HEALTHY QUICK SERVICE RESTAURANT FRANCHISES
CELEBRATING WOMEN’S DAY
SPECIAL FOCUS ON RETAIL FRANCHISES ACROSS CANADA
INSIDE! FREE PASS TO
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A Canadian Franchise Association Publication / FranchiseCanada.Online
Iconic Canadian brand Second Cup Coffee Co.’s vision for the future
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REIMAGINING THE COFFEE SHOP
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FILING DOES NOT CONSTITUTE APPROVAL BY THE DEPARTMENT OF LAW. © 2017 ANYTIME FITNESS, LLC. EACH ANYTIME FITNESS CLUB IS INDEPENDENTLY OWNED AND OPERATED. OFFERINGS MAY VARY. SEE LOCAL CLUB FOR DETAILS.
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AN OPPORTUNITY SO GOOD THAT YOU CAN TASTE IT!
CONTENTS MARCH/APRIL 2019
16
Second Cup Coffee Co. Toronto franchisee Eduardo Eed (middle) and his staff
COVER STORY
16
Reimagining the Canadian Café Premium coffee franchise system Second Cup is evolving to remind Canadians that they are one of the country’s premier coffee pioneers
FEATURES
22
Healthy Habits Fast food franchises with a fresh take • 44 NEW Canadian locations in 2019 •Over 360 stores in four countries • Premium locations available • Industry-leading sales growth • Own one or multiple stores • Full turn-key buildout • Comprehensive training
BE A PART OF THE BOOSTER JUICE TEAM! E-mail for franchise information: franchising@boosterjuice.com Or visit us online at:
28
Let’s Get Physical Canadians are an active bunch, and these franchise systems help keep them fit as a fiddle
41
Celebrating International Women’s Day From 100% female powered franchises to franchisees breaking gender norms in predominately maledominated sectors, Franchise Canada shines a light on the women helping the franchise industry thrive.
48
Do You Have What it Takes to Succeed as a Franchisee? A look at the top 10 traits of best-in-class franchisees
SPECIAL FRANCHISE FOCUS
34
Healthy Drinks, Cool Treats Franchise systems offering juice and yogurt options provide nutritious treats and beverages to busy Canadians
boosterjuice.com
4 Canadian Franchise Association
www.cfa.ca | www.FranchiseCanada.Online
51
Retail Franchises
Franchise Canada is published by the Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
DEPARTMENTS
57
HOME-GROWN & LOCALLY-OWNED 100% Canadian Franchise Systems
60
MILLENNIALS IN FRANCHISING Rising to the Challenge TWO MEN AND A TRUCK franchisee builds on company culture to grow his business
63
THE FIRST YEAR The Rise of a Superhero Local superhero and mother, Jody Anderlich soars with the opening of the first Lice Squad.com clinic in her Brampton, Ontario community
66
LEADERSHIP PROFILE Changing the Rental Game Frustrated by the minutia of renting equipment for his landscaping business, Chris Clark thought “there’s got to be a better way.” From there, TheRentalGuys.ca was born.
68
A DAY IN THE LIFE Escaping the Routine A career shift for Hand & Stone Massage and Facial Spa franchisee Roxanne Power brings flexibility and a new adventure every day
71
ICONIC BRAND “Taste the Difference!” With its trademark radio jingle, and quality ingredients, Pizza Nova has risen to become an iconic Canadian brand in the ultra-competitive pizza space.
FRANCHISE OPPORTUNITIES AVAILABLE NATIONWIDE!
74
SHOW ME THE MONEY 4 Franchises for $500K+
76
FRANCHISE FUN Fueled by Family Franchising the Fire-Alert concept in 2008, the fatherson team of Yvan and Sylvain Houle take great pride in being a family-owned and operated system of fire protection franchises
81
FRANCHISE TUTORIAL Tutorials 21 & 22 This issue: • Introduction to Reporting • Introduction to Audits
COLUMNS
10 CFA CODE OF ETHICS 12 INDUSTRY NEWS 78 ASK THE EXPERTS 85 MARKETPLACE 97 ADVERTISERS’ INDEX 98 GIVING BACK
Visit www.LookforaFranchise.ca to find further information about the franchises featured in this March/April issue.
Franchise Canada
“Booster Juice is a company that screams Canadian pride and we are proud to be a part of the vision.” Jason Tsang Booster Juice Franchise Partner
March | April 2019 5
PUBLISHER’S MESSAGE
NEW YEAR, FRESH FRANCHISE CONCEPTS
N
ew Year’s Eve has come and gone, which means that thousands of Canadians nationwide are flocking to their local gyms looking to fulfill their resolutions. While gyms across the country do indeed see an uptick in membership throughout the late winter months, staying active is not just another flimsy New Year’s resolution for most Canadians. As a country, we are an active bunch year-round! According to Stats Canada, more than 16.2 million Canadians aged 12 and over reported participating in at least 150 minutes of moderate to vigorous intensity aerobic physical activity per week. When it comes to making healthy food choices, Canadians are becoming more-and-more conscious of what they put in their bodies. This all adds up to what is a multi-billion dollar industry with endless franchising opportunities. Staying active and eating right takes commitment. The March/April 2019 issue of Franchise Canada is all about the unique franchise concepts that help people make that commitment. From fitness centers to quick service restaurants offering healthy and nutritious food options, this issue is your guide to all the franchise industry’s Health, Fitness, and Wellness sector has to offer. But first, in our cover story, we take an in-depth look at the evolution of an iconic Canadian brand. We feature the story of Second Cup’s growth from the 1970s to today, leading up to their recent announcement that they’ll work with National Access Cannabis Corp to develop a network of NAC-branded and operated recreational cannabis stores. Throughout the rest of the issue, we look at how the franchise industry has caught on to health trends with a comprehensive offering of opportunities within the Health, Fitness, and Nutrition categories. If you’re ready to get started in franchising, with a keen interest
6 Canadian Franchise Association
in this thriving sector, than this is a must-read issue. On page 22, we profile three unique QSR concepts that are dedicated to serving delicious food built by wholesome ingredients. Over on page 34, we hear from a quartet of juice and frozen yogurt franchises for Canadians on the go, while taking a look at fitness centers across Canada on page 28. In celebration of International Women’s Day on March 8, Franchise Canada recognizes the female members of the Canadian franchising community as we showcase 100 per cent female owned and operated franchise systems, along with three female franchisees making their mark in typically male franchise markets on page 41. And as always, Franchise Canada tells the stories of the great people that make the franchise model work, including Cotie Drinkwater, a millennial franchisee with TWO MEN AND A TRUCK on page 60, and Jody Anderlich, a first year franchisee with Lice Squad.com on page 63. Whether you’re focusing on the Health, Fitness, and Nutrition space, or one of the many other established and emerging franchise categories, we hope that you use the tools, information, and franchisee insights in this issue to help you make your fresh franchising start a reality this spring.
Sherry McNeil President & CEO Canadian Franchise Association
www.cfa.ca | www.FranchiseCanada.Online
CFA BOARD OF DIRECTORS BOARD CHAIR John DeHart*, Nurse Next Door Home Care Services & LIVE
WELL Exercise Clinic
PRESIDENT & CEO Sherry McNeil*, Canadian Franchise Association 1ST VICE CHAIR Gerry Docherty*, Good Earth Cafes 2ND VICE CHAIR David Druker*, The UPS Store TREASURER Rick Chittley-Young*, Assurance & Accounting
PUBLISHER
Canadian Franchise Association (CFA) VP, MARKETING & COMMUNICATIONS
SECRETARY & GENERAL COUNSEL Peter Snell*, Gowling WLG LLP
Kenny Chan
PAST CHAIR John Wissent*
ASSOCIATE PUBLISHER Christine Rosal
CHAIR, LEGAL & LEGISLATIVE COMMITTEE
EDITOR Andrew Schopp
Larry Weinberg*, Cassels Brock & Blackwell LLP
GRAPHIC DESIGNER Andrea Lee
CHAIR, FRANCHISE SUPPORT SERVICES Tony O'Brien*, TruShield Insurance
ADVERTISING SALES Gwen Dunant
DIRECTORS
AD COORDINATOR Andrea Lee
Hadi Chahin, Mary Brown’s Chicken & Taters Steve Collette, 3rd Degree Training/Actual Nutrition Felix DeCata, Boston Pizza International Inc. Lawrence Eade, Box Concepts Food Group Lafleche Francoeur, Pacini Sebastian Fuschini, Pizza Pizza Clark Harrop, McDonald’s Restaurants of Canada Limited Terry Hould, ServiceMaster of Canada Limited Andrew Hrywnak, Print Three Franchising Corporation Rimma S. Jaciw, CFE, WSI Digital Marc Laurin, MTY Group Don Leslie, A&W Food Services of Canada Jon-Anthony Lui, Tutor Doctor Gary Prenevost, FRANNET Stephen Schober, Metal Supermarkets Family of Companies Frank Stanschus, Little Kickers Bob Tipple, Expedia CruiseShipCenters *Executive Committee member
NATIONAL SPONSORS
The CFA wishes to acknowledge and thank these National Sponsors for their support throughout the year. Find out more about these companies at www.cfa.ca/sponsorship
CONTRIBUTING WRITERS
Georgie Binks, Suzanne Bowness, Jessica Burgess, Kristin Di Tommaso, Roma Ihnatowycz, Gina Makkar, David Chilton Saggers, Karen Stevens, Jordan Whitehouse, Kym Wolfe, Trisha Utomi FRANCHISE FUN ILLUSTRATION Sam Gorrie PRINTING Premier Printing FOR ADVERTISING INFORMATION:
Tel: 877-254-0097 | gwen@cfa.ca TO SUBSCRIBE TO Franchise Canada
visit www.FranchiseCanada.Online or call 1-800-665-4232 ext. 224. Return Undeliverable Canadian Addresses to: Canadian Franchise Association 5399 Eglinton Ave. West, Suite 116 Toronto, ON M9C 5K6
We invite your comments, questions and suggestions. Please contact us at editor@cfa.ca or 1-800-665-4232.
© 2019, Canadian Franchise Association. All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the publisher. Franchise Canada is a member of Magazines Canada. Publications Mail Agreement No. 41043018 Legal Disclaimer The opinions or viewpoints expressed herein do not necessarily reflect those of the Canadian Franchise Association (CFA). Where materials and content were prepared by persons and/or entities other than the CFA, the said other persons and/or entities are solely responsible for their content. The information provided herein is intended only as general information that may or may not reflect the most current developments. The mention of particular companies or individuals does not represent an endorsement by the CFA. Information on legal matters should not be construed as legal advice. Although professionals may prepare these materials or be quoted in them, this information should not be used as a substitute for professional services. If legal or other professional advice is required, the services of a professional should be sought. FSC® certification is a commitment to good forestry practices, carried from forest to consumer
8 Canadian Franchise Association
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ADVERTORIAL
LOVE TO HELP OTHER BUSINESS OWNERS THRIVE? Consider investing in one of the fastest growing sectors in Canada, business coaching.
Today, ActionCOACH Canada only awards what they call Firm Franchises. This is about building a firm: hiring coaches, a marketing team and support people. Building a professional services practice that works and scales without the owner doing the daily coaching. Because this model is based on leverage, and is dramatically more scalable, Dale and Raj have also been able to do something extremely rare. They literally guarantee a six figure income with their franchise. How can they guarantee that?
Business coaches are superheroes in their community
Investors considering buying a franchise or even starting their own business have many things to consider. How much can I earn? Will I enjoy this? Is this business recession-proof or will it crash and burn during the next recession? Will I be able to sell this for a significant multiple when I’m ready to exit? Are their big risks I can’t control? Is there a proven system in place to help me succeed? Among this daunting list is one other important factor. Will prospects be willing and eager to spend money with my business? As a result one of the fastest growing sectors in Canada is business coaching. Nearly two out of three small businesses fail in the first six years. The exact number is 62.8%. That means a lot of families torn apart. Good business coaching can end that problem, and
that’s why business coaching is doing so well. Prospects want help and they’re willing to pay for it. And that’s part of the reason ActionCOACH Canada is growing so fast. As part of the largest business coaching franchise in the world, with a 25 year track record and tens of thousands of happy business clients, Canadian Master Franchise Owners Dale Monette and Rajan Rakheja are boldly going where few if any other Canadian Franchises are going. And it started by looking at the global market of business coaching, seeing what is working best. The result of their research is to change the focus of business coaching. The old model is a time for money model. The irony is that the best business coaches teach entrepreneurs to build a business that works with or without them. And yet they weren’t doing it for themselves.
For starters, the average ActionCOACH in Canada earns $182,000 already. Second, by focusing on building a firm instead of daily coaching, and leaving the daily coaching to professionally trained coaches employed by the firm, the business can grow faster. And third, due to the extensive track record, they have a system of business coaching that’s so predictable they guarantee results for their clients. That makes attracting clients much easier than a typical business coach. So who is the perfect fit for owning this type of franchise? VP Sustainable Development for ActionCOACH Canada, Tom Matzen says “because we don’t require you to be a super successful business owner with an incredible track record in order to be able to coach business owners, we focus on Core Values. Do you have a passion to help others thrive? Do you want to work ‘on your business’ rather than ‘in your business’? And do you have desire to build a mid six figure, maybe even seven figure enterprise? If so, you might be a perfect fit”. For those wanting to learn more, they can visit www.ActionCoachFranchise.ca
CODE OF ETHICS
T
he Canadian Franchise Association (CFA) is dedicated to encouraging and promoting excellence in franchising in Canada. Each member of the Association agrees to abide by the CFA Code of Ethics and to further the Association’s goals of encouraging and promoting ethical franchising in Canada. Each member of the Association agrees to comply with the spirit of this Code of Ethics in its general course of conduct and in carrying out its general policies, standards and practices. The following are considered by the Association to be important elements of ethical franchising practices: 1. Franchise system and franchise support services members should fully comply with Federal and Provincial laws, and with the policies of the Canadian Franchise Association. 2. A franchisor should provide prospective franchisees with full and accurate written disclosure of all material facts and information pertaining to the matters required to be disclosed in advance to prospective franchisees about the franchise system a reasonable time [at least fourteen (14) days] prior to the franchisee executing any binding agreement relating to the award of the franchise. 3. A ll matters material to the franchise relationship should be contained in one or more written agreements, which should clearly set forth the terms of the relationship and the respective rights and obligations of the parties. 4. A franchisor should select and accept only those franchisees who, upon reasonable investigation, appear to possess the basic skills, education, personal qualities and financial resources adequate to perform and fulfil the needs and requirements of the franchise. Franchise systems and franchise support services members of the Association should not discriminate based on race, colour, religion, national origin, disability, age, gender or any other factors prohibited by law. 5. A franchisor should provide reasonable guidance, training, support and supervision over the business activities of franchisees for the purposes of safeguarding the public interest and the ethical image of franchising, and of maintaining the integrity of the franchise system for the benefit of all parties having an interest in it. 6. Fairness should characterize all dealings between a franchisor and its franchisees. Where reasonably appropriate under the circumstances, a franchisor should give notice to its franchisees of any contrac-
10 Canadian Franchise Association
tual default and grant the franchisee reasonable opportunity to remedy the default. 7. A franchisor and its franchisees should make reasonable efforts to resolve complaints, grievances and disputes with each other through fair and reasonable direct communication, and where reasonably appropriate under the circumstances, mediation or other alternative dispute resolution mechanisms. 8. A franchisor and a franchise support services member should encourage prospective franchisees to seek legal, financial and business advice prior to signing the franchise agreement. 9. A franchisor should encourage prospective franchisees to contact existing franchisees to gain a better understanding of the requirements and benefits of the franchise. 10. A franchisor should encourage open dialogue with franchisees through franchise advisory councils and other communication mechanisms. A franchisor should not prohibit a franchisee from forming, joining or participating in any franchisee association, or penalize a franchisee who does so. 11. A franchise support services member in providing products or services to a franchisor or franchisee should encourage the franchises to comply with the spirit of this Code of Ethics. A franchise support services member should not offer or provide products or services if legislative or professional qualification is required to do so unless the franchise support services member has such qualification.
LOOK FOR EXCELLENCE As you investigate the many franchise opportunities available to you, you will see a special logo featured in franchise literature, on franchising websites and in franchise tradeshow booths. This logo identifies franchise systems and franchise support services/suppliers as members of the Canadian Franchise Association (CFA). You should be on the lookout for this symbol when researching franchise systems or assembling a team of franchise support professionals to assist in your search. CFA encourages and promotes excellence in franchising in Canada and members of the Association voluntarily agree to follow the CFA’s Code of Ethics in pursuit of these goals. Start your search for your franchise dream with a CFA member. Visit FranchiseCanada.Online today.
www.cfa.ca | www.FranchiseCanada.Online
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: www.FranchiseCanada.Online
Learn about franchising Easy-to-read franchising articles and tutorials can make a huge difference as you navigate your franchising journey. Our resources have been designed with you in mind, and have helped many other prospective franchisees understand the franchise business model, and what it means for those starting out.
Prepare for business ownership Are you a first-time business owner? Understanding your responsibilities as an owner is very important to your success in franchising. Gain competency in the basics of business ownership so you can run your business like a boss.
Discover franchise opportunities Don’t settle your future on the first franchise you see. There are over 1,300 different franchise opportunities available across more than 50 different industries, and at every price point. Explore the wide range of opportunities available to you in our online directory.
Connect with franchisors Before you sign a franchise agreement, get to know the people behind the brand that you’re set to partner with. You can speak to them in person and face to face at the Franchise Canada Show, or set up a meeting through our online directory.
Find financing and legal support Before you sign on the dotted line of the franchise agreement, you’ll need to ensure your finances are in order, and that you fully understand the franchise disclosure document. Learn from franchise professionals, who share their advice to help you through the critical disclosure process.
Receive regular, informative updates Get the latest Canadian franchise opportunities and industry news delivered straight to your inbox. Our free e-newsletter has the information you need to grow your franchise knowledge and learn how to invest with success.
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INDUSTRY NEWS
Your source for what’s happening in Canadian franchising CFA Members Receive 2018 Forty Under 40 Recognition Founder and President of LIVE WELL Exercise Clinic, Sara Hodson, was recently recognized as a recipient of the 2018 Forty Under 40 Awards in British Columbia. LIVE WELL was founded with the intention of helping Canadians with chronic health conditions, such as heart disease, diabetes, high blood pressure and obesity. The clinic specializes in exercise and healthy lifestyle coaching and cater to people who have been prescribed a healthier lifestyle but don’t know where to start. The franchise was founded on the belief that exercise is the best medicine. Hodson was joined by a fellow member of the Canadian Franchise Association, and CFA Board Member, Lawrence Eade of Box Concepts Food Group. A growing brand, Box Concepts Food Group includes notable franchise systems such as Wok Box, Firecrust Custom Salads + Pizzas and Hon’s Wonton House. Eade first got his start with the brand in 2006, eventually serving as CFO before being promoted to CEO before the age of 30. Recognizing leading entrepreneurs under the age of 40, the Forty Under 40 Awards celebrate contributions made to business through leadership and community involvement. Hodson and Eade were recognized in late 2018 during the Forty Under 40 Awards gala dinner in Vancouver. CFA Members Win Big for the 2018 Global Franchise Awards A handful of members from the Canadian Franchise Association (CFA) were recently announced winners of the 2018 Global Franchise Awards. Recognizing franchise brands on a global scale, the Awards celebrate
12 Canadian Franchise Association
those making an effort to advance franchising on an international level. Of the seven categories, four were awarded to CFA members. Longtime member, BrightStar Care, took home the Supreme Champion and Best Nursing & Care Franchise, while Coyote Ugly Saloon won for Best Food & Drink Franchise. Elsewhere, international tutoring franchise, Tutor Doctor, was recognized as the Best Lifestyle Franchise and Chem-Dry won for Best House & Office Franchise. PropertyGuys.com Expands into the United States with Master Agreement PropertyGuys.com, Canada’s premier private sale marketing group, has officially awarded a Master Franchise Licence for its proprietary real estate platform within the state of Florida. The company, now the largest private real estate franchise network in Canada, has made the U.S. a strategic target to fuel its franchise growth over the coming years. “We’ve been extremely strategic and diligent on expanding south of the border,” explained Ken LeBlanc, President and CEO of PropertyGuys. com. “Not only have we waited for the right time to enter the US housing market, but we’ve also attracted quality partners who share our vision for disrupting real estate.” The agreement, entered into with a private group of seasoned entrepreneurs, gives the group the rights to develop PropertyGuys.com franchises throughout the state of Florida. The deal could represent well over 100 new locations within the state. The company is also planning to expand strategically into other states, which would bring its US franchise unit count well into the thousands in coming years.
www.cfa.ca | www.FranchiseCanada.Online
“Florida is so attractive for us because it’s a top destination for Canadian travelers and investors alike who recognize our brand – giving us a strong foundation as we expand throughout the State and beyond,” continued LeBlanc. “It’s exciting and humbling to be awarded the first Master Franchise in the US,” stated Patrick Belanger, who leads the investment group. “We’re excited to be part of bringing this innovative and proven approach to the Florida market and look forward to replicating the success PropertyGuys.com has enjoyed in Canada across Florida.” The southern expansion comes at a time where tech-focused real estate plays like PropertyGuys.com are red-hot in both the public and private markets. Last year alone, more than $5 billion in VC-led capital entered into the US real estate market, driven by a movement to overhaul the way that buyers and sellers connect using technology. “Real estate provides investors with access to a huge asset class – touching where every person lives, works and plays,” said PropertyGuys.com Director of Partnerships, Walter Melanson. “PropertyGuys. com is at the forefront of this movement within Canada and sees the trend continuing.” FASTSIGNS International, Inc. Signs 32 Franchise Agreements FASTSIGNS International, Inc. announced late last year it had signed 32 franchise agreements in 2018 to develop new, co-branded, and conversion centres across the U.S. in cities such as Manhattan, Orlando and Portland. The company also signed agreements to develop centers in Alberta and the U.K. in addition to
INDUSTRY NEWS a Master Franchise Agreement to expand the brand to Spain. “To continue our leadership position as the top-ranked sign and graphics franchisor in the world, validation by franchisee signings at this pace is our greatest compliment,” said Mark Jameson, EVP of Franchise Support and Development, FASTSIGNS International, Inc. “The brand continues to garner a strong image worldwide, contributing to our ability to grow in new and existing markets.” FASTSIGNS was projected to open over 40 locations across the U.S. in 2018. Internationally, FASTSIGNS is continuing to seek qualified candidates to grow its international footprint in target markets throughout the world, including New Zealand, Brazil, Quebec, North Africa, Southeast Asia, India, Europe, and Latin America. Inner Spirit Holdings Celebrates Opening of First Spiritleaf Location in Alberta In Canada’s dynamic cannabis market, Inner Spirit Holdings Ltd. is establishing a chain of recreational cannabis dispensaries under its Spiritleaf brand. Late last year, the company opened three Spiritleaf franchise stores in Brooks, St. Albert and Lethbridge, Alberta, in addition to a location in Moose Jaw, Saskatchewan. “We have exciting and aggressive plans to open Spiritleaf franchises and corporate stores throughout the country. The opening of our first locations in Alberta is a very important milestone for Inner Spirit and the Spiritleaf brand,” said Darren Bondar, President and CEO of Inner Spirit. “We’re executing on our vision and bringing the iconic Spiritleaf experience to new customers. Our extension of the Spiritleaf brand into Saskatchewan will be another key achievement in our expansion strategy.” In Ontario, Spiritleaf continues to expand its highly successful corporate and franchise model. Inner Spirit has already granted 20 franchises in Ontario, secured leases
for up to 40 locations, and expects to pursue a maximum of 75 stores in the province. Cora Franchise Group Set to Open Ten New Restaurants in 2019 Quebec-based breakfast and lunch chain, Cora, is set to deliver on its ambitious expansions plans with multiple openings planned in Western Canada and downtown Toronto in 2019. The beloved Canadian brand ended 2018 with the opening of a new location in downtown Edmonton in December. “We are pursuing our primary objective to offer the best breakfast to everyone across the country,” states Nicholas Tsouflidis, President of the Cora Franchise Group. “Competition is fierce, but we are proud to be Canada’s largest independent breakfast and lunch chain.” Since 1987, Cora restaurants have set the bar for breakfast restaurants and the Cora Franchise Group’s adventured followed suit with franchising opportunities 25 years ago. Today, the breakfast leaser in Canada counts 126 restaurants across the country. SuperGreen Solutions Expands to Maritimes Canada SuperGreen Solutions is proud to welcome Barry Gallant of Maritimes, Canada as the newest Master Franchisee to join its network. SuperGreen Solutions is the world’s premier sustainability advisors, helping businesses lower costs and drive revenues through green certification. “Sustainability has always been a passion of mine; I am a big advocate of renewable energy,” says Gallant. “I’ve been following SuperGreen Solutions for a couple of years now and have been thoroughly impressed by their progressive sustainability measures. When looking for a new business opportunity, the decision to own a SuperGreen Solutions franchise was a no brainer.” With a background in civil structural engineering, Gallant joins
SuperGreen Solutions with a wealth of knowledge and insider’s perspective of the innovations wrapped around “going green.” “Going from early adopters to the masses, the green movement has caught the attention of the Canadian government and businesses across our country,” says Gallant. “While Canada – and the entire world – is becoming more green-conscious, now is the ideal time to get in the sustainability market. I am proud to own a business in which I can make a large impact, to the local community, and the environment.” Gallant has plans to expand across eastern Canada, adding SuperGreen Solutions operations across Halifax, Prince Edward Island and New Brunswick over the next five years. Entrepreneur Magazine Adds MaidPro to its Top Franchises for Veterans List MaidPro ended 2018 on a high note, ranking 38th on Entrepreneur Magazine’s Top Franchises for Veterans List, which recognizes the franchise brands that offer the best incentives for veterans interested in becoming franchisees. MaidPro recently teamed up with Hometown Heroes to make owning a home cleaning franchise business more affordable for U.S. and Canadian veterans. Through its Veteran Discount Program, MaidPro offers U.S. and Canadian veterans discounted franchise packages valued at $15,000. The discount package includes a $3,000 discount on the initial franchise fee, a $100 invoice credit each month for the life of the 10-year franchise agreement, and direct financing or financial assistance to help veterans enter the franchise industry. In addition to being named to Entrepreneur’s list, MaidPro recently ranked fourth out of 80 franchises on Franchise Business Review’s 2018 Top Franchises for Veterans List, ranking first on the list in the Cleaning & Maintenance category.
