built many of the decks himself. He constructed his first deck in early August in his first year, and by Christmas, he was already turning a profit. “I made the same amount of money by then as twice my annual salary at IBM,” he says. “I had two employees in the first year and 17 in the second, so it was gangbusters right out of the gate.”
Business soon stretched out to Burlington, Mississauga, and other nearby municipalities, and Jacques moved the headquarters to Flamborough, Ontario on “an industrial property with an old farmhouse,” where he set up his own supply company specializing in cedar and clear cedar decking material, and by 1996, composite decking.
Today, low-maintenance decks comprise the bulk of the brand’s business, and Hickory Dickory Decks remains the largest decking business in Canada specializing in the hardy, composite material, says Jacques. “When we first started, manufacturers didn’t even have installation manuals, and we were inventing as we went along,” he recalls. “We have now become the largest installer of low-maintenance decks in the world.”
Jacques also had the astute business sense to embrace the internet early on, purchasing the decks.ca web address for just $100 dollars. It would prove to be a marketing windfall, turning the site into a go-to destination for anyone scrolling the web for decking information. By 1999, Hickory Dickory Decks had 30 employees and was generating around $4.4 million in annual sales.
74 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
ran the business out of one of his rental properties in downtown Hamilton
LEADERSHIP PROFILE
,
Finally, the time was right for Jacques to fulfil his dream of franchising the business.
The beginning of a franchising empire
While it took a bit longer than some would expect, Jacques reasons he wanted to lay the necessary groundwork before taking the plunge. “We were good salespeople and there was lots of demand, but it was a question of managing to get people to follow the proper systems. The more we looked into it, the more we realized there is more to it. We had to make sure that all our franchises were not only doing the same quality of work and treating the customers and employees the same, it had to be duplicatable,” explains Jacques.
Hickory Dickory Decks veers from the typical franchise brand in that it doesn’t have a standardized product that is uniform across all its franchises. It’s not about building “cookie-cutter” decks, Jacques stresses. Each project is developed in line with the homeowner’s aspirations and needs, as well as the size and shape of their property and scope of their budget. The company website provides customers with thousands of photos of finished decks, allowing them to visualize all the possibilities, and guiding the company in creating the perfect custom deck for their needs.
The franchising component of the business began slowly. Jacques sold just one franchise the first year, in Whitby, Ontario. But things picked up speed, and today Hickory Dickory Decks franchising in its home province of Ontario is almost at capacity, with some franchise opportunities still available in northern cities like Sudbury and Thunder Bay. The balance of provinces still have plenty of room for growth, and in 2023, the company will start franchising in Quebec for the first time.
Jacques also has plans to spread further into the U.S. (The housing crash in 2008 halted earlier expansion plans for the region.)
While prospective franchisees don’t need a background in construction or business—the company provides the necessary training—they do need to be
highly customer oriented, with a strong focus on keeping their clients happy. The business can be run from their home; a branded pick-up truck and hauler for storing equipment is all that’s needed. The set-up, says Jacques, allows for great work-life balance, and many franchisees have teamed up with their partners to run their decking business.
Thanks to the internet and an increasingly global marketplace, Jacques says he’s fielding calls from interested parties from far and wide. He recently sold a franchise to someone in South Africa who will be moving his family to Canada and is in talks with others in Vietnam and India intent on doing the same thing. “We’re now getting leads from all over the world,” says Jacques. “I never imagined 37 years ago that I’d be selling a franchise to a guy in South Africa!”
Times have certainly changed since Jacques built his first deck as a young man with big dreams and energy to spare. For starters, he’s picking up a hammer a lot less these days as he devotes his time to growing his successful franchise brand across Canada and beyond. But he still has it in him. Just this past fall, Jacques picked up his tools and helped his son and one of his team leaders build a deck at the cottage. “I was pretty sore the next day,” he says with a laugh.
No less determined and goal-oriented than he was when he was young, Jacques accomplished what he set out to do over that November weekend, just as he’s done with Hickory Dickory Decks. Through his vision and leadership, he has defied the odds and built what many said couldn’t be done: Canada’s largest custom deckbuilding franchise business.
His big dreams paid off.
Learn more at LookforaFranchise.ca
Franchise Canada January | February 2023 75
LEADERSHIP PROFILE
“WE’RE NOW GETTING LEADS FROM ALL OVER THE WORLD. I NEVER IMAGINED 37 YEARS AGO THAT I’D BE SELLING A FRANCHISE TO A GUY IN SOUTH AFRICA!”
Tom Jacques
Hickory Dickory Decks
A Fresh Perspective on Property
PropertyGuys.com franchisee Nathan Dautovich is thriving thanks to the brand’s unique model and diverse service offering
BY KYM WOLFE
After more than 13 years as a PropertyGuys.com franchise owner, Nathan Dautovich still keeps prospecting for new clients on his daily to-do list. Over time, the franchisee started outsourcing some tasks instead of juggling everything himself, but he knows that to avoid the downturn of revenue that is typical in any sales work, he needs to keep filling the client list from the front end to maintain a steady revenue stream.
PropertyGuys.com has operated for more than 20 years, starting as a service to help buyers and sellers avoid real estate commission fees by going the “For Sale by Owner” route. Since Dautovich purchased his franchise territory in 2009, the franchise has changed and grown significantly. It now provides access to a much broader suite of options that includes licensed services which are delivered to buyers and sellers over the PropertyGuys.com Marketplace and Platform.
A DAY IN THE LIFE
Dautovich, who also became a licensed agent in 2014, helped prove out a concept that has now been introduced across much of the franchise system. He notes that although franchise owners aren’t required to be an agent themselves, they can instead partner with agents who are able to deliver a wide variety of services, such as helping users set their asking price, assisting with offers and negotiations (including help with the required paperwork), and help with showings, too. Buyers can also benefit from a unique program offered through PG Direct Realty Ltd. Brokerage, where they can receive commission rebates when they use the brokerage to buy their next property.
“I love working with buyers, too. Working with both sides—buyers and sellers—has really helped us appeal to a much larger audience. Not only that, having more services to offer has also contributed to higher client satisfaction rates and even higher revenues,” says Dautovich.
It has also impacted what a day in the life of a PropertyGuys.com franchisee looks like. “One thing I love about my job is that there is no ‘typical’ day,” says Dautovich. “I could be meeting with sellers, doing showings with buyers, or negotiating offers. I could also be doing market research or preparing pricing reports. Just about every day, I am out in the community meeting with people. I might be handling the logistics of listings, scheduling social media or a home staging or photography services, or making arrangements to have signs installed or removed. Having such a great variety of tasks is great!”
Dautovich also loves the flexibility that the franchise offers, which was especially valuable when he and his wife started their family. “When my daughters (now ages four and seven) were young, I was at home with them a couple of days a week,” he says. “There is definitely some evening and weekend work, which includes meeting with clients and performing services, but that doesn’t feel like a burden to me, as I really enjoy my work.”
Delivering a more “customer-centric” service
Although it sounds cliché, Dautovich says, “It’s the old ‘not only am I the owner, I was once a client, too.’” His first experience with PropertyGuys.com came when he was fresh out of university, when he and his brother purchased a property to flip. After putting hundreds of hours of sweat equity into their project, they became a little discouraged once they realized that a significant part of their profit would be eroded by their agent’s sales commission. “To me, the idea of paying five per cent of the sale price in commission was just crazy,” explains Dautovich. That’s when they instead ended up advertising their property on PropertyGuys.com for a low flat fee, which they paid up front. That positive experience with PropertyGuys.com was all the proof he was looking for before deciding to buy his PropertyGuys.com franchise.
From the very beginning, he believed in the company’s unique value proposition, he had a passion for real estate, and he was willing to work hard—these are many of the qualities and attributes necessary to own a successful PropertyGuys.com location, says Dautovich.
PropertyGuys.com’s model combines a high-tech/ high-touch approach that helps attract a large pool of buyers and sellers. “Those who choose us love our approach because it offers them real choice and the options that we can provide cost only a fraction of the price they’d likely pay elsewhere. In fact, my location has been consistently recognized as a top-performing location over the past years—having already helped over 1,200 buyers and sellers. The sheer number of people I’ve been able to help so far is something that I’m truly proud of,” adds Dautovich.
Dautovich isn’t the only one who understands the magic of PropertyGuys.com. He says that more and more real estate agents are now recognizing that PropertyGuys. com represents one of the few franchise opportunities
Franchise Canada January | February 2023 77
A DAY IN THE LIFE
within real estate that offers a fresh new approach that is significantly different than anything else out there.
“Our unique set-up, which comes with exclusive and protected franchise territories, really helps us appeal to a much wider, broader, and more savvy audience,” says Dautovich.
That’s important, since Dautovich believes the real estate industry is overdue for a disruption, and he’s confident that PropertyGuys.com franchise owners are well-positioned to succeed regardless of which way the market turns.
“Sellers who choose PropertyGuys.com are able to choose as much or as little help as they need for only a fraction of what they’d expect to pay. That’s why I’m so confident that owning a PropertyGuys.com franchise is the way to go,” adds Dautovich.
