Franchise Canada May/June 2024 by Franchise Canada

A PEEK AT THE LATEST SELF-CARE TRENDS

CHATTING WITH FOODTASTIC’S CEO

GYMS AND FITNESS STUDIOS FROM COAST TO COAST MAY | JUNE 2024

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COVER STORY

Guiding Wellness Looking for a franchise system that’s rewarding in more ways than one? These four brands offer products and services that can round out good mental health practices

FEATURES

Taking Care of Business Trendy treatments take centre stage in three franchise brands’ à la carte offerings

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Putting the Busy in Business Owning a franchise is a challenging yet rewarding undertaking, especially for these mobile, service-based franchisees, several of whom began their business as a oneperson operation

Shaping Up from Coast to Coast A selection of franchises that are putting the “fit” in “profit”

How Can the Temporary Foreign Worker Program Help Small Businesses? A federal program is available to help franchisors and franchisees bring skilled workers to Canada. But who can benefit—and how?

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DEPARTMENTS

HOMEGROWN & LOCALLY OWNED 100% Canadian Franchise Systems

NEXT GENERATION IN FRANCHISING Bringing Yoga to the Youth Melissa Heikkila left her teaching career in search of a way to help more children. Today, through her Little Yogis Academy franchise, she’s helping hundreds of kids improve their physical and mental health

LEADERSHIP PROFILE The Multi-Brand Maestro How does one go from working behind the scenes in a hometown restaurant to leading the acquisition and development of some of Canada’s most recognized brands? Ask Foodtastic founder Peter Mammas

A DAY IN THE LIFE Imprints of Success Every day, Fully Promoted franchisees Jeff Gross and Lily Yin are using their business to help others promote their own services and wares

THE FIRST YEAR Unlocking Fresh Opportunities When new franchisees Jay Nirula and Mike Albright opened the doors to their Pacini franchise, they introduced Ontario’s pizza and pasta lovers to a Quebec-based favourite

COMING TO CANADA Exciting Things A Brewin’ For The Coffee Bean & Tea Leaf™, entering the Canadian market isn’t as simple as crossing the border—it’s all about finding the perfect partners to bring their quality products to Canuck consumers

GIVING BACK Labour of Love On a local and national scale, TWO MEN AND A TRUCK® Canada finds plenty of ways to give back

CATCH UP ON SEASON 7 NOW! SEASON 8 COMING SOON!

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

FRANCHISE TUTORIAL Tutorials 11 & 12 This issue: • Intro to Inventory • Intro to Approved Suppliers

COLUMNS

10 CFA CODE OF ETHICS 11 INDUSTRY NEWS 59 ASK THE EXPERTS 65 MARKETPLACE 66 ADVERTISERS’ INDEX 68 FRANCHISE ROUNDUP

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PUBLISHER’S MESSAGE

HAPPY OWNERS, HAPPY CUSTOMERS (AND VICE VERSA)

et’s be honest: running a small business can be exceptionally rewarding, but it can also be stressful at times. There’s staff that needs to be trained, local marketing campaigns to sign off on, and those everyday hiccups that in the moment can feel like setbacks. Of course, with a franchise location, an owner has the support of a proven system, which can help alleviate those “How do I get started?” or “What’s the next step?” anxieties. That’s why the Canadian Franchise Association (CFA) has always upheld our purpose to help everyday Canadians realize the dream of owning their own business—franchise systems are a showcase of success and can be a straightforward path to achieving this goal. For those searching for a resilient franchise category, wellness is here to stay: in 2023, 70 per cent of Canadians reported they are becoming more conscious about their health, up from 56 per cent in 2021. This interest is highlighted in our story on franchise brands that have a positive impact on customers’ mental health in a surprising number of ways, from treating your puppy to a grooming package to enhancing the lighting in your home (page 15). Next, when you think about relaxation, self-care services likely come to mind. On page 20, you’ll find three companies blazing a trail with trendy, cutting-edge treatments. Not your standard spa packages, these services may be just what you're looking for in a franchise opportunity with benefits! We all know that work-life balance is imperative for a sound mind and healthy emotional state. Take it from the four franchisees profiled on page 24, all owners of mobile service-based businesses: the flexibility that their chosen franchise system provides has made their lives that much simpler. In keeping with the health and wellness theme, on page 29 we highlight gyms and fitness brands from coast to coast. Covering opportunities from boutique specialty studios to one-stop shops that provide all the bells and whistles, there’s something for everyone looking to bring a little “sweat equity” to their community. But getting a sweat on isn’t just for teens and adults, as Little Yogis Academy proves (page 39). This mobile brand specializes in introducing Generation Alpha (those roughly 13 years of age and younger) to healthy habits that will last a lifetime. Multi-unit franchisee Melissa

Heikkila melded the skills she honed as a teacher with her love of physical activity—and with each pose her students pick up, she’s making an enduring impact. Contributing to the community is also a fantastic way to boost your mental—and sometimes physical—health. TWO MEN AND A TRUCK Canada has long been “driving home” the importance of charitable work at all levels of its organization, which we explore on page 54. South of the border, The Coffee Bean & Tea Leaf is looking to cut into Canada’s competitive hot beverage market by offering elevated drinks, meals, and snacks, starting in Alberta; you can read about their plans for expansion on page 51. Closer to home, Fully Promoted franchisees Jeff Gross and Lily Yin walk us through the ins and outs of a day in their shoes as business owners (page 45). Plus, Pacini finds success in addressing the unique needs of its Mississauga, Ontario, community (page 48), and we pick the brain of Foodtastic president and CEO Peter Mammas on what his company looks for in an ideal franchisee (page 42). For those considering small business ownership through franchising, and for those already within the industry, legal expert Frank Zaid talks about the importance of having, and participating in, a franchise advisory council (page 59). On the marketing side, Marty Menard discusses why and how online analytics can help franchisors and franchisees alike find their perfect fit (page 60). The CFA is proud to help facilitate the journeys of entrepreneurs from all walks of life who are searching for fulfillment through franchising. This community is strong, and growing—we hope you will join us in finding your own version of personal and professional satisfaction in our industry.

Sherry McNeil President & CEO Canadian Franchise Association

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

Darrell Jarvis*, Fasken Martineau DuMoulin LLP

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Canadian Franchise Association (CFA) SENIOR MANAGER, CONTENT & MARKETING

TREASURER Lyn Little, BDO Canada LLP

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EDITOR Rachel Debling

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CHAIR, LEGAL & LEGISLATIVE COMMITTEE

GRAPHIC DESIGNER Andrea Lee

Andraya Frith, Osler, Hoskin & Harcourt LLP DIRECTORS

Andrew Arminen, Metal Supermarkets Chuck Farrell, Pizza Pizza John Gilson, COBS Bread Dixie Ho, MBI Brands Joel Levesque, McDonald’s Restaurants of Canada Limited Ken Otto, Redberry Restaurants Nathan Oxford, Jani-King Canada Gary Prenevost, CFE, FranNet John Prittie, TWO MEN AND A TRUCK Canada Thomas Wong, CFE, Kevito Group *Executive Committee member

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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

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

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Legal Disclaimer The opinions or viewpoints expressed herein do not necessarily reflect those of the Canadian Franchise Association (CFA). Where materials and content were prepared by persons and/or entities other than the CFA, the 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.

CODE OF ETHICS

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

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

LOOK FOR EXCELLENCE As you investigate the many franchise opportunities available to you, you will see a special logo featured in franchise literature, on franchising websites and in franchise tradeshow booths. This logo identifies franchise systems and franchise support service 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. For more on our members, visit LookforaFranchise.ca today.

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INDUSTRY NEWS

Your source for what’s happening in Canadian franchising Kumon Connect Brings Even More Personalization to Learning On March 1, Kumon North America officially rolled out its new digital worksheet platform, Kumon Connect, making Kumon more accessible and convenient for students across North America. After nearly 70 years of helping students succeed academically using the proven Kumon Method, Kumon North America last year launched the digital pilot program that allows children to complete their Kumon worksheets using a tablet and stylus. “We are excited for this national launch of Kumon Connect, as it will make the Kumon Method accessible to even more children,” said Mino Tanabe, CEO of Kumon North America. “Through Kumon Connect, students benefit from positive, personalized learning experiences and develop technological skills that are crucial to their academic success and future professional endeavours.” Individualization has always been a key element of the Kumon Program, with every child’s starting point based on their placement test and students advancing according to their performance on their worksheet assignments. With Kumon Connect, students sign in to a webbased app, where they will be able to see their graded worksheets from the previous day and access their homework. Instructors can “replay” students’ work, provide feedback, and update lesson plans accordingly. Parents can also monitor their child’s progress in real time through the app. Kumon’s new digital platform aims to increase the connection between students and instructors and emphasizes the value of Kumon for families.

Students use their own digital devices, and there is no additional enrollment fee associated with Kumon Connect. Kumon Connect students attend class in their local Kumon centres twice per week and do homework the other five days, just like they would with traditional Kumon worksheets. In a recent survey, 95 per cent of parents whose children participated in the Kumon Connect pilot program reported that students who completed their Kumon homework on a tablet were either more engaged or as engaged in their studies than they were previously, and 74 per cent said Kumon Connect had a positive impact on their children’s independent learning skills. Additionally, 70 per cent said their children were enthusiastic about completing assignments using Kumon Connect. DoughBox Celebrates Grand Opening in Newmarket DoughBox Wood Fired Pizza & Pasta recently celebrated its grand opening in Newmarket, Ontario, with its Pizza 500 Community Event. The celebration included a cheque presentation for $1,500 remitted to Southlake Foundation in support of Southlake Regional Health Centre. “Grand opening events are nice, and we’ll remember today, but we’ve been in celebration mode since the day we opened,” said Sagar Arora, one of the three local franchisees who opened the store on January 5. “Bringing artisan-style, wood-fire pizza and homemade, hand-tossed pasta to Newmarket has given us reason to celebrate each day. The best part of today is knowing we’ll be back tomorrow to do it all over again.” The donation will help Southlake Regional Health Centre continue to

provide leading-edge care for more than 1.5 million people in communities across Ontario, including York Region, South Simcoe County, and as far north as Muskoka. “We are so thankful to DoughBox Newmarket for its commitment to leading-edge care, close to home,” says Jennifer Ritter, president and CEO of the Southlake Foundation. “We rely on the generosity of so many in our community to sustain our work—from harnessing stateof-the-art technology to purchasing essential equipment for everyday patient care. Together with our generous donors like DoughBox, we are safeguarding the future of healthcare in our communities.” DoughBox Newmarket is located at 695 Stonehaven Avenue in Stonehaven Centre. Pet Valu Launches Premium Health and Wellness Brand Pet Valu has launched exceed™, a premium health and wellness brand, for devoted pet lovers who are looking for wellness products focused on enhancing a pet’s health, beauty, and comfort. Starting with a 14-item grooming portfolio containing essential oils, vitamins, and superfood extracts, exceed™ provides targeted solutions to help benefit dogs’ well-being. “When buying for their pets, many devoted pet lovers use the same approach as when they shop for themselves; they look for products with quality ingredients, those they are familiar with, and the ones they would use themselves,” says Dolly Kaushal, director of Pet Valu’s proprietary brands. “We’re excited to offer exceed™ grooming products to these pet parents as they are packed with well-known beneficial