Franchise Canada March | April 2019 13
ADVERTORIAL
WHERE FITNESS MEETS TECHNOLOGY
A
fter taking home the gold medal in the 2008 Olympics, Decathlete Bryan Clay set his sights on his next big challenge: developing a unique fitness program that incorporates science-based periodization training for results and safety. He and co-founder Joe Culver took the leap and founded Eat the Frog. UPPING THE GAME Eat the Frog offers a disruptive approach to fitness. Members in all age groups and fitness levels stay motivated with personalized programs designed to grow and maintain their momentum using metrics that assess functional fitness in cardio, strength, core power and flexibility. “The big secret is that a lot of elite athletic training incorporates exercises designed to keep the body safe and functioning well in everyday life,” says Clay. “By minimizing risk, elite athletes can up their game and go for the gold. We’re using a similar approach for everyday folks who want to commit to fitness.” WHY EAT THE FROG? “Eat a live frog first thing in the morning and nothing worse will happen to you the rest of the day.” – Mark Twain Eat the Frog is the antithesis of a one-size-fits-all workout regimen. Members are taught to master highintensity, low-impact interval workouts in a group-training environment. With personalized training, members build habits to stay on track to reach their full fitness potential. This leads to a more consistent approach to fitness that accounts for recovery time, continual encouragement, and low risk of injury.
HOW IT WORKS Eat the Frog studios are open 24/7. There is always a fitness professional in the studio to support members during coached class sessions. Virtual
classes allow meeting the needs of a busy lifestyle no matter what time. ASSESS – Coaches use a proprietary training method that incorporates heart rate training to accurately assess fitness in cardio, strength and flexibility every eight weeks. Using this data-based technique, the Eat the Frog Fitness is able to create a customized training plan for each member to help them achieve their fitness goals. TRAIN – We recommend that each member complete at least three 55-minute customized workouts each week in a group environment. A fitness coach is on hand to provide guidance, answer questions, and help members refine their form for optimum performance. Workouts are high-intensity and low-impact, with recovery time built in to eliminate the chance of injuries. ACHIEVE – The member and coach regroup every eight weeks to discuss how the member is feeling, which goals have been met, and how to continue to up the member’s fitness game. A FAST GROWING BUSINESS MODEL A leading segment of the $28 billion fitness industry, the boutique fitness studio model has seen 70% growth in recent years and keeps growing. And
with Eat the Frog’s innovative and tech-driven approach, it is poised to become an industry leader. With 225 franchise licenses sold already in the US and Canada, Eat the Frog plans to continue its rapid growth by opening nearly 40 new studios this year. Don’t let this opportunity pass you by! FRANCHISE TRAINING AND SUPPORT Eat the Frog knows that its success depends on yours. That’s why they offer: • Initial onboarding to franchise training in classroom, virtual, onsite, and local support • Third-party financing including 401K rollovers, leasing, SBA funding, and secured lines of credit • Securing real estate and lease negotiations to get you the best TI dollars and free rent • Architectural design and support • Marketing including print, targeted social media, membership presales, radio, TV, and more • Operational support for pre-sales, grand opening, ongoing studio reviews, business coaching, etc. For more information on franchise opportunities, call (800) 841-8363 or visit www.frogfranchise.com. n
COVER STORY
Bonus video content on FranchiseCanada.Online!
16 Canadian Franchise Association
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REIMAGINING THE CANADIAN CAFÉ
Premium coffee franchise system Second Cup is evolving to remind Canadians that they are one of the country’s premier coffee pioneers BY JORDAN WHITEHOUSE
Franchise Canada March | April 2019 17
COVER STORY Second Cup Coffee Co. Toronto franchisee Eduardo Eed (middle) and his staff
A
sk most so-called coffee experts about the origins of the premium coffee franchise, and they’ll probably go on about Starbucks and Seattle. The little kiosk that opened in the Scarborough Town Centre in 1975 in Toronto rarely gets mentioned. That’s too bad, because that first Second Cup was Canada’s own premium coffee pioneer, and it would lead to the launch of a franchise with a fascinating story of its own. Back in the ‘70s and early ‘80s, there really wasn’t anything like the Second Cup cafés that began popping up in shopping malls and office towers around the country. If you wanted a coffee made with quality beans, you had to go to an independent café that cared, which was much harder to find than today. And it turns out more people did want good coffee. By 1988, there were about 150 Second Cup locations across the country. Five years later, the company went public. “It had a lot of opportunity for independence back then because there really was no direct competition,” says Second Cup CEO Garry Macdonald. “I was running another brand at the time and I remember hearing the numbers that they were doing, and it was pretty astonishing.” That independence wouldn’t last, as café culture swept North America in the 1990s and 2000s. Second Cup battled, though, growing its number of franchise locations across Canada and establishing a heavy presence in Ontario, Quebec, and Alberta. As of December 2018, there were Second Cup cafés in every province except P.E.I. — 270 in total. As interesting as those first 40 years were, though, Second Cup may be in its most watchable years right
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now. About a year and a half ago, it began adding Pinkberry Frozen Yogurt to its offerings, and in 2015, it started updating stores with a slightly more upscale look — clean lines and warm, bright interiors, for instance, plus modern features like circular “coffee bars” where you can plug in your personal device while watching your barista. They’re also fine-tuning the coffee and food. “We’re not doing a frozen program, we’re not doing a national, come-out-of-one-location program,” says Audra Wosik, Vice President of Franchising. “It really is fresh food hand-crafted locally. And with coffee, we were the first to launch Clean Label beverages, which means no artificial flavours or colours, no preservatives, and no high fructose corn syrup. We also introduced a Better For You line of food and beverages including smoothies.” And then, of course, there’s cannabis. Pot potential Last April, Second Cup and National Access Cannabis (NAC) made headlines when they announced that they’d be entering into a strategic alliance to develop a network of recreational cannabis dispensaries across Canada. The stores would be branded and operated by NAC. Second Cup would be a real estate partner, essentially offering select qualified locations to NAC to convert. The news was a bit of a shock, but on the day it came down, Second Cup’s shares surged almost 33 per cent. And Macdonald says there’s more than one reason they’re doing this. Yes, as the sub-landlord or holder of a piece of property, they — and the franchisee — could create a solid return. But this move could also give them a way to pivot away from competition. “We
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COVER STORY
were alone in the market, but now there are two or three other big players. So somebody positions next to us, then we may want to move down the road. Maybe there’s a new development where we can have a new store with a fresh look and a fresh market where we may be able to perform better.” As of early December, two concept stores were set to open in Alberta, and more than 20 Second Cup locations were identified for potential conversion to cannabis shops in Ontario. No doubt, any wider rollout will take some time, as local regulation continues to catch up to federal legalization. “We’re all ready to hit the gas pedal but until we know what the regulations are, there’s not much we can do right now,” said Second Cup board member Michael Serruya in November. It’s also important to note that even if a store is selected for conversion, the franchisee has the right to veto it and continue the café business. Plus, says Macdonald, while this is a promising partnership, they’re not actually “in” the cannabis business. “Really, we’re being subsidized for the value of our real estate here, and we are solely, 100 per cent focused on the Second Cup brand, the evolution and reinvigoration of it, and the growth and development and success of our franchisees.” The right franchisee The development of those franchisees begins, of course, with finding the right person for the right location. And that starts by getting someone who has access to the initial investment — $300,000 to $500,000 — and equally as important, someone who is committed to being an active owner-operator, says Wosik. Retail experience is
“WE ARE SOLELY, 100 PER CENT FOCUSED ON THE SECOND CUP BRAND, THE EVOLUTION AND REINVIGORATION OF IT, AND THE GROWTH AND DEVELOPMENT AND SUCCESS OF OUR FRANCHISEES.” an asset, too, and particularly restaurant experience, she adds, because food and beverage is a whole other animal than typical retail. In recent years, Second Cup has also actively targeted those interested in multi-unit development. “Traditionally we were a one café, one operator type of business,” says Wosik, “and now we’re looking for operators to take two, maybe three cafés where they get the economies of scale through marketing and staffing and ordering and things like that.” One of those franchisees is Eduardo Eed, who, after immigrating to Canada from Spain in 2009, eventually opened two Second Cup locations in Toronto — one in the heart of the city’s financial district on Bay Street, the other in the bustling Danforth neighbourhood. He
Franchise Canada March | April 2019 19
COVER STORY
arrived in Canada with a café background, so it was a natural fit, he says. Plus, Second Cup wasn’t all that different than some of the European cafés he was used to. “Like overseas, it’s like a neighbourhood café where you can meet friends. It’s not like something that works like a machine,” he says. Still, he had a lot to learn, and the franchisee training program was a big help, he says. It involves four weeks
of both in-class and in-café training in which franchisees learn everything from how to run the business to how to make a latte to how to treat customers. It also involves a trip to — wait for it — Costa Rica, where franchisees get to see exactly where the beans come from and how they’re harvested. Then, once the location is open, Second Cup sends two or three experienced people to support the franchisee for the first seven to ten days of business.
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COVER STORY Future cups Once that training is over, new franchisees could find themselves in traditional locations like shopping centres, strip malls, or drive-thru, full-service cafés. Or they could be in more non-traditional sites like hospitals, universities, airports, train stations, community centres, or gas stations. That second category in particular is where Second Cup will be looking to expand over the next few years. “And not just in hospitals and universities, which we now do very well,” says Wosik, “but with some other very exciting national retailers coast-to-coast that we can’t quite speak about yet.” They’ll also continue the brand reinvigoration. Forty per cent of Second Cup stores have been renovated, and they aim to renovate about 30 locations per year going forward, says Macdonald. Overall, Macdonald has a personal long-term goal to triple the current number of Second Cup locations for greater brand access. In the short term, the company is focused on steady, sustained growth. In 2018, they quadrupled the number of new cafés they added compared to 2017. In 2019, they aim to have a double-digit increase in new stores — and that’s not including any potential cannabis conversions.
It all could mean a significant change from the company’s recent history, which has been marked by strong competition and low growth. And that’s good news for franchisees like Eed, who says Second Cup has “done some amazing things” over the last few years. “Second Cup is changing. I can’t even imagine going back to the concept in 2012 when I first joined. It’s a completely different coffee shop. When I come to my Danforth location especially, which was renovated, it’s an amazing experience. When you come to a new location, a new concept, you can just feel how much better the environment is, the atmosphere, the interaction of the customers — you can actually see it.” SECOND CUP STATS Franchise units in Canada: 270 Franchise fee: $40K Investment required: $300K-$500K total café cost Start-up capital required: $100K-$300K Available territories: British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Newfoundland and Labrador In business since: 1975 CFA member since: 2008
Franchise Canada March | April 2019 21
Healthy Habits
Fast food franchises
with a fresh take
BY GINA MAKKAR
Today’s health-conscious consumers know food. With the rise in restaurants offering fresh, convenient and affordable options on the menu, stopping for a quick bite never tasted so good.
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HEALTHY HABITS
Cultures When Cultures came on the scene in the 1980s, it quickly became known for its sandwiches and legendary smoothies. Fast forward 40 years, and the company has grown, changed hands, and is stronger than ever. “It’s a testament to what the team has done to keep it relevant,” says Jennifer Ma, Brand Leader. Acquired by MTY Food Group in 2004, the revitalized brand now offers a fresh, innovative menu. Ma says a strong supply chain provides franchisees with competitive pricing, enabling them to offer a variety of taste profiles and price points. “At the end of the day, we are still a business. We’ve made smart decisions and we’ve found a good balance in offering a solid menu at great prices, and our franchisees can profit from doing this. It’s not what people see on the outside, but the engine that keeps the brand running. It’s part of the success.” The signature smoothie still graces the menu, but it’s been joined by gourmet sandwiches, mighty salads, and grain bowls. Old favourites, like Caesar salad, have been replaced by healthier versions, like kale Caesar salad with the option to add tempeh. “People are seeking options that are not only healthier, but more interesting. Eating out is not just for sustenance,” explains Ma. “Customers want to have a good experience, and want their food to look good and taste good. We wouldn’t be relevant and wouldn’t have much of a brand if we didn’t take steps to make that shift.” With 50 locations across Canada, the concept is open to expanding, especially in office towers where
catering offers an additional revenue stream to the breakfast and lunch crowd. A successful franchisee will be a brand ambassador, and understand that they’re in it for the long haul. “It’s not a sprint. There will be ups and downs, but a franchisee has to trust the team behind them.” Ma’s advice to prospective franchisees is to be ready to put in the work, from manning the front line to managing food and labour costs. “It’s easy to get engrained in running a business and forget the other side, like managing the books and bills. There’s the time you spend at the store and the time you spend at home, doing your homework to do what’s needed. You have to have both.” She adds that Cultures breaks the stereotypes that once gave chain restaurants a bad name. “At one time, there was a perception that chains can’t be good, but a chain can be great. Not only does it have a lot of backing behind it, from design to operations, they are just as local, and serve solid menu choices. I think Cultures is a good example of what a chain can be.” CULTURES STATS Franchise units in Canada: 48 Franchise fee: $30K-$40K Investment required: $300K-$400K Training: Included Available territories: All of Canada, U.S., International In business since: 1977 Franchising since: 1979 CFA member since: 2008
Franchise Canada March | April 2019 23
HEALTHY HABITS
Eat Clean Healthy Grill & Juice Bar Once a competitive hockey player, JP Morrissey began to gain weight when he stopped playing sports. “I never had to worry about my weight because I was so active. When the activity level slowed down, it didn’t take long before I started packing on the pounds.” In an effort to regain a healthier lifestyle, he began a clean-eating program. “It was the first time I’d eaten clean on a regular basis, and I noticed a big change in the way I felt, and a lightbulb went off.” When he realized that few food options catered to his lifestyle, it sparked the idea to start Eat Clean Healthy
Grill & Juice Bar. The first location opened in 2014 in St. John’s, Newfoundland. “Which ironically, has the highest obesity rates in the country,” says Morrissey. “I wanted to open in Newfoundland because we needed it the most.” He met with holistic and sports nutritionists and fitness professionals to develop a menu that caters to a variety of lifestyles, from vegans to bodybuilders to those following low-carb keto diets. “What we are doing is completely different and unique.” They also offer meal preparation services. “It makes life a lot more convenient. There’s no excuse not to eat well on a regular basis.” With five locations open and four more in the works, the concept is gaining exposure and drawing interest across Canada and the United States. Morrissey says the No. 1 attribute he looks for in prospective franchisees is coachability. “You have to be coachable. I can’t stress that enough. Working with the brand and being a team player is very important.” For Morrissey, the feel-good aspect of the business is a big benefit. “This food changes lives. There’s satisfaction when you lay your head on your pillow at the end of the night. The relationships you’ve made, the conversations you’ve had. People telling you they’re so glad you opened here. This has really helped me with my diabetes
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HEALTHY HABITS
or my celiac. You rest your head at night and say ‘I’ve done something.’” As a franchise owner, that’s the biggest thing. The owners really develop good relationships within their community. The thing about eat clean is that you can eat there every day. You get to know your customers because they’re regulars and you develop relationships you get to know people you get to know their families and their kids. It’s not just about dollars and cents. At the end of the day you’re doing something that’s positive.” A blend of in-store and corporate training readies franchisees for opening. “We want customers to feel welcome and ask questions, so the owner has to be engaging and has to be a good communicator. I think that’s one of the keys to business. Some of our customers have allergies or restrictions, so communication and training is very important for this type of restaurant.”
Morrissey’s advice to perspective franchisees is to work with the franchisor and keep communication open. “My phone is always on. My franchisees are like my kids. They’re family to me. No matter what time they call, we always have an open door policy, no questions asked.” He adds “Care about your customer and work as a team with the other franchisees I think that’s a key to success in any business.” EAT CLEAN HEALTHY GRILL & JUICE BAR STATS Franchise units in Canada: 6 Franchise fee: $25K Investment required: $135K-$400K Training: 10-14 Days In business since: 2014 Franchising since: 2014 CFA member since: 2017
OPENING SOON dq.ca
Franchising Information:
Tammie Verna (905) 637 4741
tammie.verna@idq.com
Franchise Canada March | April 2019 25
HEALTHY HABITS
Dirtbelly Dirtbelly cofounders Jason Cunningham and Derek Brock are no strangers to fast casual food success. The duo originally founded Jugo Juice in 1998, and grew the concept to 140 stores before selling it to MTY in 2011. They went on to launch 98 Food Co., a boutique firm of hipster foodie brands, including Dirtbelly, which launched in 2015. “We saw a major gap in the market for healthy, premium, quality food, especially a menu based around fresh tossed greens, quinoa bowls and warm bowls that are an attractive winter option,” says Cunningham. The diverse menu offers a myriad of options customers can enjoy from morning to night, from healthy superfood shakes to quenching Tealadas, a combination of brewed tea with fruit and herbs. The whimsical name sprung from the idea of garden-fresh food that goes from ground to table to belly, a playful take on a wholesome concept. As the market expands to meet the needs of busy lifestyles and sophisticated palettes, Cunningham says healthy food is becoming a larger part of our culture with every decade. “I think what makes Dirtbelly unique is that we’ve given you flavours and ingredients that you’d find in the best restaurants in the city, and we’ve got that down to a fast casual level with flavour profiles and combinations that you normally wouldn’t find in a fast casual environment.” The company continues to grow, with three locations in Calgary and four stores in development for 2019, including one in the iconic Stantec ower in downtown Edmonton. As they expand, Cunningham and Brock recognize
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that growing a franchise chain is as much about building a sense of family, relationships, and community, something they’ve fostered since they first partnered in 1998. Successful franchisees are hands-on, passionate purveyors of healthy, quality food. In return, the turnkey system offers many benefits to prospective partners. A streamlined operating system handles everything from real estate to lease negotiations, allowing franchisees to focus on learning the ropes and hiring a team for the opening. The innovative store design embraces the farm-to-table concept, with light plank wood and vibrant green accents for a fresh aesthetic. Cunningham’s advice: Secure the right location. “You can’t move a store once it’s built, so be patient and find the right piece of real estate.” He also encourages partners to choose a franchise and brand they are passionate about. “After the initial honeymoon is over, running a business day in and day out can be gruelling, so you have to have something that you really believe in to be in it for the long haul.” DIRTBELLY STATS Franchise units in Canada: 1 Corporate units in Canada: 2 Franchise fee: $25K Investment required: Approximately $350K Training: 2 weeks pre-opening, 1 week post-opening Available territories: British Columbia, Alberta In business since: 2015 Franchising since: 2017 CFA member since: 2018
www.cfa.ca | www.FranchiseCanada.Online
INVEST IN A METHOD THAT DELIVERS REAL RESULTS FOR REAL PEOPLE It’s our mission to help our clients
after
reach
continually encouraged to push through
their
fitness
goals
through
their
workout,
the
of
a
partner with Greco Fitness you can be
welcoming and inclusive spirit in a
proud to deliver a fitness experience
way that our clients are both cared
that changes daily and delivers proven
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BECAUSE ULTIMATELY, OUR BIGGEST INVESTMENT IS YOU. For franchise inquiries contact us at 613.981.8023 or franchise@grecofitness.com
TRAIN LIKE AN ATHLETE
BUILD MUSCLE • BURN FAT • IMPROVE HOW YOU MOVE • TRACK RESULTS
LET’S GET PHYSICAL
Canadians are an active bunch, and these franchise systems help keep them fit as a fiddle Canadians are an active bunch. According to Stats Canada, more than 16.2-million Canadians aged 12 and over reported participating in at least 150 minutes of moderate to vigorous intensity aerobic physical activity per week. This bodes well for franchise systems that give Canadians of all ages a place to pump iron, boost their cardio, and get fit. Investment in a dues-based business with recurring revenue, such as a fitness centre, is not only a smart move, but also provides entrepreneurs with the sense of satisfaction of keeping Canadians healthy and help them meet their fitness goals. Fitness is big business in Canada. As Canadians collectively take charge of their physical health, more and more people are seeking to lead more active lives. Here, Franchise Canada takes a look at the franchise systems across the country that are helping Canadians led an active lifestyle.
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LET’S GET PHYSICAL
30 MINUTE HIT The 30 Minute Hit is a high-intensity, action-packed boxing/kickboxing circuit workout designed just for women. Fast-paced, challenging, and empowering, this one-of-a-kind workout appeals to those at all levels of fitness in a friendly, non-intimidating, and exciting environment. 30 Minute Hit provides its franchisees with a turnkey business model including certification in physical training along with on-going support with administration and management. The franchise also provides management and business development tools, marketing programs, sales training, in-depth support programs, and an amazing team to provide help every step of the way. The franchise is looking for positive franchisees who like working with people and as part of a team, and who are passionate about fitness and leading a healthy lifestyle. Franchise units in Canada: 56 U.S.: 8 Franchise fee: $30K Investment required: $87K-$132K Available territories: All of Canada, U.S., International CFA member since: 2018
3RD DEGREE TRAINING AND ACTUAL NUTRITION 3rd Degree Training and Actual Nutrition is making the journey across Canada and you have an opportunity to be a part of it! As a franchise partner of 3rd Degree Training, the franchisor has done the heavy lifting for you by creating a fitness program that brings results both for your clients and your business. They’ve worked tirelessly over the years to perfect the business model and by doing so they’ve also learned from their mistakes so that you don’t have to. From group HIIT classes, personal training, small group training to nutrition counselling, there is truly something for everyone at 3rd Degree Training. From trained athletes to complete beginners, the franchise has designed its programs to push each individual to their own personal limits while in a welcoming group atmosphere. Franchise units in Canada: 7 Corporate units in Canada: 1 Franchise fee: $50K Investment required: $75K-$150K Start-up capital required: $50K-$100K Training: Provided Available territories: All of Canada In business since: 2008 Franchising since: 2013 CFA member since: 2016
9ROUND FRANCHISING The 9Round fitness franchise is a specialized fitness centre dedicated to serving clients who want a unique, fun, and proven workout that guarantees results. 9Round offers a kickboxing-themed fitness program that incorporates functional, interval, cardiovascular, and circuit training regimens. The programs consist of a proprietary system of nine challenging workout stations developed by a professional fighter. The 9Round turnkey system makes it simple to own and operate. Each club can operate with three to five employees, and no kickboxing experience is required. Franchisees receive site selection and negotiation assistance, pre-opening training, marketing support, an in-house franchise coach, and access to a dedicated franchise representative. Franchise units in Canada: 69, U.S.: 589, International: 108 Franchise fee: $30K Available territories: Canada, U.S., International In business since: 2008 CFA member since: 2014
Franchise Canada March | April 2019 29
LET’S GET PHYSICAL
ANYTIME FITNESS
BARRE FITNESS Barre Fitness gets you a dancers body without dancing. It is a one hour total body workout that fuses the best elements of ballet barre, Pilates, sports conditioning, and stretching that is guaranteed to trim, tone, and transform your body. In August of 2010, Barre Fitness opened as the first studio of its kind in Canada. With five locations in Vancouver, and growing, Barre Fitness is leading the way in boutique group fitness for women.