Sellers who choose their flat-fee program can choose among different service options where the fee isn’t in any way dependent on the property’s actual sale price. In fact, Dautovich recently helped the owner of a $6-million-dollar property successfully sell over the PropertyGuys.com platform for just around $7,000. He says that sellers really like that the fee they charge has nothing to do with the final sale price of the property.
A system with great support
Another key element of the PropertyGuys.com program is their centralized resource centre, which helps locations like Dautovich’s acquire and retain more customers.
“They support my location in many different areas of my business, including technology, marketing, customer
support, prospecting, lead capture, and lead nurturing. They also help me build my team so I can do even more business,” says Dautovich.
The key, he says, is knowing your local market and getting out there to talk to people and promote your business.
Dautovich has found that in his territory, where many of his listings are in condo buildings, visible signage is important. He contracted a local entrepreneur to look after signs for him, including setting up directional open house signs and removing them at the end of the day. It’s one less thing he has to do every day, although he does have to provide ongoing direction about locations where signage needs to be installed, moved, or removed. He recently had the signage transport van wrapped, turning it into mobile PropertyGuys.com advertising. “It was a big investment,” he says. One that he’s confident will pay off.
He’s also looking at expanding his business by bringing another agent on board. That will undoubtedly change his daily routine, as well. As Dautovich notes, when you own a business, you need to be ready to change and adapt. “You can’t just buy a franchise and sit back waiting for the phone to ring. You need to get out there and meet people—there are dozens of ways to do that. And you need to be willing to work hard, every day.”
Learn more at LookforaFranchise.ca
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A DAY IN THE LIFE
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SIGN OF SUCCESS
BY SUZANNE BOWNESS
Nicky Gillam was looking for a career change, so she asked a business broker to find her some appropriate options. She shared the skills she picked up as an experienced corporate manager involved in the technology and manufacturing sectors, and her interest in a business that was small but established, and customer facing. But when he came up with a franchised print shop, her first reaction was “oh God, no.” Fortunately, he convinced her to take a closer look, giving this story a happy ending from the start: in September 2019, Gillam took over ownership of an Allegra Marketing Print Mail location, a full-service marketing and print communications shop in Oakville, Ontario.
Reflecting on what finally convinced her to take on the business and this new industry, Gillam said she saw that the 30-year-old print shop was a good operation, and still viable despite being in a changing industry. “It provides huge value to other businesses. I really liked that,” she says.
Professional support
She had some hesitations about franchising, as well, but those were quashed when she learned about the franchise’s support process. “From day one, I was super impressed with the team. Everybody was really professional. When you were talking about business planning, they have people that understood financials and understood how to create business plans. When you were in the sales or the marketing meeting, they were marketing and sales professionals. So, I really thought that Alliance Franchise Brands had a really great story, [and] some really good brands,” says Gillam about Allegra, which is under the brand umbrella of Alliance (with some print shops, including hers, recently rebranded from past name KKP).
Gillam was particularly impressed with the franchise’s Right Start program, which guides new owners through their first three years of business. Connected with a performance group and a handful of fellow franchisees across Canada, she enjoys the community of
80 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
Allegra Marketing Print Mail franchisee finds new rewards in the print industry through franchising
THE FIRST YEAR
other owners. “We meet regularly, share our financial information, support each other, and we hold each other accountable. I’ve had a very positive experience with them overall,” says Gillam.
While Gillam says the printing business is a busy industry, with surprising complexity, the initial training (that starts with a week at head office in Michigan) and the support of her performance group, make it learnable, especially with a background in operations. “Understanding flow of work from the customer request to getting it out the door, how to set those steps up properly and who’s involved in the process, that’s very helpful. But as long as you’ve got a good head on your shoulders and a solid background in anything business-related, it’s an industry that a lot of people could be successful in,” she says.
In taking over an existing business, Gillam figured she would be making some changes. She didn’t count on a global pandemic shutting them down. “The pandemic put a spanner in the works because I was forced to lay everybody off. The business fell off a cliff. But I was forced to learn the business, which was really important. And even though I try to work on building the business, if somebody is out for the day, now I can jump in, which is really valuable,” says Gillam. Besides getting to know the business from the ground up, Gillam also absorbed two smaller franchise operations from the same area, which expanded her original Oakville territory to nearby Burlington, Stoney Creek, and Mississauga.
Building the dream team
Gillam says staffing was the main challenge to start with, and she had to make some tough decisions to let some people go and switch others around. “Having the right people is critical; it’s a cliché, but the team are everything,” she says. “Getting the right people in the right seats was really a key factor. It improved everything in terms of team attitude, productivity, willingness to learn and take new things on.”
Inspired by her own experience learning all aspects of the business, she also invested in a lot of cross-training so adjacent staff could cover each other’s roles in busy periods and for vacations. Furthermore, Gillam invested in new technology and equipment to automate some repetitive elements that overburdened staff. Today, the team includes sales and customer service roles, in addition to graphics and production staff.
Gillam also sharpened the shop’s focus on business and commercial accounts, and expanded their offering to their current customer base so they become a one-stop shop for existing clients, which include organizations from private schools to dentists, non-profits, and manufacturers. “It’s great because now we can say to our customers, we’ve got all of this skill in-house for your signage, for your uniforms, for your mailings. They know they can
rely on us, and we know their colours and their branding, so they don’t have to repeat themselves. We understand what they’re looking for and we try to encourage our customers to talk to us,” says Gillam, noting that the strategy is all in aid of becoming more of a consultative partner to clients rather than just taking orders. The franchise has a full in-house graphic design studio, so it handles orders from request to installation, plus a lot of commercial printing of booklets and brochures.
Just as she strives to have her clients see her as a partner, Gillam also appreciates that sense of partnership with other franchisees. “There’s a very successful Allegra out in Pickering, and I found the owner of that operation, and he came down and offered to be my business mentor. He has toured our plant and made suggestions about operational changes,” says Gillam. “I think the fellowship and the support is great, the fact that I can pick up the phone if my printer is down and I’ve got a job that I need to get out, I can go down the road and one of the other Allegras will help me.”
All that support has helped Gillam to grow quickly and confidently, something that she plans to continue in the near term as she works on developing her team and getting closer to her customer base. By 2024, she may look to expand again, but for now she’s content in a phase of solidifying her business, one that she says has been a really good fit.
“The franchise is exceptional. I can’t think of one reason I wouldn’t be a part of this franchise. They’re just a really good group of professionals. At any point you reach out and you’ve got somebody there who is willing to dive in on any topic. I would say to anyone that’s going to enter into the world of print or signage, who doesn’t have experience and is not taking over a well-established business, these are the people you should be talking to.”
Learn more at LookforaFranchise.ca
Franchise Canada January | February 2023 81
THE FIRST YEAR
SWEEPING THE NATION
BY STEFANIE UCCI
It was 1979 when MOLLY MAID first opened its doors and started sweeping floors. Founders Chris and Adrienne Stringer were living in Upstate New York at the time, and discovered an advertisement for a cleaning service that piqued their attention.
Then it dawned on them: this was the perfect business opportunity to bring back home to Canada. The married couple quickly got to work on creating a cleaning business based in Mississauga, Ontario. A year later, they joined forces with Jim MacKenzie and a group of investors (all are still involved in the company today) and started franchising across the country. Today, it has more than 80 franchisees in Canada who have cleaned more than 10 million homes across the country.
As a residential cleaning service, MOLLY MAID is well known for its recognizable navy blue and bubblegum pink branding on its cars, uniforms, and more.
The cleaning options for clients are vast and the opportunities for franchisees are even greater. Just take it from president and CEO, Aaron Abrams, who glows with pride when speaking about the iconic cleaning business.
“We’ve got what I would say is the strongest operating system in the industry and most importantly, we have the very best franchisees in the residential space,” says Abrams. “That, coupled together with the incredible coaching and support from the head office team, creates what I know is the recipe for our success.”
Squeaky clean services
The original concept for MOLLY MAID was to cater towards working families, as Abrams notes there were a lot of women entering the workforce at the time of its inception. That created the need for cleaning services to help lighten their responsibilities within the home. Then, more senior citizens started using the service, requesting monthly cleanings.
Today, customers can choose from cleaning on an ongoing or one-time basis, for seasonal changes, movein or move-out circumstances, in apartments and condos, or for seniors. The Green Housekeeping Program offers eco-friendly cleaning solutions, and the Healthy Home Cleaning System was introduced in May 2020 in response to the pandemic.
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MOLLY MAID CEO Aaron Abrams and franchisee Linda Poirier reflect on the brand’s innovations over its more than four decades of franchise success
ICONIC BRAND
“The most impressive thing about our business is how our franchisees rallied together to come up with the Healthy Home Cleaning System,” explains Abrams. “It was our way to continue providing service so that our clients could continue to get their homes cleaned and our team members could continue to work safely. It proved to be so successful that demand has never been at the level that it is now.”