Franchise Canada May | June 2024

INDUSTRY NEWS ingredients such as argan oil, keratin, chamomile extract, as well as a vitamin trio of A, E, and B5.” Created to enhance pets’ health, beauty, and comfort, the grooming portfolio features solution-based shampoos, wash-out and leave-in conditioners, cleansing and protecting serums, and fragrance mists. The line offers solutions targeted for shedding, anxiety, healing, soothing, nourishing, conditioning, and shine so devoted pet lovers can shop based on their dog’s individual needs. All products are free of sulfates, parabens, and dyes. “We’re committed to offering devoted pet lovers top-quality products that they can’t find at other Canadian pet retailers,” says Kaushal. “Whether they’re looking to help restore and renew their dog’s skin and coat, indulge their senses, or enhance their well-being,

exceed™ grooming products provide a relaxing, elevated experience that will satisfy pet lovers and their dogs.” The products have been formulated for dogs and should not be used on cats or other animals. exceed™ products are available exclusively in Pet Valu stores across Canada and online at petvalu.ca. Domenic Primucci Receives Top Executive Honour at the 2024 International Pizza Expo Domenic Primucci, president of Pizza Nova, received the distinction of Top 25 Executive by Pizza Marketplace, an awards program held annually in conjunction with the International Pizza Expo. Primucci placed 10th on the list—the first time he has been named to the list. During the event held in Las Vegas, Pizza Marketplace honoured 25 executives in the pizza industry, including pizzeria owners,

presidents, directors of operations, and executive chefs. Active in his family’s pizza business since the age of 14, Primucci has experienced almost every role within the pizza restaurant business. This broad experience has helped him to make day-to-day business decisions while maintaining strong relationships with all stakeholder groups, from customers to franchisees. “It is an honour to receive this award and stand among such inspiring leaders in the industry,” says Primucci. “Pizza Nova is a proudly Italian-Canadian company, and for over 60 years, we have strived to ensure we provide quality food and service. It’s thanks to our staff’s commitment to this promise that I can stand here before you today and receive this honour.” In 2006, Primucci spearheaded a major brand refresh and charted

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INDUSTRY NEWS

a new course in menu innovation, which included becoming the first in Canada to introduce items such as toppings raised without antibiotics, charcoal dough, and pea-protein plant-based pepperoni. Over the past 25 years, he has also led the company’s popular “That’s Amore Pizza for Kids” campaign, which has helped to raise more than $2.5 million for Variety—the Children’s Charity of Ontario. In 2023, in honour of the company’s 60th anniversary and

under Primucci's leadership, Pizza Nova announced a $1 million donation to Scarborough Health Network Foundation, an organization he has supported actively for the past eight years. Primucci maintains relationships with franchisees, engaging in constant, open communication and training. He believes that franchisees are part of the Pizza Nova family, and that the company’s success hinges on the support it provides to franchisees. “I would like to extend my heartfelt gratitude to my father, Sam Primucci, the founder of Pizza Nova; our dedicated employees; and our loyal customers, whose unwavering support has been instrumental in our success,” added Primucci. “This recognition not only celebrates our past achievements but also inspires us to continue striving for excellence and innovation in the pizza industry.”

EverLine Coatings and Services Debuts on Franchise 500 and opens 100th Location EverLine Coatings and Services, North America’s fastest-growing line striping and pavement maintenance service business, is announcing significant growth, accolades, and a momentous milestone achieved in 2023. The brand saw massive growth, including reaching 100 locations in the United States and Canada, while also being nationally recognized in the franchise space with top honours. These achievements have been achieved after just a year and a half in the U.S. market, following the company's expansion from Canada beginning in spring 2022. Throughout the year, the brand experienced substantial growth, adding 37 new franchisees across every region of the country, further enhancing access to

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Franchise Canada May | June 2024

INDUSTRY NEWS high-quality line stripping and pavement maintenance services. The significant accomplishments achieved by the brand in 2023 include: •D ebut on Entrepreneur’s Franchise 500: The brand has earned recognition for its exceptional performance in areas such as unit growth, financial strength, and stability in its debut placement on Entrepreneur's 2024 Franchise 500 rankings. EverLine secured the 460th position on the highly competitive annual ranking, which is based on criteria encompassing overall cost, size and growth, support, and overall brand strength. This ranking signifies a significant accomplishment for many emerging brands making their mark in the franchise space. •F ranchise Business Review recognition: The franchise also garnered national recognition in the Franchisee Satisfaction Awards of 2024 as one of the Top 200 Franchises by Franchise Business Review. Rankings are based on surveys shared by the brand's franchisees according to criteria

including core values, training and support, executive leadership, financial opportunity, franchisee community, and overall satisfaction. EverLine ranked 42nd in the Top 50 Large Franchises category for concepts with between 160 and 379 total units. Additionally, EverLine was acknowledged in the Services category, securing the 13th position among service providers. •O pening of 100th location: The location, in Cleveland, Ohio, is owned and operated by local franchisees Andrew Pearce and Colin Centra. The duo, who have backgrounds in engineering, real estate, and entrepreneurship, have joined the diverse number of EverLine franchisees who have joined the system since the brand began expansion into the U.S. over the last two years. 9Round Kickboxing Expands Reach with Acquisition of iLoveKickboxing 9Round Kickboxing Fitness, the world’s largest kickboxing franchise,

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

announced its recent acquisition of iLoveKickboxing (ILKB), a prominent kickboxing fitness franchise. This move positions 9Round as the sole proprietor of all 56 ILKB franchise locations across the United States and Canada. The acquisition allows 9Round to preserve the distinct identity of iLoveKickboxing, leaving its branding and unique offerings intact. While 9Round provides individual-driven workouts with 24/7 access, allowing members to go on their schedule, ILKB caters to those seeking a scheduled group class atmosphere. This separation ensures that both brands continue to serve their respective audiences with unparalleled fitness experiences. “We believe in the power of kickboxing to transform lives, and this acquisition allows us to share that passion with even more people,” says CEO Shannon Hudson. “Our future goal is to surpass the 100-location milestone, expanding the reach of ILKB. Right now, we are committed to supporting our existing franchise owners and, in due course, will offer new opportunities for entrepreneurs to join our thriving community.” Former ILKB CEO Dan Castellini expresses confidence in the brand’s future success under the new ownership, stating, “We’re confident ILKB will continue to grow and flourish under this new ownership agreement. ILKB’s community-focused class approach empowers individuals on their fitness journey and complements 9Round’s convenience offering. Together, the two brands will work to promote wellness and expand the love of kickboxing across the U.S.” As 9Round takes this significant step forward, it reiterates its commitment to fostering a community of fitness enthusiasts and empowering individuals to achieve their health and wellness goals through the love of kickboxing.

GUIDING COVER STORY

WELLNESS Looking for a franchise system that’s rewarding in more ways than one? These four brands offer products and services that can round out good mental health practices BY GINA MAKKAR

In today’s fast-paced world, prioritizing mental health is more important than ever, and it extends far beyond the tried-and-true advice of seeing a mental health professional (which is obviously still exceptionally important!). The following franchise systems offer a range of products and services that contribute to their customers’ positive mental health and help support their journey to well-being.

Franchise Canada May | June 2024

COVER STORY

Sharon King

Shafik Mina

Crayola Imagine Arts Academy Crayola Imagine Arts Academy is bridging the gap in arts education. Its innovative approach develops soft skills through art, preparing children for a future where skills in creativity, conflict resolution, and empathy are paramount. “There were a lot of people teaching art or techniques. We felt that art can go way beyond that,” says founder Shafik Mina. One of the academy's core beliefs is that creativity is a muscle strengthened with practice. Through its programs, it encourages children to see themselves as creative beings, fostering confidence and a willingness to explore new ideas. More than skill-building, the program fosters socialemotional health and connections, for art that fuels good mental health. A program on animals is viewed through a lens of empathy. “When we're talking about empathy, we're flexing that muscle about why we need to care, and why these things are important,” says Sharon King, vice president of research and development. “If we have more empathetic human beings on the planet, we're more likely to have positive outcomes in terms of how we treat each other and how the world gets along.” The program also fosters teamwork and collaboration and explores feelings in tangible ways. “We say, ‘Tell me the story of how you did this,’ or ‘Tell me the story of this artwork.’ It drives the emotional impact of what they

did. It's not about how skilled they were, it’s how they felt about it,” says King. Learners come away with valuable tools to navigate feelings and relationships while expressing themselves creatively, contributing to overall well-being. Under the 2inspire brand that also founded Mad Science 30 years ago, Crayola Imagine Arts Academy franchisees enjoy the benefit of a mature system and its resources, from programs and tools to research and more. Mina’s advice to franchisees? “If you're going to buy a franchise, follow the recipe. Somebody invested a lot of time and money in creating that recipe. If you buy into it, then buy into it.” He also advises that choosing something meaningful will help them stay the course when times are difficult. “COVID was the greatest test we had,” he says. “Everybody said, ‘I have to keep it together because I want to come out on the other side.’ It wasn’t for financial reasons, because financial motivation went out the door. It was because they loved what they did. It was rewarding.”

Learn more at LookforaFranchise.ca

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COVER STORY

Kim Hamm

Dogtopia Dogtopia understands how dogs impact our mental health and well-being and strives to create a safe, nurturing environment for dogs and their owners. “Especially after the pandemic, people of all ages are recognizing the joy and companionship that dogs provide and how it directly correlates with their mental health,” says Kim Hamm, president and CEO of Dogtopia Canada. With offerings from daycare to boarding and spa services, they’ve got everything dogs and their pet parents need for happy, healthy, stress-free lives. The return to routine post-pandemic spurred an increase in demand for the services Dogtopia offers. “People today view dogs as a part of their family and are seeking peace of mind and a safe place to bring their fur babies,” says Hamm, who adds that trust and transparency are key to fostering good mental health for dogs and their owners. “Trust is the foundation of our brand. People trust us with their fur babies because of our relentless commitment to the health and safety of all dogs in our care. This premium standard of care and transparency is something that was lacking in the industry and is why Dogtopia is so beloved in the communities we operate.” To that end, Dogtopia’s Wellness Program helps pups live longer, healthier, and happier lives with proactive and preventative services like nail trims, teeth brushing, and ear checks. “As a home-away-from-home for our pet parents, we can proactively identify nuances and changes in behaviour because we see a dog three, four, or five times a week,” explains Hamm. “Who better to fulfill what are important, but often stressful, services for both the pup

and pet parent?” The result is convenience and peace of mind for owners and happy, healthy dogs. With 22 locations across Canada and 10 more in progress, Hamm says that cultural fit is important when pairing pups with their services, and franchisees to the system itself. “We’re fortunate that dog people tend to attract other dog people, and dog people are great people. That common thread binds us all together.” To ensure consistency and quality within their locations, Dogtopia’s robust franchisee training system includes administration, sales, marketing, dog handling, and more, which sets franchisees up for success on their journey of entrepreneurship. After 10 years with the brand, Hamm says the biggest driver of success at a location is following the proven playbook and engaging with local businesses. “It goes a long way toward fostering relationships and drives business in the door,” she notes. Hamm says their model has sustained and survived a pandemic and a recession, and though with these economic headwinds people may have scaled back on other material possessions and spend ing, they continue to invest in the health and well-being of every family member, including the furry ones. “It insulates the business model, and not a lot of other industries have that peace of mind,” says Hamm.