Founded in 2002, Anytime Fitness provides more than 3,000,000 members with convenient and affordable fitness options at more than 3,800 friendly, well-maintained facilities featuring top-quality exercise equipment. Members who join one Anytime Fitness club can use any of the other clubs at no additional charge. State-of-the-art security and surveillance systems ensure member safety even during unstaffed hours.
Barre Fitness provides franchisees with well-rounded support and the tools to run their own successful studio. The franchise program provides one-on-one pre-opening guidance, comprehensive training, launch strategy, social media marketing, and more. They are currently awarding franchises to motivated individuals who believe in an owner/operator model, an engaged community, and inspiring happiness through health.
With Anytime Fitness, the training never stops. There is an initial mandatory, two-week training course at the corporate office in Minnesota, followed by daily or weekly assistance by phone, on-site visits, email communications, and various publications. Owners are guaranteed access to the online operations manual, which is a web-based program that is regularly updated. Franchise units in Canada: 185, U.S.: 2445, International: 1544 Corporate units in Canada: 1, U.S.: 30, International: 1 Franchise fee: $21,500- $42,500 Investment required: $130K-$722K Training: Yes Available territories: All of Canada, U.S., International In business since: 2002 Franchising since: 2002 CFA member since: 2007
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Franchise units in Canada: 4 Corporate units in Canada: 1 Franchise fee: $35K Available territories: All of Canada In business since: 2010 CFA member since: 2017
www.cfa.ca | www.FranchiseCanada.Online
CRUNCH FITNESS CANADA Franchising since 2010, Crunch is a gym that believes in making serious exercise fun by fusing fitness and entertainment and pioneering a philosophy of #NoLimits. Memberships start as low as $9.95 per month and offer incredible value for state-of-theart cardio and strength equipment, tons of free weights, world-renowned group fitness classes, and personal training and small group training through the exclusive CAMP CRUNCH training zone. Owning a Crunch franchise means joining a community of like-minded entrepreneurs, working with a team and system that are tops in the industry, getting in on the gym floor of the fastest-growing full-size fitness brand, and doing something with purpose: helping people build healthy lifestyles. Franchise units in Canada: 40, U.S.: 250, Other: 10 Corporate units in Canada: 20, U.S.: 10 Franchise fee: $25K Investment required: $386K$1,624,500 Start-up capital required: $300K Training: Yes Available territories: All of Canada, U.S., International In business since: 2009 Franchising since: 2010 CFA member since: 2015
LET’S GET PHYSICAL
EAT THE FROG FITNESS In 2008, Bryan Clay won the Olympic Gold Medal in the Men's Decathlon. He developed Eat the Frog Fitness group studio exercise environment to eliminate gym-intimidation, encourage social interaction, and integrate adaptive technology. Franchise opportunities exist in Canada. Offerings include: workouts on IMAXstyle monitors, customized fitness programs, re-evaluations every eight weeks, 24/7 live and virtual coach classes, and a functional nutrition program. Eat the Frog Fitness is designed for the franchise owner that desires a profitable business without 60-80 hour work weeks. Eat the Frog Fitness studios operate on a low overhead, limited staff model. By offering 8-10 “live coached” group training sessions per day along with non-staffed virtual training sessions to supplement our members’ overall fitness program, Eat the Frog Fitness allows franchise owners to manage the business and still manage to have a life outside of “business” hours. Franchise units in Canada: 1, U.S.: 2 Corporate units in Canada: 20, U.S.: 10 Franchise fee: $25K Investment required: $386K$1,624,500 Start-up capital required: $300K Training: Yes Available territories: All of Canada, U.S., International In business since: 2009 Franchising since: 2010 CFA member since: 2015
GRECO FITNESS Greco Fitness is a fitness experience brand that delivers real results for real people. The Greco Method is the most results based workout with trackable results. Our 45 minute group workouts and personal training are designed to build muscle, burn fat and improve the way our members move. From complimentary espresso to towel service, and our post-workout recovery shake bar, at Greco we redefine your workout experience. Greco Fitness is an exciting fitness franchise opportunity that is poised for growth in this ever-expanding industry. Greco Fitness is currently searching for franchisees across North America who are passionate about changing lives and looking to make a career using a business model that delivers sustainable results. The franchisor’s corporate team has expertise in all areas needed to support your business as they have each run Greco studios themselves. Experience the boutique fitness movement with the Greco Method – the most results based training system on the market and own your own Greco studio. Franchise units in Canada: 16 Franchise fee: $50K Investment required: $1,000 minimum Training: Yes Available territories: All of Canada, U.S. Franchising since: 2008 CFA member since: 2016
LIVE WELL EXERCISE CLINIC LIVE WELL Exercise Clinic is a medical fitness clinic specializing in supervised exercise and healthy lifestyle coaching for people who have chronic health conditions such as heart disease, diabetes, high blood pressure, and obesity, and for those wanting to prevent them. Their clinics cater to people who have been prescribed a healthier lifestyle but don't know where to start. LIVE WELL'S fastgrowing concept is part of an emerging trend to use exercise as medicine to help Canadians live healthier for longer. LIVE WELL’s Sole system, which is fully integrated with its chronic disease programs, acts as the operating system of the business, and helps franchisees efficiently deliver program content, manage members, and communicate with physicians. Business Development Coaches partner with franchisees to guide them through each step of the start-up process, and franchisees must undergo an 8-12 week guided start-up program before attending training week in Vancouver. Following training week, franchisees undergo a week-byweek plan for 26 weeks. Franchise units in Canada: 22 Corporate units in Canada: 2 Franchise fee: $40K Training: 8-12 weeks of online pre-training and one week of inhouse training and ongoing online training post-launch Available territories: All of Canada In business since: 2011 Franchising since: 2016 CFA member since: 2017
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LET’S GET PHYSICAL
ORANGETHEORY
OXYGEN YOGA AND FITNESS
PLANET FITNESS
Orangetheory Fitness is a 60-minute HIIT style (High Intensity Interval Training) workout that uses innovative heart-rate based interval training, broken into intervals of cardiovascular and strength training. Led by a skilled personal trainer - called a coach participants use a variety of equipment including treadmills, rowing machines, TRX suspension training and free weights.
Oxygen Yoga and Fitness is Canada's fastest growing yoga and fitness brand that is strategically aligned with major Canadian brands. Oxygen offers a fusion of both modern yoga and fitness classes in a Far Infrared Heated studio. Studios are located from coast to coast in Canada.
Founded in 1992 in Dover, NH, Planet Fitness is one of the largest and fastest-growing franchisors and operators of fitness centers in the United States by number of members and locations. As of September 30, 2018, Planet Fitness had more than 12.2-million members and 1,646 stores in 50 states, the District of Columbia, Puerto Rico, Canada, the Dominican Republic, Panama, and Mexico.
FITNESS
Benefits of franchising with Orangetheory Fitness include 20+ available markets in Canada, over 1,500+ franchises awarded globally, low overhead, high margins, 500+ new stores in development, unique concept, low fixed expenses, and small studio size for franchisees looking to get involved in a positive, life-changing industry. Franchisees also receive comprehensive training and support from industry experts.
Oxygen Yoga and Fitness provides a novel style and program of yoga and is especially appealing to those who are passionate about fitness and a healthy lifestyle. Those interested in joining the franchise network can share their passion in an environment that benefits them physically and emotionally, and will give them financial freedom while doing something they love. Oxygen’s proven systems help new entrepreneurs be successful with a proven brand, cloud-based POS systems, teacher training, and frequent franchise meetings.
Franchise units in Canada: 95, U.S.: 1150, International: 50 Franchise fee: $59.5K Training: Provided Available territories: Canada, U.S. Franchising since: 2011 CFA member since: 2012
Franchise units in Canada: 68 Franchise fee: $40K Start-up capital required: $250K Training: Yes, all training is provided Available territories: All of Canada In business since: 2011 CFA member since: 2014
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The company's mission is to enhance people's lives by providing a high-quality fitness experience in a welcoming, non-intimidating environment, which they call the Judgement Free Zone®. More than 95 per cent of Planet Fitness stores are owned and operated by independent business men and women. Franchise units in Canada: 26, U.S.: 1543, Other: 4 Corporate units in Canada: 2, U.S.: 71 Franchise fee: $20K USD /$26K CAD Investment required: $1.3M CAD$5.5M CAD Training: Start-up and ongoing operational support Available territories: All or portions of the provinces of Alberta, Quebec, Nova Scotia, New Brunswick, Newfoundland, and Prince Edward Island In business since: 1992 Franchising since: 2003 CFA member since: 2012
LET’S GET PHYSICAL
35% SNAP FITNESS Snap Fitness is the fast, convenient and affordable workout alternative to traditional "big box" health clubs. The franchise offers members no contracts, state-of-the-art workout equipment and 24/7 safe and secure access to all Snap Fitness clubs worldwide. With 2,000 locations open or in development in 18 countries and more than a million members worldwide, Snap Fitness is the top choice for entrepreneurs looking to offer a high-quality workout experience in their communities. Ongoing franchisee resources include marketing support, an online portal with tools and resources, and dedicated corporate staff members. Franchise units in Canada: 76, U.S.: 933, International: 392 Franchise fee: $29.5K Investment required: $130,350$295,350 CAD Training: 4-day training at Snap Fitness Headquarters in Chanhassen, Minnesota Available territories: All of Canada, U.S., International In business since: 2003 Franchising since: 2004 CFA member since: 2007
TRAINERS ON SITE Trainers On Site provides professional personal training services to client’s homes, offices, sports teams, schools, and outdoor parks. The franchise enables accountable and convenient mobile fitness programs that are 30 minutes, one to five times per week over a minimum of three months. By implementing a well-designed fast fitness program that utilizes technology and world class coaching, Trainers On Site helps clients achieve a wellbalanced healthy lifestyle that includes plentiful results in a timely manner. Their mission is to help the world get a little bit healthier, one workout at a time. Trainers On Site is looking for franchise partners who truly enjoy helping others achieve their individualized fitness goals. Personal training is a career choice that will continue to grow, as it revolves around helping people learn the fitness skills they need for a healthy, happy life. The chance for you to help others learn the best ways they can take care of themselves and get fit is now available. Franchise fee: $20K Investment required: $47K Training: Provided Available territories: Ontario In business since: 2008 Franchising since: 2018 CFA member since: 2018
GROWTH IN HEALTH AND FITNESS FRANCHISE LISTINGS OVER A FIVE YEAR PERIOD HEALTH AND FITNESS Fitness is big business in Canada. As Canadians collectively become more conscious of their eating and fitness habits, more and more people are seeking to lead healthier, more active lives. Franchises across the country are actively meeting this demand, as the number of systems in this category continues to rise on an annual basis. “The health and fitness category is a $32 billion industry with no signs of slowing down,” explains Wes Hodgson, Master Franchise with Crunch Fitness Canada. “Everywhere you look; TV, magazines, and social media – it’s all about fitness! Consumers around the world are taking charge of their health.”
Franchise Canada March | April 2019 33
Healthy Drinks, Cool Treats Franchise systems offering juice and yogurt options provide nutritious treats and beverages to busy Canadians BY KYM WOLFE
While Canadians are becoming increasingly health-conscious, they are also always on the go. When it comes to cramming a delicious bite to eat into the hectic schedules of busy Canadians, juice and yogurt often fits the bill. Franchise systems in the juice and frozen yogurt sectors offer consumers a vast array of tasty treats, meal supplements, and more to provide Canadians with a healthier alternative to ice cream, and other high-fat desserts. When it comes to juice, more and more franchises are meeting consumer demand for healthy and convenient on-the-go options with 100 per cent fresh-squeezed juice and smoothie offerings aimed at facilitating a healthy lifestyle.
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HEALTHY DRINKS, COOL TREATS
Booster Juice President & CEO Dale Wishewan opened his first juice and smoothie bar in Alberta in 1999, and within two years had grown Booster Juice to 50 locations. Today, there are almost 400 Booster Juice franchises serving nutritious smoothies, fresh juices, grilled food items, and grab n’ go products, both in Canada and internationally. Most are located in strip malls or power centers, but you’ll also find Booster Juice in shopping malls, office towers, airports, as well as on college and university campuses. “It’s a simple concept with not a lot of moving parts, and it doesn’t require a huge footprint,” says Franchising Manager Shelley Gable. “We have locations in all provinces and territories except Nunavut. We’d like to see more expansion in the Maritimes.” Aside from offering a proven system with national brand awareness, the concept offers good work-life balance, requires minimal staff and equipment, and is supported by two-weeks of training for new franchisees, then ongoing training and assistance from dedicated Franchise Business Consultants. The ideal franchisee has relevant education and business acumen, with strong sales, marketing and customer service skills, and experience in managing a team. “They don’t need to have QSR (Quick Service Restaurant) experience, but they do need to be business savvy, understand accounting principles, and understand the importance of following operation systems within the franchisor’s guidelines and standards,” says Gable. He or she should be entrenched in the local community and live nearby in order to easily oversee business operations and provide employees with guidance and support.
“Being a hands-on owner/operator ensures greater success for the business” says Gable. She advises, “Make sure that the concept you purchase is a concept you are passionate about. You must be comfortable getting out into the community to drive your business via sampling, charity involvement, sports events, and customer service.” BOOSTER JUICE STATS Franchise units in Canada: 375, U.S.: 3, Other: 4 Corporate units in Canada: 12 Franchise fee: $30K Investment required: $255K-$275K Turnkey Start-up capital required: $95K-$120K Training: Two Weeks at Head Office + Ongoing Support Available territories: All of Canada, International In business since: 1999 Franchising since: 1999 CFA member since: 2002
Franchise Canada March | April 2019 35
HEALTHY DRINKS, COOL TREATS
©2015 Firehouse Subs.
Frozu! At times it is challenging serving frozen yogurt during Canadian winters, says Don Moore, President of Grinners Food Systems Ltd. Frozu! is one of the company’s franchise brands, along with Captain Submarine and Greco Pizza. “We decided to concentrate on opening Frozu! as a clip-on unit to our existing brands. The first one opened inside a Captain Submarine in Truro, Nova Scotia in 2013, and we continue to focus on ‘clipping on’ to add better value to the overall performance of existing restaurants. As an add-on business, Frozu! is quite profitable.” It’s also a good fit as it tends to be busy at non-peak times for the pizza or submarine shop. Although the space requirement for Frozu! is small (typically 400 square feet), setting it up is not a ‘cookie cutter’ undertaking, says Moore. “We retrofit the space that the owner is currently operating in and find a place that works, not just for Frozu!, but for the entire operation.” Training, regular communication, and support are provided at every phase, he adds. “We assist with planning and construction, then are onsite for several weeks, and in the locations several times a year.
Ignite Your Future Join forces with Firehouse Subs as we expand into Canada. Multi-unit franchise opportunities available throughout Ontario.
For franchise info, contact Brent Greenwood at Franchising@FirehouseSubs.com or call 877.887.8330
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HEALTHY DRINKS, COOL TREATS Compared to a pizza or sub business, Frozu! is very uncomplicated to run. There are no phone-ins or deliveries, and the customers for the most part serve themselves.” All Grinners brands are located in Atlantic Canada, usually in communities with a population of 8,000 or more. While there are no specifically targeted areas for expansion, Moore expects that new stores will continue to open in Eastern Canada. “We strongly focus on owneroperators who will work in their stores every day. Our ideal franchisees just have to be caring and hard working. If they have the right attitude, we can teach almost anyone our system and how to run a location successfully.” FROZU! STATS Franchise units in Canada: 15 Corporate units in Canada: 1 Franchise fee: $20K Investment required: $100K-$200K Training: Two Weeks Available territories: New Brunswick, Nova Scotia, P.E.I., Newfoundland In business since: 2013 Franchising since: 2013 CFA member since: 2013
Franchise Canada March | April 2019 37
HEALTHY DRINKS, COOL TREATS
Jugo Juice Jugo Juice was ahead of the curve when it introduced healthy smoothies and fresh pressed juices to the Canadian market 20 years ago, says Kendall Pupp, Vice President of Jugo Juice Canada. “Max Veg was the very first drink we served, and it’s still on the menu.” Since opening its first store in Calgary in 1998, Jugo Juice has since grown to over 130 locations, mainly in
Western Canada. The company’s expansion plans are targeted primarily at Ontario, Quebec, and Atlantic Canada. “Our concept features convenient, healthy and delicious – the cleanest, most innovative and best tasting smoothies and fresh pressed juices, as well as sandwiches, wraps, and other unique food items that conform to our true health philosophy. A key feature is that everything we sell tastes amazing,” says Pupp. “We also innovate a lot. Our Mighty Kale was introduced in 2012 and has become the gold standard for kale smoothies. In 2018, we introduced a coffee/energy category, using ingredients like cold brewed coffee and matcha green tea.” The company looks for owner/operators with a healthy active lifestyle who can balance the duties of operations, local marketing, and community involvement. With a structured four-week initial training program, regular store visits and consulting by regionally-based Operations Managers, local store marketing options, product
Commercial Cleaning Business Opportunity. Initial business. Comprehensive training. High demand. Ongoing operational support. Established reputation. Industry leader. Low investment. Growth potential.
Find your plan at www.janiking.ca
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HEALTHY DRINKS, COOL TREATS education and train-the-trainer programs, the company provides the knowledge and tools required to be successful, says Pupp. “We believe that a hands-on approach is the best way to grow the business.” Jugo Juice stores work in a range of locations, from malls, office buildings, airports and transportation hubs to campuses, recreational complexes, hospitals and store fronts in upscale, trendy neighbourhoods, says Pupp. “We seek out real estate and try to match opportunities with potential franchisees. We have a lot of flexibility, since we have a small footprint and don’t have kitchen ventilation or exhaust needs. We are looking to grow in unique ways.” JUGO JUICE STATS Franchise units in Canada: 132, International: 3 Corporate units in Canada: 2 Franchise fee: $25K Investment required: $275K-$350K Training: Yes Available territories: All of Canada In business since: 1998 Franchising since: 2002 CFA member since: 2009
Start cultivating the future you want ... Join one of the fastest-growing franchise networks in Canada & be the boss of a premier landscaping & grounds maintenance business.
Clintar proudly supports women in landscaping.
WCLcanada.com
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Franchise Canada March | April 2019 39
HEALTHY DRINKS, COOL TREATS TCBY “TCBY was the first frozen yogurt concept to offer soft serve, with a taste and creaminess very similar to soft ice cream,” says Marc Laurin, VP of Operations. When Frank Hickingbotham established the brand in 1981 “TCBY” stood for “This Can’t Be Yogurt” (because it tasted so different from other froyo); over time that has changed to “The Country’s Best Yogurt”. Single-serve TCBY is available at kiosks in cinemas, with machines that serve two flavours – vanilla and chocolate. Franchisees with store locations offer a wider range of flavours and toppings as well as cakes, bars, frozen cups, and litres for take home. Stores have seating for customers, but also offer delivery through Uber Eats and Skip the Dishes. The ideal TCBY franchisee is hard working, very close to his or her clientele, and health oriented as much as business oriented. “He or she needs to be pro-active and creative in order to get his or her product known in their area,” says Laurin. “There are many ways to develop the business, and one of the most successful is to sell froyo to schools.” Many store owners generate 40 per cent of revenues through school and daycare lunch programs or fundraisers.
“WE CONSTANTLY VISIT STORES AND WORK WITH THE FRANCHISEES TO IMPROVE THEIR NUMBERS.”
After initial training, TCBY works closely with each franchisee to help develop the business. Giving out free samples is a proven marketing strategy. “We want people to try TCBY because it has a taste that stands out from the competition, so we do a lot of free sampling,” says Laurin. “That is the lowest cost way for us to reach people.” “We constantly visit stores and work with the franchisees to improve their numbers,” says Laurin. The Canadian franchisor also works closely with its American parent company – Mrs. Fields Famous brands - to bring new product to the Canadian market. “Using ALWAYS THE BEST almond milk for the lactose intolerant is one of the innovations we have launched in the last few MADE ESPECIALLY FOR years.”
IT’S IN OUR D.N.A. CONTACT US TO LEARN MORE ABOUT
AVAILABLE FRANCHISING OPPORTUNITIES ACROSS CANADA!
W: WWW. PIZZAPIZZA.CA/FRANCHISING E: FRANCHISINGINFO@PIZZAPIZZA.CA P: 1-800-263-5556
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TCBY STATS Franchise units in Canada: 37 Franchise fee: $25K Investment required: $175K-$200K Training: Yes Available territories: All of Canada In business since: 1979 Franchising since: 1992 CFA member since: 2008
Celebrating International Women’s Day
From 100% female powered franchises to franchisees breaking gender norms in predominately male-dominated sectors, Franchise Canada shines a light on the women helping the franchise industry thrive. BY JESSICA BURGEES
O
n March 8, the world celebrates International Women’s Day, an initiative to honour the social, economic, cultural, and political achievements of women across the world. In the spirt of International Women’s Day, Franchise Canada recognizes the female members of the Canadian franchising community. More and more entrepreneurial women are entering the franchise world, and here we showcase the hardworking females who have taken control of their own success using the franchise model. From landscaping to business coaching to moving, women are taking the lead in franchises across the country.
Franchise Canada March | April 2019 41
CELEBRATING INTERNATIONAL WOMEN’S DAY
CHANGING THE GAME
Franchise Canada showcases three female franchisees making their mark in typically male franchise markets.
ActionCOACH For Cheryl Dyck of ActionCOACH, being a female franchisee in a maledominated sector is an opportunity to stand out from the crowd. “In a world where there are so many franchisees that look pretty much the same, this differentiating factor has helped me to be more visible to my target market,” she says. “As a woman,” she continues, “I have always felt I had to work harder to prove myself in the business world.” When ActionCOACH approached Dyck in 2007, she knew her thirty years of business experience would be an ideal match for the business coaching franchise and quickly became the sole female partner in the company’s Canadian franchise system. Since then, Dyck has been coaching countless clients to help guide them to business success. “ActionCOACH has a well-established and proven set of tools, processes, templates, and procedures to use with clients,” she says, “allowing me to focus on helping my clients and not reinventing the wheel.” Hav-
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ing always been a self-starter, Dyck knows the kind of motivation and enthusiasm it takes to thrive in business. “Working with me,” she shares, “will get my clients what they need.” “I see this franchise opportunity as providing me with more ammunition to help others,” she continues. To potential franchisees looking at a competitive field like hers, she advises that people make sure the particular franchise model fits with their own goals and dreams just as ActionCOACH does with hers. ACTIONCOACH STATS Franchise units in Canada: 14, U.S.: 262 Corporate units in Canada: 1, U.S.: 1 Franchise fee: $225K (50% financing for qualified parties) Investment required: $273,720$416,820 Available territories: All of Canada Training: $25K 10-Day Initial Training Program In business since: 1993 Franchising since: 1993 CFA member since: 2000
Clintar Commercial Outdoor Services franchise partner Michelle Stratton (far right) and her London, Ontario team.
Join the Future of Real Estate
®
Clintar Commercial Outdoor Services The landscape and maintenance industry has long been a male-dominated one, but Michelle Stratton of Clintar Commercial Outdoor Services is looking to change that. “I am the only female in a group of six partners,” she says. “I feel I bring a different perspective and skill set to the group. I am fortunate that I have the privilege of being supported by my partners every day.” Together with her franchise partners, Stratton runs the London, Ontario, Clintar franchise. With a background as a certified professional accountant, she joined the Clintar team over six years ago as she was seeking a change in her career. “I chose Clintar because of the people and their values, their strong presence in the industry, and their dedication to excellence,” Stratton shares. Stratton and her team knew that many small landscaping companies struggle to get started. With Clintar, she knows they are getting bestin-class support. “Head office is regularly involved with the individual franchises,” she explains, “and they encourage the highest standards, supporting their teams wherever needed.” Her advice to potential franchisees? “Surround yourself with the right people. Focus on growing a dedicated team and implementing strong values.”