It’s brands like MOLLY MAID that power through and innovate in the face of disaster to achieve success. It’s all in being an iconic brand.
An inner calling for cleaning
So, who is the ideal franchisee for MOLLY MAID? As Abrams notes, when it comes to whether there’s any vital background experience franchisees must possess: “Absolutely none whatsoever. We can teach people just about anything, as long as they want to learn and bring the right attitude.”
And that’s exactly the case for franchisee Linda Poirier, who’s a long-term franchisee after having started with MOLLY MAID in her early 20s.
Based in Cornwall, Ontario, Poirier was originally working in a retail environment when she had a customer come in asking for a very specific garment pairing: a navy blue blazer and pink blouse. It was the uniform for a new MOLLY MAID franchise.
Recently back from maternity leave with a young daughter to raise, Poirier was ready for a jump out of retail into a career that could offer her more time to work from home and raise her children. She made the jump to MOLLY MAID shortly after.
“Within a short period of time, I went from becoming a Home Service Professional to an assistant to the franchise owner. Then when she told me she was selling, I applied for the franchise myself. Six months later, I was building my own business in Cornwall,” explains Poirier.
Now with more than three decades of franchise experience under her belt, Poirier adds that the brand just feels like a part of her family—and a part of her family’s family, too.
“I feel that since day one, MOLLY MAID has been a really strong brand. I’ve always been excited to be part of it. Knowing that there are over 80 other franchises in Canada doing the same thing as me gives me a feeling that we’re all in this together and we’re not alone. We can network, and share experiences and knowledge.”
And her now grown-up daughter is reaping the MOLLY MAID benefits, too. “When my daughter went to university, she said to me, ‘Mom, I realize now that whenever I was little and I would say you’re always busy doing this
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ICONIC BRAND
“WE’VE GOT WHAT I WOULD SAY IS THE STRONGEST OPERATING SYSTEM IN THE INDUSTRY AND MOST IMPORTANTLY, WE HAVE THE VERY BEST FRANCHISEES IN THE RESIDENTIAL SPACE.”
Aaron Abrams, MOLLY MAID
or that, I’m thankful because I’ve learnt so much from having a business in the house,’” explains Poirier. “So the kids have life lessons they can carry with them in their own businesses or careers, too.”
Sweeping the boards with awards
Poirier’s passion for MOLLY MAID shines in both how she speaks about the brand and how she’s flourished over the decades. It’s how she won dozens of awards for her business!
From 11 internal awards, recognizing her franchise for Quality Service Value, Employer of Choice, and Sales Growth, to joining the President’s Circle, Poirier is a well-respected franchisee. But don’t just take it from MOLLY MAID. She’s also won a Consumer’s Choice Award—every single year! “I want to feel that I made a difference in the lives of my employees, my clients, and my community.”
Abrams adds, “I can assure you she’s hit on all three of those. She’s just the model franchisee, and is so passionate about MOLLY MAID.”
And Poirier emphasizes with a laugh: “I want to know that I ‘maid’ a difference!”
Fresh franchise opportunities
As for the future of MOLLY MAID, Abrams explains that it’s recently gone back to its roots: establishing a franchise model that allows for an owner-operator cleaner.
Established during the pandemic as a result of massive influx in demand, the Neighbourhood Franchise Model allows franchisees to take a step back from their role of solely running the business. “We’ve gone back and re-established the model that will allow our franchisees in smaller markets to run the business by cleaning themselves and hiring people to support them,” says Abrams.
The Neighbourhood Franchise Model is ideal for those in less populated areas, like Cornwall, and allows franchisees to start earning an income as soon as they clean their first home. Traditional MOLLY MAID fran -
chises are suited for densely populated cities in urban and suburban areas.
Regardless of which option new franchise owners go for, the training from the support office is robust: “Two and a half weeks of training content before they arrive on site for one week intensive training at support office in Oakville, Ontario,” says Abrams. “Then once they leave, there’s still some ongoing training that goes on with their franchise coach. About three weeks later, they take over their business if it’s a transfer or they start their business if it’s a new franchise. Their franchise coach joins them in the field during this first week to help them navigate through the early days.”
Ongoing training includes online Zoom calls, training content on the corporate intranet, operating manuals, videos, and of course, the ability to connect with fellow franchisees and learn from each other’s knowledge, especially at regional meetings and Convention.
So what advice do MOLLY MAID’s proud CEO and top franchisee have for those considering a franchising career path?
Abrams advises potential franchisees to take advantage of the resources around you. “There are so many, whether it’s franchisees who’ve achieved success like Linda, a neighbouring franchisee, or one across the country. If you surround yourself with the right people, you’ll tend to find success in whatever way you want to.”
As for Poirier, she recommends choosing a service that you love. “For me, it was house cleaning, and getting to meet and work with people. Make sure you have guidance from experts that are focused on making your business grow and are excited to celebrate your successes with you.”
Learn more at LookforaFranchise.ca
84 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online ICONIC BRAND
“I FEEL THAT SINCE DAY ONE, MOLLY MAID HAS BEEN A REALLY STRONG BRAND. I’VE ALWAYS BEEN EXCITED TO BE PART OF IT. KNOWING THAT THERE ARE OVER 80 OTHER FRANCHISES IN CANADA DOING THE SAME THING AS ME GIVES ME A FEELING THAT WE’RE ALL IN THIS TOGETHER AND WE’RE NOT ALONE.”
Linda Poirier, MOLLY MAID
4 FRANCHISES FOR $500K+
Franchising is about diversity, and opportunities can 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 $500K+.
Angus Valley Montessori Schools
Angus Valley Montessori Schools Inc. addresses the growing desire for premium early learning and safe, secure childcare for infants and pre-school aged children. Franchisees have access to proven Montessori curriculum, custom-designed buildings, chef-created nutritional menus, and tried-and-tested operations. Through strong relationships with land developers, Angus Valley Montessori Schools secures prime locations with high-demand opportunities. Franchisees are supported by a team with extensive business and operational expertise.
Learn more at LookforaFranchise.ca
Au Pain Doré
With more than 65 years of history, Au Pain Doré offers a combination of artisanal methods and modernization. Originally from Montreal, Au Pain Doré is a friendly bakery café that offers neighbourhood communities fresh and authentic gourmet products prepared on site. Au Pain Doré is a subsidiary of a French-based Groupe Le Duff, which has over 1,500 restaurants across five continents and 100 countries. Best known for great-tasting, freshly prepared food at an unbeatable value. Au Pain Doré is now growing across Canada and is seeking franchise partners who share the same passion for great food and hospitality.
Dogtopia
Dogtopia brings a new level of sophistication and transparency to the thriving pet care market, offering a variety of services to dog owners including dog daycare, boarding, and spa treatments in a modern and caring environment. Dogtopia is rapidly expanding its presence in Canada. Be part of the booming Canadian pet industry and enjoy being in business for yourself, but not by yourself. Dogtopia has been in business since 2002 and has established systems to open and support more than 200 locations in North America. Currently, there are 19 stores open or under development across all major markets in Canada.
Learn more at LookforaFranchise.ca
Duck Donuts
Duck Donuts loves to make life just a little sweeter with fresh, customizable donuts and treats for every time of day. With unique offerings and simple operations, the Duck Donuts franchise opportunity has become an international sensation. Maybe it’s the magic of made-to-order cake donuts, maybe it’s the lovable brand, most likely it’s all that and then some.
Learn more at LookforaFranchise.ca
Learn more at LookforaFranchise.ca
Franchise Canada January | February 2023 85
SHOW ME THE MONEY
A LITTLE SLICE OF DOMENIC PRIMUCCI
Pizza Nova president Domenic Primucci shares the secrets to a successful franchise business
86 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online FRANCHISE FUN
Pizza Nova is one of the most recognizable brands in Ontario, and that’s not by accident. Domenic Primucci, President of Pizza Nova, has seen the business from all levels and believes in treating customers like family. This means providing mouthwatering, artisan-style signature pizza and other Italian favourites made with fresh, quality ingredients, the same way his Nonna would, and “always MADE WITH LOVE!”
These values have earned Pizza Nova a handful of accolades, including induction into the Pizza Hall of Fame and the recent honour of Variety Village, the Children’s Charity of Ontario, renaming their lobby the Primucci
The most interesting thing I’ve done recently is… I was part of a team that escorted the FIFA World Cup Trophy from New York to Toronto.
In its best form, work is… Exciting, because I get to use my passion for food as inspiration and satisfy peoples’ appetites with mouth-watering products.
A good franchisee… Believes in your system and believes in your passion for the product but most importantly, in the customer.
A good franchisor… Supports, trains, and mentors the franchisee.
My top advice for prospective franchisees is… Work in the restaurant business and see if you have a passion and liking for it so you can understand what it entails. Once you become a franchisee, ensure you lead your business and your team. Build a strong culture.
My top advice for new franchisors is… Guide your franchisees, be fair, collaborate with them, listen to them, and lead your teams and staff to ensure they are getting the right support.