Learn more at LookforaFranchise.ca

Franchise Canada May | June 2024

COVER STORY

LivingLIGHTING LivingLIGHTING does more than illuminate homes—it enlightens minds. Since 1968, it’s been a beacon of innovation, evolving from a traditional lighting store to a dynamic brand that offers more than just light fixtures. Through its full-size showrooms and the LivingLIGHTING Boutique model, the company’s lighting specialists can assist in all things lighting—from selecting the right bulb, to lighting planograms, to working with designers or tradespeople. And with a focus on educating consumers and adapting to changing demographics and technological advancements, LivingLIGHTING has carved a niche for itself in the market. A key aspect of their success is the commitment in educating consumers about the lighting in their homes or businesses. Lighting can impact our circadian rhythms, affecting our sleep, mental health, and well-being. “A lot of people don’t know that lighting can have an impact on your body,” says Bill Mason, general manager. Using high-temperature LED bulbs (such as 4000K, about the same brightness as sunlight) in the evening can signal our bodies that it’s daytime, inhibiting melatonin production and making it harder to fall asleep. And using low-temperature lights (such as 2700K, with a warmer, brownish tint) during the day can confuse our bodies, making us feel drowsy when we should be alert.

The quality of light can also affect our visual comfort and overall health. Poorly designed lighting, such as fluorescent lights, can cause eye strain, pain, blurred vision, dizziness, and difficulty focusing. To mitigate these issues, LivingLIGHTING helps customers create lighting plans that will add beauty to their environment, while optimizing their overall health. Committed to community engagement, they also support SolarBuddy, a charity that provides solar lights to communities without electricity. For those considering a franchise opportunity, the company seeks enthusiastic individuals willing to engage with the business and their communities. “I can teach everything other than passion,” says Mason. “We have many people who are remarkable in their passion and entrepreneurship.” Once on board, franchisees receive comprehensive support, from location selection to ongoing training, ensuring their success. Mason also advises investors to speak with existing franchisees. “Talk to the owners and discover what they are doing in their local communities to make their business a success,” he suggests.

Learn more at LookforaFranchise.ca

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COVER STORY

Kianna Pollard, Magen Mercer, and manager Candace Gabriel

Payton Sorensen, centre, and his puppy Caesar.

Smash Therapy Releasing anger helps reclaim emotions, and rage rooms and wreck-it rooms are fun and functional facilities to play and release stress. Magen Mercer, founder of Smash Therapy, identified a gap in the market when searching for a place to blow off steam. “I had a stressful week, and I wanted to [smash] a specific coffee cup that I wanted to get rid of in my cupboard and thought, ‘Maybe there's one of those places [in my area] I could take it.’ When there wasn’t, I knew that I wasn’t the only one that could use something like this.” First launched in 2020 in Saskatoon, Saskatchewan, the concept is simple but powerful. Participants can bring items that hold emotional significance, such as old dishes or pictures, and smash them in a safe, judgmentfree environment. They can also smash items readily available on-site. Mercer has created a space that welcomes people from all walks of life, including corporate teams, fitness enthusiasts, and inner-city youth, and many clients report a sense of release and empowerment after a session. Though Smash Therapy is not meant to replace traditional therapy, Mercer says for some, it’s a first step in their healing journey. “For some people, it's a fun little bachelorette party idea, and for others, it’s healing.”

Mercer is committed to sustainability and minimizing environmental impact, sourcing items destined for the landfill or recycling and giving them one last use. She’s also forged partnerships with local organizations, including the Electronic Recycling Association. With its innovative approach, Smash Therapy is positioned to make a meaningful impact on the mental health and well-being of its community. Connecting to local businesses, from therapists to social groups, fosters connections and builds a sense of community. In preparing to franchise, Mercer has developed nationwide partnerships with agencies such as insurance companies. With the brand’s intent to expand locally at first, a prospective franchisee should have a passion for serving their community. “I'm looking for someone with a huge heart, a creative thinker who can think outside the box and do whatever it takes.”

Learn more at LookforaFranchise.ca

Franchise Canada May | June 2024

Taking Care of Business Trendy treatments take centre stage in three franchise brands’ à la carte offerings BY GEORGIE BINKS

Self-care is the term du jour for salons, spas, and the R&R activities that promote physical, mental, and emotional health, and these brands are emerging as ones to look out for when it comes to having their finger on the pulse of cutting-edge services.

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

TAKING CARE OF BUSINESS

Left to right, Julie Sigouin, Phil Defoy, Mathew Altman, Mark Beliveau

iCRYO Canada Just imagine—you’re considering a franchise with iCRYO, which offers a host of cool, innovative treatments, and then out of seemingly nowhere, you receive the ticket of a lifetime. “We have a discovery day [where] we invite potential franchisees to visit us and try the different services,” enthuses Phil Defoy, CEO of iCRYO Canada. “Everyone absolutely loves them!” Defoy, the master franchisor of iCRYO in Canada, says the brand offers something for everyone. “With the lifestyle services, we have full-body cryotherapy (cold therapy), red-light therapy, compression therapy, zerobody dry float, and infrared sauna.” He notes that some benefits the consumer can see and feel are the reduction of pain, anti-aging, improved recovery, and reduction of oxidative stress, a condition in which the levels of antioxidants in the body are low and free radicals (which can contribute to chronic health problems) are too high. They have also been shown to improve sleep and energy. “These services are usually offered one-by-one by some other businesses, but iCRYO offers them all under one roof,” explains Defoy about its unique value proposition. iCRYO provides three types of services: lifestyle, body sculpting, and a medical division for intravenous and intramuscular injections, utilizing mostly vitamins, minerals, and amino acids. The injections are administered by a registered nurse, with a pharmacy preparing the compounds and doctors overseeing the practice. Right now, the franchise has just one Canadian location in Brossard, Quebec, which is owned by Defoy.

iCRYO originated in the U.S., where it has 40 locations open, 40 under construction, and another 150 at various stages of development. Defoy says it’s “booming.” Defoy plans to open two more corporate locations in 2024 in Quebec and is looking to franchise across the country: he’s in discussions with interested parties in Ontario, B.C., Alberta, and Manitoba. The ideal franchisee would have an interest in optimizing health, anti-aging, and recovery, as well as a background in management or business. Defoy says, “We’re looking for quality people with an interest in health and wellness.” iCRYO offers significant training, and Defoy notes the benefits of owning a franchise are financial freedom, flexibility, and being part of an up-and-coming, successful industry, in addition to its proven record. “We have a recipe book that’s provided, but it’s up to the franchisee to follow the recipe,” he explains. The biggest challenge is that the industry is relatively new, so Defoy’s job is educating the public about the brand and its product and services. He says, “Once people are sold on the services, a large number are searching for [them]. It’s a very trendy, fast-growing industry.”

Learn more at LookforaFranchise.ca

Franchise Canada May | June 2024

TAKING CARE OF BUSINESS

Susie Dantas

Laser Clinics Canada “We’ve been in the confidence business since 2008,” says Susie Dantas, the franchisee of Laser Clinics Canada (LCC) at Square One Shopping Centre in Mississauga, Ontario. “Our external beauty solutions help our clients reignite their inner confidence.” Dantas explains the brand’s value proposition is to provide innovative, high-quality services at an affordable price point to help more people feel good in their skin. Clients experience much more than just change on the outside, according to Dantas. “You’ll really feel it at every step of the journey.” The trends the franchise is seeing are safe treatments for all skin types; a focus on the skin’s underlying health; a new appetite for achieving strong, resilient, glowing skin; and what the franchise calls “skinimalism”— quicker, more efficient, and more affordable regimens. In February 2024, the franchise launched three exciting new treatments: HydraFacial Platinum featuring JLo Beauty Booster, SKINVIVE by JUVÉDERM, and Hydrojelly™ Advanced Facials. It’s important for the company’s franchisees to frame the benefits of these treatments authentically, Dantas says. “I help [franchisee] prospects by sharing my experience and offering advice. The process can feel daunting, and having someone to run things by often puts prospects at ease. I’ve also supported corporate by doing a franchisee profile video and have been part of franchise panels to help share my experience for those who are curious about the brand.”

That help extends further than just fellow franchisees, too. The brand is very active in the Mississauga community through the Run the World Summit, a femalefounded and run organization that supports female-identifying entrepreneurs in the community. For those interested in the franchise, Dantas says the biggest asset is a passion for beauty, and for people. “It’s a point of connection with both clients and your team of medical aestheticians who love what they do. The rest you’ll learn and be trained as you go.” A business background is also helpful. Dantas says launching her business was the pinnacle of several months of planning and scenario building. “The day of my ribbon cutting at Square One was one I will always remember, surrounded by my family and my new LCC team,” she recalls. “Since then, I’ve learned the ins and outs of managing the business day-to-day with the support of our corporate team. I’m now looking to grow and become a multi-unit franchisee.” Dantas’ advice for prospective franchisees? Don’t be afraid to take the plunge. “If you’re passionate about beauty and people, then reach out and start your business plan. It will give you the confidence to make the right move for you.”

Learn more at LookforaFranchise.ca

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TAKING CARE OF BUSINESS

Caroline Kolompar

Massage Addict Caroline Kolompar, chief executive officer of Massage Addict, lists enjoying a massage and reflexology therapy as her favourite self-care treatments. When asked why reflexology, she notes that she “loves the pressure point focus on my feet. It both feels good and gives a renewed sense of energy.” Kolompar also loves that wonderful feeling of knowing that at Massage Addict clinics across the country, Canadian customers are welcomed with a friendly smile and an assurance of quality care. “The brand’s value proposition is to be the go-to for therapeutic treatments across Canada, a place where clients receive high-quality therapeutic treatments coupled with exceptional in-clinic experience,” she explains. Massage Addict was founded in 2008 in Nova Scotia and is 100 per cent Canadian-owned and operated. With 118 locations across all provinces and more than 1,600 practicing therapists across the country, there are plans to open even more Canadian locations. “We’ve seen growth in terms of the variety of treatments that clients are seeking to help with their pain management, stress, and anxiety,” says Kolompar. “To that end, along with massage therapy, our clinics provide chiropractic care, acupuncture, and reflexology, allowing clients the flexibility and ease of being able to take advantage of one or more types of treatments to help their symptoms or conditions—all under one roof.” Massage Addict offers memberships with preferred pricing, although non-members are welcome to use their services.

Regarding the support it offers its franchisees, Kolompar points to the brand’s size and history. “The franchise has an incredibly robust cross-functional support team with more than 130 years of combined experience to help guide and nurture franchise partners from pre-opening through post-opening,” she says. Massage Addict’s franchisee training plan incorporates a multitude of topics including, but not limited to, a review of regulatory guidance for each therapeutic service, the client experience, operational and marketing training, and creating a strong in-clinic culture. The franchise is also a proud long-term partner of the Arthritis Society Canada. Kolompar says there are three qualities that a prospective franchisee should have. “Being a hands-on owner committed to creating a positive clinic; having a passion for customer satisfaction, health, and wellness; [wanting to help] people; and participating actively in the local business community.” To those considering becoming a franchisee, whether with Massage Addict or elsewhere, Kolompar has this advice: “Do lots of research. Make sure that the industry you are looking into is not only a growing industry, but more specifically that it’s right for you. When you love what you do, success follows.” And that’s a pretty good feeling.