Claim Your Exclusive Territory
CLINTAR COMMERCIAL OUTDOOR SERVICES STATS Franchise units in Canada: 26 Corporate units in Canada: 1 Franchise fee: $25K-$40K Investment required: $200K-$400K Available territories: All of Canada In business since: 1973 Franchising since: 1982 CFA member since: 2010
OPPORTUNITIES@PROPERTYGUYS.COM INFO.PROPERTYGUYS.COM/FRANCHISE-CFA
Franchise Canada
March | April 2019 43
CELEBRATING INTERNATIONAL WOMEN’S DAY
TWO MEN AND A TRUCK With “Men” in the name, it’s no surprise that TWO MEN AND A TRUCK is a predominantly male franchise. But Heidi Welsh, co-owner of the company’s second Canadian franchise, brings a distinctly female approach
your business A specialized breakfast restaurant, Cora serves home-style gourmet breakfasts and unique lunch meals the whole family will enjoy. If you’re an enthusiastic entrepreneur with passion and drive, and you are interested in exploring the countless advantages of becoming part of the Cora family, please contact Jim Jenkins, Senior Franchise Recruiter, at 905 673-2672, ext. 264, or jjenkins@chezcora.com.
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to the business she runs with her husband in London, Ontario. “I try to bring more of a family feel to the business. It works well,” Welsh shares. “Our male employees, who make up the majority of our movers and drivers, react differently to a softer female approach.” With “Movers Who Care” as the moving company’s motto, Welsh’s approach is right on brand. Fostering a relationship with clients is key, especially when it involves the immensely personal experience of moving, and making sure the entire franchise team is on the same page is just as important. “Finding phenomenal employees who share our vision for the company,” Welsh says, is crucial. “We’ve built a core group of people,” she says, going back to the idea of a family-forward approach to business. TWO MEN AND A TRUCK is a proven concept with brand recognition and a reputation in the business that is second to none. With the company’s offering of classes, webinars, and in-person consultations to franchisees, the franchise is sure to see more men and women coming to the system every year. “It’s a winner with a great track record,” Welsh sums up. TWO MEN AND A TRUCK STATS Franchise units in Canada: 25, U.S.: 381 Corporate units in Canada: 4, U.S.: 2 Franchise fee: $50K-$85K Investment required: $178K-$339K Training: 2 weeks Available territories: British Columbia, Alberta, Ontario, New Brunswick, Nova Scotia In business since: 2005 Franchising since: 2005 CFA member since: 2004
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CELEBRATING INTERNATIONAL WOMEN’S DAY
100% FEMALE FRANCHISE SYSTEMS
Women-led franchise systems are empowering women in franchising to business success in tutoring, tanning, and home care. Three franchisees share their experiences in these predominantly female industries.
“As the business has grown, I always have that person who is steps ahead of me and has input on how to meet those challenges.” Like Thompson, Petersen says she has an appreciation for the “softer side” of the business world, something crucial when dealing with families and children. “Focus on your own path and the history that led you there, all the things that are unique about your own brand, and let that speak and provide success for you,” Petersen encourages.
Beyond the Classroom Beyond the Classroom offers in-home tutoring to children from JK through Grade 12, so it’s no surprise that families, and moms in particular, are at the centre of this franchise. Trish Petersen, owner of the South Mississauga, Ontario franchise, knows this firsthand. “Moms are our primary point of contact,” she says, “and being a part of a female-led organization and having the experience of raising children in the school system provides insight into what families are looking for.” Knowing what it’s like to be on the client side of the equation allows Petersen to see how Beyond the Classroom stands out in the busy tutoring marketplace. The empathy that comes from being a franchisee who is also a mom is key, providing greater understanding of what client-parents need. Having franchisor Cathy Thompson as a mentor in the business has been invaluable for Petersen as well, especially in such a competitive marketplace. As Petersen was establishing her franchise, she was able to look to Thompson for support and a model for success:
BEYOND THE CLASSROOM STATS Franchise units in Canada: 4 Corporate units in Canada: 2 Franchise fee: $24K Investment required: $49K Start-up capital required: $25K Training: In person and virtual Available territories: Ontario In business since: 1998
Franchise Canada March | April 2019 45
CELEBRATING INTERNATIONAL WOMEN’S DAY
Right at Home Canada As the owner of Ontario’s Guelph, North Wellington, Cambridge, and Kitchener–Waterloo locations of Right at Home Canada, Laura Grennway-Balnar knows how beneficial a mostly female-run franchise system can be for both franchisees and clients. Right at Home Canada provides home health care and assistance and Greenway-Balnar acknowledges, “I think I am safe to say that most people often recognize ‘caregivers’ as women and since our service is caregiving, promotion of our services by women definitely has an advantage.” She notes this positive impact on their business as it has allowed them to become more quickly accepted into the homecare business in their communities.
The Right at Home Canada mission, to improve the quality of life for those they serve, means ones of the greatest challenges is finding exceptional caregiving staff. “The demand is great and the availability of caregivers is low. Those who choose caregiving as a career need to be treated as the valuable healthcare professionals that they are,” Greenway-Balnar explains. “We need to take care of those who take care of others.” Right at Home makes this a priority, seeking to provide a wellrounded complement of support services for those caregivers and franchisees. “One of the most important benefits is the ability to share amongst our colleagues,” she continues. “As franchisees we are all a tight-knit group and keep each other motivated and passionate for providing the right care.”
THE MIDAS FAMILY
Midas is proud to be a world-class leader in the automotive service industry and the gold standard when it comes to total car care. When you join the Midas team as a franchisee, you’re joining a multi-billion dollar industry servicing a growing vehicle population. Build your future with us while we expand our success throughout Canada.
Contact us now
Visit www.midasfranchise.com or call 800-365-0007 This advertisement does not constitute an offer of a franchise. A franchise offering can be made by us only after we provide you with an appropriate Canadian disclosure document (as applicable in each province). Franchises may not be avalable in all provinces.
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RIGHT AT HOME CANADA STATS Franchise units in Canada: 29, U.S.: 500, Other: 60 Franchise fee: $45K Investment required: $70K-$150K Training: 2 weeks at corporate office and ongoing field training Available territories: All of Canada, U.S., International In business since: 1995 Franchising since: 2000 CFA member since: 2011
CELEBRATING INTERNATIONAL WOMEN’S DAY
Bonus video content on FranchiseCanada.Online!
client base, making that connection with clients and Tan on the Run Sherri Picard runs the mobile airbrush tan and spray tan keeping them happy is worth it all. salon out of Vaughan, Ontario, and as the name suggests, Tan on the Run speaks directly to the busy world of TAN ON THE RUN STATS today, especially for women and mothers. “As a mother Franchise units in Canada: 37, Other: 6 of two young boys, I love that I relate to all of the other Corporate units in Canada: 1 franchisees. We are all women in business with the same Franchise fee: $200-$400 monthly mindset, goals, and drive that makes it easy to ask for Investment required: $10K-$25K advice or share our success with each other.” Training: One week The foundation of the franchise speaks to this as well: Available territories: All of Canada “My favourite part of this franchise is that the owner, In business since: 2006 Nicole Hyatt, started this company by working for her- Franchising since: 2007 self as a single mother at the time. She is very easy to CFA member since: 2016 approach and relate to. She’s already gone through the ups and downs of running a business, which makes her the best coach one could ask for.” The franchisees have a Facebook forum that allows them to communicate with each other, post what they’re working on, and share those ups and downs of business with each other. What does she say of her decision to join the Tan on the Run franchise team? “Best decision I’ve made!” She continues, “My best advice is to never get discouraged and to stay on top of your business every day,” noting that while clients don’t Start something good with a COBS Bread franchise. come easily and it takes a CELEBRATE FRESH Find out more at cobsbread.com/StartSomethingGood. lot of marketing and dedication to develop a strong
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Franchise Canada March | April 2019 47
Do You Have What it Takes to Succeed as a Franchisee? A look at the top 10 traits of best-in-class franchisees
Y
ou’re ready to start a business, and have decided that the franchise business model is the right fit for you: you want to operate your own business, while having the support of an established system behind you. But before you get started and take that giant leap into franchise ownership, it’s essential to remember that franchisees are small business owners, and it takes a special combination of skills and traits in order to own and operate a business that resonates with your community. Here, we’ve compiled a list of 10 of the top attributes of Canada’s most successful franchisees. So read on, and get ready to undertake a serious self-assessment to ensure you have what it takes to join the ranks of elite franchisees across the country!
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1. Hardworking There’s no doubt about it: franchising is a lot of work. Above all else, in order to thrive, a franchisee needs to be able to put in the time and effort to make their business a success. This is especially true for the first three to six months you’re in business, when you’ll be spending long hours learning the system and laying the foundation for a strong business. 2. Focused Based on the amount of work you’ll be putting into your franchise (see point #1), you need to be 100 per cent focused on franchising, as it’s a full-time career that requires full-time participation. Don’t entertain any notions of being able to balance franchising with another
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DO YOU HAVE WHAT IT TAKES TO SUCCEED AS A FRANCHISEE? job or career; with most franchise businesses, there simply won’t be time for other employment endeavours. If you’re not ready or able to focus on your franchise full time, you may want to reconsider this path. 3. Business oriented Most franchise systems don’t require you to have specific skills or experience in the category you’re entering (for example, you often don’t need to have food experience to own a restaurant franchise), but almost all franchisors are looking for candidates with strong business acumen. Ideally, you have an education or work background in business, with general business skills and know-how that can be transferred to assist you in running your franchise of choice. 4. Able to lead While you’ll be following the franchise system, as a franchise owner, you’re in charge of your operation, and are responsible for your staff, and your results. It’s up to you to encourage and motivate your team members, to provide guidance, and to solve any issues as they arise, so you need to be ready to heed this call.
5. Enjoy working with people Franchising is a people-focused business: you’ll not only be interacting with your team of employees, but also with the customers/clients you serve in a public-facing capacity. You need to be able to work with people to resolve problems, and to put your customers and community first. On top of that, you also need to be able to work with the franchise head office team, who will be there to provide continuous support. 6. Able and eager to communicate As you’ll be spending so much time on a daily basis with your team and your customers/clients, you need to be an effective communicator. You should be able to clearly articulate tasks and expected outcomes to employees so they can thrive, and strong communication skills will also be a major asset in developing relationships with members of your community, which is critical for local marketing efforts. 7. Ready to follow a system While you need to have entrepreneurial skills to own and operate your own business, you also need to remember that in franchising, you’re not going it alone. While the
Canada’s Premier Burger Brand
DID YOU KNOW?
Franchise Canada March | April 2019 49
DO YOU HAVE WHAT IT TAKES TO SUCCEED AS A FRANCHISEE? day-to-day operation of your franchise falls on you, ultimately, you’ll be following the system of operations as set out by your franchisor. Franchises are replicable businesses that are consistent from one location to the next, so you need to follow the system to the letter to ensure that your business looks and operates the same as every other franchise in your system. While you may not enjoy the freedom and flexibility of setting all of your own rules as you see fit, don’t forget that you’ll have the support of your system when you need it most, which is something that often can’t be beat. 8. Adaptable To meet changing consumer needs, franchises need to follow suit, and will undergo rebranding and renovations, and put new advertising/marketing programs in place to cater to these customers. This means changes will often be introduced by the franchisor, and you need to be prepared to incorporate these changes, and to make time for any ongoing learning/training. Franchise legislation and labour laws are also changing the way franchises operate, so you need to look to your franchisor to provide updates on any legislative
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changes, so you can ensure you’re meeting all legal requirements. 9. Patient When you’re putting in the hard work and long hours, it can be hard to remember that successful businesses aren’t built overnight. While you’ll be off to a strong start with the help of an established system of operations from the franchisor, it will still take time to grow your franchise business into a successful operation. But if you can be patient and stick with it through the first development period, you’ll be through the hardest part, and on your way to success. 10. Passionate As they say, when you’ve found the career that you’re truly passionate about, it doesn’t feel like work at all. While the other nine skills and traits listed above will definitely be key to your franchising success, having passion for what you do is absolutely essential. When you find the franchise category and business that you love, you’ll be more ready and willing to rise to any challenges that come your way as you take your business to new franchising heights!
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RETAIL SECTOR
SPECIAL FOCUS
Shop ‘Til You Drop! No matter the season or the economic climate, Canadians love to shop! In 2018, Statistics Canada reported retail trade sales of $51 billion across Canada in October alone. To put things into perspective, Canada‘s new cannabis retail trade, which is at this point in its infancy, was able to make a small but significant contribution to the retail sector’s overall growth. Cannabis sales totaled $43 million during the two weeks following legalization in mid-October. The retail success of a newly-found Canadian retail sector is proof positive that Canadians are big spenders when it comes to the retail model. Whether it’s cannabis, clothing, sporting goods, greeting cards, or jewellery, retail franchises are always on the radar for prospective franchisees who are looking to capitalize on Canadians’ spending habits and establish franchise locations that keep bringing customers back for more. This Special Focus takes a coast to coast look at the wide variety of retail franchise opportunities that are thriving across the country, highlighting why the spending habits of Canadians and their tastes for all kinds of goods makes investing in a retail franchise a smart move.
Franchise Canada March | April 2019 51
SPECIAL FOCUS
Retail Sales Across Canada (Retail Council of Canada, Retail Fast Facts: December 2018)
Yukon
$69.2 million
Northwest Territories
Nunavut
$64.7 million
$38.6 million Newfoundland and Labrador
$751 million British Columbia
$7.1 billion
Alberta
$6.6 billion
Saskatchewan
$1.5 billion
Manitoba
$1.7 billion
Prince Edward Island
Quebec
Ontario
$205 million
$10.9 billion
$19.2 billion New Brunswick
$1.1 billion
The Changing Canadian Retail Experience According to respondents of the PwC Total Retail survey in 2015:
40% 54% 78% 53% 75% 82% 57%
Nova Scotia
$1.3 billion
‘Tis the Season: Canadian Spending During the Holidays (Retail Council of Canada)
Canadians are still shopping in bricks and mortar stores, with more than 40% of Canadians shopping in-store at least once a week. 54% of Canadians make an online purchase at least once a month. 78% of Canadians have been making online purchases for three years or more. 53% of Canadians say they shop online to get better deals, while 43 per cent say they like being able to shop at any time, and 38 per cent like not having to go to a physical store. 75% of Canadians check out products online before making an in-store purchase. This is because they don’t want to pay for delivery (66%), want to see/touch and try merchandise before purchasing (65%), and want to have the product immediately (59%.) 82% of Canadians shop in-store at their favourite retailer.
57% of Canadians shop online at their favourite retailer.
52 Canadian Franchise Association
www.cfa.ca | www.FranchiseCanada.Online
65 87%
%
of Canadians planned to set a firm budget for their 2018 holiday spending Canadians consider it important to purchase goods from a Canadian retailer when holiday shopping
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Average annual revenue of C$2.3 million* C$5.4 billion high-demand optical industry** Territories available in Vancouver, Edmonton, Ottawa and Toronto Well-known, highly rated and trusted brand Scalable, turnkey business model Award-winning marketing and advertising programs
Get started today at ownapearlevision.com This is not intended as an offer to sell or the solicitation of an offer to buy a franchise. Within the U.S.A. and Canada, we offer franchises solely by means of our Franchise Disclosure Document. Certain states in the U.S.A., provinces in Canada, and other countries have laws governing the offer and sale of franchises. If you are a resident of one of these states/provinces, we will not offer you a franchise unless and until we have complied with applicable legal requirements in your state. This information about our franchise opportunity is intended solely for residents of the United States and Canada. Source: *Pearle Vision Canadian Franchise Disclosure Document, June 2018. **The Vision Council, VisionWatch Market Research Report, October 2017.
SPECIAL FOCUS ONLINE SHOPPING
BRICK AND MORTAR
Where Are Canadians Spending Their Retail Dollars? (In October 2018)
Retail Trade Furniture and home furnishings stores:
$1.5 billion
Electronics and appliance stores:
$1.3 billion
Building material and garden equipment and supplies dealers:
$3 billion
Brick and Mortar vs. Online Shopping Brick and mortar is still the primary choice for Canadian consumers as 86% of those surveyed acknowledged they bought their most recent product from a physical store. “Consumers report significantly more problems with online purchases, particularly during pre-purchase research. Finding the right product, seeing accurate photos, having correct and detailed merchandise information, and being able to “experience” a product online continue to be areas that challenge retailers. The limitations of online shopping reinforce how brick and mortar stores can work to help improve consumers’ overall experience.” (Retail Council of Canada, The Blended Commerce Imperative, 2018)
Food and beverage stores:
$10.5 billion
Health and personal care stores:
$3.9 billion
Clothing and clothing accessories stores:
$2.8 billion
Sporting Goods Sporting goods, hobby, book and music stores:
$1 billion
Retail in Canada: Facts and Figures
(Industry Canada, Consumer Trends Update, 2013)
In 2011, the Canadian retail sector generated $457.4 billion in retail sales and represented approximately 12 per cent of the Canadian workforce. Even with decreased demand during the 2009 recession, retail sector sales increased by 17.1 per cent between 2006 and 2011. Retail sales in Canada reached the U.S. equivalent on a per capita basis for the first time in April 2011, hitting $US 13,000 per person.
(Retail Council of Ontario)
54 Canadian Franchise Association
www.cfa.ca | www.FranchiseCanada.Online
Are you franchising in Canada? Join Canada’s largest franchise community and we’ll grow your business together!
Credibility
Lead Generation
Education
Networking
Advocacy
Resources
Discover all the benefits of CFA membership! Contact Ruth Stuart Moore at 800-665-4232 ext. 247 or rstuartmoore@cfa.ca Learn more at cfa.ca/join
HOME-GROWN & LOCALLY-OWNED
100% CANADIAN FRANCHISE SYSTEMS
At first glance breakfast, mini dumpsters, and specialty ice cream don’t seem to have a lot in common. But all three drove small, single location businesses forward and provided the basis for established franchise systems that enjoy success here in Canada and abroad. BY DAVID CHILTON SAGGERS
Bin There Dump That
Franchise units in Canada: 37, U.S.: 116 Franchise fee: $29K-$50K Investment required: $150K Training: Yes Available territories: All of Canada, U.S. In business since: 2001 Franchising since: 2004 CFA member since: 2016
A flood in Mike Kernaghan’s office lead him to a real business opportunity. He needed a mini dumpster to remove everything that had been damaged and rented one from Mark Crossett who had a business in Mississauga. Kernaghan later partnered with Crossett – and awarded him Bin There Dump That’s first franchise back in 2003. Bin There Dump That rents residential mini dumpsters that range in size from four to 20 cubic yards. About half of the franchise’s clients are homeowners, while the other half are contractors. Kernaghan, the President and CEO of the Oakville, Ontario-based system, says there are now 37 franchises in Canada and 116 in the U.S., where Bin There Dump That started franchising in 2011. The cost of a franchise in Canada runs from $100,000 to $150,000, depending on the province, and Kernaghan says his system is “low tech and simple.” Training at Bin Learn’in in Oakville lasts a week, and franchisees are guided through a certification checklist before instruction begins. When it comes to expansion, Kernaghan says, “Ontario is mostly sold out.” So, he’s looking beyond the province to grow the company including Canada’s East Coast. Bin There Dump That also has locations in Victoria, Kelowna, and elsewhere in British Columbia. Kernaghan says his franchisees will need some business experience and should be well-capitalized noting, “We’re looking for more sophisticated investors.” However, he stresses Bin There Dump That is not looking for master franchisees neither in this country nor in the
U.S. Most of his franchisees are married couples. “Husbands and wives are very common in our system,” Kernaghan explains, adding that all investors will need to get involved with their respective communities. Kernaghan is enthusiastic about the system’s benefits. Head office gives investors the tools they need to prospect for customers, he explains, with most of Bin There Dump That’s advertising done online. Further, it’s a recognized brand, has a strong reputation and is the largest mini dumpster business in Canada and the U.S. with a combined 7,000 bins and 220 trucks.
Franchise Canada March | April 2019 57
Humpty’s Restaurants
Franchise units in Canada: 43 Corporate units in Canada: 2 Franchise fee: $30K Investment required: $550K-$750K Training: 7 weeks Available territories: All of Canada In business since: 1977 Franchising since: 1986 CFA member since: 1995
Husband and wife team Don and Jan Koenig bought a small 50-seat restaurant in 1974 in Blackie, Alberta, a dot on the map about 70 kilometres from Calgary. By 1976 their business had grown into the Calgary market itself where they ran three soup and sandwich shops as well as a catering company. And after their research showed the all-day breakfast market was underserved, they decided to covert one of those shops into what they called Humpty’s Egg Place in 1977. It was an immediate success and the Koenigs have never looked back. By 1980 they started to get franchise enquiries about the now simpler-sounding Humpty’s – named after the classic nursery rhyme about an egg that fell off a wall – and two years later they began franchising, but took another four years to award their first franchise. Yet just 45 days later they had sold another three and now Humpty’s has 45 franchises across Western Canada, the majority of them in Alberta. “Our strength is in small town Canada,” says Humpty’s President and CEO Don Koenig. “Some Humpty’s locations are in towns as small as 2,500 people.” And that small town focus remains very much a part of his expansion plans for Ontario and the Atlantic provinces, as does the system’s continuing emphasis on the breakfast
58 Canadian Franchise Association
CURLING FRIES segment, although Humpty’s serves lunch and dinner as well. The system targets families with parents aged 25 to 45, although Humpty’s has a large seniors customer base and is increasingly attracting millennials thanks to its rewards program. The turnkey cost of a Humpty’s franchise is $750,000. In smaller communities of about 10,000 people the restaurants are located on the main street; in towns of about 20,000, breakfast, lunch, and dinner are served in a shopping centre location. Training takes seven weeks, four of them in Calgary and the other three on-site. As for the qualities Koenig looks for in a potential investor, he says, “Attitude has a lot to do with it. You’ve certainly got to have drive.” Financial ability is another positive as is management experience, and franchisees must be prepared to follow Humpty’s system. Plenty of energy will help them too. A typical day can run to 15 hours, says Koenig, pointing out that a number of his franchisees are aged 50 and above, but get the job done very well. The benefits of investing with Humpty’s are numerous, Koenig continues, adding the system’s top benefit is unfailing support for its franchisees: “If you get into business with us we can’t let you fail.”
www.cfa.ca | www.FranchiseCanada.Online
Sweet Jesus
Franchise units in Canada: 17, U.S.: 1, International: 1 Corporate units in Canada: 1 Franchise fee: $40K Investment required: $250K-$500K Training: Comprehensive initial training; pre-and post on site training; and on-going support Available territories: All of Canada, U.S., International In business since: 2015 Franchising since: 2015 CFA member since: 2016
Mexican Taqueria La Carnita began as a pop-up in the Evergreen Brickworks, once the location of Toronto’s Don Valley Brickworks, a former quarry and industrial site that provided the bricks that built much of the city’s housing. But when the founders of the restaurant opened a permanent location on John Street in the heart of the Entertainment District, the first Sweet Jesus opened up there as an experiment that shared the premises. The experiment turned out to be wildly successful, and Sweet Jesus grew and continues to grow offering many kinds of ice cream treats. “We take ice cream to a whole new level, says Jeff Young, President of Sweet Jesus. “We’re handcrafted, chef-inspired, pimped-out soft serve.” Young says by the end of 2018 Sweet Jesus will have opened 20 franchises in enclosed malls throughout Canada and is looking at expansion in Western Canada, Quebec, Atlantic Canada, Ontario, and outside the Greater Toronto Area. “We’ve got a very strong presence in the GTA already,” he explains. Sweet Jesus locations are flourishing in Toronto, Ottawa, Hamilton, and elsewhere in Ontario, and also in Edmonton and Vancouver. Young identifies the U.S. as a prime market for expansion, as well as other international countries. License Agreements have been signed in India, Bangladesh, and Dubai – where the brand is called Sweet Salvation.
Sweet Jesus began franchising in 2015 with the opening of its flagship store in downtown Toronto. In November 2018, Sweet Jesus was acquired by an affiliate of International Franchising Inc. (IFI), which owns some of the world’s most iconic frozen dessert brands, including Yogen Früz, Pinkberry, and Yogurty’s. The system’s prime target audience is a youthful consumer and anyone who enjoys really good ice cream. Most people have an emotional connection to ice cream and it reaches across all demographics, says Young. “Millennials are social media savvy and foodies at heart and as a result, really gravitate to the brand.” According to Young, Sweet Jesus has become one of Canada’s most “Instagrammed” foods and has amassed a social media following in excess of 120,000 followers. The cost of a turnkey franchise ranges from $300,000 to $500,000 depending on the store’s size and type of location. Store sizes run from about 200 square feet to 400-500 square feet in a mall and 500 to 1,000 square feet for a street front unit. Sweet Jesus’s price point tends to be at the upper end of the spectrum. Training is in Toronto onsite and lasts about seven days, with further on-site support before and after the opening of a franchisee’s store. Young says he wants franchise partners who are passionate about hospitality, passionate about the brand, and who have good management skills, although a background in the food industry is not required. At present, he continues, his franchisees tend to skew younger, but Sweet Jesus is not gender-centric: men and women are both represented among his franchisees. Among the system’s many benefits are “a very robust business model and a really cool concept that is on trend,” says Young. However, he says the real key benefit is the opportunity for organic expansion. Because it’s still comparatively new Sweet Jesus has prime locations available outside the GTA, and investors can own multiple franchise units.