The most important thing in life is… Smile, have fun, and enjoy life. We may not always take our own advice, but this is how I try to live and is my inspiration.
Pavilion. It was also a Gold winner at the 2022 Canadian Franchise Association (CFA) Awards of Excellence. Pizza Nova has been in business for 60 years and Primucci credits the more than 140 franchise locations that operate under the Pizza Nova family values of trust, integrity, and authenticity for its continued success.
When he’s not sharing the love of Pizza Nova into new locations, Primucci dreams about tailgating the Formula 1 circuit and travelling. Here, the self-professed foodie defines his personal keys to success, professes the importance of family values, and finds the benefits in learning from other countries and cultures.
One of the most enjoyable things to do is… Travel to different places. I am inspired by travel and learning from other people, other cultures, and other countries; I am fascinated by different ways of life and different ways of thinking, and I bring back what I learn to my own life and my business.
The hardest thing for me to do is… Sit still—I prefer to stay active.
My favourite drink is… Scotch.
If I could change one thing… I would try to be a little more at ease and enjoy life a little bit more. Things have a way of working out and sometimes we just need to have faith.
The person who has had the most positive influence on me as a businessperson is… My father.
Canadian franchising is… Healthy. It creates opportunity for anyone who wants to own and run their own business. It’s an exciting, fast-paced, and everchanging way to expand and build wealth. Giving opportunities to small business owners helps build communities.
My franchise system began because… At the time, serving an authentic Italian product like pizza was new for Canada.
The most positive influence on my life as a person is…
My wife, because she has supported the growth of the company. We are a business based on family values and I believe it shows in everything we do and create together.
The key to success is…
For me, there are three keys: ambition, perseverance, and passion. And you have to build a solid foundation. Once you have a solid business foundation, build on that with a strong understanding and awareness of your customers and how to serve them.
I’d like my friends to describe me as… A good, honest, down-toearth person, who is humble and generous.
The accomplishment I look forward to the most is… Shooting consistently in the 80s for golf.
My personal motto is… DO IT WITH JOY. Be happy.
One necessary item on my life’s “to do” list is…
Travel the Formula 1 circuit.
Learn more at LookforaFranchise.ca
Franchise Canada January | February 2023 87
FRANCHISE FUN
AENVIRONMENTAL, SOCIAL, AND GOVERNANCE PRINCIPLES (ESG), along with sustainability, have become hot topics in the past couple years. Throughout 2023, the competition for customers, employees, and franchisees to prove their credentials will be even more intense. Surveys show that each generation is becoming more conscious of sustainable development, which is defined as the intersection of environmental stewardship, social responsibility, and fiduciary responsibilities that meets the needs of the present, without compromising the ability of future generations to meet their own needs. And each generation is increasingly voting with their dollars to ensure that their values align with the brands they’re working for, investing in, and spending their money with.
Every brand is expected to have sustainability commitments and ESG metrics in place to woo the public and certainly, to win over your dollar as consumers and prospective franchisees. However, the risk of “greenwashing” or “green PR” is real.
If you check news headlines, more companies are getting caught mistreating their labour force, the environment, and even throwing out returns after touting a circular economy model. Franchisees should take note of their brand’s ESG practices as a matter of protecting their investment, and to mitigate risk in case your franchise becomes the target of a boycott, negative press, or other public action. To ensure that the franchisor’s ESG credentials are more than just skin deep, you must ask questions, and then ask follow-up questions.
The art of asking questions is something we advise members of Boards of Directors to do; to question their company and ask sufficient follow-up questions to adequately discharge their governance duties. It’s not enough to accept information presented at face value. Be sure to reiterate such questions as:
• “How do you know?”
• “How did you ascertain that?”
• “What is the source of this information?”
• “What assurance do you rely on that is correct and has been validated?”
The ability to keep drilling down may seem uncomfortable at first, but you must act like your own Board of Directors; ask the questions to get a sense of whether the franchisor is prepared, informed, and authentic. Ask questions about the systems, processes, and people in place to have good controls over ESG reporting.
Prepare yourself with foundational knowledge about ESG and sustainability issues. For example,
understanding the difference between terms like “carbon neutral” and “net-zero” may be deciding factors in an organization’s climate change efforts. One buys enough “carbon credits” to offset greenhouse gas emissions, and one is to reduce greenhouse gas emissions.
If human rights or labour issues are important to you, get a sense of which regulatory standards the franchisors are adhering to, if any, by reading up on some of the globally recognized benchmarks, like the UN Sustainable Development Goals. Understand that a company’s Supplier Code of Conduct is often not sufficient in preventing or detecting forced labour or child labour in the supply chains.
The ability to ask questions is important but it’s also critically important that you’re prepared with parameters to assess whether the information passes the sniff test. Be wary if franchisors don’t have the answers readily available or seem surprised about the follow-up questions. Remember, ESG metrics shouldn’t be held to any lower standard than financial statement results and disclosures.
If the organization doesn’t have the verifiable, audited, and consistently reported data to back up any ESG claims, buyer beware. This would be true for all information but is especially true when it comes to ESG metrics because it’s become a catchy new branding lever. And unfortunately, the ESG metrics that are available may not have the maturity of controls and auditor assurance that traditional financial statement reports do. While that’s slowly changing, your franchise investment should be governed with the due care and due diligence of any large public organization. And you should discharge your governance duties with as much care as the chairperson of any board.
Finally, when in doubt, consult a professional. More and more companies are engaging help with acquisitions and mergers when it comes ESG metrics simply because the information is so inconsistently reported. And if this is true of large public companies, then it’s certainly true of the franchise with your hard-earned investment.
88 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online Q ASK AN ACCOUNTING EXPERT
I want to purchase a franchise with strong ESG credentials. As a prospective franchisee, how do I ensure the ESG credentials of the franchisor are more than just skin deep?
Y Nguyen, CPA, CA, CIA, CSSCP Head of Sustainability Risk Advisory and North America Sustainable Supply Chains
BDO Canada www.bdo.ca
AFRANCHISING IS A GREAT WAY to expand your company into new markets and increase your brand awareness. When entering a franchise agreement, there are three primary obligations to abide by: the contract, franchise legislation, and the common law.
The contract
The day-to-day relationship between franchise parties is governed by a contract called the franchise agreement. A franchise agreement will typically set out the parameters of the business model, including:
• the operating standards;
• the territory that will be covered by the franchise;
• fees, terms, and renewal timelines;
• protocols for selling or transferring the franchised business;
• the franchisor’s obligations;
• the rights of the franchisee;
• restrictive covenants; and
• dispute resolution procedures, among other things.
Most franchise agreements contain a section specifically identifying the franchisor’s obligations to the franchisee, which may include providing training, access to goods and services, customer referral networks, and other obligations unique to the franchise system.
These obligations are often defined carefully and precisely by the franchisor, and franchisees should carefully review what is and is not included.
Franchise legislation
Franchising is a matter of provincial jurisdiction and, currently, six out of the 13 provinces and territories across Canada have enacted franchise legislation: Alberta, British Columbia, Manitoba, New Brunswick, Ontario, and Prince Edward Island.
Four key features common to each statute are:
1. Requiring franchisors to provide a pre-sale disclosure document to prospective franchisees, with prescribed content and delivery requirements, including the obligation to disclose all “material facts” relevant to the franchise being acquired;
2. Imposing a duty to act in good faith and with fair dealing on both the franchisor and franchisee;
3. Establishing a franchisee’s right to associate with other franchisees, free of interference from the franchisor; and
4. Mandating compliance with certain legal requirements in all franchise agreements, including restrictions on venue and the governing law of the contract, and prohibitions on waivers of statutory rights.
Disclosure
Franchisors are required to provide prospective franchisees with a disclosure document (often called a franchise disclosure document or “FDD”) at least 14 days before they sign a franchise agreement or make any payment of consideration for the franchise. The FDD must include certain prescribed information about the franchisor such as business background, litigation history, bankruptcy or insolvency information, and financial statements, in addition to “all material facts” which may have an impact on the price or the franchisee’s decision to acquire the franchise.
Before a prospective franchisee signs a franchise agreement or makes any payment, the franchisor is obliged to disclose whether there have been any material adverse changes since the franchisee first received the FDD by providing a “statement of material change.”
A franchisor’s failure to provide a disclosure document or meet the statutory disclosure requirements grants the franchisee the right to rescind the agreement without penalty or obligation either 60 days after receiving disclosure (where disclosure is late or deficient) or up to two years after signing the franchise agreement (where no disclosure is provided).
Courts have interpreted various deficiencies in disclosure documents to be so fatal as to render the disclosure the equivalent of no disclosure and have allowed franchisees to rescind within two years in such circumstances.
Franchisors have a responsibility to update the franchise disclosure document regularly to immediately reflect any material facts that change during a franchise operation. If a franchisee suffers a loss because of a misrepresentation contained in a disclosure document, the franchisee has a right of action against the franchisor.