Learn more at LookforaFranchise.ca

Franchise Canada May | June 2024

PUTTING THE BUSY IN BUSINESS Owning a franchise is a challenging yet rewarding undertaking, especially for these mobile, service-based franchisees, several of whom began their business as a one-person operation BY RACHEL DEBLING

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

PUTTING THE BUSY IN BUSINESS Nathan Cameron

NATHAN CAMERON Elite Window Cleaning, Belleville, Ontario Moving from the kitchen as a trained culinary chef to the exterior of people’s homes and offices may not sound like the most natural of transitions—after all, the only glass Nathan Cameron used to clean was pyrex dishes. But for this Elite Window Cleaning franchisee, it was a rewarding shift. “I needed something that was no evenings, no weekends, no holidays,” says Cameron. “Just to be more available.” The franchise system was the brainchild and labour of love of Chris Stoness, who started operations in the Kingston, Ontario, area in 2012 after leaving his satisfying but ultimately stymied career as a recording engineer. Beginning with nothing more than “a borrowed car, a bucket, and really big dreams and aspirations,” Stoness grew his brand from a single location to 13 franchise locations and is now happy to leave his hard-earned business in the hands of his well-vetted franchisees. “I think there’s a lot of power in our system, being founder-led,” says Stoness. “I’ve seen every dollar, from dollar one to seven figures, flow through this business annually, and have the battle scars and trophies to prove it.” That passion flows down to investors like Cameron. In fact, when Cameron initially took a job as a technician at the original Kingston franchise in 2018, he was immediately struck by Stoness’ business acumen, along with the work-life balance that being an Elite owner would provide. “When Chris got the green light to go ahead and begin franchising, I had already been developing a region that was adjacent to Kingston—Belleville, not terribly far away,” recalls Cameron. “If you want something bad enough, you just make it all work. The next spring I signed, and we were up and running.”

The company’s proprietary technology, including telescopic poles that can clean windows up to six storeys high with no need for a ladder, puts safety and efficiency at the forefront of its business model. It has also received praise from both prospective franchisees and the technicians they hire, such as Cameron’s first employee, a local student who joined him in his first season to embark on this new adventure. Going into 2021, his franchise expanded further, adding an additional car and another worker to the roster. But he soon realized that as he scaled up, he would need to step back in certain aspects of the business. “I mean, there wasn't a window that I didn't service myself in my first two years. I was in the car every day, all day. And of course you're trying to balance finding time for quotes, finding time for your clients. It's great to care. It's great to be technician-forward—in the beginning. “Between my own half-time schedule (half running the business, half acting as a technician) and being the third wheel on service calls, it was not long before I needed another employee. So, we moved up to three plus me running two full-time vehicles, and we grew.” Now Cameron is on Elite’s validation calls, helping select future franchisees and answer any questions they may have as they go through the vetting process. One thing he looks for in a prospect: a sparkling personality. Because, as he notes, Elite is, above all, in the customer service business. “We just happen to be very good at cleaning windows,” he jokes.

Learn more at LookforaFranchise.ca

Franchise Canada May | June 2024

PUTTING THE BUSY IN BUSINESS

Carmine Pallotta

CARMINE PALLOTTA Fibrenew, Markham, Ontario Like many franchisees, Carmine Pallotta wanted to start his own business, but he didn’t know anything about being a businessperson. That’s where Fibrenew came in. “I liked that it was something small that I could build as I went along,” says Pallotta. “That made me really comfortable going into it.” A licensed technician at General Motors for 24 years, with a smattering of other trades experience sprinkled in, Pallotta was drawn to Fibrenew after an insurance adjuster friend mentioned it as a potential business investment. Pallotta had been looking for the perfect opportunity for almost two years, and the brand’s handson approach appealed to him. He started speaking seriously with Fibrenew in July 2018, and before he knew it, he was opening his figurative doors in September. “It was a really smooth process,” he recalls. Fibrenew’s services cover all things leather, vinyl, and plastic. The company’s technicians can repair and install upholstery, automotive interiors, windows, siding, and a whole lot more—and it can all be done in the customer’s home or business, dramatically reducing overhead. Unlike some owner-operators, Pallotta has decided to stick it out on his own—at least for the time being. “I do it all. When my phone rings, I answer it 99 per cent of the

“THE FREEDOM OF RUNNING YOUR OWN BUSINESS? YOU JUST CAN’T MATCH IT.”

time. And with hands-free, I can talk with someone and continue to work on a job.” It’s the freedom that business ownership provides that Pallotta cherishes most, especially the additional time he can spend with his family. “Having your own business, you really can schedule your day,” he explains. “We have four kids, one with medical needs and a lot of appointments, and I would never be able to be there if I had a boss. Now I schedule my appointments accordingly, and whenever my family needs me, I’m there.” Looking back, while Pallotta does wish he had stronger managerial skills when he first started out, he does believe that anyone can succeed in franchising, with the right attitude and approach. “I had no idea running a business would require you to wear so many hats,” he says. “I didn’t know I would have to be the administrative assistant, the technician, the owner, the manager. It’s a lot to take in. “But the freedom of running your own business? You just can’t match it.”

Learn more at LookforaFranchise.ca

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PUTTING THE BUSY IN BUSINESS DAVE HAWTHORNE Glass Doctor, Barrie, Ontario Depending on its form, glass can serve many purposes. From its protective qualities (think windshields) to its ability to dazzle (like in stately display cases), glass is one of those materials that you just can’t escape. That sentiment certainly applies to Dave Hawthorne. As a Glass Doctor franchisee of 15 years, and a glazier for many years before that, he’s seen just about every application that glass can bring to the table—including the table. And that has led to a thriving business, with both residential and commercial customers. The variety of services that Neighbourly brand Glass Doctor offers is one of its biggest strengths, according to Hawthorne, which leads to repeat customers. “One minute we’re in your car in the shop, changing your windshield out, and then a couple of weeks later we could be putting a custom glass shower in your bathroom,” he says. “It’s funny how that works.” Though Hawthorne signed on as a franchisee in what many would consider the most unfortunate of circumstances—he was sitting in a Texas hotel room in 2008, hours after meeting with head office, as news outlets were reporting on the financial crisis—he weathered the storm. Now boasting 22 employees and two expansive showrooms, his franchise is among the top Glass Doctor franchises in North America. For those looking to become an owner-operator of their own small business, Hawthorne says don’t hesitate to say “get ‘er done.” However, he cautions that while being a part of a larger system is a fantastic opportunity, you need to put your trust in the experts, and above all, do your homework.

Dave Hawthorne

“Get the general consensus [of the brand from franchisees],” he advises. “Hear the good, the bad, and the ugly. Do your research. And once you feel comfortable, go with your gut.” His last recommendation? Surround yourself with people who excel in the areas you don’t—and make sure you get off the tools before it’s too late. Much like the glasswork Hawthorne and his team prepare and repair, clarity of that calibre can only come with time and effort. “There’s an old saying that goes ‘You’ve got to be on the business instead of in the business,’” he explains. “It took me a while to learn that.”

Learn more at LookforaFranchise.ca

Franchise Canada May | June 2024

PUTTING THE BUSY IN BUSINESS

Klay Hafeez and Amy Ghousen, Office Manager, Mr. Handyman of West Calgary

KLAY HAFEEZ Mr. Handyman of West Calgary, Alberta After years in the high-stakes oil and gas industry— on the corporate customer service side, no less—Klay Hafeez knows how to handle himself in stressful situations. Luckily, his Mr. Handyman business, though busy in the best way possible, is far more gratifying than his previous career. “I wasn’t familiar with Mr. Handyman or Neighbourly (Mr. Handyman’s parent company) before I started looking at different franchise opportunities,” says Hafeez. “Once I discovered the brand, I was immediately drawn to their comprehensive support systems and dedication to quality service, which is really number one.” The fact that he is one person in a network of devoted franchisees is the biggest benefit of being within the Mr. Handyman franchise family, he says. “Honestly, what struck me the most was the strong sense of community among the Mr. Handyman franchise owners. I hadn’t seen that anywhere. And that goes hand in hand with the brand’s commitment to fostering success at every level.” That commitment began the day of his interview at head office which, in and of itself, Hafeez found to be a novel approach. He walked away surprised that they were interviewing him to see if he fit the Mr. Handyman mould—

not the other way around. One ace he had in the hole, or so he thought, was his background in new-build construction, which he dabbled in after transitioning from oil and gas. When the team was more interested in his managerial skills than his construction experience, Hafeez was impressed, and knew it was the company for him. After being a Mr. Handyman franchisee for three years, Hafeez has acquired many valuable skills, most of all his leadership capabilities. Growing from three employees at launch to now 17 across four franchises can be a big task for any business owner, but he’s taking the minor challenges he comes up against in stride. His modus operandi? Listen to the customer—don’t just hear them. “When it comes to Mr. Handyman, I have a motto that says, ‘We’re in the customer service business first, we’re in the home renovation business second,’” he explains. “We hire the best people, we focus on doing great work, and we supplement the work we do with a 100-per cent customer satisfaction guarantee for one year after. And we take that to heart.”

Learn more at LookforaFranchise.ca

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SHAPING UP FROM COAST TO COAST A selection of franchises that are putting the “fit” in “profit” New Year’s resolutions may be long behind us, but Canada’s fitness industry— and the exciting franchise opportunities within it—is as active (pardon the pun) as ever. Valued in 2023 at a staggering $4.6 billion, fitness centres welcome more than six million Canadians each year. And with the rise of trendy modalities like high-intensity interval training and variations on staples like yoga and kickboxing, there’s ample reason to believe that a workout-based business could make bank. Paired with an increase in virtual options and enhancements such as realtime heart rate monitoring, companies in the fitness landscape are courting potential members with extras that will keep them on track to achieving their goals. The best part is you don’t need to be a pro-level exercise aficionado to start a successful fitness franchise. Whether you’re looking for a turnkey solution or a system that allows you to add a little personal flair, there’s something out there for every business-savvy investor. These brands and their exercise styles, whether prescribed or ad hoc, are as varied as they are appealing, and for would-be entrepreneurs they serve as the perfect entry point to self-sustained success. Find more information on these brands and others by visiting LookforaFranchise.ca.

Franchise Canada May | June 2024

SHAPING UP FROM COAST TO COAST

30 Minute Hit A high-intensity, action-packed kickboxing circuit workout designed specifically for women, 30 Minute Hit provides prospective franchisees with the tools to succeed in this exciting and impactful market. In operation for 20 years, the brand has continued its expansion across Canada and the U.S., with 66 and 31 locations respectively. 30 Minute Hit franchisees enjoy work-life flexibility, a low investment level, and the brand’s recurring revenue model. The company’s quick ramp-up period also ensures that franchise investors hit the ground running in their pursuit to build sales. As well, franchisees benefit from franchisor assistance with site selection, floorplan design, and continued physical training, plus hands-on training through UniversHITy.

Learn more at LookforaFranchise.ca

9Round Franchising of Canada 9Round fitness centres meld kickboxing circuits with the convenience of on-demand workouts, providing a flexible and adaptable system for both the franchisee and their clients. Now with more than 430 locations worldwide and more than 30 in Canada, 9Round is poised to bring its take on high-intensity workouts to even more North American markets. The franchise’s new 24/7 model helps provide franchisees the opportunity to reduce their manpower needs and increase profits. 9Round Franchise Business Coaches work hand in hand with franchise partners to ensure they are set up for success, and the brand’s experts in marketing, operations, and sales are there to support its franchisees every step of the way.

Learn more at LookforaFranchise.ca

Orangetheory Fitness

Oxygen Yoga & Fitness

Building on the popularity of high-intensity interval training, with the addition of performance-tracking technology, Orangetheory Fitness has ballooned to 1,500 locations since launching in 2010, more than 103 of which are in Canada. Its studios have a small footprint but huge value, offering interactive workouts that inspire members through real-time biometrics, such as heart rate. The workout brings together science and fitness in a revolutionary way, or the “Orange Effect.”

As a well-established fitness brand, Oxygen Yoga & Fitness franchises leverage proven systems and offerings unique to the health and fitness industry. With 72 thriving franchises across Canada and 123 territories already sold, their cross-country presence is a testament to their success.