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Millennials in Franchising
RISING TO THE CHALLENGE
TWO MEN AND A TRUCK franchisee builds on company culture to grow his business BY KRISTIN DI TOMMASO
I
f there’s one thing that sealed the deal for prospective franchisee Cotie Drinkwater when he was considering investing in a TWO MEN AND A TRUCK Canada franchise, it was the people. “The company culture was something I’d never seen before,” he boasts. “I had never seen so many people so happy to be at work.” It was a big observation to make for someone who hadn’t actually opened his TWO MEN AND A TRUCK location just yet. Still, it was enough encouragement for Drinkwater to know his future in franchising looked bright. Fast-forward nearly six years and the millennial franchisee is the proud owner of a TWO MEN AND TRUCK franchise in St. Catharines, Ontario that serves the entire Niagara Region. Now 30, Drinkwater was a self-proclaimed ‘young’ 25-year-old when he invested in the residential and commercial moving business. What he lacked in confidence, he made up for with his innate knack for entrepreneurship.
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The business savvy Drinkwater was first introduced to the mechanics of franchising through Justin Prittie, the son of TWO MEN AND A TRUCK Canada CEO and President, John Prittie. A millennial franchisee himself, the younger Prittie opened his own TWO MEN AND A TRUCK franchise in late 2012 at the age of 22. Covering the Cambridge, Kitchener and Waterloo, Ontario regions, Prittie was operating his franchise for one year before Drinkwater opened his. “I think after seeing me get started, Cotie saw the benefits of owning his own business,” Prittie reflects. The two had met only a few years prior playing hockey and Prittie says they quickly became close friends. It wasn’t long before Drinkwater was visiting Prittie on the job, soon realizing franchising could also be a good fit for his personal and professional skills. “You have a support system, a business plan and an established structure,” Drinkwater says. “As long as you can execute, you should be able to make things happen.”
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Millennials in Franchising Every TWO MEN AND A TRUCK vehicle carries a Mikey defibrillator on board; (R-L) Franchisees Justin Prittie (Cambridge, Kitchener and Waterloo) and Cotie Drinkwater (St. Catharines and Niagara Region) and their teams have been trained to save lives having learned CPR and how to use Mikeys. (Photo: Evan Eisenstadt)
On his end, Prittie knew his friend would be a good fit for the company. “Cotie always has a positive attitude,” he says. “The glass is always full for him and he never shies away from a challenge.” Truer words have never been spoken. Today, the Brantford, Ontario native is making TWO MEN AND A TRUCK a household name in a growing community, and proving to skeptics that age is just a number. Making a name for himself Knowing the judgements he would face as a kid in his mid-twenties opening a business didn’t deter Drinkwater from striving for success. If anything, it only fueled his work ethic. With the support of home office behind him, Drinkwater says he got the confidence he needed to learn about the company, invest, and work hard. The learning part came easy for Drinkwater, in large part due to TWO MEN AND A TRUCK’s comprehensive training process. Onboarding franchisees attend the company’s international home office in Lansing, Michigan, where they are given practical and hands-on knowledge at Stick Man University. Drinkwater describes it as a crash course in business. Topics ranging from human resources to sales training are covered along with courses in how to safely navigate a residential and commercial space and how to efficiently pack a truck. Typical of any young, first-time business owner, the nerves were present for Drinkwater when he opened his first TWO MEN AND A TRUCK franchise in the spring of 2013, smack dab in the middle of moving season. “At first, I felt like I needed to prove myself,” he says. “I was surrounded by established franchisees who were 10 years my senior. I wanted to be taken seriously.” As a millennial, proving that he belonged among the seasoned franchisees was one of the largest hurdles
Drinkwater faced. Couple this with a lack of general life skills, and Drinkwater’s early years as a franchisee were unique in comparison to the average business owner who invests in a franchise later in life. “You overcome challenges by working harder at them,” Drinkwater says. “You have to understand where your weaknesses are and work on them. For me personally, I didn’t want to let anyone down. I wanted to persevere.” And he did just that. Soon after opening, Drinkwater’s location ran three consecutive years with the highest customer service rating, getting the attention of home office and his fellow franchise partners. “I was really proud of him,” says Justin Prittie, who also worked hard to prove himself. In 2017, the franchisee finished second in sales for the Canadian network. “When Cotie and I first started, some of the older franchisees were skeptical because of our age. Now they more readily listen to our ideas.” Gaining trust from his fellow franchise partners wasn’t the only thing Drinkwater set out to accomplish. The franchisee can feel good knowing he has made his family proud too. Drinkwater is North American Mohawk, part of the Bear Clan from the Six Nations of the Grand River. Located on the Ohsweken Reserve in Ontario, the Six Nations of the Grand River is the largest First Nations reserve in Canada by population, and the second largest reserve by size. With an extensive family history, Drinkwater’s Indigenous background plays an important role in his life and he is happy he can bring some pride back to his family. “My indigenous heritage has taught me to dig deep, work hard and not give up as a business person, husband or father,” Drinkwater says. “I know I would not be in business without the financial, inspirational and emotional support of my family. They have always showed
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Millennials in Franchising
confidence in my ability to run my business and are committed to my success.” Opportunity for growth Drinkwater realized early on in his tenure as a franchisee that his skills would best be suited working behind the scenes to hire staff and grow the business. With over 20 employees currently on his team, including an office manager, moving manager, and movers on-site directly serving customers, the franchisee says his role has evolved drastically compared to when he first opened. While he may have been more involved in conducting actual moves in his first year, Drinkwater now ensures all pieces of his business are operating efficiently. As such, part of his job responsibilities focus heavily on the marketing aspect of the business. And in a Niagara Region community where TWO MEN AND A TRUCK is competing against established moving companies with loyal customers, Drinkwater is using his millennial mindset to implement strategic marketing initiatives. “We’re moving to a fast-paced, tech world,” he explains. “Everybody wants instant knowledge, so we have to come up at the top on search pages, we have to get good reviews, and we have to be interactive with potential customers online.” The hard work behind his online initiatives has paid off. Over the last year, TWO MEN AND A TRUCK’s St. Catharines location has grown dramatically. Still, there’s no time for a vacation just yet. “There’s still tons of growth in this territory,” Drinkwater says. “We can double or triple our sales growth in St. Catharines alone. For the company as a whole, I see us growing into a household name. We’re going to be the McDonald’s of the moving industry!” Movers Who Care As he heads into his sixth year as a franchisee, Drinkwater says the company’s culture is still one of the best in the franchising industry. “They promote a culture that encourages you to reach out to anyone, franchisees included,” he explains. “I’m pretty friendly with all of the Canadian franchise partners and I talk to many of them every month. It would be unwise for me not to. Communication opens doors and creates new business connections.” Justin Prittie can back up his friend’s statement without hesitation. “I’m always happy to help him, and he’s always happy to help me,” he says. “We have a relationship where we can bounce ideas off of each other and share our honest opinions.” TWO MEN AND A TRUCK’s “Movers Who Care” slogan doesn’t just apply to franchisee relationships and
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Cotie Drinkwater, Two Men And A Truck franchisee, St. Catharines and Niagara Region. (Photo: Evan Eisenstadt)
on-site job responsibilities either. The Canadian network encourages franchisees to give back to their local communities in some capacity. In 2012, TWO MEN AND A TRUCK partnered with The Mikey Network. As one of the MIKEY Network initiatives, every TWO MEN AND A TRUCK moving vehicle across Canada carries a MIKEY ON BOARD defibrillator. Franchisees, drivers and movers are all trained to use the defibrillator to help save a life. The MIKEY Network has placed 2,383 defibrillators and trained over 12,000 people across Canada in defibrillation and CPR. To date, 40 lives have been saved. Looking to the future, Drinkwater is enthusiastic about helping the brand grow across the country. And as a millennial in the business, he has lots of time to do just that. “Time is on my side,” he says. “Investing in a franchise at a young age means you have time to learn, time to keep re-investing, and time to figure things out.” Still, being young doesn’t mean you have all the answers. For millennials interested in opening a franchise, the one piece of advice Drinkwater can give is simple: listen. “Don’t ever think you’re doing something perfect, Drinkwater warns. “There’s always something better you can do to grow your business, so listen to the people around you.” TWO MEN AND A TRUCK STATS Franchise units in Canada: 25, U.S.: 381 Corporate units in Canada: 4, U.S.: 2 Franchise fee: $50K-$85K Investment required: $178K-$339K Training: 2 weeks Available territories: British Columbia, Alberta, Ontario, New Brunswick, Nova Scotia In business since: 2005 Franchising since: 2005 CFA member since: 2004
www.cfa.ca | www.FranchiseCanada.Online
THE FIRST YEAR
THE FIRST YEAR
The Rise of a Superhero Local superhero and mother, Jody Anderlich soars with the opening of the first Lice Squad.com clinic in her Brampton, Ontario community BY TRISHA UTOMI
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he first time Jody Anderlich heard about Lice Squad.com was when one of her six kids had lice. “At the time I was providing foster care for four girls and I have two boys of my own. One of the kids had lice and it slowly spread to the rest of the family. Needless to say, I was quite upset about the situation,” recalls Anderlich. But as soon as she and her children entered a Lice Squad.com clinic, she was put at ease. The consultants gave Anderlich’s kids complete lice removal treatment, along with guidance and preventative information, all while being friendly and reassuring. In fact, Anderlich left the clinic feeling so empowered that day that she couldn’t help but wonder, “why doesn’t my community have a Lice Squad.com of its own?” In 2017, that question was addressed. Soon after Anderlich’s initial Lice Squad.com visit, and after a few weeks of training, which involved a crash course in lice removal methods and products, she opened Brampton’s first Lice Squad.com franchise. The location is one of
the largest lice removal clinics in North America, and serves Brampton, along with the neighbouring areas of Vaughan, Shelbourne, Maple, Caledon, and Bolton. Now, people dealing with head lice issues in her local area don’t have to drive for miles to find help. Help is now close to home. For Anderlich, it’s made owning a business a fulfilling career choice. “When my clients walk through the door, they walk in feeling a certain way. Many of them are high on anxiety. I’ve had people crying because they are so upset about their situation. But they leave feeling a different way - happy and relieved,” says Anderlich. “We have the knowledge and experience to help families struggling with head lice so to be able to provide this assistance is highly rewarding.” The Path Towards Entrepreneurship For Anderlich, becoming her own boss didn’t happen overnight. It’s taken nearly twenty years of work, ten of which were solely dedicated to gaining experience in the franchising industry. “I have two years of experience
Franchise Canada March | April 2019 63
THE FIRST YEAR
as an employee and eight years as a department manager for a successful, franchised grocery retailer,” says Anderlich. “I ran it the way I would run my own business.” Throughout that time, she laid the groundwork needed for successful business ownership. She cultivated leadership skills that improved staff productivity and instilled a sense of verve and commitment in her employees. Even while managing a big team - consisting of different personalities, backgrounds, and ages - she never viewed her employees as merely cogs in a machine that could be easily replaced. As a result, she maintained high employee retention rates. She has been able to uphold that reputation at Lice Squad.com as well. “I have two subcontractors and one person on staff and I always ensure that I take their input into my decisions,” Anderlich says of the strategies she implements to foster the tightly knit team she has today. “The consultant that originally helped me when I was having my own head lice issues works for me and she has twelve years of experience. I’m never going to learn anything if I think I’m the smartest person in the room. You’ve got to have humility and you’ve got to be willing to get your hands dirty just like everybody else.” This is why in the nascent stages of her business exploration, rather than launching a startup alone, Anderlich decided to invest in a franchise with a strong support system. She and her husband tossed around a few ideas (mainly in the children’s services sector, which they have always been passionate about) before her own experience with head lice drew her to Lice Squad.com. “We always liked the idea of a franchise because it is an effective system that is already developed. Lice Squad. com is very well established in the lice removal industry and children’s services sector.” With over 17 years creating clean, safe and childfriendly environments for their customers, LicSquad.
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“You’ve got to have humility and you’ve got to be willing to get your hands dirty just like everybody else.” com not only has a business model that works, but one that provides superior support for their franchisees too. “I never feel alone in the business,” says Anderlich. “Franchisees are always kept up to date. They share strategies that are successful so that we can implement them into our clinic and then they also share what hasn’t worked so we know what to avoid too.” This support has made Anderlich’s career transition into business ownership that much more seamless, and above all, possible. “This is something that I set out to do twenty years ago. Owning a franchise has allowed me to take the reins of my own career.” Settling In It doesn’t take long for Anderlich to recall how she felt on her first day as Lice Squad.com franchisee: “It was outrageous!” After whisking off her six kids to school, at around 9 a.m., Anderlich walked into her clinic, opened up her laptop, and was immediately thrust into the thick of action. “I was met with seven to ten requests,” she recalls. Even more phone calls and e-mails came throughout the day. One by one, Anderlich replied to each of them - right up until 11 p.m.
www.cfa.ca | www.FranchiseCanada.Online
THE FIRST YEAR After what would be an exhausting day for most, all this entrepreneur could feel was pure exhilaration. After years of hard work, she was finally living out her dream. “I felt super excited. I just kept thinking ‘I’m here and I’m doing this,’” Anderlich says proudly. This is not to say that there haven’t been days when she’s felt overwhelmed. On top of juggling her other roles as a wife and mother, for the first six months, she was running the business on her own. But while many first-time entrepreneurs jump in head-first, without taking into account the realities of running a business, Anderlich was prepared. “You have to make a mental and emotional transition before making a physical one because you’re working for yourself and it’s scary,” she says. “I went through a lot of internal dialogue beforehand: ‘If this situation comes up, how am I going to work through that?’” Anderlich’s preparedness means challenges that arose along the way have been easier to navigate. “I struggle with finding which marketing strategies will work with the head lice industry,” says Anderlich on the challenge of establishing her business online. “But I am overcoming this by working with professionals in the
field of marketing and advertising and using both traditional and online methods.” While many more stumbling blocks may be encountered in the future, if Anderlich had to start a franchise business all over again she would choose Lice Squad. com every time. She explains how the franchise has made achieving her longtime goal of business ownership a satisfying journey and a worthwhile venture. “There’s definitely a heightened sense of satisfaction when it’s your own business, when you can see every effort that you put in is coming right back to you. It has been a truly positive and rewarding experience.” LICE SQUAD.COM STATS Franchise units in Canada: 20 Corporate units in Canada: 16 Franchise fee: $17.5K-$35K Investment required: $8.5K-$60.5K Training: Provided (excluding travel/hotel costs) Available territories: AB, BC, MB, NB, NL, ON, PE, SK In business since: 2001 Franchising since: 2002 CFA member since: 2006
Listen and Learn: TUNE IN TO THE FRANCHISE CANADA’S EXPERTS PODCAST Introducing the Franchise Canada’s Experts Podcast! Tune in to hear from the brightest minds in the franchising industry as they share key insights, tips, and advice that will benefit almost every entrepreneur looking to successfully own a business through franchising. Packed with expert interviews, inspiring stories, and more engaging content, the Franchise Canada’s Experts Podcast is your connection to the leaders of franchising in Canada!
https://franchisecanada.cfa.ca/franchise-canadas-experts-podcast/
Franchise Canada March | April 2019 65
LEADERSHIP PROFILE
CHANGING THE RENTAL GAME
Frustrated by the minutia of renting equipment for his landscaping business, Chris Clark thought “there’s got to be a better way.” From there, TheRentalGuys.ca was born. BY ROMA IHNATOWYCZ
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hey say that necessity is the mother of invention, and for Chris Clark, President of TheRentalGuys.ca, this proved to be very true. Prior to launching his online equipment rental business, Clark was a customer on the other side of the rental counter. As a landscaper, he regularly rented equipment from a variety of suppliers, and it was during one such cumbersome rental that he realized there had to be a better way. The industry at the time, says Clark, was outdated and time-consuming, and customer service was not top of mind. “It was 100 per cent old-fashioned,” he explains. “Everybody was running their business the same way it had been run for 25 years – you had to go in person and you still had paper contracts. I recognized that things could move faster, smoother, and easier for people like me who wanted to rent out equipment quickly and easily. I thought to myself, ‘There’s got to be a better way.’” For Clark, it was a squabble over the payment for a defective compactor that was the final straw. It was just the push he needed to launch his own rental company – one that would reinvent the trade. The goal was to take the paper-based rental business online, allowing customers to order, pay, and even book their timeslots right from their computer. As well, Clark’s business would deliver the equipment to the client, and then pick it up, offering added convenience. “I didn’t accept the argument that ‘This is just the way it’s always been done,’” says Clark. “I said, ‘Let’s get rid of the storefront and do this completely online.’ I went about doing everything I could to design a business that
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would be very user-friendly and efficient for both the business owner and the customer. Because if you don’t provide a great customer experience, then you don’t have much of a business.” In an industry that had remained virtually unchanged for decades, this modernized service offering was revolutionary. But Clark was not one to shy away from a challenge or ruffle a few feathers. He had, after all, been running his own Calgary-based landscaping company, Peaks & Valleys Landscaping, since he was a teen. What started as a run-of-the-mill summer grass-cutting venture, going from house to house looking for work, eventually morphed into multi-million dollar business with a large commercial clientele. Even more impressive was that Clark was already bringing in substantial earnings when he just started out as a 16-year-old mowing lawns. “I was taking home enough money that I could live all winter just by cutting grass in the summer,” he says. Coming from a family of small-business owners helped, but not all children growing up around business spend their teens running a bona-fide business. Clark was so pumped with his work that he cut short his high-school studies, sold his lawnmowing equipment and client list, and turned his attention to building Peaks & Valleys into a bona fide landscaping company. “We moved into laying sod, planting trees and building patios – hard landscaping,” he notes. Calgary was entering an aggressive boom cycle, and the company flourished. Clark continues to run the business alongside his newest venture, TheRentalGuys.ca.
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(Source: LinkedIn)
LEADERSHIP PROFILE
“I SETTLED ON THE FRANCHISE MODEL BECAUSE I WOULD HAVE OWNER-OPERATORS RUNNING EVERY LOCATION – PEOPLE WITH REAL SKIN IN THE GAME.” Chris Clark, President of TheRentalGuys.ca
Challenges Despite his earlier business success, launching an online equipment rental business was not entirely seamless for Clark. It came with its own inherent challenges, starting with the lack of suitable technology. “The software didn’t exist at the time. I couldn’t just go out and buy a piece of software to complete a rental transaction,” he says. “We had to take a couple of pieces of software and piece them together with some custom work to build our website, which we launched in 2014.” Clark also invested half a million dollars into his initial inventory. “It was a lot of money, but it was low-risk,” he explains, noting that rental equipment is quite liquid and sells easily, and could also be used in his landscaping business. The budding franchisor also invested heavily in online advertising – both on social media as well as pay-per-click Google ads, which he says was well worth it: “It cost quite a bit, but in that first year we proved our concept and it was a runaway success.” TheRentalGuys.ca flourished from the get-go and by its second year of operation Clark was already primed to grow the company beyond its home base of Calgary. He turned to franchising as the obvious choice. “I asked myself, ‘What’s going to help me get the customer service standards up to where I want them to be?’ And I settled on the franchise model because I would have owneroperators running every location – people with real skin in the game,” he explains. “These are people putting hundreds of thousands of dollars into their business, so they will treat customers far better than a manager would.” The first franchise opened in Mississauga in 2016, and was soon joined by locations in Guelph, Vancouver and Edmonton. Clark is currently working on opening two more Canadian franchises while simultaneously moving his business south of the border. In November, he officially launched the brand in the U.S. as HardHatRentals. com (the trademark for TheRentalGuys.ca was taken). “I would say that between Canada and the U.S. we will have four new franchises opened by the spring, so it’s a very exciting time for us,” says Clark. The long-term goal is to expand the network to 30 franchises over the next five years, with each covering an extensive area to allow for optimal business growth for the franchisee. The Mississauga location,
for example, services a market of two million people, while the Vancouver franchise serves a population of 2.5 million. “We want franchisees who are looking 10 or 20 years down the road to grow a very sizable business,” says Clark. Despite the large footprint, franchisees – who normally have some sort of business background – start off as a one-person operation, adding staff as their business grows. All customer orders, scheduling, and payments are processed digitally through the Calgary headquarters, where a software developer is on staff. On the ground, franchisees are responsible for maintaining the equipment, managing deliveries, and promoting their business at the local level. “It’s about going to the sites, meeting with local contractors, shaking people’s hands,” says Clark. “We spend a lot of time with franchisees working on that; they need to be proactive in getting out.” Customer service remains a priority, which comes as no surprise given the impetus behind the brand. As someone who knows what it’s like to be a dissatisfied rental customer, Clark brings his special insight to the table when working with franchisees. “Being involved in both sides of that transaction definitely gives me a very interesting perspective that most people don’t have,” he says. “My focus with franchisees is to make sure they understand the customers’ needs and their point of view. It’s very easy when you start a new business to make hasty decisions based on what’s best in the short-term. But you need to take the longer point of view.” As someone who already had lofty business goals when he was just a teen, Clark knows a thing or two about taking the longer point of view. It worked for him then, and all things are pointing to it working for him now as well with TheRentalGuys.ca. THERENTALGUYS.CA STATS Franchise units in Canada: 4 Corporate units in Canada: 1 Franchise fee: $35K Investment required: $125K-$175K Training: 2 Weeks at Head Office in Calgary Available territories: All of Canada, U.S. In business since: 2014 CFA member since: 2016
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A DAY IN THE LIFE
ESCAPING THE ROUTINE A CAREER SHIFT FOR HAND & STONE MASSAGE AND FACIAL SPA FRANCHISEE ROXANNE POWER BRINGS FLEXIBILITY AND A NEW ADVENTURE EVERY DAY BY KAREN STEVENS
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A DAY IN THE LIFE
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hen Hand & Stone Massage and Facial Spa franchisee Roxanne Power goes to work in the morning, the scent of lemongrass greets her as she walks in the door, relaxing music plays, and the gentle trickle of running water ushers in another day at the spa. This quiet atmosphere is a stark contrast to her previous career working in advertising sales at the Toronto Sun and owning her own daycare business. Power opened up her Hand & Stone location in Ajax, Ontario on Jan. 15, 2018. The franchise, which provides massage therapy, facials, hair removal, and various relaxation and therapeutic packages, was a perfect fit for Power. ”I love the health and wellness industry. I love seeing smiles on people’s faces,” she says. While she also loved her work in advertising, at this point in her life she wanted more flexibility from her job. In the beginning, Power recalls, “I was there seven days a week, 12 hours a day, every day.” But, she says, “It’s a bit better now once you get on your feet a little bit.” Now, she typically works five days a week, starting at 8:30 or 9 a.m., after she drops her three kids off at school. “I’m there until basically I have to be,” she explains. “Some days I have to leave early to pick up my kids from school, and then if I have to go back, I’ll go back.” Now that she’s got trained staff in place, she finds that they can handle things after she leaves. With a full office in her home and security cameras monitoring everything remotely, she’s able to be on call if her employees need her or if she has to finish something up after hours. “That’s the thing when you own your business – when it’s a franchise or a different kind of business – you’re working 24/7, whether you’re physically there or not,” describes Power. “You know that when you start. If you’re not willing to put that time in, you’re doing the wrong thing.” Even with the busy routine, the choice to open the franchise was a change for the better. “The best part of it is the flexibility, that I can go in there or I can stay home to work,” Power conveys. For example, when the kids are sick or when it’s month-end and she just needs
“I LOVE THE HEALTH AND WELLNESS INDUSTRY. I LOVE SEEING SMILES ON PEOPLE’S FACES.” to be productive without being interrupted by the spa’s day-to-day concerns, she is able to work from home. Also, one of the biggest highlights of owning the spa is knowing that she makes people happy and getting positive reviews. Before deciding to invest in Hand & Stone, Power did a lot of research. She met with Brett Harding, President of Hand & Stone master franchise in Canada. The team at corporate gave her the time and resources to complete her due diligence. She called up current franchisees and spoke with them about their experiences. “It’s like family there,” she says. Along with the family atmosphere, Power loves the franchise system’s ongoing support. “I can pick the phone up at any time of day and call any of them and ask then a question and they are there for me,” she says. “I’ll send an email and I’ll get a response within five minutes.” The biggest difference between running her own business and running a franchise is that with the support of corporate, as well as the other franchisees, she isn’t in it alone. The rewards don’t come without hurdles to overcome. The biggest challenge for Power comes when a client is unhappy with their experience. “When someone is upset, you need to fix it on the spot, you can’t just leave it,” advises Power.