Fair Dealing
Pursuant to franchise legislation, franchisors and franchisees owe each other a duty of fair dealing in the performance and enforcement of their franchise
(continued
Kayla Smith Associate Cassels ksmith@cassels.com
on page 90)
Franchise Canada January | February 2023 89
ASK A LEGAL EXPERT
Q
What are my franchisor’s obligations at the beginning and throughout my franchise career?
agreements. This statutory duty of fair dealing is a codification of the common law duty of good faith, which requires both parties to act honestly in their performance of the franchise agreement and to comply with reasonable commercial standards. Breach of the duty allows either party to take legal action for damages suffered as a result.
Freedom of Association
Franchisees have a statutory right to associate with other franchisees. This means that franchisors can’t interfere with a franchisee’s decision to form or join an organization of franchisees. The right of association also prevents franchisors from interfering in their franchi -
sees’ participation in class actions. Any such interference may expose franchisors to liability for damages.
Choice of Law and Forum
Each of Canada’s provincial franchise statutes mandate that franchise agreements can’t restrict the application of provincial law to the agreement and the venue for certain disputes arising under the agreement to a forum outside of that province.
Non-Waiver
Franchisors’ statutory obligations and rights given to franchisees by law can’t be waived. The only exception to this is with respect to releases of known, existing claims granted in the context of a dispute settlement with the benefit of independent legal advice.
QASK AN FINANCE EXPERT
What tools are available to help me resolve any disputes with my franchisor?
ASUCCESSFUL FRANCHISE SYSTEMS are built on trust and solid relationships. However, there will always be variations in individual franchisee performance, and disputes can arise at times of stress or upset. Precedence has taught us that both franchisors and franchisees should be prepared for disagreements or disputes. Franchisees should understand how a franchisor will work towards resolution of disagreements or disputes.
Near the end of my 40-year career as a franchise lawyer, I trained in franchise mediation and arbitration. My diverse experience in this capacity has convinced me that the majority of franchisors and franchisees are not prepared for disagreements or disputes, and are not familiar with early or alternate dispute resolution to avoid litigation.
Franchisees should be informed of their franchise’s dispute resolution procedures and programs, and how their franchisors approach the subject in franchise disclosure documents and franchise agreements. Franchisors and franchisees should have open discussions about the subject.
As a franchisee, you should gauge whether a franchisor understands the importance of dispute resolution from how they approach the franchise relationship. Timely and informative communications by a franchisor help to dispel rumours and build trust. Here are some
key questions franchisees should consider regarding their franchise’s approach to dispute resolution:
• Does the franchisor keep its franchisees informed of important changes and system developments? Does the franchisor encourage suggestions and react professionally to franchisee complaints?
• Does the franchisor have programs in place to assist underperforming franchisees affected by unexpected circumstances like negative press, new competition, a pandemic, illness, climatic disasters, supply chain problems, and the like?
• Does the franchisor have early dispute programs in place like a simple provision in the franchise agreement to negotiate disputes in several stages on a confidential basis and without prejudice, involving senior management?
• Does the franchisor have a franchise mentor program for new franchisees or a peer group or peer review program to assist in resolving disputes?
• How can franchisees contact the CEO (or a designated member of the executive team) to discuss a problem on a without prejudice basis? Will the CEO or designated contact person commit to consider the matter quickly and objectively with a timely response?
• Has the franchisor considered or established an independent franchise system ombudsman program? The
90 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
ASK A LEGAL EXPERT (continued
from page 89)
ombudsman should have credibility, franchise experience, and alternative dispute resolution training. The ombudsman should operate as an intermediary with the objective of resolving the dispute. There are no repercussions to a franchisee that raises a matter with the ombudsman, and there is no direct interaction between the franchisee and the franchisor.
Franchisee advisory councils (FACs) have become more popular in recent years. The effectiveness of a FAC will depend on its constitution, composition, and representation, so it is therefore important for franchisees to participate. FACs should consider major operational matters, new system developments or changes, and matters that will require substantial cost to franchisees. With the approval of a FAC regarding these matters, acceptance by the franchisee body is almost certain.
The Canadian Franchise Association’s Code of Ethics states that “both parties 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.” Many franchisors provide for mediation in their franchise agreements or ancillary documents, and it is often a pre-condition to commencing litigation or arbitration. The parties can agree to mediate a dispute at any time. A mediator or arbitrator in a franchise dispute should have significant understanding of franchising. The process is confidential and with -
out prejudice and there is a high rate of success in mediated franchise disputes.
Finally, arbitration can be used to resolve disputes if mediation is not successful. Arbitration is private and confidential. No documents are available for public review, and the public and the media cannot attend. The parties must sign an arbitration agreement, which can be a standalone document or contained in another agreement like a franchise agreement. It can require the arbitrator to have specialized knowledge of franchising and can deal with the appointment of the arbitrator and the procedures and rules for arbitration. By creating a streamlined process, arbitration can be much quicker than an ordinary trial. An arbitration decision is confidential and usually cannot be appealed.
Hopefully, these comments will encourage franchisees to become informed of early and alternate dispute resolution procedures so they can look out for them when assessing franchise systems. With new, innovative procedures, disputes can be resolved quickly and efficiently with reduced costs and minimal disruption.
Frank Zaid Principal Frank Zaid FRANlegal Support Service fzaid@frankzaid.com
Franchise Canada January | February 2023 91
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TUTORIAL 19: THE FUNDAMENTALS OF FRANCHISING INTRO TO LEASES & SUBLEASING FROM THE FRANCHISOR
MANY FRANCHISES WILL REQUIRE that their franchisees operate out of a retail, office, or commercial location. In these circumstances, you, as a franchisee, would enter into a head lease or sublease agreement. It’s important that you understand the agreement and contractual relationship that you’re entering into.
A head lease is where you’re in a direct contractual relationship with the landlord. The franchisor will typically require in the franchise agreement that such lease documents and the location are approved by the franchisor before signing. The franchisor wants to ensure that it’s a viable location and that the terms are reasonable. However, the franchise agreement will typically state that the franchisor’s approval of the site doesn’t represent or warrant the success of the location. The franchisor cannot predict success, as there are many variables that will affect your business.
In many circumstances, the franchisee will sublease their space from the franchisor, with the franchisor on the head lease with the landlord. This is done when the franchise’s success is very location-driven or where the landlord requires a strong covenant. A sublease arrangement allows the franchisee to have access to locations that they wouldn’t have access to otherwise. The franchisor will retain control over the site by entering into a lease directly with the landlord and then subleasing the location to the franchisee on principally the same terms and conditions. In the event that the franchisee is not successful or abandons the business, it’s far easier for the franchisor to take over the location when they’re on the lease directly.
A third situation is where the franchisor and franchisee go on the head lease with the landlord, making it a three-party, or “tripartite” agreement. In the event that the franchisee is in default of the lease, the franchisor would have the right to cure the defaults or take over the location. The agreement may also allow the franchisor to assume the lease in the event that the franchisee decides not to renew at the end of the lease term or the franchise agreement is terminated. From a franchisor’s perspective, this gives them the ability to control the location without the obligation and liability. However, from the landlord’s perspective, it limits their options and thus landlords are reluctant to sign three-party agreements. They often want to have flexibility to rent the space to someone else in the event of default.
These three different leasing options are a function of balance between control and risk. If a franchisor wishes to have control of a great location, it will assume liability and go on the lease and then sublease to franchisees. For a startup franchisor, this could be a substantial risk and the third-party agreement would provide a viable solution. For a well-established franchisor, risk is less of an issue and they’ll often want the ability to step in and take over the location in the event of the default, so as to preserve the great location and the established customer base.
A franchisor will typically have a “cross default” clause in the franchise agreement stating that a default on the sublease or lease agreement is a default of the franchise agreement.
Regardless of whether you’re on the head lease or in a sublease or a tripartite agreement, be sure that you fully understand your legal and financial obligations under the lease. Typically, the total occupancy costs are different from the base rent that’s quoted. Be sure you budget for the total occupancy costs for the space and not just the base rent.
Total occupancy costs will often include the following:
• Base Rent – Usually quoted as an annual cost per square foot.
• Common Area Maintenance (CAM) – Your business’ share of such costs as security, snow removal in the parking lot, or cleaning of the common areas.
• Percentage Rent – Some landlords in high-traffic retail locations will request a percentage of your gross sales.
• Property Tax – Typically, you’ll pay your portion of the property tax, based on your square footage.
• Merchants’ association or marketing fund – Large shopping malls or complexes will have tenants share costs for mall promotions and events; again, the amount is allocated based on your square footage over the total amount of leased square footage.
Your rent payments are usually paid monthly directly to the landlord, with certain items, such as property tax, paid annually. The merchants’ association or marketing fees are often paid quarterly. In sublease arrangements, the franchisor may require that you pay them directly and then the franchisor pays the landlord. In these cases, get clarity as to whether or not the franchisor
92 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online FRANCHISE TUTORIAL
is charging a fee or ‘up-charging’ for being on the head lease. This can sometimes be justified, for the franchisor is taking on added liability for you to access a great location, but it should be disclosed.