Select Canadian markets are available for interested owneroperators who align with Orangetheory’s philosophy of offering members more than just a gym membership. The company attracts franchisees with a range of skills from leadership, retail, operations, sales, and finance. They are all passionate about innovation and driven to introduce the latest fitness trends to their markets. Support from head office is upfront and ongoing in areas such as presales, real estate, operations, marketing, equipment, construction, design, and more.

Learn more at LookforaFranchise.ca

Oxygen Yoga & Fitness’ ideal franchisee is someone with an unwavering passion for health and fitness, strong interpersonal and leadership skills, and an unyielding drive for success. What sets the company apart is that it offers in-depth support and training through its hybrid learning approach. From its Online Sales and Operations Training Academy to personalized one-onone Zoom-based reviews, the brand ensures every franchisee is equipped for success. With assistance in site selection, lease negotiation support, and ongoing mentoring, Oxygen Yoga & Fitness is committed to its franchisees every step of the way.

Learn more at LookforaFranchise.ca

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SHAPING UP FROM COAST TO COAST

Planet Fitness

STRONG Pilates

For more than 30 years, Planet Fitness has offered affordable, accessible membership options for both regular and firsttime gym-goers. With more than 2,500 locations, 90 per cent of which are owned and operated independently, the brand continues to offer its Judgement Free Zone® and nonintimidating environment globally. Since 2014, its expansion into Canada has led to 76 clubs across six provinces.

STRONG Pilates is turning Pilates on its head, thanks to its innovative take on the classic workout. The brand utilizes not only the traditional reformer but creative takes on the equipment—the ROWFORMER and BIKEFORMER—to elevate its studios offerings to a whole new level.

Planet Fitness entered the franchising industry in 2003, after refining its brand and approach to business. Prospective franchisees can consider many lucrative territories across Canada and join its network of like-minded fitness enthusiasts.

Learn more at LookforaFranchise.ca

Established in 2019 in Australia, the brand continues to grow worldwide, with more than 140 territories in operation or preparing to launch in Australia, New Zealand, the United Kingdom, Singapore, and Canada. STRONG Pilates is searching for franchisees with a desire to help others become healthier to bring the brand to the next level.

Learn more at LookforaFranchise.ca

Studio Pilates International

SweatHouz

With a vibrant atmosphere and friendly, encouraging staff, Studio Pilates International is taking the Pilates lifestyle to the masses. More than 17,000 people attend their classes each week, and with studios already in six countries, they are looking to expand their footprint even further.

A system with its finger on the pulse of rising fitness trends, SweatHouz combines the power of infrared saunas, cold plunge tubs, and vitamin C-infused showers for a full-body recovery treatment. Tapping into the lucrative wellness industry, its locations offer private showers, premium entertainment, and an array of services that cater to health-minded consumers.

The company’s initial Canadian locations are slated to open this year in Oakville, Ontario; Langley, B.C.; and Cloverdale, B.C., with more attractive territories available. Studio Pilates International has a proprietary way of running a Pilates business, positioning itself as a market leader with tech and other innovations. More than half of their franchisees own multiple locations, making it a highly scalable option for investors.

Learn more at LookforaFranchise.ca

After their initial inquiry, potential investors are given access to a webinar explaining SweatHouz’s business model, followed by meetings outlining available support and a discovery day at the company’s home office in Atlanta. Once a commitment has been made and the franchise agreement is signed, the franchisee receives guidance in finding a perfect location, hiring a team, and how to effectively launch.

Learn more at LookforaFranchise.ca

Franchise Canada May | June 2024

SHAPING UP FROM COAST TO COAST

The Warrior Factory

UROSPOT

Following the successful opening of its first Canadian location in Hamilton, Ontario, The Warrior Factory is poised for growth in Ontario and beyond. A hybrid of parkour and American Ninja Warrior obstacle parks, its locations appeal to kids and kids at heart.

Though you may not think of pelvic health when you think of fitness, UROSPOT is a brand that deals with the fitness of your pelvic floor muscles in a holistic way. Combining education, health coaching, and non-invasive technology, UROSPOT franchisees help women and men take control of their pelvic health. With technology that does the equivalent of 11,000 kegels for you (while remaining fully clothed), UROSPOT helps people say goodbye to bladder leaks, urgency, sexual dysfunction, and more.

The company’s franchise team helps set up price points for events and parties—another revenue stream beyond drop-in sessions, specialized Ninja Warrior courses, and membership— based on the franchise’s location. Private events offer another revenue-building option, and ongoing, step-by-step marketing support from The Warrior Factory team helps to drive leads even further. Selected franchises also have the option of attending two weeks of intensive training in Rochester, New York, prior to opening.

The franchise system has 27 locations across Canada, with locations in British Columbia and Saskatchewan slated to open this fall. For those looking to bring a unique health and fitness methodology to their community, and for those who have a passion for helping others, UROSPOT franchise ownership may be the right fit.

Learn more at LookforaFranchise.ca

Exercisers aged 40 to 64 spend the most time in the gym, when compared to other demographics.

FLEX YOUR FITNESS FRANCHISE KNOWLEDGE

Four out of 10 Canadians with a gym membership hit the gym more than nine times per month.

The Canadian gym and health club sector is expected to reach $4.6 billion in revenue by 2029.

Eighty per cent of Canadian gyms offer fitness classes.

As of October 2023, there were more than 8,750 gyms in Canada, a 22 per cent increase from the previous year.

Globally, the fitness, mind, and body sector is estimated to be a $780 billion industry.

It’s estimated that $3.9 billion in indirect and direct healthcare costs are attributed to physical inactivity in Canada each year.

Sources: FitBizWeekly, IBISWorld , Made in CA, ParticipACTION

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

In 2022, approximately 260,000 Canadian jobs were within the physical activity, sport, and recreation sector.

How Can the Temporary Foreign Worker Program Help Small Businesses? A federal program is available to help franchisors and franchisees bring skilled workers to Canada. But who can benefit—and how?

he Canadians who work in the franchise industry are skilled, hardworking, and come from varied backgrounds. But for some small businesses, finding the talent to fit their needs in a tight labour market can be difficult. There are government programs that can help franchisees fill their workforce requirements while assisting those new to the country in their transition to life in Canada. Read on to learn the ins and outs, and whether these programs are right for you. The following information comes from the Learn & Grow webinar “Franchise Success in Canada: A Guide for Newcomers” with Susanna Franklin, business development associate at Career Canada Immigration, an organization that provides recruitment services for businesses looking to hire foreign workers.

What is the Temporary Foreign Worker Program (TFWP)? This federal program is applicable to essentially every sector in Canada—healthcare, agriculture, hospitality, retail, construction, transportation, and beyond. The main benefit for business owners is that it guarantees a worker will stay employed with them for the term of the agreement. They don’t need to worry about a candidate switching to a different role in a different company, since the foreign worker they hire through this program can work only for their business for a period of two years (hence the term “temporary”). How an employer can apply, qualify for, and use the TFWP can be simplified into four steps:

1. Apply for a labour marketing impact assessment (LMIA) 2. Recruit the candidate 3. Secure the work permit 4. Onboard the candidate Keep in mind that this is not a quick process. The first two steps often take 30 to 40 days, while step three can take three to six months, followed by one to two weeks for onboarding the candidate. In total, that means you could be waiting for up to eight months from the time you start the process to the moment your worker begins as a trained employee. Of course, these timeframes are approximations only and will vary from applicant to applicant. That being said, if you need to staff your business within the next six months, this program likely won’t be for you, as it is time consuming. What’s an LMIA? As an employer, you can’t just hire a foreign worker directly. To become eligible for the TFWP, you must apply for a labour market impact assessment, or LMIA, which is the first step to be able to hire foreign workers through the TFWP. Employers often begin the process in November or December, in preparation for staffing their business by the summer, though this can vary by sector or specific role. The LMIA is essentially a document that says an employer is now eligible to hire a foreign worker. The government provides the document through Service Canada. Before it’s approved, the franchisee must confirm that there’s a shortage of the specific type of labour needed for the business, and that you’ve tried to hire Canadian citizens or permanent residents.

Franchise Canada May | June 2024

TEMPORARY FOREIGN WORKER PROGRAM Who is eligible to apply for an LMIA? There are a few eligibility criteria: 1. Your business should be active for at least one year. 2. The vacancy that you’re hiring for should be a full-time position. 3. You need to be able to guarantee the candidate full-time work, because once they’re in Canada, you’ll be their only source of income. 4. You must show that your business is in good financial standing, and you must offer the candidate at least the median wage.

43%

The percentage of temporary foreign workers (TFWs) in Canada in 2020* who were employed in • accommodation and foodservice; • retail trade; and • waste management, remediation services like home inspection or cleanup, and administrative and support.

11%

The percentage of accommodation and foodservice workers in Canada who were TFWs in 2020.*

4.4%

The percentage of Canada’s workforce who were TFWs in 2020.* *According to the latest statistics available as of publication. Note that TFWs are categorized by Statistics Canada as workers within the TFWP, the International Mobility Program, or those who hold study permits or other visa statuses.

The federal government’s Job Bank website allows you to search median wages by role and province, to help ensure that you adhere to the program’s criteria. There are also differences in applications for low-wage and high-wage roles. With a low-wage role, the employer must: • provide assistance with transportation, housing, and insurance, in addition to a paid one-way flight ticket from their home country. • assist the candidate in securing housing and ensure that the cost does not exceed 30 per cent of the position’s salary. For a high-wage position: • the employer is not required to assist with transportation or housing but must still insure the worker for the period that the candidate is not covered by provincial health insurance, in addition to providing a one-way ticket to Canada. There is also a $1,000 application fee for each LMIA; however, each LMIA covers up to five workers for the same role, in the same company, for the duration of the LMIA. Note that there is a third type of LMIA—dual intent, which is when a foreign national who has applied, or may apply, for permanent residence in Canada also applies for a temporary period as a visitor, student, or worker. This type of LMIA can help an applicant earn comprehensive ranking system (CRS) points that work toward their permanent residency. The $1,000 fee is waived for dual intent applications, and the role for which you are applying can be a low- or high-wage role. However, with this type of application, the employer must state that it will assist the candidate in attaining their permanent residency, which requires a longer commitment. Other costs associated with the TFWP are the work permit fee ($155) and the biometrics fee ($85). What are the steps to secure an LMIA? To apply for an LMIA, you must first register your business on the government of Canada’s Job Bank website, which only takes about 20 minutes. Once you have registered, you can post ads for the roles or vacancies you wish to fill. Those ads remain live on the Job Bank for 30 days. Once that 30-day period is over, you can then move to the next step: providing Service Canada with your business registration and financial details. There are two ways to show that your business is in good financial standing. The first is that you share your tax documents like the PD7A or Schedule 100 for review. Alternatively, you can request that your accountant provide a letter that says your business is in good financial standing. You’ll also need to be able to provide answers to basic questions about your business, including your locations and the number of part-time and full-time employees. Again, it can take six to eight weeks for the LMIA to be completed and approved or denied, which depends on the type of role. An application for a healthcare role, for instance, may be processed fairly quickly, while other industries like foodservice may take a little longer.