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A DAY IN THE LIFE
Despite the spa’s calm environs, “When you go to the spa in the morning, you don’t know until you set foot in the door what your day is going to be like,” she says. “I don’t have a routine, I don’t have a plan.” With all of the various personalities of the clients and staff “Everybody needs something different,” she says. “So you need to be flexible, you need to be attentive and you need to have customer service – if you don’t have that you’re in the wrong business.” Another challenge with the health and wellness industry (as with many others) is staffing. To make sure that her staff are happy, Power asks them how she can make the workplace better. “I have an open door policy, staff can just walk in, and you have to make time for them.” However, she notes that “It’s one thing doing that, but you have to follow through on it.” She recognizes that while some staff don’t mind coming forward about issues, some want to be behind the scenes, so she has a suggestion box. She reads all of the suggestions and tries to implement them whenever possible. She also interjects some levity into the job with contests and seasonal celebrations. “It’s got to be fun, and they have to enjoy it, but they also have to know that it’s a workplace,” she cautions. It takes time to find good staff, but Power now has a great team that she can trust to run the spa when she has to leave for a few days for occasions like conferences. Power says that the ideal Hand & Stone franchisee is someone who wants to be very hands-on with the running of the franchise. “You’ve got to want to be there,” she states. To succeed she says that you have to put the time and be involved. “I don’t believe that going into work and sitting in my office with a closed door all day
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is going to help anybody.” Above all, adds Power, a Hand & Stone franchise needs flexibility, an open mind, and should be dedicated to excellent customer service. Prospective Hand & Stone franchisees don’t necessarily need a business or health and wellness background, according to Power. While business knowledge definitely helps, she says that the success of a particular franchise is more about the franchisee’s personality and drive. Power doesn’t have a background in business herself, so she’s made it a priority to learn what she needs to know over the years. “I don’t know everything, but I know where to go to get what I need, and I’m not afraid to ask questions,” she explains. “There’s always room for improvement and you can never know too much. I love a challenge and I’m constantly learning new things.” For example, she reads massage magazines to understand the point of view of her therapists so that she can better understand their viewpoint and keep up with the industry. Indeed, Power herself is not short on drive, and while she may only have been in business for a short time she’s already looking into opening another Hand & Stone location soon. HAND AND STONE MASSAGE AND FACIAL SPA STATS Franchise units in Canada: 27, U.S.: 355 Franchise fee: $39K Investment required: $415K-$613K Training: Three weeks Available territories: All of Canada In business since: 2008 Franchising since: 2008 CFA member since: 2008
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ICONIC BRAND
“TASTE THE DIFFERENCE!” With its trademark radio jingle and quality ingredients, Pizza Nova has risen to become an iconic Canadian brand in the ultra-competitive pizza space. BY KAREN STEVENS
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or many Canadians, “Four-three-nine-oh-oh-ohoh Pizza Nova!” is an iconic jingle they know by heart. Beyond the catchy marketing, Pizza Nova is a successful and growing franchise system with 154 locations across Southern Ontario. It got its start 55 years ago, in 1963, with a single location in Toronto. “My father and his brothers were the founders of the company. It was founded on the principle of serving a great quality pizza to Canadians and Torontonians,” says Domenic Primucci president of Pizza Nova. “Back in 1963 pizza was more of a snack item than a meal,” says Primucci. However, over the years the concept, and pizza itself, evolved. Pizza Nova expanded the original location to become a full service restaurant where people would come in the evening and have dinner, making pizza the main event. The original location was in Scarborough, which was more of remote area at the time, but had the benefit of
being close to up-and-coming neighborhoods. It wasn’t long after the first store opened and had begun to thrive that the brand started to franchise other locations. When Pizza Nova first started to franchise, existing employees began to express interest in opening a Pizza Nova of their own. “They liked what they saw at the original location and wanted to get into business with them as well,” describes Primucci. He adds that a lot of these inquiries were coming from new Canadians. “The franchising model gave the opportunity to immigrants to start a business,” he explains. At the time, franchising was not the commonplace business option that it is today. “They took the lead to go into that type of model,” says Primucci. Franchising was risky for brands because if service and product aren’t consistent across locations “it could damage your brand, even if it’s a one store operation.” Even though the brand has seen considerable success for more than five decades, it continues to evolve to
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ICONIC BRAND
adapt to the market. “We are conscious of people’s dietary requirements,” says Primucci. “For example, we’ve had gluten-free options for a number of years. We also have non-dairy cheese, so that helps people that are lactose intolerant and vegan.” Another example is pepperoni, Pizza Nova’s most popular topping: “We were the first and only pizza place to introduce pepperoni to be made without the use of antibiotics and hormones,” Primucci says. “We are still the only company chain-wide to do this in the pizza industry.” He goes on to explain that at Pizza Nova, they don’t look at trends, instead, they look at big shifts in the marketplace. “A trend comes and goes but shifts in the market are going to take you to the next stage,” he conveys. Finding the right franchisee These days, ideal Pizza Nova franchisees are people who have a passion for the food service industry. While there are lots of essential skills that can be developed through Pizza Nova’s comprehensive training program, it’s good for franchisees to obtain some experience in the restaurant business before coming on board. “It’s important to know the lifestyle,” explains Primucci. “Because there’s long shifts, you’re always working on holidays when everybody else is celebrating; Friday, Saturday nights when people go out on weekend, that’s your busiest time.” Also, they have to be someone who loves interacting with people. “They have to really want to serve their customers,” he explains. He also says that while business experience is a plus, it’s not always a necessity.
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“WE’VE BEEN IN BUSINESS FOR 55 YEARS. WE HAVE A MODEL. YOU’RE GOING TO BE SUCCESSFUL IF YOU FOLLOW THAT MODEL.” Above all, successful Pizza Nova franchisees follow the franchisor’s guidelines. “We’ve been in business for 55 years. We have a model. You’re going to be successful if you follow that model,” says Primucci. “We have that experience and we have that proven background.” Furthermore, Primucci points out that consistency is essential to the strength of the brand. “When you buy a pizza in Huntsville or you buy one here in Toronto, it’s got to be the same, and the experience has to be the same.” To ensure that franchisees are successful, Pizza Nova offers comprehensive support that “starts from the minute they are awarded a franchise,” describes Primucci. The length of training depends on the person’s skill level and experience. For example, if a franchisee has a background working at a Pizza Nova location, their training may not be as long as someone new to the brand. “If a person comes in very green and has never worked in a location and have never stretched a pizza, now their training may take two months,” Primucci outlines. At Pizza Nova, district managers are responsible for supporting a number of stores within a certain area. They
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ICONIC BRAND
President of Pizza Nova Dominic Primucci (right) alongside the franchise’s founder Sam Primucci (middle), and MiMi Food Products president Mike Primucci (left).
visit stores and are available to answer all of the franchisee’s questions. ”If a franchisee wants some help with marketing, then we will help with marketing. If it’s training on how to make the product. we’ll do that,” Primucci says. Typically franchisees reach out to their district managers for help, although, explains Primucci, they can get help from anyone on the Pizza Nova team. “If they want to call the marketing department they can pick up the phone and call the marketing department. If they want to pick up the phone and call me, they can call me as well.” Another avenue of support is the other franchisees: “A lot of them know each other so they help each other out and support each other as well,” says Primucci. Additionally, the franchisor holds three or four business meetings, along with two to three hands-on training workshops for franchisees. “We are constantly in contact with them and constantly supporting them,” says Primucci. “It’s important as the franchisor that they are successful; we will exhaust all avenues to make sure that they are successful.” The life of a Pizza Nova franchisee, just like in any business, is not without its challenges. One of those challenges is staffing, an industry-wide issue for franchises operating within the food services sector. “As the franchisor, we have to help them and we have to guide them,” says Primucci. For example, Pizza Nova will provide guidance throughout the recruitment process, from sharing interview questions to help franchisees hire the best staff to helping the franchisee decide where to
place job ads. In the end, the franchisee is not on their own, “We will help them to overcome those challenges together,” asserts Primucci. Other challenges may involve finding new locations or just the day-to-day issues that may arise with restaurant ownership. However, according to Primucci, “As long as we have our vision of our company and all franchise units are consistent, you overcome those daily challenges.” As for the benefits of joining the Pizza Nova team, Primucci says that you become part of a premium brand. “We’re going to deliver the best quality product, the best quality customer experience and you have a hands-on approach at the support office level,” he says. “We aren’t interested in building 30 stores to build 30 stores. If I only build five stores then I’m happy building five stores because I want them to be successful. I’m not here to make money on a store opening. I’m here to offer an opportunity for longevity within a brand.” PIZZA NOVA STATS Franchise unit in Canada: 154 Corporate units in Canada: 1 Franchise fee: $20K Investment required: $425K-$475K Training: Provided Available territories: Ontario In business since: 1963 Franchising since: 1969 CFA member since: 1995
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SHOW ME THE MONEY
4 FRANCHISES FOR $500K+ Franchising is about diversity. Franchise opportunities may be found in nearly every industry and business sector. It’s a great way for Canadians from all walks of life to go into business for themselves but with the support of a franchise system behind them. One of the most important considerations for a prospective franchisee is investment level. Figuring out a budget that fits with your financial situation and goals will help you to zero in on the franchise opportunities that might be the best match. With so many opportunities, there is a franchise for everyone at a variety of investment levels. Here, Franchise Canada showcases franchise systems in which you can invest for $500K+.
Giant Tiger Stores Limited
Harvey’s
Giant Tiger’s company operations began in 1961 with the first franchised outlet opening in 1968. Giant Tiger is a family discount department store, selling fashion clothing, groceries, and household products. Interested parties must have prior retail management experience and join our team as a store manager to begin their journey towards potential franchise ownership. Please visit www.gianttiger.com to explore openings for retail store managers. Franchise units in Canada: 200 Corporate units in Canada: 1 In business since: 1961 Franchising since: 1964 CFA member since: 1975
Harvey’s has been serving up flame-grilled, customized burgers made just the way you want them since 1959. Harvey’s is a true Canadian brand that prides itself on Canadian quality through items like our ¼ Pound and ½ Pound Angus burgers, naturally-smoked bacon cooked on the grill, milkshakes made with 100% fresh Canadian milk and our famous poutine made with 100% real Canadian cheddar curds. Franchise units in Canada: 289 Corporate units in Canada: 10 Franchise fee: $25K Investment required: $750K-$1M Training: 6 weeks Available territories: All of Canada In business since: 1959 Franchising since: 1962 CFA member since: 1993
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www.cfa.ca | www.FranchiseCanada.Online
SHOW ME THE MONEY
© 2017 2000433 Ontario Limited. All rights reserved. “St. Louis Bar & Grill” is a registered trademark of 2000433 Ontario Limited.
St. Louis Bar and Grill
100 per cent Canadian owned and operated, the very first St. Louis Bar and Grill opened its doors in Toronto in 1992. Famous for their signature chicken wings, fries, garlic dill sauce, and ‘Devilishly Good’ atmosphere, the franchise offers amazing tasting comfort food in over 50 locations in Ontario and Atlantic Canada. St. Louis Bar and Grill’s local neighbourhood establishments offer exceptionally warm, and friendly service delivered in a fun, casual, sports bar and grill setting. With new locations continuously being added nationally, at St. Louis Bar and Grill is proud to be ‘Devilishly Good’! Franchise units in Canada: 46 Corporate units in Canada: 7 Franchise fee: $40K Investment required: $800K-$900K Training: Yes Available territories: British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia In business since: 1992 Franchising since: 2002 CFA member since: 2002
Urban Bricks Pizza Urban Bricks Pizza serves ‘brickin’ good’ authentic, customizable Neapolitan pizza. Urban Bricks allows guests to build your own pizza and salad and choosing from more than 30 ingredients and doughs that are prepared fresh each morning. Urban Bricks offers items for every taste expanding their menu to wings, brews and gelato. Urban Bricks Pizza is 100% natural with zero preservatives. The San-Antonio-based franchise is set to open more than 50 locations in the next three years. Franchise units in Canada: 1, U.S.: 16 Corporate units in U.S.: 2 Franchise fee: $31K Investment required: $600K Training: $15K Available territories: Ontario, U.S. In business since: 2015 Franchising since: 2015 CFA member since: 2017
Find franchises by investment level on LookforaFranchise.ca
Want to find franchises at a particular price point? Searching by investment level is just one of the search options available on Franchise Canada’s online franchise directory at LookforaFranchise.ca. This website is powered by the Canadian Franchise Association and part of Franchise Canada’s suite of products for aspiring franchise owners. Build your profile on LookforaFranchise.ca and browse available franchises, request more information directly from the companies you’re interested in, and access exclusive Franchise Canada content online.
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FRANCHISE FUN
Fuelled by Family Franchising the Fire-Alert concept in 2008, the father-son team of Yvan and Sylvain Houle takes great pride in being a family-owned and operated fire protection franchise.
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www.cfa.ca | www.FranchiseCanada.Online
FRANCHISE FUN When Fire-Alert Franchising Ltd.’s co-owner Sylvain Houle describes himself as a family man, he’s not kidding. Fire-Alert, a mobile fire protection company specializing in professional and efficient inspections, has been fighting fires for more than 35 years. In 2008, Sylvain’s father Yvan Houle franchised the concept in Ottawa and the two have been working together ever since. The rest is history. Celebrating its 10th anniversary as a franchised organization in 2018, Fire-Alert has grown into a thriving system with 23 branches across the country, with aspirations to develop in Western Canada this year. Also describing himself as loyal and ambitious, Franchise Canada caught up with Sylvain to answer some Franchise Fun questions on behalf of the father-son duo. The most interesting thing I’ve done recently is… Vacationed with my wife, without our children for the first time since they were born. What an experience!
My favourite drink is… A gin soda or a glass of red wine
In its best form, work is… Fun! Do what you’re passionate about and you won’t work a day in your life.
If I could meet anyone… I’d love to have dinner with Brian Scudamore. He inspires me daily as a franchisor.
A good franchisee… Believes in the brand and is motivated to make it better.
The person who has had the most positive influence on me as a businessperson is… My father. We’ve had a remarkable bond since day one. Working with family seems to have such a negative connotation to it, but we’ve beaten the odds.
A good franchisor… Doesn’t wait for opportunity, they create it. My top advice for prospective franchisees is… Be passionate about the business you are becoming a partner in. My top advice for new franchisors is… Believe in yourself and never give up until your dreams become your reality. The most important thing in life is… Family.
If I could change one thing… Pardon my lack of creativity but I’d go with world peace. There is a reason it keeps coming up.
Canadian franchising is… A window of opportunity for anyone with a desire to own a business.
The most positive influence on my life as a person is… My wife and kids who put a smile on my face every day and make it all worth it. The key to success is… Believing in yourself and being the best at what you do. I’d like my friends to describe me as… Fun, loyal, and respectful. The accomplishment I look forward to the most is… Carrying my father’s legacy as an entrepreneur while always putting family first. My personal motto is… Work hard, play harder. One necessary item on my life’s “to do” list is… Establish a non-profit.
My franchise system began because… My father had a vision that we brought to light. Our concept is too good not to be franchised.
One of the most enjoyable things to do is… Playing hockey or spending the day on the water. The hardest thing for me to do is… Sit still.
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Q A
ASK A LEGAL EXPERT As a franchisee, do I have to participate in all of the franchisor’s promotions? What if I don’t? WE ALL KNOW THAT MARKETING is a very important part of franchise systems. It is equally important to franchisees and franchisors. As a new franchisee joining an established system, you will want to be aware of what promotional programs your system has and consider their impact on your bottom line, because, like it or not, you are probably required to take part in all of them. You should take steps to inform yourself about your franchise’s promotional programs by reviewing the disclosure document and talking to existing franchisees. But what if you don’t participate? First, there is the reputational risk and potential loss of goodwill. Even if a campaign notifies the public that it is available at “participating locations only”, consumers generally assume that what they hear on the radio, see on television, and read in their social networking feeds is available at their favourite location. Customers will be disappointed if they don’t receive the advertised offers. Second, there is a potential breach of your franchise agreement. Most franchise agreements make it very clear that all franchisees must actively participate and cooperate with the franchisor’s national, regional, and local advertising and sales promotion campaigns. The agreements may also provide more detailed information about what that includes such as offering any discounts, including free products or services, that are advertised as part of those campaigns, and who bears the cost of providing such discounts or promotions. Refusing to honour promotional campaigns when required to do so is a breach of your franchise agreement, and could lead to default and termination. Third, there are laws that are aimed at preventing misleading advertising. Also, this isn’t just an issue for the franchise as not honouring advertised offers (e.g., a buy-one-get-one offer) or trying to make some extra money by charging for a service that has been advertised as complimentary can create liability for the both the franchisee and the franchisor. The penalties – both monetary and reputational – can be severe. The federal Competition Act makes it a crime to knowingly or recklessly make (or permitting the making of), a representation to the public that is “false or misleading in a material respect”. It states that the general impression conveyed by a representation, as well as its literal meaning, must be taken into account when determining whether or not the representation is false or misleading in a material respect. The penalties for breaching this provision can be significant. There are also civil prohibitions under the Competition Act that establish remedies against anyone who
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makes (or permits the making of) a representation to the public that is false or misleading in a material respect. Like the criminal provision, a breach of this section can be established by the general impression conveyed by a representation, as well as its literal meaning, when determining whether or not the representation is false or misleading in a material respect. If a court finds that a person breached this part of the Competition Act it may order the person not to engage in the conduct, to publish a corrective notice, to pay an administrative monetary penalty and/or to pay restitution to purchasers. Again, the penalties can be significant. There is also potential exposure under the various provincial consumer protection acts. Under the Ontario consumer protection regime it is an “unfair practice” to make a false, misleading or deceptive representation. This includes making a representation that a specific price advantage exists where there isn’t one. If an unfair practice has occurred the consumer is entitled to have their agreement rescinded and may be entitled to damages and other remedies. If, because of the type of transaction (such as a service that has already been performed), rescinding the agreement is not possible, the consumer is entitled to recover the amount they overpaid or to recover damages, or both. Franchise systems are built around brands, and they only really thrive when brand recognition is strong and - of course - favourable. The value of your advertising dollars can be lost very quickly if the promises made in these promotions are not honoured. Franchisees should be aware that if they don’t follow the letter and the spirit of the promotions they may expose themselves to contractual and statutory sanctions.
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Paul Kotschorek Counsel Osler, Hoskin & Harcourt LLP PKotschorek@osler.com 416-862-5990
Q A
ASK A LEASING EXPERT
How do I attract customers to my franchise with signage? IT’S MUCH EASIER FOR CUSTOMERS to find your business if you have a prominent sign with your business name on it out front. The bigger the sign, the better – and the more attractive the sign, the better too. Don’t just assume, however, that your landlord shares your vision of a large sign identifying your business on or in front of their property. Franchise tenants can easily overlook that their landlords may want to restrict all tenant signage on the property. Franchise tenant requests for more or larger signage are often rejected by landlords. Landlords impose signage criteria and restrictions mainly because whatever they allow one tenant to do signage-wise, the other tenants may also want to do. Most landlords prefer an uncluttered property without extra signage simply because it looks more attractive. If your landlord does allow you to place a sign on the property, creating and maintaining it is your responsibility. This extra work on your part, however, can be beneficial: •S ignage can make your business easier to find for customers who are specifically looking for you. Obviously, if you’re located in an area with a sea of shopping plazas or office buildings, a sign with your name on it makes it much easier for customers to pick you out of the crowd. •S ignage can bring in customer traffic. People visiting other retailers in the property and shopping for other items may see your sign and be reminded to drop in. If your sign reads, in part, “Now Open!” all the better! •S ignage will become recognized by local residents who will see you as they commute to and from work daily. These residents are more likely to visit your business because they are familiar with your name. With that being said, note that your landlord may allow certain types of signage but not others. Typically, the landlord usually requires graphic drawings of your sign for written approval or provides you with a signage criteria package that you must follow as part of your lease agreement. Read this information carefully and understand that your landlord may consent to one type of signage but not another. To give you a better idea of what may or may not be allowed, here are the most common types of signage: Building signage: This is the signage that almost every business location will have and it will generally appear directly above your main entry door. However, do not overlook the possibilities of having signage on multiple sides or even the rear of the commercial property if that will provide you additional exposure to walk-by or driveby traffic.
Monument signage: A “monument sign” resembles a tombstone coming out of the ground and, typically, advertises just one or a few select tenants. Monument signs are not that common, but they can make your business look more substantial if you can get one. Pylon signage: The tall sign by the roadway that tells passers-by what tenants are located in the plaza is called the “pylon sign.” A property may have several pylon signs, which all display the name of the plaza at the top of the sign. Don’t just assume that you will automatically get a panel of the pylon sign. There are often more tenants in a property than sign panels available, so make this a part of your offer to lease or lease renewal. Ideally, try to pick your actual panel (both front and back), because a panel higher up on the pylon sign is usually more visible and read first. If there is no pylon signage space available, check with your landlord to see if any tenants holding signage space will be moving out or closing. Once that tenant vacates the property, you will have your name already in for consideration. Another option is for a group of tenants to collectively ask the landlord about signage space. With a number of requests, the landlord may become motivated to erect more pylon signage. Sandwich board signage and banners: Franchise tenants may wish to utilize these forms of signage to advertise limited time specials; however, landlords may say no. If these are of interest to you, negotiate for them in advance. The Lease Coach will often negotiate predetermined times when the tenant can use these signs. Landlords may be more comfortable in knowing these signs will not be out all year and thereby not create signage clutter. Temporary pull-away signage: These are the signs on wheels covered with images or business messages. Most landlords hate these signs and the problems they create. Don’t just assume that you may be able to have pull-away signage for your grand opening or some other special sale. Landlords think these signs clutter or obstruct their property and may only allow limited numbers of pull-away signs to be used (and shared) by many tenants throughout the year. Again, negotiate pull-away signage rights up front, because the landlord doesn’t have to let you put these signs up if they are not included in the lease agreement. Dale Willerton and Jeff Grandfield Commercial Lease Consultants The Lease Coach 1-800-738-9202 DaleWillerton@TheLeaseCoach.com JeffGrandfield@TheLeaseCoach.com
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FRANCHISE TUTORIAL
TUTORIAL 21: THE FUNDAMENTALS OF FRANCHISING
INTRODUCTION TO REPORTING MOST FRANCHISE AGREEMENTS REQUIRE the franchisee to report information to the franchisor on a regular basis. This is frequently done on a monthly basis and can be submitted as written reports or digitally. It may simply be financial reports that are generated through point-of-sale systems, online reporting systems or dashboards. Sales, as well as key operating metrics such as billable hours or average customer spend, are looked at. Profit and Loss statements are typically reported annually. Depending upon the franchise system, reports may be required more frequently. Franchisee reports are required by the franchisor for several reasons. First, franchisors want to ensure that they are receiving proper royalties. Royalties are often a percentage of the gross revenues, less collected taxes and refunds. Such royalties cover the costs and expenses associated with providing support to the franchisees and the system, as well as providing a profit to the franchisor and its shareholders. It provides the revenues to continue to build the brand. For the franchisees that are paying their fair share of the royalties, it is not fair that they do so while others do not. The non-compliant franchisees, by hurting the franchisor’s financial cash flow, are considered a threat to the system. Second, the franchisor wishes to ensure that franchisees are not running into financial difficulties. Franchisees are in business to make a profit. If profits are not realized on a consistent basis, they may not stay in business. Franchised locations closing are not good for the brand and for the system as a whole. Good franchisors wish to protect the integrity of the brand and therefore need to be aware of any franchisees in financial difficulty so that they can be proactive in assisting to correct the situation. Third, franchisors will wish to establish key metrics and benchmarks for the system as a whole. These system benchmarks and averages can be provided back to the franchisee so they can measure their individual performance as it compares to the system as a whole. It will identify problem areas or items of potential improvement. As an example, you might be having a 35% employee turnover, but other franchisees are averaging 20% employee turnover. This provides the franchisee with an area to focus on to improve the performance of the business. Fourth, the franchisor wishes to monitor overall business trends. Are certain categories of retail items dwindling in sales and needing to be replaced with another
product category? Are the average dollar amounts per transaction shrinking? This may require adjustments to the offering. Is there an unaccounted disappearance of inventory that may require implementing greater security controls? Without monitoring key business metrics and having a basis for comparison, it is difficult to make these and other business decisions. Franchisees are not just required to report to the franchisor. Similar to any business owner, the franchisee is also required to submit regular reports and financial submissions to the government. Monthly or quarterly, there may be GST/HST reports, payroll reports and remittance of taxes, workers compensation and employment insurance. Although it is the franchisee’s legal responsibility to submit these payments, some franchisors will require copies so that they can ensure that all required payments have been made. Failure to pay government remittance and taxes could result in the government stepping in and closing the business. Again, the franchisor has a strong interest in and commitment to ensuring that the brand continues in the location. Finally, franchise systems need to be able to monitor their franchisees for system consistency. The product and service offering needs to be consistent no matter the location. It is through consistency that a brand is created. Thus, there may be required reports regarding the quality of the product or service being provided. A report regarding customer complaints and how they were handled is also regularly provided to the franchisor. Reporting is a necessary part of being in a franchise system. It may feel sometimes like “big brother” is watching, but ultimately it is in the franchisees’ best interests as it protects their investment. It is in everyone’s interest that no one be allowed to ‘cheat’ the system and all are paying their fair share. All franchisees can benefit from reporting and getting feedback as to how they are doing relative to others. This is one of the biggest benefits of a franchise, when compared to opening as an independent. You, the franchisee, have resources that simply are not available if you were on your own. Providing the franchisor with information can assist in improving operations across the system, including early recognition of issues such as internal theft, excessive operational costs and changing market trends – all of which require corrective action.