It’s important that you fully understand your obligations under the lease or sublease agreement. Have a lawyer review and explain the documents before signing.
Once you’re open for business, work at maintaining the relationship with your landlord and franchisor so as to avoid difficulties down the road. If you foresee problems in making lease payments, don’t hide this fact. Instead, communicate the issue to both your landlord and franchisor so there are no surprises, and so you can work with them to find solutions for payment.
TUTORIAL 20: THE FUNDAMENTALS OF FRANCHISING
INTRO TO LEASEHOLD IMPROVEMENTS
LEASEHOLD IMPROVEMENTS are fixtures or improvements that are attached to the retail or commercial space and installed by the franchisee when setting up a new location. Upon expiration of the lease, these improvements remain with the space and become the property of the landlord. Examples of such improvements include:
• walls • doors • cabinets
• light fixtures • floor coverings
• machinery and equipment if bolted down to the floor
These improvements are required to make the space work for the needs of the business.
As a franchisee, you’re typically responsible for all the costs associated with constructing the space and leasehold improvements, as well as ensuring that this is done according to the franchisor’s specifications and standards. The franchisor is responsible for the integrity of the brand and will usually provide standard prototype plans and drawings. An architect would then be required to create new plans that are specific to your space and that comply with local bylaws and city requirements, while still meeting the franchisor’s standards. Some franchisors have design services as part of the franchise support or as an added fee. The franchisor will require that plans be approved by them before construction starts.
Depending upon condition of the space and the business model, the required leasehold improvements can be extensive. If you’re dealing with a brand new building with a “shell” space (bare cement walls and floor) and are constructing a restaurant, you’ll require plumbing, HVAC, heating, and electrical, in addition to the typical improvements. Costs can range from $100,000 to well in excess of $700,000, depending on the type of business, size, and condition of the space. These costs can sometimes be reduced by the landlord through a leasehold
improvement allowance or a lump-sum payment upon completion of the space.
In some cases, you may acquire a space that has pre-existing leasehold improvements. This could reduce the costs, but not necessarily. In some cases, few improvements can be salvaged for your use. This means you’re paying for demolition of the old, as well as new construction to bring the space to the franchisor’s specifications. Many times there are costs associated with bringing the old improvements up to standard building codes, such as having extra washrooms and proper kitchen electrical, gas, plumbing, and ventilation. Don’t assume there are savings by dealing with existing improvements. Work with the franchisor to have a thorough site assessment done.
Depending on the franchise, you may be required to build out the location through the hiring of a general contractor. Ask the franchisor to recommend a general contractor who has built out stores for the franchise in the past. You want to select someone who is reputable and can get the job done on time, on budget, and within the franchisor’s specifications. Check references and visit locations that this contractor has built in the past.
Whether it’s through a general contractor or the franchisor, be sure to get specific quotes as to what the build out of the location will cost and get it in writing. There will often be unforeseen costs and delays. Address beforehand what happens if costs exceed, say, a 10 per cent variance. You may be able to negotiate that such overruns are the general contractor’s responsibility or that there is some compensation to you for delays.
In reviewing the costs for a store build out, a franchisee will often comment that the costs seem high. Avoid the desire to negotiate the improvements and reduce costs. Quality construction is expensive, but typically necessary.
Franchise Canada January | February 2023 93 FRANCHISE TUTORIAL
You’ll always be able to find a cheaper piece of equipment or specification of carpet, but usually at the expense of quality or warranty service. The cheaper kitchen equipment may have a tendency to break down. How much will this cost you in lost revenues when your restaurant is closed for equipment repairs? How does it affect your business when the carpet is frayed and worn in high-traffic areas after only a year, and in need of replacement?
Throughout the entire process, the franchisor will be overseeing the plans and construction to ensure the finished location conforms to franchise concept specifications. The franchisor will typically make regular site inspections during construction to ensure that the location has the same look and feel as all the locations of the brand. You may be able to provide input, but it will be the franchisor that will make the final decisions. Recognize that they have the experience and that often there is a
STUDY QUESTIONS
TUTORIAL 19
1. In a sublease arrangement, the franchisee: a) Leases their space from another franchisee b) Leases their space from their franchisor, who is leasing it from the landlord c) Purchases their space outright
2. Total occupancy costs for a leased space can include: a) Base rent b) Property tax c) Merchants’ association fees d) All of the above
3. No matter which type of leasing arrangement is chosen, the franchisee should fully understand his or her legal and financial obligations as outlined in the lease agreement. True or False? a) True b) False
4. In a head lease, the franchisee is in a direct contractual agreement with the landlord. True or False? a) True b) False
strategy behind the design. You may feel that the kitchen is too small and want to make it bigger, yet the franchisor recognizes, through experience, that a smaller, welldesigned kitchen creates greater work efficiencies and permits more front of house space, thus allowing more tables and greater revenues. If you object and fail to comply with the standards, you may risk being in breach of your franchise agreement and incur costs to redo certain parts of the build out in order to conform to franchise standards.
Leasehold improvements and store build outs can be overwhelming. There are a lot of details and it’s a large investment. Make sure you select the right contractor and have the build out monitored closely by the franchisor. Ask questions so you understand the decisions being made, but rely on the experience of the franchisor. That’s part of the value of a franchise.
TUTORIAL 20
1. Leasehold improvements: a) are fixtures that are attached to a retail or commercial space b) are installed by the franchisee or tenant when setting up their business c) can include machinery and equipment that is bolted to the floor d) All of the above
2. When building out a new franchise location, a franchisee should: a) pick the first contractor they speak with so construction can begin immediately b) consult closely with their franchisor to ensure the location is built to the system’s specifications c) always go for the cheapest construction materials and equipment d) assume that all unforeseen costs and delays will be absorbed by either the contractor or the franchisor
3. It always ends up being cheaper for a franchisee to lease a space with pre-existing leasehold improvements. True or False?
a) True b) False
4. During build out of a new location, the franchisor will usually have the final decision on all aspects of the build, especially those relating to brand consistency. True or False? a) True b) False
Answer Key: 1) b 2) d 3) a 4) a
Answer Key: 1) d 2) b 3) b 4) a
94 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
FRANCHISE TUTORIAL
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 nancing 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
JOIN A $6 BILLION DOLLAR INDUSTRY
Driverseat is an award-winning system, that specializes in transportation solutions. Our franchise partners provide shuttle services through their team of Chauffeurs, while they work on business development in their community. Driverseat franchise locations offer transportation to airports, winery/brewery tours, non-emergent medical transport, and weddings in mid-sized commercial shuttle vehicles.
• Total capital required - $65K
• $30K franchise fee (included in the total capital required)
• Comprehensive training program
• Innovative technology platform
• Canadian owned and operated
• No capital real estate leases
• $6 billion industry
• No need for inventory
• Award winning support
• Remote capabilities
Contact Us www.driverseatinc.com/franchise franchise@driverseatinc.com
Become an eSupply Franchisee
Give your customers a locally-based alternative for purchasing their business supplies eSupply Canada is a national, online distributor of of ce, janitorial, and industrial supplies. We provide Canadians with a local alternative to the big box retailers and bring together over 1 million products in an easy-to-use website. Our home-based, dropship model means there are no long-term leases, capital investments, or up-front inventory purchases required from our owners. Better still, our corporate of ce handles all customer service requests, including shipping, returns, and inquiries. To enhance the success of our owners, we’ve partnered with a leading post-secondary institution to co-design and co-deliver a world-class training program. And, as one of the only Indigenousowned franchisors in Canada, we’re looking for owners who re ect the diversity and the demographics of Canada. If you’re sales-oriented and interested in building a great home-based business, we want to hear from you.
Visit esupplycanadafranchise.ca for more info.
70+ years in business, approximately 27,000+ international restaurants in over 145 countries and territories and more than $23 billion in yearly sales. KFC is an international icon and holds the crown as the world’s undisputed fried chicken leader. We are looking for enthusiastic, capable, committed partners to join Colonel Sanders Canadian family with priority focus on Quebec, British Columbia, Toronto and all smalltown markets nationwide. If you are looking for your next investment, KFC Canada wants to hear from you. Join our network of 630+ restaurants in all provinces & territories.
Franchise Units: 630 Other: 27,000
Start Up Capital Required is: $450k + (single unit operator)/ $700k+ (Multi-unit operator)
Training: 8 Weeks initial + ongoing modules
Available Territories: Quebec, British Columbia, Toronto and all smalltown markets nationwide
Contact: Zaid Kharouba: Franchise Development Manager
Phone: (416) 664-5310
Email: zaid.kharouba@yum.com
Web: www.kfc.ca/franchise
Franchise Canada January | February 2023 95 MARKETPLACE
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 t 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 arti cial colours, avours 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 nd 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 nd 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.