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

TEMPORARY FOREIGN WORKER PROGRAM Once I have the LMIA in hand, what do I do next? After you get your LMIA, the foreign worker can then apply for their work permit, which requires them to share the job offer and the LMIA, as well as their own documentation, including their educational documents, their employment documents, their financial information, and all other background verification documents that are required by the Canadian government. As mentioned previously, the work permit is for a two-year term. It’s a closed work permit, which means that the candidate can work only for this employer during this time. Service providers such as Career Canada Immigration can help guide you through this process and ensure that you have all necessary documentation in place to secure the LMIA and the worker’s permit. What if it turns out the candidate is not a good fit for our company? As with any hiring process, there’s a window in which you can evaluate whether the foreign worker adheres to the standards of your business and is suitable for the role. If they’re let go, the candidate has a short period of

For more information on Canada’s Temporary Foreign Worker Program and how to apply, visit www.careercanadaimmigration.com.

FOCUS ON S SPECIAL WINNER CFA AWARD JULY | AUGUS

NT ROVEME CANADA HOME IMP S ACROSS SERVICE

ECTION HOME INSP S SERVICE

time to look for another employer who would be able to support them. If that doesn’t work, they sometimes move to visitor status or, in the worst-case scenario, they move back to their home country. (Ed’s note: Franklin says that she has never seen this happen in her experience with Career Canada Immigration.) This is a general overview of the TFWP. Keep in mind that every application will be different, and that it’s always best to ask for help from experts in the field as you navigate the process. Before taking the first steps to secure your LMIA, you should consider how quickly you need the worker, whether you can fill the role with a Canadian citizen or permanent resident, and for dual-intent LMIAs, if you’re prepared to support the worker in their journey to permanent residency—which, again, can take some time. But for those who are looking for a new source of skilled employees for their small business, this program can be a very valuable tool.

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Franchise Canada May | June 2024

HOMEGROWN & LOCALLY OWNED

100% CANADIAN FRANCHISE SYSTEMS

Winning franchise concepts aren’t always the shiny, new concepts in major cities—they are often niche, emerging concepts embedding themselves in smaller communities across Canada. These homegrown examples show that by choosing a franchise concept that fits your and your community’s needs, success can certainly be within reach. BY DAVID CHILTON SAGGERS Studio Kiku

You’ll find them on arms, legs, shoulders, and just about anywhere else with skin. They’re tattoos, and their ink is usually a lifelong commitment. But for some people, at certain times in their life, some tattoos just have to go. Their removal is at the heart of Billy DeCola’s franchise system. DeCola, a tattoo artist of 15 years and the founder-owner of Studio Kiku in Vancouver, British Columbia, says he began considering a tattoo removal business when many of his tattoo clients started to ask him about covering up or altering their ink. Studio Kiku’s laser tattoo removal and skincare services launched five years ago in 2019 when he purchased a laser for removals costing a whopping $200,000. Last year, when DeCola was considering opening a second studio, he decided to franchise. His first franchise is expected to open this spring in Langley, about 50 kilometres from Vancouver. As for further expansion, DeCola says he wants to establish territories across Canada and the U.S., and he’s had conversations with interested parties in Japan, where “the tattoo business is just exploding,” though he adds it’s booming across the globe. Once Studio Kiku reopened, DeCola began looking for potential franchisees. Among his must-have qualities are a passion for tattoos and tattoo removal, leadership ability, strong people skills, and a willingness to buy into his

system. A franchise studio’s sweet spot is 1,000 to 1,200 square feet in a highly visible storefront location. The cost of a franchise depends on whether the franchisee leases or buys a laser; with a leased laser, the cost is $250,000, and it increases to $400,000 if the investor buys the machine outright. Learning how to use the laser takes one to two days with the manufacturer and up to another seven days with DeCola himself. Studio Kiku’s customer demographic is anyone over the age of 18 (who has tattoos, obviously), with the bulk of its clients between the ages of 30 and 45. Removal takes six to nine sessions on average and costs $200 to $800 for each sitting. As for the benefits of investing with him, DeCola says getting started in the tattoo removal business is difficult, so there’s a clear advantage to joining a franchise. (In addition to tattoo removals, Studio Kiku does permanent makeup removals, to further diversify its services.) There’s also the support of the system itself and the brand recognition that Studio Kiku provides, he says.

Learn more at LookforaFranchise.ca

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

Mezza Lebanese Kitchen

Mezza Lebanese Kitchen got its start in 1990 as a family business in a food hall in Halifax, Nova Scotia. But from that modest beginning, and following a rebranding, it has grown substantially, and there are now 20 franchise locations in Nova Scotia, New Brunswick, and Prince Edward Island. Peter Nahas, Mezza’s vice president of business development and franchising, says that another Atlantic province is coming aboard this fall, with a franchise slated to open in Mount Pearl, Newfoundland’s second-largest city. The first Mezza officially opened in 2012 in Dartmouth, a short ferry ride from Halifax; two years later there were three locations, which grew to six by 2016. Franchising began in 2017, mainly driven by multi-unit owners, and Nahas says there’s more expansion planned for Nova Scotia and P.E.I. this year. Despite what some may assume, the system’s preferred markets are not the country’s biggest cities. “Our bread and butter has been the smaller communities,” says Nahas, adding that the company will be looking at those sort of locations next year in Alberta and Ontario. Family-oriented power centres and retail strips suit Mezza best, with new builds spanning about 1,500 square feet, which Nahas feels is just the right size. The cost of a franchise is $600,000 to $750,000, and training takes six weeks at head office in Nova Scotia with a further two weeks of in-store instruction supplemented by online learning. “We increased training [time] so franchisees would know everything,” says Nahas.

As for the qualities he looks for in franchisees, he says they should “know and love the brand,” demonstrate great people skills and managerial ability, and be committed to top-notch customer service. Previous exposure to the restaurant industry would be a welcomed asset, but it’s not essential. Nahas says his current franchisees often partner with a family member or friend in their business ownership: “One brings the money, and one brings the experience,” he explains. The bulk of Mezza’s franchisees are in the 35-to-50 age group, which synchronizes neatly with his target customers. Nahas says they’re usually suburban families with a bit more disposable income who are looking for a healthy, fresh, and affordable meal in a fast-casual environment. As well, Mezza has a consistent lunchtime rush and does lots of takeout and delivery. Nahas says among the benefits of investing with Mezza are its return on investment, the strong relationship between head office and its franchisees, and that despite being a young brand, it has 35 years of industry experience to draw on.

Learn more at LookforaFranchise.ca

Franchise Canada May | June 2024

Ghost Taco

The pandemic was unkind to Samantha Buckley and her husband Grant. It temporarily shut down EVENTMRKT, their event space, as well as their Ground Burger Bar restaurant, both in Newmarket, Ontario. When the second lockdown arrived, however, they weren’t prepared to give up or lay off staff, and the idea of a pop-up takeout establishment using EVENTMRKT’s kitchen eventually emerged. The name of the pop-up? Ghost Taco. That was in 2021, and three years later, Ghost Taco is back with a permanent corporate location in Newmarket and two franchises due to open elsewhere in Ontario this year: in Peterborough in May, and in Whitby in the fall. Samantha, Ghost Taco’s co-founder and CEO, says she wants to open at least five more stores by the end of 2024. In keeping with their target demographics, the locations will likely be in the Greater Toronto Area, with some in the heart of the city. Every franchise in the system will be outfitted the same way, she explains, to maintain a “boutique vibe” for the fast casual, counter-service restaurants. Streetfront locations are her preference, and the sweet spot for a store is 1,200 square feet. Interested investors should note that the cost of a Ghost Taco franchise is $550,000, and training takes five days at the corporate location. As for the qualities she wants in potential franchisees, Samantha says, “We are looking for people who are passionate about the restaurant industry.” Previous business experience isn’t required, but good communication skills are. The majority of those interested in a Ghost

Taco franchise are men, she notes, but no matter the gender, franchisees tend to skew younger. As for customers, the 25-to-35 age range makes up 37 per cent of its base, although those in the 18-to-25 age range are a lucrative demographic key, too. Ghost Taco, which cheekily bills itself as “unauthentically Mexican,” serves a chef-inspired menu, including occasional items such as a “Big Mac” taco. Despite the brand’s name, which comes from offsite “ghost kitchens,” Ghost Taco prepares everything inhouse. “Tacos speak to everybody,” says Samantha. “The food’s quality speaks for itself.” A meal for two costs around $40, and for those who like to pair their Mexican food with something a little stronger, Ghost Taco also has a liquor licence. The benefits of investing with Ghost Taco are numerous, according to Samantha. The company prides itself on outstanding franchisee support, offering hands-on, in-store help the first week of business. There’s a secret shopper program to keep an eye on things, even at its corporate store, as well as quarterly business reviews. And finally, there’s the product itself. “There’s no one [else] doing what we are doing,” notes Samantha.

Learn more at LookforaFranchise.ca

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

NEXT GENERATION IN FRANCHISING

BRINGING YOGA TO THE YOUTH Melissa Heikkila left her teaching career in search of a way to help more children. Today, through her Little Yogis Academy franchise, she’s helping hundreds of kids improve their physical and mental health BY KIRSTYN BROWN

s a lifelong educator, Melissa Heikkila never expected to become a franchise owner before the age of 40. But when she learned about Little Yogis Academy in the summer of 2023, that’s exactly what happened. Little Yogis is a well-being enrichment provider that brings yoga and wellness programs to children under 13. Operating under the umbrella company Busy Minds Ed., its franchisees partner with schools and childcare centres, aiming to improve kids’ physical and mental well-being through a movement- and mindfulness-based curriculum. For Heikkila, the concept is one that’s close to her heart. Not only has she worked with children for most of her life, but she’s also an avid yogi, practising yoga and mindfulness skills every day with her husband and their eight- and five-year-old sons. “I’m actually not a businessperson, and owning a franchise was not something I ever thought would be in my future, but when I came across Little Yogis Academy, I knew the programming was exactly what I wanted to do.” And it couldn’t have come at a better time, as she had been looking to take her teaching career down a new path. “I wanted to make a change and find a way to reach more children,” she says. “When I found Little Yogis Academy, it was aligned with all the same values and beliefs that I have for providing a positive educational environment for children.”

Franchise Canada May | June 2024

NEXT GENERATION IN FRANCHISING

Taking a leap of faith Heikkila’s passion for education has been a common thread throughout her life. Born and raised in Aurora, Ontario, she spent her youth and teen years as a summer camp counsellor and coordinator. After graduating from university in 2008, Heikkila taught English in Japan for a year before moving to Markham, Ontario, to embark on a 13-year career as a Montessori educator. But while Heikkila loved the Montessori teaching philosophy—one that encourages self-paced, multi-sensory learning and values cognitive, social, and emotional development—she was ready for a change. And when a coworker told her about Little Yogis last July, Heikkila knew it was a good fit. “The concept is absolutely beautiful, and the branding stood out to me,” says Heikkila. “After meeting the founder and CEO, knowing her passion and why she created this program, I knew it was exactly what I was looking for.” Little Yogis was founded in 2019 by another dedicated educator and mental health advocate, Michelle Faber. After experiencing her own mental health struggles with anxiety and depression, Faber was inspired to empower children with the tools to thrive physically and mentally. In 2023, Faber expanded the business to Busy Minds Ed., which includes additional children’s programming such as Play Gym and DanceFit Kids. Today, Busy Minds Ed. operates across Canada, and Little Yogis even has franchises in the United Arab Emirates.