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FRANCHISE TUTORIAL
TUTORIAL 22: THE FUNDAMENTALS OF FRANCHISING
INTRODUCTION TO AUDITS WHEN A FRANCHISEE ENTERS into a franchise agreement, they acquire specific rights, but they also commit to certain obligations. The franchisor/franchisee relationship is largely based on good faith. The franchisor trusts the franchisee will comply with the franchise agreement. In most situations, this is the case, but not always. Sometimes mistakes will happen. In more unusual circumstances, a franchisee may intentionally underreport sales or not follow the system in some way. To address this, franchise agreements will usually give the franchisor the right to conduct an audit on the franchisee in question to ensure compliance with obligations. Most franchise agreements will allow the franchisor to perform a financial audit on its franchisees. The franchisor may sometimes decide to do a financial audit at random; more frequently, it will choose to conduct one in the unusual circumstance where the franchisee fails to submit required financial reports. The franchisor may also do an audit if it suspects that the royalties being paid by franchisees are not aligned with the actual amounts that are due. Franchisees not paying their fair share jeopardize the financial stability of the franchisor, and can hinder the franchisor from meeting its obligations to its franchisees, shareholders, and employees. In doing an audit, the franchisor will look at sales as they are reported on monthly reports to the franchisor, and compare this to sales as reported in the point-of-sale system, as indicated through sale invoices, government tax filings, inventory turnover, and bank deposits. All of these numbers should be aligned and indicating an equal level of sales. If inconsistencies are found, this could be an indication of accounting errors or intentional underreporting of sales in order to avoid paying royalties. A financial audit may be the only way to determine what royalties are due and payable if such royalties are a percentage of sales. If no royalties are being paid, or in the event that the audit uncovers that the franchisee underpaid its royalties and other financial obligations, the cost of the audit is typically charged to the franchisee. Allowances are made for error, usually up to three per cent. Where there is an underreporting of sales greater than three per cent, the franchise agreement will generally dictate that the costs for the audit shall then be charged to the franchisee, along with payment of outstanding royalties due with interest.
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If underreporting of sales is an ongoing issue, it may be grounds for termination of the franchise license. This can be avoided by the franchisee simply fulfilling their financial obligations to the franchisors when due. Franchisors have a variety of ways of uncovering underreporting. Be confident in knowing that at some point the franchisee not paying the appropriate amounts will be caught out. Obligations of the franchisee go beyond simply financial – franchisees are also required to follow the franchise operating system. The system is designed to create a consistent customer experience, as it is through consistency that a brand is created. In the interest of preserving the brand, the franchisor will also conduct operational audits. These may be formally announced meetings with the franchisee involved, or they may be done unannounced, sometimes through a mystery shopping program. Things that are looked at in an operational audit may include the following: • Location cleanliness and appearance • Use of logo and advertising materials • Local advertising • Use of approved products and suppliers • Product or service quality and presentation • Speed of service and delivery • State of equipment and proper usage • Confirmation of proper licenses and insurance • Compliance with required labour laws and minimum wage • Required hours opened for business
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FRANCHISE TUTORIAL (continued from page 82) Good franchisors do operational audits to ensure that the system is being implemented consistently in all locations. Franchise systems need to be able to monitor their franchisees for system compliance to ensure brand protection. Strong franchisees welcome the audits, knowing that it is protecting their investment. Audits may uncover such things as weak internal controls, higherthan-average operating expenses, and possible internal theft. Such feedback from an audit, either financial or
operational, can provide valuable information that will assist in improving the business. Periodic audits are an important part of any franchise system. Often, compliance problems are the consequence of innocent mistakes. Where there are issues, audits can identify them and corrections can often be made to improve profitability. If the compliance issues are ongoing, it may be grounds for termination of the franchise. It is important that all franchisees protect their investment in the system by meeting their financial and operational obligations.
STUDY QUESTIONS TUTORIAL 21
TUTORIAL 22
1. Most franchise agreements require franchisees to submit regular reports. These reports are usually: a) S ubmitted on a monthly basis b) Submitted in person as part of an elaborate presentation c) A summary of the franchisee’s financial reports, sales metrics and/or profit and loss statements d) Both a) and c)
1. An audit is generally performed by a franchisor when a franchisee: a) I s operating successfully and meeting all obligations as set in the franchise agreement b) Fails to submit required reports c) Is suspected of paying royalties not aligned with the actual amounts due d) Both b) and c)
3. Franchisees are usually also required to submit reports and documentation to the government. What are some of these submissions? a) G ST/HST reports b) Employment insurance c) Payroll reports d) All of the above 4. There are benefits to regular franchisee reporting. They include: a) P rotecting franchisees’ investments through early recognition of any problems or issues b) Feedback and benchmarking c) Both a) and c)
2. True or false: When a franchisor conducts a financial audit on a franchisee, there is no allowance made for errors in accounting/ reporting. a) True b) False 3. The franchisor may also carry out operational audits on its location. Things that may be looked at during an operational audit include: a) C leanliness and appearance of the location b) Use of approved products and suppliers c) Confirmation of proper licenses and insurance d) All of the above 4. True or false: Periodic audits, both financial and operational, play an important role in the success of any franchise system. a) True b) False
Answer Key: 1) d 2) a 3) d 4) c
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Answer Key: 1) d 2) b 3) d 4) a
2. True or false: Franchisors require regular reporting from their franchisees because it is in everyone’s best interests to be aware of what is happening throughout the franchise system. a) True b) False
MARKETPLACE
B U S I N E S S
CHACHI’S • Next level sandwiches made with high-end ingredients! Chachi’s works closely with local bakeries, butchers, and cheesemakers to bring you the best sandwich in town. Store design is reminiscent of a vintage butcher shop, with reclaimed woods, filament lightbulbs, with denim and leather aprons. Chachi’s opens in shopping centre food courts, office towers, and big-box power centres. DEVILLE COFFEE • Locally roasted coffee beans, served in beautiful cafes, with pastries delivered fresh daily from the city’s best bakeries. Deville is more than a coffee, it is a meeting place, an occasion. Our people are our greatest asset, and we are looking for Franchise Partners that are passionate about great coffee. DIRTBELLY • From the garden, to the table. Dirtbelly serves up fresh tossed greens, grain bowls, and warm bowls for all seasons. Sourcing local produce whenever possible, we make all our of dressings from scratch, and our goal is to make ‘healthy’ taste great. Dirtbelly opens in urban downtown centres. HULA POKE • Hula specializes in premium quality ingredients, combined with globally influenced flavours to create amazing poke bowls. Originally a traditional Hawaiian dish, Poke has emerged in North America as a food genre “here-to-stay”, and Hula is leading the forefront in Canada with triple A real estate, attractive branding, and unique store design. Franchise opportunities available in AB, BC, and MB. 98foodco.com • info@98foodco.com / 403-289-2950
Anytime Fitness, the world’s fastest-growing fitness club franchise for 11 consecutive years, is now rapidly expanding in Canada. Currently, there are more than 4,500 Anytime Fitness gyms worldwide, but fewer than 200 in Canada – predominantly in Ontario. By the end of 2020, we’d like to see another 50 Anytime Fitness clubs open in Canada. Ranked #12 on Entrepreneur’s prestigious Top Global Franchise list, Anytime Fitness prides itself on providing its franchisees with the best support in the industry, and our members with convenient fitness options and friendly, personal service in wellmaintained facilities, featuring top-quality exercise equipment. Contact: Tim Arpin, Director of Franchise Sales 111 Weir Drive Woodbury, MN, USA 55125 (651) 438-5000 or 1 (800) 704-5004 www.anytimefitnessfranchise.com info@anytimefitness.com
C O A C H I N G
Canada’s first franchise that guarantees a six figure income, ActionCOACH Canada. As part of the world’s largest business coaching franchise, with 25+ years experience and tens of thousands of happy clients, we’re now expanding across Canada and looking for 47 amazing entrepreneurs to open their Business Coaching Firm. If you have what it takes to build a team of business coaches, learn more about ActionCOACH Canada, our six figure income guarantee, our new large exclusive territories and more. Franchise Fee: $225K (50% financing for qualified parties) Investment Required: $273,720 - $416,820 Franchise Units: Canada: 14, USA: 262 Corporate Units: Canada: 1, USA: 1 In Business Since: 1993 Franchise Since: 1993 CFA Member Since: 2018 Training: $25K 10-Day Initial Training Program Available Territories: All of Canada For those wanting to learn more, they can visit www.ActionCoachFranchise.ca
BeaverTails® Canada Inc. has been delighting pastry lovers since 1978. Canada’s favourite pastry brand has celebrated it’s 40th anniversary and is actively seeking franchisees across the country! Our locations, at some of the nation’s favourite resort villages, vacation towns, and waterfront boardwalk areas, have served our delicious pastries to presidents, celebrities, and millions of addicted fans. We’ve become the traditional “sweet treat” of theme parks, waterparks, zoos, ski hills, sports venues, fairs, and events from coast to coast. Our signature pastry, indulgent ice cream, scrumptious BeaverBites, savory poutine, decadent hot chocolate and frosty smoothies offer a diverse menu. Now boasting over 140 locations and counting, our simple operations, reasonable investment, and ongoing support make this a delicious opportunity you’ll want to bite into! For more information, please contact: Kristina Zappavigna at kristina@beavertails.com visit www.beavertails.com
Franchise Canada March | April 2019 85
MARKETPLACE
BMO Bank of Montreal Established 1817. CFA-MSS member since 1980. Major Canadian chartered bank, providing a full range of domestic and international financial services. The Bank’s National Franchising Services Group focuses exclusively on the franchise marketplace. We provide assistance by way of Financial Services Programs and banking arrangements to both the established and emerging franchise systems operating in Canada. We understand franchising. We have the expertise necessary to fully understand your business and to respond with a comprehensive package of loans, cash management and electronic banking services suited to your network’s distinctive circumstances. The Bank of Montreal recognizes that franchising is a significant contributor to the Canadian economy and we are committed to its continuing success. For more information, contact us at BMO Bank of Montreal, National Franchising Services, 55 Bloor St. W., 17th Floor, Toronto, Ontario M4W 3N5 Contact: Joseph Pisani at 1-877-629-6262, E-mail: franchising@bmo.com Or visit bmo.com/franchise
Browns Socialhouse is more than a restaurant or a bar. And it’s better than either – combined. Browns Socialhouse is a fresh, hybrid concept that successfully bridges the gap between upscale casual dining and neighbourhood pub. Blending “local ingredients” such as Owner-Operators that live in the markets they serve with great sites that many of our competitors simply can’t fit into, Browns Socialhouse delivers: • Great experiences to its guests…in their own communities • Industry-leading innovations that create operational efficiencies for franchise owners Our Mission at Browns Socialhouse is to grow a world-class restaurant brand that creates wealth and opportunity for our partners. And we’re looking to partner with top-notch restaurant industry veterans that have paid their dues in the Casual Dining arena but want more than just a paycheque to show for it… Let’s chat, if you’re “Feeling Social” about the idea of owning your own Browns. 207A-3540 West 41st Ave. Vancouver, BC V6N 3E6, Canada Phone: (604) 630-0885 Fax: (604) 630-0887 Web: http://www.brownssocialhouse.com
“19 years, over 380 stores & still growing!” 205, 8915-51 Ave. Edmonton, Alberta , Canada T6E 5J3 Phone: (780) 440-6770 Web: www.boosterjuice.com E-mail: franchising@boosterjuice.com Booster Juice is Canada’s premium smoothie and juice chain! As a leader of nutritious alternatives in the quick-serve industry, Booster Juice’s proprietary recipes are an instant hit among today’s active, health conscious consumers. Today, Booster Juice has expanded to bring smoothies, fresh-squeezed juices and delicious hot food items to active customers on the go. With over 19 years in business, Booster Juice continues to grow with locations across Canada, USA, Mexico and UAE, and is on track to open 44 new stores in 2019! Units Canada: 380 USA: 3 International: 4 In Business Since: 1999 Franchising Since: 1999 Franchise Fee: $30K Initial Investment Required: $110K Turnkey costs: $295K - $330K Training: Two Weeks + Ongoing Support Available Territories: Canada, International CFA Member Since: 2002
Chicken on the Way takeout restaurant opened in Calgary in 1958. Today our values remain the same as when we first started: prepare and serve homemade food, always the best quality at a reasonable price. Our menu hasn’t changed much through the years either. Fried chicken, fritters, fries and salads are all made fresh daily onsite, sourcing local ingredients whenever possible. It’s a business philosophy that has proven itself over 50 years, through recession and boom times. Our first franchise opened in March 2011 and is a huge success. We have grown to include 10 franchises and one corporate store and have decided to expand further in Western Canada. Initial franchise fee: $20K Total investment of $300K to $350K 160 hours minimum training for franchisees For more information: Phone: 1-403-283-5532 Email: info@chickenontheway.com www.chickenontheway.com
Email: franchising@brownsrestaurantgroup.com
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MARKETPLACE
Complete Commercial Outdoor Services in Canada Clintar offers franchise opportunities across Canada to serve specific commercial, industrial, institutional and private estate markets. Our services are diverse, serving clients in a variety of key areas including: Landscape Management, Landscape Enhancement, Snow and Ice Control, Parking Lot Maintenance. Franchise Fee: $25K–40K Investment Required: $200K–400K Available Territories: All of Canada Franchise Units Canada: 26 In Business Since: 1973 Franchising Since: 1982 CFA Member Since: 2010 franchise.clintar.com info@clintar.com 1-800-361-3542
WORLD’S MOST SUCCESSFUL BAKERY FRANCHISE • 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 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, 2012, 2013, 2014, 2015, 2016, 2017 & 2018 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
Brighten up your business life A specialized breakfast restaurant, Cora serves home-style gourmet breakfasts and unique lunch meals the whole family will enjoy. Open typically from 6 a.m. to 3 p.m., Monday through Saturday, and from 7 a.m. to 3 p.m. on Sundays, the Cora concept offers a balance between your business and personal life. The chain is operated across Canada under the Cora Déjeuners et dîners and Cora Breakfast and Lunch trademarks. If you’re an enthusiastic entrepreneur with passion and drive, and you are interested in exploring the countless advantages of becoming part of the Cora family, please contact Jim Jenkins, Senior Franchise Recruiter, at 905 673-2672, ext. 264, or jjenkins@chezcora.com.
Crepe Delicious is Canada’s largest and fastest growing mallbased creperie and gelateria. Specializing in the creation of world-class sweet and savoury crepes and handcrafted gelato, we take pride in being a leader in the trend towards healthier eating. Serving breakfast, lunch, dinner and dessert, Crepe Delicious offers fresh, nutritious and tasty food for people on-the-go. All of our crepes are made-to-order by our Crepe Chefs allowing customers to watch as their crepes are being prepared. Our signature crepe batter is only 130 calories and 4 grams of fat and then filled with the finest and freshest ingredients. Fresh veggies and protein create our popular savoury crepes, and we offer a selection of irresistable sweet crepes filled with fresh fruit combinations. Our premium gelato is a perfect complement to the specialty crepe business. All our gelato and sorbet flavours are handcrafted on-site daily with natural ingredients. We proudly serve sugar-free and dairy-free options to meet market demand. Our unique concept combines comparatively low food costs with excellent site selection to provide our franchisees with the recipe for success. Single-unit, area development and master franchises available for this innovative specialty food concept. www.crepedelicious.com • info@crepedelicious.com Phone (905) 326-2969 Toll Free (877) 582-7373
Franchise Canada March | April 2019 87
MARKETPLACE
We are a world-class franchisor with a commitment to quality, having more than 6,800 stores in more than 29 countries. DQ Grill & Chill® offers a variety of soft-serve treats along with a full line of hamburgers, hotdogs, chicken and salads. As an ongoing expansion program, we are presently accepting applications for DQ® franchises across Canada. Candidates must have business acumen, superior people skills and desire to work with a proven franchise system. A DQ Grill & Chill® has a total investment of approximately $800,000 - $1,200,000 or more. The candidate must have a minimum of $400,000 cash available. A DQ® Treat location can be in major shopping malls or as a free-standing unit. The total investment for a retail store is between $300,000 $500,000 and up to $800,000 for a free-standing unit. Applicants must have a minimum of 40% project cost in cash to invest.
Driverseat Chauffeur Services Driverseat is the latest emerging trend in home based franchise systems, blazing a new industry in personal transportation. Our franchise partners specialize in marketing, strategizing and growing their business, while their Coachmen (drivers) focus on transporting customers and their vehicles, through 4 unique services. Protected terrritories available throughout Canada and the U.S. Total capital required - $20k to $35k Innovative Technology Platform $21,000 franchise fee Home based No need for inventory Significant industry size No capital real estate leases 4 tier extensive training program
www.dq.ca Contact: Tammie Verna at tammie.verna@idq.com or 905.637.4741
Designated Driver
Airport Chauffeur
Assisted Transport
Vehicle Chauffeur
1-855-DRIVE-90 | info@driverseatinc.com www.driverseatinc.com
In 2008 Bryan Clay won the Olympic Gold Medal in the Men’s Decathlon. He developed Eat the Frog Fitness to offer techinfused group fitness classes and personalized workout plans to help members reach their goals. Franchise opportunities exist in Canada. Offerings include: Workouts on IMAX-style monitors | Customized fitness programs | Re-evaluations every 8-weeks | 24/7 Live and virtual coached classes | Functional Nutrition Program. More information at eatthefrogfitness.com.
Grab the Day by the Eggs®
Franchise Units: Canada: 1, USA: 2 Corporate Units: USA: 3 Franchise Fee: $40K Investment Required: $430K-$638K USD Training: 4 days at corporate office and online webinars Available Territories: US, BC, ON In Business Since: 2017 Franchise Since: 2017 CFA Member Since: 2018
Franchise Units: Canada 13, USA 6, International 7 Corporate Units: Canada 3, USA 1 In Business Since: 1993 Franchise Since: 1998 Franchise Fee: $50K Investment Required: $500K-$1M Training: 10 weeks Available Territories: All of Canada, USA, International
Eggspectation is an innovative upscale-casual dining restaurant concept. Founded in 1993, Eggspectation restaurants are known for their brunches. With an extensive all-day menu choices, Eggspectation offers a unique experience. From breakfast to brunch, lunch to coffee & dessert time to happy hour and dinner, Eggspectation is the place to kick back in style with friends, family and business associates and enjoy good times in this unparalleled environment.
CFA Member Since: 2011 7960 rue Saint-Denis, 2nd. Flr., Montreal, QC, H2R 2G1 Phone: (514) 282-0677 / (855) 331-EGGS (3447) Fax: (514) 282-8115 Web: www.eggspectation.com Email: info@eggspectation.com Contact: Enzo Renda, CEO
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MARKETPLACE
FAST-FIX Jewellery and Watch Repairs® is the world’s largest and most trusted consumer choice for jewellery and watch repair services as well as custom jewellery design, personalized engraving, eyeglass frame and smart device repairs (services vary by location). Established in 1984 and franchising since 1987, FAST-FIX has over 155 franchised locations in the U.S. and Ireland, currently expanding internationally into Canada and other countries. In addition to incorporating multiple high profit revenue streams, the FAST-FIX franchise model has been heralded for being both internet and recession resistant. All locations are within convenient high traffic venues and are staffed with some of the industry’s best jewellers, watchmakers and watch repair professionals who earn customer confidence and referrals by providing reliable, superior quality services. Available Territories: All of Canada, United States and other English-speaking countries Number of Units: 155 franchise locations in USA and Ireland, 4 company-owned in USA, total 159 In Business Since: 1984 Franchising Since: 1987 CFA Member Since: 2013 For additional information: 1-800-359-0407 FranchiseSales@FastFixFranchise.com www.FastFixFranchise.com
Join Firehouse Subs Today Across Ontario! Firehouse Subs is a fast casual restaurant chain with a passion for Hearty and Flavorful Food, Heartfelt Service and Public Safety. Founded in Jacksonville, Florida by former firefighters and brothers Chris and Robin Sorensen, Firehouse Subs is a brand built on steaming hot subs with the highest quality meats and cheeses piled high. The founders are the real deal and the company is built upon a family of franchise operators who share their same passion for serving others. Firehouse Subs consistently ranks number one in among fast casual brands in the categories of food quality, taste, flavor, and friendly service. In 2005, Firehouse Subs created Firehouse Subs Public Safety Foundation with the mission of providing funding, life-saving equipment and educational opportunities to first responders. In fact, Firehouse Subs has given more than $37 million to hometown heroes across Canada, the United States and Puerto Rico. Our growth is carefully calculated to optimize restaurant potential, profitability and the success of our franchisees.
Fatburger has been serving up the freshest, biggest, juiciest burgers for over 65 years. With restaurants in 37 countries, prospective franchisees benefit from investing in a concept with a proven track record. Prime ownership opportunities are available across Canada. We provide: • A highly recognized trademarked brand • Extensive initial training • Ongoing operation & training support • Marketing/advertising support • Excellent return on investment capital An upper tier quick-casual restaurant serving fresh, never frozen custom made Alberta Angus beef burgers and Buffalo’s™ World Famous Wings and Tenders, Fatburger is a recognized leader in the premium burger category. We are passionate about quality, food and service - and it shows! We offer an extensive menu and dynamic décor that brings food, fun and style together. Each meal is cooked to order using fresh ingredients and traditional cooking methods. The taste and quality of Fatburger has been inspiring fierce customer loyalty since its inception in 1952. 54 locations across Canada and growing! For more franchise information, call us at 1-888-597-7272 or email franchise@fatburgercanada.com. For locations and more visit www.fatburgercanada.com.
Experience the boutique fitness movement with the Greco Method – the most results based training system on the market. To learn more about owning your own Greco Studio, contact us at franchise@grecofitness.com or give us a call at 1 (613) 981-8023 Greco is a Canadian fitness experience brand that delivers real results for real people. The Greco Method is the most results based workout with trackable results. Our 45 minute group workouts and personal training are designed to build muscle, burn fat and improve the way our members move. From complimentary espresso to towel service, and our post-workout recovery shake bar, at Greco we redefine your workout experience. Greco is an exciting fitness franchise opportunity that is poised for growth in this ever-expanding industry. We are currently searching for franchisees who are passionate about changing lives and looking to make a career using a business model that delivers sustainable results. The franchisor’s corporate team has expertise in all areas needed to support your business as they have each run Greco studios themselves.
For more information about franchising with Firehouse Subs, contact Brent Greenwood at franchising@firehousesubs.com or 877-887-8330. www.firehousesubs.ca
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MARKETPLACE
Jani-King is the world’s largest commercial cleaning franchise with over 9,000 franchisees in 10 countries and over 40 years of experience! The unique Jani-King Franchisee Concept, available for as low as $11,900, provides our franchisees with an edge over the competition. By offering unparalleled support and training, Jani-King works to ensure that every franchisee has an opportunity to be successful. Initial and on-going training, 24-hour operational support and administration assistance are all provided by Jani-King. Ready to be your own boss? Contact us today and join the more than 9,000 other Jani-King franchise owners worldwide.