Mamma’s
Pizza
For 65 years Mamma’s Pizza™ is Toronto’s favorite pizza. Founded by Lidia Danesi in 1957. Her pizzas became so popular that they called her “Mamma, Queen of the Pizza’s” and that is how the brand was created. Ever since the brand has been passed on to the second and third generation and is now professionally managed with franchise locations across the GTA and spreading its wings across Canada. Our experienced team coordinates every aspect to set up a new franchise and offers ongoing support as and when required. We aim to create a strong and long term business for you and your family. www.mammaspizza.com
Pizza Depot
Franchising with Pizza Depot means partnering with a system that’s committed to your success. With over 40 restaurants across Canada, our team of site development experts are dedicated to scouting ideal locations for Pizza Depot. We work with you to negotiate leases and develop interiors that are welcoming and comfortable. We also provide comprehensive training in customer service, marketing, and general store management. When you turn the key, all equipment and supplies are ready for you, and the corporate team is with you every step of the way, ensuring your success. www.pizzadepot.ca
Maverick’s Donuts began operations in 2016 with one small location in the heart of central Ottawa, spending the rst 4 years re ning its recipes over and over, and building a name in Ottawa for being the one true “Maverick” of the donut world. When the pandemic hit in 2020, Maverick’s opened its rst suburban location in Ottawa’s west end with huge success. Our franchise program began in 2021 and we have already opened or sold 30 locations, in both Ontario and Alberta.
Our donut shops offer 50+ unique avours throughout the year, and we cater to weddings, corporate events, birthdays, and other special events. Freshly roasted coffee and soft-serve ice cream round out our amazing products.
As Maverick’s Donuts continues its Canada-wide expansion, we are looking for dedicated, energetic people who want to own and operate and exciting brand that appeals to people of all ages and all cultures. Full training and support is provided. Bank nancing programs available.
www.mavericksdonuts.com/franchise
Start accepting payments your way with Moneris. With a full suite of business management and payment processing solutions, Moneris offers everything you need to manage your business. Whether you run a pop-up shop, online store, bricksand-mortar location, or offer curb-side pickup, we have a solution that ts your needs.
We’ll get you up and running quickly and easily, helping you to integrate our products and services to make doing business that much easier. As Canada’s #1 payment processor*, you can feel comfortable knowing Moneris is on your side.
Want to learn more?
Contact Isabel Mifsud at 855-502-6227 or Isabel.Mifsud@moneris.com Visit moneris.com/cfa to learn more about Moneris.
*Based on total processing volume in Canada. MONERIS and MONERIS & Design are registered trademarks of Moneris Solutions Corporation. All other marks are the property of their respective owners.
96 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online MARKETPLACE
Bene t 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 exible lifestyle.
Discover which of our franchise brands is right for you. Visit: go.nbly.com/CFA • Call today: 866-687-1106
All-in-one Payroll and HR Management Solutions for SMEs Nethris offers franchisees all-in-one management solutions to make your work easier. We automate payroll preparation and processing and simplify HR, time and bene ts management. Already over 20,000 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.
In business since: 1976
CFA member since: 2010
Phone: (888) 650-6291 Web: nethris.com/cfa Email: payroll@nethris.com
We take the stress out of changing your address… We are professional move managers who can plan, coordinate and organize every detail of your moving process. ONESource specializes in senior moves, professional organizing, household downsizing and estate dispersal. We offer a menu of services customized to meet your needs and budget. Whether you’re moving or just want to de-personalize, the ONESource Moving Solutions can help you sort and organize your home. We are a one-stop solution that ensures everything is done to ensure a positive experience. It’s about so much more than moving. Easing your transition from one home to another. ONESource Moving Solutions provides move management solutions to all ages for a wide menu of services.
Franchise units in Canada: 4
Corporate units in Canada: 1
In business since: 2008
Franchising since: 2014
Franchise fee: $25K
Start-up capital required: $30K-$50K
Investment required: Financing available
Training: 1 week at corporate location
Available territories: All of Canada
Contact: Danielle Wellings-Carriere, Owner (519) 984-2111 • franchising@onesourcemoving.ca www.onesourcemoving.ca
We provide world-class support before you even make your rst skewer—and well beyond. Our franchise support system ensures that you’re set up for success.
The OPA! experience combines fresh Mediterranean cuisine with the friendly customer service we’ve become known for. We are Canada’s most loved quick-service Greek restaurant and when you’re welcomed into OPA!, you know exactly what you’re going to get, quality ingredients packed with avour, prepared and cooked fresh. We serve over 50 Million Customers every year and every single day, we create good feelings through good food at a great value that keeps our customers coming back. That’s The Power of Good Food....OPA!
For more information, contact: Sergio Terrazas, Director Franchise Development & Leasing (866) 672-3566 ext. 233, (403) 984-9745 sterrazas@opasouvlaki.ca www.opasouvlaki.ca/franchise
Franchise Canada January | February 2023 97 MARKETPLACE
The Pizza Nova story began in 1963 when a young Italian family opened the very rst 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 60+ years of success continues as a direct result of our uncompromising commitment to providing quality ingredients and product innovation. In 2015 we became the rst 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’ pro le to include bacon, chicken wings, chicken pollini, grilled chicken, and smoked ham. In 2021, we introduced the rst 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 exitarians alike. We provide comprehensive training, easy ordering from our HAACP approved commissary, location identi cation & design, operations support and innovative marketing initiatives that bring customers through your door.
Pizza Nova is the Of cial 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, freshness, customer satisfaction and innovation
• Superior marketing and promotional support
• State-of-the-art technology
• Ongoing professional development
• Comprehensive training
• Site selection, lease negotiation and professional architectural design
• Knowledgeable support staff
• Administrative systems
• We supply the ingredients
• Be your own boss!
Franchising information: franchisinginfo@pizzapizza.ca www.pizzapizza.ca/franchising
Score Pizza provides a high quality, customized, fast casual dining experience that is craveable. Our menu includes made to order stone red pizzas, fresh salads, hot sandwiches, along with a selection of beer, wine and other craft beverages. Our restaurants are designed to deliver a Canadian heritage décor which provides a warm, comfortable, place to hang out with friends and family, watch the game and enjoy an affordable meal. We offer unlimited topping, stone- red pizzas, for one price, ready in minutes and have extensive vegan and gluten free options, along with locally sourced fresh ingredients.
Franchise units in Canada: 14
Corporate units in Canada: 1 In business since: 2016
Franchising since: 2018
Franchise fee: $35,000
Start-up capital required: $360,000-$730,000
Investment required: $360,000-$730,000
Training: Score Pizza offers full on-boarding support, along with hands-on training customized to your learning style.
Available territories: BC, AB, SK, ON, NL, NS
CFA member since: 2021
Please contact Joel Braunstein, President 613-583-8500 • contactus@scorepizza.ca www.scorepizza.ca
At Stagecoach Performing Arts, we teach 4–18-year-olds to act, dance, and sing; not only to perform on stage but also to perform better in life. In 35 years, we have seen over one million young people gain con dence and build essential life skills. Our weekly classes allow students to develop Creative Courage for Life. We have over 300 franchisees across eight countries with 3,000 schools and classes worldwide delivering 5,000 hours per week.
franchiserecruitment@stagecoach.global www.stagecoachfranchise.com
98 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online MARKETPLACE
™ bird head design and all related marks and designs are trademarks and or copyright of Rogers Blue
Baseball partnership, used under licence.
TORONTO BLUE JAYS
Jays
Experience Sunset Grill – Famous All Day Breakfast™
Canada’s #1 breakfast brand
Join the Sunset Grill family of franchises today and experience what it’s like to be part of a brand that has perfected the Canadian breakfast experience with our made-to-order dishes and commitment to quality every step of the way.
For more than 37 years, our owner-operators have enjoyed healthy returns and high pro t margins (up to 20 per cent on net sales). With our hands-on training program and turnkey buildouts, you are set up for a successful and sustainable operation.
Our award-winning formula has been re ned through decades of experience operating and franchising successful restaurants. Ongoing support and expert guidance from our internal team maximizes pro tability and ensures your operation will run smoothly from day one.
With 100 locations and growing, we invite you to partner with Canada’s #1 breakfast brand as we continue to expand over the next 12-month period, opening at least 10 new franchised units across Canada and further expansion into select U.S. markets.
Visit us: www.sunsetgrill.ca Email us: franchising@sunsetgrill.ca Call us: (905) 286-5833
Sunset Grill. “A business that works for you.”
Join The UPS Store franchise network and count on the support from our experienced Home Of ce and in- eld 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 365 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 365 Minimum cash investment: $100,000
Total cash investment: $199,250 to $218,500 plus working capital. For more information on The UPS Store opportunity, call 1‐888-875-0007 or visit www.theupsstore.ca.
WingsUp! specializes in takeout, delivery and catering of 100% fresh chicken wings & bites, along with appetizers, sandwiches, sides and greens. Since 1988, we’ve been committed to using the highest quality fresh, never frozen chicken without any llers. We invite you to join the WingsUp! family with unparalleled operational support right from site selection, training, and ongoing marketing support, continuing forward until every order nds its way into the guest’s hands.