Once she’d made her decision, Heikkila hit the ground running. Within a few months, she had left her full-time teaching career and took over the Little Yogis Academy franchise in Ottawa, where she had moved with family in 2021. After completing the paperwork and training, she knew she wanted to offer additional programming, and decided to expand to Busy Minds Ed. Despite not having a business background, Heikkila says the brand’s established reputation and curriculum helped give her confidence. “Working with a franchise gives you a leg up. It gives you the advantage of an insight of the business world, and also allows you to show that you’re a reputable company and business provider. You are part of something that is not just yourself, and part of a curriculum that has been developed over time.” She also credits the support of their franchise community, whom she meets with on a bi-weekly basis, for helping to make the transition easier. “We’re here to grow together and support each other. It’s a very amazing business community to be a part of.” Motivated to make a difference When it comes to managing Little Yogis’ Ottawa North and South territories, Heikkila often finds herself bending over backwards—and we’re not talking about wheel pose. Bringing in new business and making sales, meeting with school and program coordinators, and interviewing and hiring new staff are just a few of the tasks that make up Heikkila’s day-to-day life.

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

NEXT GENERATION IN FRANCHISING

“IT’S AN AMAZING BUSINESS COMMUNITY TO BE A PART OF.”

But while she spends a lot of time behind a computer, Heikkila says she loves to work on the other side of the desk as well. “I’ve been working with children my entire life, so for me to sit behind the screen all day is extremely hard,” she says. “I’m motivated to go out there and train my staff to make sure that they have strong classroom management skills and create a group of instructors that I can trust to go out there every single day.” For Heikkila, getting face time with clients and students is part of her business philosophy, which is why she’ll join one of her eight instructors in the field on occasion—and even lead a class or two. “I just like to go pop in and make a special appearance because it’s important for me to connect with the staff and make sure the children know that I’m there for them and that I believe in them.” And her hard work is paying off. Although she’s been a franchisee less than one year, she’s already hit some impressive milestones. Last December, just a couple of months after opening, Heikkila appeared on CTV Morning Live to promote the business. “I did a little yoga session on TV to promote mindfulness here in Ottawa. It was a huge, huge checkbox for me, something I didn’t expect so early, since I had just started in September.” Moving in the right direction As a testament to Heikkila’s efforts, her Little Yogis programs are expanding quickly in the region, alongside Busy Minds Ed.’s other offerings. Currently, Heikkila works with multiple childcare centres, and she added her first private school to her roster this past spring. Going forward, Heikkila says one of her main goals is to work with the Ottawa Catholic School Board. “We’ll go very big if this happens for us.” Like any business, owning a franchise comes with its share of challenges. Heikkila’s main challenge? Keeping all the proverbial balls in the air. “I think the biggest challenge of being a franchisee is having a lot of tasks

to be done and holding it all together [while] being that face of the company,” she says. “Doing all the behindthe-scenes work with the numbers, that’s definitely not my strong suit.” Additionally, Heikkila says she faces the challenge of politics and misconceptions around yoga- and mindfulness-based exercises. “We are yoga, but we’re non-traditional yoga, we’re non-religious. And I think individuals are starting to understand that, but that has been a challenge for us,” she says. “It’s a struggle, I think for every franchise owner, to get the people on the other side to see and hear you and to give you that green light to come in, especially when you’re working with children.” But the challenges are well worth it for Heikkila, who says in this post-pandemic world, the need for mindfulness and mental health programs for children has never been greater. “We’re seeing higher numbers with anxiety and lower self-confidence in children, so we’re hoping to provide these programs that can encourage self-love and self-confidence and give them that resilience that they need to move forward in life.” To those who are looking to own their own business through franchising, no matter their age, Heikkila has some sage advice. “It’s crucial to familiarize yourself with the community, individuals, and teams you’ll engage with regularly. Ensure your commitment stems from genuine passion and that your values resonate to your contribution to society.” Luckily for her, and for young yoga fans in the Ottawa area, Heikkila has found just that.

Learn more at LookforaFranchise.ca

Franchise Canada May | June 2024

LEADERSHIP PROFILE

THE MULTI-BRAND MAESTRO How does one go from working behind the scenes in a hometown restaurant to leading the acquisition and development of some of Canada’s most recognized brands? Ask Foodtastic founder Peter Mammas BY ROMA IHNATOWYCZ

eter Mammas, the founder and president of restaurant franchisor Foodtastic, didn’t exactly have a happy start in the restaurant business. He was, after all, just 12 years old when his immigrant father enlisted his help in the family’s Greek restaurant, which was going through a rough patch. It meant Mammas, a keen hockey player, had to give up the sport, and he wasn’t happy about it. “I didn’t talk to my dad for quite some time!” jokes Mammas today. “I’d go back to school and my friends would be talking about beating Laval (Quebec) or another hockey team, and I was embarrassed to tell them what I did on the weekend. But it’s obvious things happen for a reason, as they say.” Indeed they do, and for Mammas, that initial restaurant work eventually led to him opening his own restaurant, followed by the acquisition of more restaurant brands and, decades later, starting Foodtastic, now one of Canada’s largest multi-brand foodservice companies.

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

LEADERSHIP PROFILE Back-of-house beginnings It’s an impressive success story, and it all began in his father’s Greek restaurant on Montreal’s Parc Avenue. “I started as a dishwasher in my father’s restaurant, and then I became a busboy, bartender, waiter, and manager. That evolved to my opening my own restaurant when I was 20,” says Mammas of his early start in the business. Mammas then teamed up with his older brother Lawrence, who was also in the restaurant trade, and a friend to open a Montreal deli they planned to call Smokeys. In an extraordinary twist of fate, his brother knew Paul Sara, a cousin of René Angélil—the same René Angélil who managed and later married singer Celine Dion. As luck would have it, Angélil and Dion decided to invest in the deli venture as well. “At first, I honestly thought it was a joke, the idea that they wanted to be partners,” says Mammas. “But it wasn’t, and we made a deal. Only Celine didn’t like the name Smokeys. Her lucky number was five, and she collected nickels, so we decided to call the restaurant Nickels.” Nickels Delicatessen grew to 30 stores, and the company went on to create an Italian restaurant brand, as well as purchase the grill house Bâton Rouge. Then in 2007, when they were generating $130 million in sales, the owners decided to sell their successful restaurant business. Mammas, only 39 at the time, had made “enough money to live on” and wanted to focus instead on spending more time with his young family. A lot on his plate Six years later, however, Mammas and his two partners were back in the game: they bought back Nickels and proceeded to acquire new brands. Mammas also worked on the side for Imvescor, the company that had purchased Bâton Rouge. By 2016, he decided it was high time that he and his partners start their own company to consolidate different restaurant brands, and “that’s how Foodtastic was born,” says Mammas. “It wasn’t a big company to start; we were basically operating out of a garage at the beginning and doing only $20 million in sales.” Things moved quickly after that, with Foodtastic buying or creating popular quick service and full-service restaurant brands like Souvlaki Bar and Carlos & Pepe’s. In 2018 they partnered with Oaktree Capital Management, a private equity firm, giving them the capital to acquire even more brands. Then the pandemic struck, hitting the franchisor hard. “Our system sales dropped 90 per cent, so we were really challenged,” explains Mammas. Within a week, Foodtastic had all its restaurants on third-party order and delivery systems. More importantly, Mammas saw an opportunity to buy even more brands at a good price, including established names like Milestones, Second Cup, and Pita Pit. “We realized restaurants were in dire straits, their sales were low, and

From left, Terry Faulconbridge, Peter Mammas, Christina Papa, and Andrew Christipoulos at the 2024 CFA National Convention.

this was the best time to buy,” says Mammas. “So we convinced Oaktree Capital to give us another $50 million for more acquisitions. The company just grew from there and has kept growing.” Today, Foodtastic has 26 brands under its belt and operates across the country with more than 1,100 franchisees in its system. It’s set to make $1.2 billion in system sales this year and has plans to open 100 new restaurants. The company has also expanded abroad and just signed a deal with a large European operator for the rights to Pita Pit throughout Europe. Peter Mammas continues to run the company as its president and CEO, while his brother Lawrence is vice chair of the board. (The third partner has since left the company.) To put things into perspective: in the pre-COVID era, Foodtastic had 24 employees. Now it has 260. “It would have probably been easier to do one acquisition, stop, reset, and do another one. But on our end, it never stops; we’re constantly doing acquisitions,” says Mammas. One of the benefits of continuously bringing new brands into the mix, notes Mammas, is that the company can adopt and integrate new and better practices while simultaneously sharing some of its own, resulting in synergy and a cross-brand learning arc. “While we acclimate the brands into our own system, because we have the scale, in many cases the reverse happens. If we see a brand doing something better, we capitalize on it,” says Mammas. “Freshii’s inventory management system, for instance, was more spot-on than ours, so we brought that on board. And Milestones’ dining experience protocol was more refined than what we were doing, so we incorporated that into all our full-service restaurant brands as well.”

Franchise Canada May | June 2024

LEADERSHIP PROFILE

Shaping a brand identity The company has long outgrown its original garage location and now has offices in Montreal, Toronto, and Abbotsford, B.C. But Mammas says that despite this exponential burst in growth, Foodtastic remains committed to providing the same personal and attentive service to its franchisees as it did when it was a smaller operation. “I used to refer to us as a family, but now I refer to us as a team,” he says. “The most important thing is to instill our values all the way down the ranks. I always tell everyone who reports to me that our employees and franchisees are our most important people, because our future success is dependent on those two groups.” Also key to the company’s success is bringing the right franchisees on board. Mammas says that when he first started franchising back in the ‘80s, the concept wasn’t as formalized as it is now. The company was essentially learning as it went along. “It was a massive learning curve because franchising was not as sophisticated then as it is today,” says Mammas. “A lot of times, we were kind of inventing the franchising rules. We didn’t always do the due diligence on franchisees back then, and we’re more stringent now in making sure the franchisees are the right fit.” Primarily, Mammas looks for industrious people who enjoy the restaurant business as much as he does. “You want hardworking and honest people who care about their customers, because if you’re hardworking and care about your customers, you’re going to do the right thing,”

“IT WASN’T A BIG COMPANY TO START; WE WERE BASICALLY OPERATING OUT OF A GARAGE AT THE BEGINNING AND DOING ONLY $20 MILLION IN SALES.” he says. “On our end, it’s our job to do the marketing and get those people through the door. But it’s the franchisee’s job to make sure they’re served properly, they enjoy their meal, and they come back.” What Foodtastic does not want, stresses Mammas, are franchisees who are solely in it for the paycheque: “When you’re motivated by money, you make bad decisions. When you’re motivated by doing the right thing, your success rate is higher.” Mammas could very well be talking about himself. His decision to do the right thing by helping his dad in his restaurant decades ago has proven to be the right call. He may have missed out on a few hockey games, but many years and many restaurants later, Mammas now oversees one of the largest restaurant companies in Canada and some of its most dynamic brands. And the list just keeps growing.