La Prep is an upscale bistro style quick service restaurant specializing in freshly prepared innovative sandwiches, salads, baked goods and specialty coffees. Franchise Units Canada: 50 Franchise Since: 2010 In Business Since: 2010 Franchise Fee: $35K Total Investment Required: $450K-$550K Territories: All of Canada, US, International Email: franchising@laprep.com Website: www.laprep.com
1-800-565-1873 or visit our website at www.janiking.ca or e-mail info@janiking.ca Special Note: Master Franchisor opportunities available in Saskatchewan, Newfoundland and Thunder Bay.
CHICKEN
For almost 40 years, M&M has helped Canadians put delicious meals on the table by offering consumers easy-to-prepare, top quality foods and personalized customer service, all within a uniquely convenient shopping environment. We’ve taken this task to heart and have grown to become Canada’s leading retailer of frozen foods, a truly iconic Canadian brand and a trusted guest at dinner tables across the country. We are very proud of our major achievement -the removal of all artificial colours, flavours, and sweeteners from our food portfolio. Our Food Promise is a game changer and key differentiator from our competition and we are proud that 100% of the products in our stores coast-to-coast meet this Food Promise. Following a significant rebranding effort in 2016 - including the name change from M&M Meat Shops, a new store design, new products and packaging, a new website, a revamped loyalty program and new training platform for Meal Advisors - M&M Food Market is poised for franchise growth. Now is the time to rediscover this trusted, iconic Canadian brand. For more information, visit our website at www.mmfoodmarket.com/en/franchising or call us at 1-800-461-0171.
Welcome to the largest Canadian-owned quick serve chicken restaurant and one of the fastest-growing franchises in the country. Mary Brown’s Chicken & Taters continues to expand across Canada with about 150+ stores now open. We expect to have 200 stores by 2020. It’s a growth plan we’d love you to be part of! Our food is exceptional and our numbers are impressive. We’ve enjoyed 14 consecutive years of same store sales growth and are destined to continue this trend. Our genuine hospitality, 100% Canadian heritage and Made Fresh from Scratch menu keep our Guests coming back again and again. Our Chicken is fresh Canada Grade A, hand cut and hand breaded in-store. Our Taters are also handcrafted in-store from farm fresh Canadian potatoes. Even our Coleslaw is made fresh in-store! Our approach is time-proven, with a 50-year record of success dating back to 1969. Add to that our comprehensive Franchisee support including Training, Financing and Marketing and you’ll see that Mary Brown’s is an exciting opportunity that you don’t want to miss. Call 1-866-640-3339 or email franchising@marybrowns.com and get started today. marybrownsfranchising.com
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TATERS
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MARKETPLACE
McDonald’s® has always been a franchising company and has relied on its franchisees, our Owner/Operators, to play a major role in the System’s success. McDonald’s remains committed to franchising as a predominant way of doing business. We are actively seeking highly qualified business people to join our System as Owner/Operators. Owning a McDonald’s restaurant is a tremendous opportunity. We are seeking individuals with significant business experience who have successfully owned or managed multiple business units or have led multiple departments and who have significant financial resources. We are a family of more than 275 Owner/Operators passionate about satisfying our guests, growing our business, making money and having fun. McDonald’s continues to be recognized as a premier franchising company around the world. To learn more about franchising opportunities with McDonald’s Canada, please visit us at www.mcdonalds.ca Franchise opportunities are now available across Canada! ©2019 McDonald’s
For over 55 years Mr Mikes SteakhouseCasual Restaurants have been about feeling like you belong, where everyone feels comfortable in his or her own way. It’s your place - a place where you don’t have to be something you’re not, you can just be yourself. It means tasty and affordable creations from our signature steak and Mikeburgers to our home-branded wines and beers. Our plans are to open 30 new restaurants in Western and Eastern Canada over the next 5-year period and we invite you to call us for more information about franchise opportunities. Canadian Franchise Association Members Food - Restaurants / Dining Rooms Mr Mikes SteakhouseCasual Restaurant Unit 100, 3700 North Fraser Way, Burnaby, BC, V5J 5H4 Phone: 604-536-4111 Fax: 604-439-7367 Web: www.rammp.net E-mail: rvillalpando@RAMMP.net Contact: Rick Villalpando, Vice President, Business Development Franchise Locations Canada: 40 Corporate Locations Canada: 4 In Business Since: 1960, Franchising Since: 2003 Franchise Fee: $50K, Capital Required: Min. $900K - 1.8M Training: min. 8 weeks Available Territories: AB, MB, SK, BC, ON CFA Member Since: 1997
Midas is a globally respected automotive products and services provider with franchised, licensed, and company-owned locations throughout Canada, the United States and the world. Here are just a few of the ways we help you build success as a Midas franchisee: • Outstanding brand recognition • Growth-focused business model geared toward expanding customer base • Exclusive product warranties and lifetime guarantees • Exceptional advertising, utilizing today’s most powerful media • Knowledgeable and experienced senior management team with diverse backgrounds in retail, wholesale, operations and development • Unparalleled support and resources, strategically positioned for long-term franchise growth • Complete training and marketing support No business or retail management experience necessary. Build your future with a leader ... Trust the Midas touch! Contact us to learn more: www.midasfranchise.com or call 800.365.0007 This advertisement does not constitute an offer of a franchise. A franchise offering can be made by us only after we provide you with an appropriate Canadian disclosure document (as applicable in each province). Franchises may not be available in all provinces.
Oxygen’s proven systems help new entrepreneurs be successful • Proven Brand • Far Infrared Technology • Cloud based POS • Teacher Training • Franchise Meetings • Major metro, high density and prime territories still available Franchise Fee: $40K Startup Capital Required: $150K-$250K Available Territories: Various, throughout Canada Training: Yes Franchise Units Canada: 65 Corporate Units Canada: 1 In Business Since: 2011 CFA Member Since: 2014 If you are ready for health and wealth, it is time for you to put your passion to work. Become our next Franchisee and fill out the application franchise.oxygenyogaandfitness.com
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MARKETPLACE
Pearle Vision was founded in 1961 by Dr. Stanley Pearle, who began the concept of one-stop, total eye care with the opening of the Pearle Vision Center in Savannah, GA. Pearle Vision began franchising in 1981. Today, with more than 500 EyeCare Centers located throughout North America, Pearle Vision is built around a doctor-centered business model with a focus to deliver genuine eye care to patients and become the trusted neighborhood source for all eye care and eye wear needs. Franchise Units: Canada: 13, USA: 399, International: 4 Corporate Units: Canada: 48, USA: 66 Franchise Fee: C$40K Investment Required: C$550K - 750K Training: Yes Available Territories: All of Canada In Business Since: 1961 Franchise Since: 1980 CFA Member Since: 2018
Grab Your Slice of Life! Pizza Pizza began in December 1967 in a 300 square foot store in Toronto at the corner of Wellesley and Parliament Street. Since then we became the biggest pizza chain in the country. Our success stems from our customer focus. Our commitments to freshness, quality, and innovation have led us to the top of the pile in the pizza industry. Pizza Pizza delivers on its goals time and time again as we strive to make the best pizzas around at reasonable prices. Moving forward, we will continue to hold our leading position through community involvement and environmental stewardship. Consider what Canada’s most successful pizza chain has to offer you: • A commitment to quality, • Comprehensive training freshness, customer • Site selection, lease satisfaction and innovation negotiation and professional • Superior marketing and architectural design promotional support • Knowledgeable support staff • State-of-the-art technology • Administrative systems • Ongoing professional • We supply the ingredients development • Be your own boss! Franchising information: franchisinginfo@pizzapizza.ca www.pizzapizza.ca/franchising
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The Pizza Nova story began in 1963 when a young Italian family opened the very first Pizza Nova restaurant. Today Pizza Nova is still family owned, represents over 140 locations across Ontario and specializes in hand-tossed Italian style pizzas that are complemented by an extensive menu of proven favourites. We provide comprehensive training, easy ordering from our HAACP approved commissary, location identification & design, operations support and innovative marketing initiatives that bring customers through your door. Pizza Nova is the Official Pizza of the Toronto Blue Jays, Toronto International Film Festival, and the CNE. Our 55+ years of success continues as a direct result of our uncompromising commitment to providing the highest quality product made from only the finest quality ingredients. In 2015 we became the first Canadian pizza company to introduce pepperoni sourced from beef and pork raised without the use of antibiotics or added hormones. We have since expanded our ‘Raised Without Antibiotics’ profile to include bacon, chicken wings , chicken pollini, grilled chicken, and smoked ham. For more information contact our Director of Franchise Development, Vince Morano at 416.439.0051 ext 216 or vince@pizzanova.com
A Print Three Smart Business Centre is a turn-key operation designed to get you up and running and doing business quickly and successfully. With 48 locations across Canada, Print Three is one of Canada’s largest owner-operated print networks. Print Three provides all franchise owners with in-depth training and ongoing support in the areas of marketing, promotions, advertising, web-based communications, décor, finance, inventory and supplies. We provide franchisees with current research on industry trends and new services, as well as on relevant technology and equipment. Business owners across Canada choose Print Three for our superior marketing approach and sales program, which effectively combine print, web and marketing. In the business for over 45 years, Print Three brings a wealth of industry expertise and innovation to the table. When you join Print Three you join a network that enjoys an excellent reputation and brand recognition across the country. For more information contact us at franchiseopportunities@printthree.com or call: 1-800-335-5918 ext. 330. www.printthree.com
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Join The Future of Real Estate The Internet has transformed everything we do. It allows visionary companies to move faster and make things happen for less money. That’s why you don’t see many ads for video store or travel agent franchises in this magazine like you once did. If you’ve often thought that the real estate industry is also ripe for major transformation, then it’s time to join the club. At PropertyGuys.com we leverage people and technology in a way that makes real estate better. Our national network of over 100 franchise owners enjoy being on the cutting edge of innovation, have exclusive territories and represent a real estate platform that creates raving fans. While we’re already in over 600+ communities coast-to-coast, we’re not done growing. This could be your chance to be part of something amazing.
Cannabis has been illegal in Canada since 1923. Now all that is about to change. This is your chance to be part of the best recreational cannabis brand network in Canada and part of the multibillion dollar Canadian cannabis industry. Get in on the ground floor of this “budding” industry! We have created a modern retail model that offers legitimacy, reputability, professionalism and a feeling of confidence, with plans of opening one hundred locations across Canada. If you are a passionate entrepreneur that is dedicated to helping our customers find a higher sense of love, joy, peace and harmony then we invite you to apply for this once in a lifetime opportunity. We are now accepting applications for Franchise Partners to open LEGAL recreational cannabis stores in cities across Canada. VISIT SPIRITLEAF.CA TO LEARN MORE
If you want to learn more about how you can own a piece of the Future of Real Estate please let us know by email to opportunities@propertyguys.com, phone 1-844-333-7017 or by visiting www.PropertyGuysFranchise.com.
Ontario’s favourite destination for fresh-made breakfast and lunch Sunset Grill is a Canadian all-day breakfast restaurant franchise founded in Toronto, Ontario by Angelo Christou in 1985. With 80 franchised locations across Canada and growing, we are now positioned to expand across Canada and select markets in the United States, including California and Pennsylvania.
TACO TIME CANADA
Fresh is Tastiest™ is our philosophy here at Sunset Grill – our guests are loyal to our brand and love our food because we use fresh ingredients, healthy cooking methods, source local wherever possible, deliver generous portions, and provide fast and friendly service.
We have unit types to fit different investment and operational criteria. From drive thrus, in-line and food courts, TacoTime delivers real mexican food with flare. We provide training, site selection and ongoing operations and marketing support for all stores. Total investment ranges between $225,000 and $400,000, depending on unit type. Cash requirements are $75,000 to $125,000, again depending on unit type.
Consider what Ontario’s best breakfast chain has to offer you: • One-shift operation & short hours (our stores are open 7 a.m. to 4 p.m.) • High margins leading to excellent returns and building of a saleable asset • Comprehensive training & ongoing professional guidance • Exclusive territory • Low staff turnover • Great work-life balance; time at the end of the day to spend doing what you love with who you love
Canada’s leading Mexican fast food restaurant chain. We prepare great food in our stores, in a fast and friendly environment. Join our growing list of successful franchisees and participate in the continued expansion of the Mexican segment.
Web site: www.tacotimecanada.com Call Toll Free Steve Nickerson 1-800-471-5722 A4, 416 Meridian Road SE, Calgary, Alberta T2A 1X2 Phone: 403-543-3490 Fax: 403-543-3499
Visit us: www.sunsetgrill.ca Email us: info@sunsetgrill.ca Call us: 905-286-5833
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MARKETPLACE
You know The UPS Store for shipping, but did you also know that The UPS Store is Canada’s largest franchised network of business resource centres? Did you also know that The UPS Store is also Canada’s largest chain of copy & print centres? Servicing the growing small/home office market, The UPS Store offers the convenience of a one-stop shop for business services such as photocopying and digital printing, offset printing, worldwide courier services, packaging supplies and services, mailbox and fax services, document finishing, and more. This dynamic chain leverages on one of the world’s most well-known brands, UPS. This is your opportunity to join a North Amercian market of over 5000 locations (and growing!) Visit us at theupsstore.ca. We Print, Ship & More! Locations, North America: Over 5000 Locations in Canada: Over 350 Minimum cash investment: $100,000 Total cash investment: $172,250 to $196,000 plus working capital.
Home-Based Franchise • Location Independence Wellnessnews Canada, Inc. is in the business of franchising Wellnessnews Choices for Healthy Living®, a multi-media publishing platform that includes print, online, and social media. This proven neighbourhood collective offers an informative resource that showcases professional local health practitioners and businesses, exclusively into your local community. Master Franchisees, Area Developers, Multi and Single Unit Franchises are now available for entrepreneurs who are looking to start a home-based business that provides them with location independence and the flexibility to suit their lifestyle. Other benefits include an in-house creative, editorial, print and marketing team; a great reputation, initial training and ongoing support, minimal start-up costs, a growing niche market, and a business that provides long term residual revenues. Franchise Fee: 14.5K Investment Required: 25K Available Territories: Canada
For more information on The UPS Store opportunity, call 1-800-661-6232 or visit www.theupsstore.ca.
WELLNESSNEWS CANADA, INC. Website: WellnessnewsFranchise.com E-mail: opportunity@wellnessnews.ca Phone: 1-800-840-4309
Power Your Franchise Search – Sign Up for our FREE e-newsletter! The Canadian Franchise Association is your #1 source for Canadian franchise news. Sign up for our free e-newsletter today and get serious about making your dreams of business ownership a reality! Get the latest franchise opportunities delivered right to your inbox! Published twice a month, Franchise Canada E-News is packed with news, how-to articles, and inspiring success stories from real franchisees.
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Associate your brand with the quality and credibility that only the Canadian Franchise Association (CFA) can offer by advertising in FranchiseCanada.
Benefit from your CFA membership and reach sophisticated prospective franchisees Advertising in Franchise Canada gives you access to our readers – your target audience – in a trusted editorial environment.
Put your brand in the hands of discerning and educated Canadians who are looking for exceptional franchise opportunities. Your advertisement will reach readers across the country through a comprehensive distribution plan and a loyal subscriber base. Be seen across Canada and beyond In addition to being on newsstands and in bookstores across Canada, Franchise Canada is distributed in Air Canada Maple Leaf Lounges, reaching 350,000 affluent passengers in major cities around the globe. Align your brand with a winner. Franchise Canada is the only franchise magazine to be recognized for best newsstand sales by the Canadian Newsstand Awards and excellence in business journalism as the recipient of a Kenneth R. Wilson Award.
FOR ADVERTISING CONTACT: Gwen Dunant TEL: 877-254-0097 | FAX: 416-695-1950 | EMAIL: gdunant@cfa.ca WEB: cfa.ca | FranchiseCanada.Online
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WHAT’S NEXT
DON’T MISS OUR MAY/JUNE 2019 ISSUE! THE SENIORS AND HOMECARE ISSUE As the Baby Boom generation reaches their golden years, franchises that serve those 65-plus are set to meet the needs of this important demographic. With Canada’s senior population growing, the demand for services such as transportation, meal planning, and home care catered to those 65 years and older is increasing at a rapid pace. The May/June 2019 issue of Franchise Canada is all about the franchise concepts that are helping seniors across Canada live happy, healthy, and independent lives along with the home care franchises that keep Canadian homes running smoothly from top to bottom, inside and out! Like every issue of Franchise Canada, this issue will also include an extensive lineup of exciting opportunities in a broad range of sectors including beauty, health, fitness, and service-based franchises. We also share inspiring success stories, expert advice, and helpful ‘how-to’s to help get you out there and make a name for yourself on the franchising playing field. So open up this issue, learn from the best and brightest in franchising, and scratch your franchising itch!
WATCH FOR THESE INFORMATIVE FEATURES IN OUR MAY/JUNE 2018 ISSUE:* FRANCHISES SERVING THE HOME: We feature franchise systems within the home care space, looking at five unique franchises that provide services in different aspects of building a happy and healthy home: interior cleaning, exterior cleaning, repairs and maintenance, storage, and meal planning. BEYOND THE BANK: Whether it’s borrowing from a family member or making use of government grants, there are alternatives to bank loans when it comes to funding a franchise. Franchise Canada explores the many funding options at a prospective franchisee’s disposal.
PRO ATHLETES IN FRANCHISING: More and more retired professional athletes are getting involved in franchising! We take a look at a group of unique franchise concepts that former athletes – including an Olympic medalist and a former NHL superstar - have gotten involved in. BREAKFAST ACROSS CANADA: Wake up and smell the coffee! There’s no better way to jump start your day than with a good breakfast. The May/June issue’s Across Canada section dives deep into the many franchise concepts that are serving up hardy breakfast options to fuel your day.
PLUS A SPECIAL FRANCHISE FOCUS ON CASUAL DINING, BARS, AND PATIOS! IN EVERY ISSUE: • Industry News • Show Me the Money • Franchise Tutorials • Leadership Profile • Giving Back • Home-Grown & Locally-Owned • Ask the Experts • Day in the Life • The First Year • Franchise Fun *Editorial subject to change
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ADVERTISERS’ INDEX ActionCOACH Canada.......................... 9 www.ActionCoachFranchise.ca.
Driverseat...................... Inside Back Cover www.driverseatinc.com/franchise
Anytime Fitness.... Inside Front Cover www.anytime tnessfranchise.com
Eat the Frog Fitness......................14 & 15 www.frogfranchise.com
BMO Bank of Montreal............................... 20 www.bmo.com/franchise
Fast-Fix Jewellery and Watch Repairs........................................................95 www.FastFixFranchise.com
Midas International..............................46 www.midasfranchise.com
Fatburger.................................................................. 49 www.fatburgercanada.com
Oxygen Yoga and Fitness.................. 37 franchise.oxygenyogaandfitness.com
Firehouse Subs..................................................... 36 www.firehousesubs.ca
Pearle Vision............................................ 53 www.ownapearlevision.com
Greco Fitness........................................... 27 franchise @grecofitness.com
Pizza Pizza................................................ 40 www.pizzapizza.ca/franchising
Hula Poke......................................................7 www.hulapoke.ca
PropertyGuys.com................................43 www.propertyguysfranchise.com
International Franchise Association ...................................................................... 80 www.franchise.org
Spiritleaf............... Outside Back Cover www.spiritleaf.ca
Dairy Queen Canada...........................25 www.dq.ca Deville Coffee.............................................7 www.devillecoffee.ca Dirtbelly........................................................7 www.dirtbelly.com
OUR MAGAZINE IS IN DEMAND AND AWARD WORTHY.
Jani-King...................................................38 www.janiking.ca
The UPS Store...........................................21 www.theupsstore.ca
La Prep...................................................... 50 www.laprep.com
Franchise Canada is an award winner in the Canadian Newsstand Awards, which takes into account a magazine’s newsstand sales performance. We are also proud to be the only franchise publication to win a Kenneth R. Wilson award for excellence in business journalism.
eth R. Wilson enn Aw 5K
Finalist
s ard
20 1
Cora.............................................................44 jjenkins@chezcora.com
Be st
ia ed
COBS Bread............................................................. 47 www.cobsbread.com/franchising
ian Busin ess M
Clintar.........................................................39 franchise.clintar.com
anad
Chachi’s.........................................................7 www.chachis.ca
McDonald’s Restaurants Canada....24 www.mcdonalds.ca/franchising
C in
Booster Juice...................................... 4 & 5 www.boosterjuice.com
M&M Food Market................................... 3 www.mmfoodmarket.com/en/ new-shopping-experience
For advertising information contact: Gwen Dunant Tel: 877-254-0097 | E-mail: gwen@cfa.ca
Franchise Canada March | April 2019 97
GIVING BACK
A Natural Fit
Baskin-Robbins finds new charitable partner in Boys and Girls Clubs of Canada BY SUZANNE BOWNESS A COUPLE OF YEARS AGO, Baskin-Robbins was looking for a great charity partner that aligned with its brand values. For an ice cream franchisor with a focus on family and fun, what better match than an organization providing services to children? In September, this relationship was made concrete with a “back-to-school heroes” fundraiser that saw Baskin-Robbins donate 31 cents for every personalized cake sale in the month of September to Boys and Girls Clubs of Canada. In addition to the offer on personalized cakes, customers were also invited to donate whatever they could (often a dollar or two), with paper icons celebrating their gift (and a store coupon to sweeten it). The program was so well received by franchisees and their customers that the franchise decided to extend the campaign to the end of October, and raised a total of $10,902.70. Additionally, a July “flavour of the month” (BeaverTails Pastry® Ice Cream) fundraiser brought in $3,737.30. While Baskin-Robbins has long raised money for charitable causes, both with a previous partner and at a local level with franchisees supporting various community groups like local sports teams, the search for a new national partner was driven in part by the desire to find an organization where their donations would really make a difference. Baskin-Robbins Field Marketing Manager Natalie Joseph says Boys and Girls Clubs stood out immediately. “It’s a great fit, one where our donations would have a bigger impact,” she says. Boys and Girls Clubs of Canada is equally happy to be chosen as the franchise’s new partner. “We were thrilled to join Baskin-Robbins
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(Left to right): Natalie Joseph, Field Marketing Manager of Baskin-Robbins Canada, and Owen Charters, President and CEO of Boys and Girls Clubs of Canada holding the paper icons where a $1 or $2 purchase would go toward Boys and Girls Clubs of Canada
Canada to celebrate back-to-school heroes this year. Local franchisees generously donated their time and energy to run a successful cause campaign, demonstrating an incredible commitment to the communities where they live and work,” says Owen Charters, President and CEO of Boys and Girls Clubs of Canada. Founded in 1900, Boys and Girls Clubs of Canada is Canada’s largest child and youth-serving organization, providing after-school programming to over 200,000 young people in 700 communities across the country. Clubs offer programs and services that help children and youth realize positive outcomes in self-expression, academics, healthy living, physical activity, mental health, leadership, and more. Joseph says the choice for a new charitable partner was also motivated by the parent company’s established values. Dunkin’ Brands has a charitable organization called Joy in Childhood that is the focus of all of their fundraising. “We wanted to align with what the U.S. is doing. And children just make sense for us: ice cream and kids and bringing joy and excitement and special occasions and memories,” says Joseph, adding that the overall impulse to
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give back is baked in to the organization’s mandate. “It’s part of our corporate social responsibility. We want to be community partners. We want to have strong healthy relationships and support and give back to the communities in which our franchisees are in.” That’s another bonus for the new partner, the fact that there are Boys and Girls Clubs all across Canada. “We knew that Boys and Girls Club would be super impactful because they truly are in every community in which we are. They touch families from one coast to the other,” says Joseph, adding that her personal experience confirmed the impact of the organization. “When I was seven to 12 years old, that was my afterschool home base,” she recalls. With a few campaigns successfully rolled out, Joseph says her next step is to look back on year one of the new partnership in order to figure out where to go next. “At the end of the year, we’ll assess what worked, what didn’t, what we want to enhance on, what we want to improve. How we can just make it bigger and better. We definitely want to have a long-term relationship and partnership with the Boys and Girls Clubs.”
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The end of prohibition. The start of something incredible.
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It is not currently legal in Canada to operate a retail business which offers cannabis products for sale. The federal government of Canada has announced that the sale of cannabis will be legalized as of October 17, 2018/ We will not permit our franchisees to open a Spiritleaf franchise until such time as the operation of that business within the province where your business will be operated is legal.