Franchise Fee:
• 28 locations, with more on the way
• 65% of orders made Online
• Turnkey Operation. Small Footprint
• No previous experience necessary
Contact us
Franchise@wingsup.com (289) 834-2027
https://www.wingsupfranchise.com
X-Golf is an indoor golf simulator and entertainment franchise that features the world’s most advanced golf simulator technology. The X-Golf franchise model offers an exciting business opportunity for those ready to pursue a new venture in a unique, non-saturated, developing sports and entertainment industry. Our indoor golf simulator venues are market leading, sophisticated, socially interactive locations. We streamline our food and beverage service to create low overhead, high margin opportunities for our franchisees. This is all backed by state-ofthe-art, innovative virtual reality technology.
Want to Become a Part of the X-Golf Franchise Family?
Visit XGolfCanada.com for More Information.
Franchise Canada January | February 2023 99 MARKETPLACE
DON’T MISS OUR MARCH/APRIL 2023 ISSUE!
The Diversity in Franchising Issue
Franchising is for everyone, and Franchise Canada is on a mission to promote the diversity of the franchising industry, from the people who make up the Canadian franchise community, to the available investment opportunities.
This issue features the success stories of franchisees from different backgrounds, showcasing how anyone can find success through franchising. Within this issue, hear from franchisees from different generations, backgrounds, and genders, as they outline the challenges they’ve faced on their franchising journey, and more importantly, how they’ve overcome these barriers to build lasting connections with their local communities.
Franchising also offers a diversity of franchise opportunities. This issue will highlight brands across a range of industries and investment levels, in communities in the major urban centres and beyond. This issue takes you on a cross-Canada tour of business-to-business franchises that are helping business owners with key services like marketing, signage, consulting, and more. We also share insight into the franchise resale process with a franchisee case study, and shine a special focus on the home services sector, which is offering a wide range of services to help Canadians keep their homes in tip-top shape. Check out the March/April issue for these features and more, including franchisee success stories and expert advice from franchise professionals.
WATCH OUT FOR THESE EXCITING FEATURES IN OUR MARCH/APRIL 2023 ISSUE:*
DIVERSITY IN FRANCHISING:
In our cover story feature, we showcase a diverse range of Canadian franchisees across different genders, age groups, and backgrounds, who’ve all made their entrepreneurial dreams come true through franchising. Prospective franchisees from all backgrounds can look forward to joining the diverse and inclusive franchising community.
WOMEN IN FRANCHISING:
While franchising remains a maledominated industry, women are certainly proving that they can thrive through the franchise business model. We share the inspiring stories of female franchisees, focusing on their paths to business success, and their advice for other women interested in launching their franchise careers.
FRANCHISING WITH FAMILY: How do you manage a household while also managing a business? Franchise Canada checks in with franchisees who run their businesses with family members to learn more about how they find the right worklife balance.
B2B FRANCHISE SERVICES: The March/April issue will feature a look at member brands in the B2B sector from coast to coast. From advertising and employment services to commercial cleaning and more, learn all about how these essential franchises are offering opportunities to help Canadian businesses thrive.
PLUS
A SPECIAL FRANCHISE FOCUS ON HOME SERVICES FRANCHISES!
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
100 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
WHAT’S NEXT
COBS Bread 16 cobsbread.com/franchising
Driverseat 7 www.driverseatinc.com/franchise
eSupply Canada Ltd. Inside Front Cover www.esupplycanadafranchise.ca
Global Franchise ............................................... 79 www.global-franchise.com
International Franchise Association 44 www.franchise.org
Kentucky Fried Chicken Canada Company (KFC Canada) 46-47 www.KFC.CA/Franchise
M&M Food Market 3 www.mmfoodmarket.com
Mamma’s Pizza 52-53 www.mammaspizza.com
Maverick’s Donuts 18-19 www. mavericksdonuts.com/franchise
Moneris 9 www.moneris.com/associations
Neighbourly 13 go.nbly.com/CFA
Nethris 22-23 www.nethris.com/cfa
ONESource Moving Solutions 29 www.onesourcemoving.ca
OPA! of Greece 55 www.opasouvlaki.ca/franchise/
Pizza Depot 52-53 www.pizzadepot.ca
Pizza Nova 59 www.pizzanova.com
Pizza Pizza 17 www.pizzapizza.ca/franchising
Score Pizza 48-49 www.scorepizza.ca
Stagecoach Theatre Arts (Canada) Limited ................................................................ 20-21 www.stagecoachfranchise.com
Sunset Grill 57 www.sunsetgrill.ca
The UPS Store 15 www.theupsstore.ca
WingsUp! 50-51 www.wingsupfranchise.com
X-Golf 11 www.XGolfCanada.com
Everything you need to create your franchise future!
Buying a franchise can be an overwhelming process. The good news is you don’t have to do it alone. Franchise Canada is here to guide you through the franchise process, with everything you need in one spot: FranchiseCanada.Online
Franchising 101: Easy-to-read resource articles and tutorials can help kick-start your franchise success!
LookforaFranchise.ca: Explore the wide range of available franchise opportunities in our online directory
Ask the Expert: Hear firsthand from franchise professionals as they answer common questions from prospective franchisees
Franchise Canada TV: Find interviews, tutorials and guides, information about key franchising topics, and more!
Franchise Canada Chats: Listen to inspiring franchisees, franchisors, and industry experts who are building their businesses and connecting with their communities Franchise Canada E-News: Get the latest Canadian franchise opportunities and updates delivered to your inbox through our FREE e-newsletter
Ready to Learn More? Subscribe to Franchise Canada E-News for FREE today to receive a FREE digital edition of Franchise Canada magazine!
FRANCHISECANADA.ONLINE
Franchise Canada January | February 2023 101
ADVERTISERS’ INDEX
Companions for Change
Franchisees play a key role in Pet Valu’s charitable initiatives
BY ANDREW SCHOPP
WITH MORE THAN 7.9 MILLION DOGS and 8.5 million cats in Canada, it’s easy to see why investing in a pet care franchise is an attractive proposition. For franchisees of Pet Valu, Canada’s largest pet specialty retailer of pet food and pet-related supplies, the rewards of franchise ownership go beyond the profit margins.
When it comes to Pet Valu’s dedication to the well-being of pets, the proof is in the pudding: millions of dollars raised by various fundraising programs and tens of thousands of pets finding their forever homes across Canada.
These results wouldn’t be possible without Pet Valu’s strong network of caring franchisees, explains Tanbir Grover, chief marketing and digital officer at Pet Valu.
“We have something called our Four Paws Service Model. Our first paw is always about safety and our second paw is compassion,” Grover says of the Pet Valu franchise model. “We strive to act from the heart, with genuine care and courtesy. Our franchisees want their customers and neighbours to know that they are bringing people together and making an impact locally that makes a difference.”
The bedrock of Pet Valu’s charitable efforts is the franchise’s work with the Lions Foundation of Canada Dog Guides, a national charity that provides Dog Guides to Canadians with disabilities. The charity pairs Canadians who are blind, visually impaired, deaf, or hard of hearing with Dog Guides, and helps increase the independence of individuals with other disabilities, such as epilepsy, type 1 diabetes, and autism. Service dogs are also employed to help individuals whose movement is impaired.
Pet Valu’s partnership with Dog Guides has grown into, among other things, the annual Pet Valu Walk for Dog Guides, its biggest fundraiser of the year. In September 2022, Pet Valu announced the launch of AutoShip, a subscription-based service enabling devoted pet lovers to automatically receive the pet essentials they need on a recurring schedule of their choice.
Using the new AutoShip program to add to Pet Valu’s support of Dog Guides was an obvious choice, says Grover. The brand was happy to blend the AutoShip program into its charitable arm, Companions for Change.
Since 2010, Companions for Change has raised over $24 million for animal-related charities across Canada. Grover adds that Companions for Change has helped more than 42,000 homeless animals find their forever families. Most recently, Pet Valu donated $250,000 to the North Bay and District Humane Society, which aided in the construction of a new animal adoption and wellness centre.
“The AutoShip program gives our devoted pet lovers a level of convenience in terms of getting their staple items, either picked up in-store or sent to them without having to worry. And then, one of the things that we wanted to lean into was our ‘compassion paw,’ as we call it,” Grover says of the AutoShip program.
“We wanted to make sure that we did something a little bit different that catered to our Companions for Change program. And that was donating $20 worth of Performatrin dog food back to the Dog Guides for every item added to AutoShip subscriptions. We wanted to do something a little bit different that’s collectively better for our community and would have a better impact from the customer perspective, too.”
Looking ahead, Grover says Pet Valu will continue to look to its franchisees to make giving back to the community a key part of the franchise system’s core values. He adds that one of the great things about the franchise business model is the ability to spread charitable efforts across a vast network of dedicated franchisees.
“Our franchisees are deeply committed to our Companions for Change program. They think it’s a great product differentiator and message differentiator. They see this as value added versus just impacting their margins per se. It gives them the ability to craft their story a little bit more and it gives them more of a personal interest in being able to share the impact that they make.”
Learn more at LookforaFranchise.ca
102 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
GIVING BACK