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

A DAY IN THE LIFE

IMPRINTS OF SUCCESS Every day, Fully Promoted franchisees Jeff Gross and Lily Yin are using their business to help others promote their own services and wares BY DANIEL MCINTOSH

Left to right, Robert Plata, Heather Smith, Jeff Gross, Lily Yin, Nick Rigato

Franchise Canada May | June 2024

A DAY IN THE LIFE

ies. Camera cases. Tape dispensers that look like toilet seats. These are just a few of the obscure widgets that Jeff Gross has branded and produced over the years. As a Fully Promoted franchisee, Gross’ Oakville, Ontario, location supplies brands with product customization and embroidery, as well as screen-printing services for everything from staff uniforms and drinkware to automotive tools. “It’s hard to pick,” says Gross when asked about his favourite knick-knack he’s printed and produced over the years. “It’s hard to remember every order that you’ve done.” Fully Promoted piqued his interest in franchising in 2007. During a franchise trade show, he and his wife, Lily Yin, approached the company, then called EmbroidMe and focusing strictly on custom embroidery. At the time, they were looking for a business to call their own and operate independently. EmbroidMe was later rebranded as Fully Promoted when the company expanded its offerings to include all kinds of custom branded apparel and promotional products. “They had a booth with an embroidery machine doing demonstrations,” recalls Gross. He, a machinist at the time, and Yin, an engineer, were drawn to the technological aspect of the operation. “We said, ‘This looks like it’s for us.’ We’ve always been around machines. We liked everything we saw, the entry level was in our budget, and the type of business was attractive to us.” At the time, the couple were entertaining several franchise options, from food retailers to gas stations and coffee shops. “What really put us over the line with Fully Promoted was the hours.” Other franchises would require them to relocate or devote themselves to intense hours. The ability to provide custom work to local businesses was another attractive factor. Fully Promoted franchisees choose their own hours of operations and typically don’t work on weekends, except by appointment. For Jeff and Lily, the average weekday starts

around 8:30 a.m. and the shop stays open until 6 p.m. and is open on Saturdays from 9 a.m. to 1 p.m. when needed. Gross recalls that there was a learning curve in the beginning. “You’re going to put more time into things, but I’d say after three to five years, our routines pretty much settled into the business hours.” He adds that’s they’re fortunate to not have to bring work home very often. A tailor-made opportunity Although launching during the onset of a financial downturn worried Gross, he says his operations have been stable since the start, with no cuts or setbacks during the worst periods. “Since 2011 or 2012, we’ve had the same employees with us. Having long-term employees that are experienced and knowledgeable, it’s a boon. We’ve grown organically over the years.” In fact, operations have grown so much that during peak seasons, the duo brings in additional part-time employees. The fact that both owners have technical backgrounds means they can work to find solutions for even the most radical printing needs. A lot of challenges of the business, he says, boil down to fitting clients’ custom requests with the possibilities and limitations of what their business can offer. “Unforeseen things will come up, like a fabric that doesn’t take a specific decoration method like you thought it would,” says Gross. Delivery is another matter of concern, and juggling clients’ important deadlines is a matter of technical and customer service prowess. “When someone puts an order with you and says ‘I need it for next Friday,’ you can’t be late.” Franchisees who can’t prioritize overlapping production times run the risk of losing clients. Gross says that after nearly 20 years in the business he and his team are attuned to handling last-minute requests and can capably ensure that no jobs come down to the wire. But in some cases, there’s simply no choice.

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

A DAY IN THE LIFE “If somebody calls me today and needs something tomorrow, then you need to move,” says Gross. “That’s where our experience comes into play—it doesn’t stress people out.” That’s a benefit, he adds, because thinking clearly saves them from mistakes, which can be especially costly in the printing business. Promoting more than products Although Gross originally entered the franchise with his design and drafting background, he quickly realized that he needed other skills to succeed in the business. “The training that we received changed my mind from ‘You’re going to be around the machines’ to ‘You need to be doing sales.’ That’s still my role, doing sales.” The initial training for Fully Promoted is conducted over two weeks at the company’s corporate headquarters in Florida with a heavy focus on sales and additional criteria for operations and production. Then there was an additional two-week training component after they opened their Oakville store that was pure and simple sales training. “A trainer came up from the States and basically got us on the right foot,” says Gross. “I like to tell people if I hadn’t had that, it probably would have made the difference between success and failure.” While Fully Promoted’s Oakville location has found its footing through hard work and tenacity, Gross gives credit to the franchise system and its benefits. One is the group pricing that locations receive from suppliers. “If you’re on your own as the independent shop, you wouldn’t get those same discounts.” Another benefit is the base of franchisees at Fully Promoted themselves, “in terms of knowledge and getting back to the custom nature of the business,” says Gross. If a franchisee is seeking advice on creating a custom product or printing on an obscure textile, they can send a callout to the group and source opinions, knowledge, and advice. The third benefit Gross cites is Fully Promoted’s evergrowing brand awareness. “As the franchise system matures, we’re adding more locations.” Gross concedes that while the company isn’t at the level of McDonald’s, more and more people in the corporate world have heard of Fully Promoted. “I couldn’t say the same thing 10 years ago, whereas now, there is brand recognition out there, which is great.” As for the benefits of franchising, Gross still gets excited for the same reason he sought out a franchise in the first place, all those years ago. “I like being my own boss. You’re answering clients, and you’ve got a lot of responsibility, but you’ve also got a lot of freedom.” In addition, Gross says working alongside his wife has been rewarding as well. “You have days where it can be pretty stressful, but it’s been great to share the experience with her.”

Honing the necessary skills Although both had existing technical experience from the outset, Gross says it isn’t a necessity for Fully Promoted franchisees; the most important characteristic is a simple drive to succeed. Also, don’t come in undercapitalized. Gross recommends that new Fully Promoted franchise owners have coverage for at least six months to a year of expenses. “I would always say a year or two years, because you never know what will happen.” Case in point: the Great Recession that came shortly after their franchise opened. “When the recession hit, we were already [in operation]. It wasn’t like we weren’t getting any sales, but you never know what will happen,” recalls Gross. “So, you want to have a bit of cushion if possible.” Incoming franchisees should also be somewhat outgoing and able to make connections to build clientele. “You need to be willing to get out of your shop, have conversations, and meet people. If you’re able to do that, you should succeed.”

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THE FIRST YEAR

Unlocking Fresh Opportunities When new franchisees Jay Nirula and Mike Albright opened the doors to their Pacini franchise, they introduced Ontario’s pizza and pasta lovers to a Quebec-based favourite BY STEFANIE UCCI

ake a seat with any business owner and you’ll quickly discover that becoming an entrepreneur is a significant life decision—one that, for prospective franchisees, inevitably begins with the choice of which brand to invest into. It’s a decision that can’t be taken lightly and will ultimately spell out the course of one’s franchise ownership journey. For new franchisee Jay Nirula, the decision to franchise with the Pacini brand was the result of thorough research. It was an opportunity to be more than just a number—he saw it as a chance to make a difference in a company that could spur innovation and success for years to come. Nirula purchased a Pacini franchise with business partner Mike Albright, and together they officially opened their doors to hungry guests in January 2023. He says that he and Albright believed their business acumen aligned

well with what Pacini needed in Ontario, and they saw an exceptional opportunity to establish the brand’s first location in the Greater Toronto and Hamilton Area— something not every franchisee has the privilege to claim. “Working with Pacini has been a positive experience. They’re easy to collaborate with, show respect for our expertise as franchisees, and above all, have provided us with a unique restaurant concept that we believe will thrive in this area,” says Nirula of his franchise located in Mississauga, Ontario. Cheese the day With a strong presence in Quebec, and a growing presence in Alberta and Ontario, Pacini is poised for success in the Ontario market. Nirula and Albright’s franchise is just the beginning for this Italian restaurant’s journey in the province.

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

THE FIRST YEAR

“THE GOAL IS TO CREATE A DINING EXPERIENCE THAT REFLECTS THE RICH CULINARY TRADITIONS OF ITALY.” Jay Nirula

“Pacini aims to provide its guests with a genuine taste of Italian cuisine, emphasizing quality and authenticity in its menu offerings,” explains Nirula. “The goal is to create a dining experience that reflects the rich culinary traditions of Italy.” He adds that the brand is built around two primary pillars: people and food. “First and foremost, Pacini places a strong emphasis on the importance of people,” he says. “This includes both staff members and guests. The belief is that the magic of Pacini happens through the dedication and passion of its people, who contribute to creating a positive and memorable experience for everyone involved.” As for the second core element, that’s the dedication to delivering an authentic Italian food experience for guests. “Overall, Pacini positions itself as an upscale casual dining experience. This means providing a highquality dining atmosphere coupled with excellent personalized service,” says Nirula. So, what brought these two franchisees together under the roof of their new-build Pacini franchise? A desire to succeed with a business venture and to experience a new opportunity—without having to be experts in every facet of running a successful restaurant. Nirula’s background lies in finance as a chartered professional accountant, which has provided him a strong understanding of the operational and financial aspects of their business. Albright brings previous business ownership, having owned and managed another franchise restaurant. So far, in the early years of their franchise journey together, Nirula says he’s been able to immerse himself in the day-to-day operations of the restaurant and has gained hands-on experience in various aspects of the business—everything except for the actual cooking. “The franchise concept is designed to offer franchisees a considerable degree of freedom in operating the restaurant as if it were their own [independent] business,” notes Nirula. “This approach allows for flexibility and creativity while maintaining the overall standards and values of the Pacini brand.”

Anything is pasta-ble With just over one year under their belts, Nirula says his and Albright’s experience as Pacini franchise owners has exceeded their expectations. “A particularly satisfying aspect of the experience is the responsiveness of Pacini to our legitimate concerns. For instance, the acknowledgment of varying tastes and preferences in the demographics of Mississauga led to modifications in our menu items,” explains Nirula. “Pacini’s willingness and ability to accommodate these needs demonstrate a commitment to adapting and catering to the specific preferences of our local community.” These adaptations include the addition of halal menu items, with more to come in the location’s next menu iteration, and different alcoholic beverages based on local preference and availability. Their positive franchise experience can be characterized by strong support, effective communication, and a shared commitment to addressing challenges and meeting the unique demands of the market, he adds. Even though Pacini’s inception was in neighbouring Quebec, it seems guests in the next province over have unique taste preferences—which makes flexibility and support from the franchisor even more important as they develop the brand in Ontario. As for challenges, well, those are to be expected. In the initial year as a business owner, one can bank on operational hiccups—and Nirula and Albright encountered their fair share. Training new staff was an exceptional hurdle, as there is an abundance of processes and habits to learn: front-of-house and heart-of-house operations, learning the systems, establishing relationships with suppliers, attracting and retaining guests, and addressing issues related to both service and food, explains Nirula. When it comes to marketing their franchise, the duo experimented with various options such as billboards, print, local mailings, and social media to fully understand what worked best for reaching their target audience of foodies in their community. “The key to overcoming these challenges was effective communication and collaboration [with the franchisor],” says Nirula. “Listening to each other’s perspectives and

Franchise Canada May | June 2024

THE FIRST YEAR

insights played a crucial role in addressing issues and finding solutions.” Eventually, they narrowed their focus to social media, recognizing its effectiveness in the market, and now publish interactive—and mouth-watering— content on Facebook, Instagram, and LinkedIn. The pesto’s yet to come Having come from progressive careers prior to franchising, Nirula says he and Albright can pinpoint a few items they wish they had known before launching a franchise. The first is the complexity of operations. “Understanding the multitude of moving parts in a restaurant of our size is crucial. Managing people, ensuring a positive guest experience, and maintaining various operational aspects require constant attention and effective coordination.” Second is about guest experiences in the current digital landscape, which includes truly recognizing the power and impact of social media—a powerful platform where each and every guest can share their opinions. Third is equipment challenges. “Be prepared for the inevitable breakdown of equipment, especially at the most inconvenient times,” says Nirula, adding with a laugh that equipment tends to malfunction on the busiest of days—those times when you need it working the most! Fourth is adaptability in the face of challenges. “Whether it’s unforeseen circumstances, unexpected

breakdowns, or evolving customer preferences, having a mindset that embraces change and problem solving is essential for success.” Finally, he emphasizes the importance of continuous learning. “Staying updated on industry trends, customer preferences, and operational best practices is crucial for staying competitive and ensuring long-term success,” he notes. Ultimately, Nirula advises budding entrepreneurs to be prepared for new and numerous responsibilities with a franchise, always expect the unexpected, be willing to invest in quality staff to represent the business, foster open and honest communication, cultivate respectful relationships—and prepare for some long days and sleepless nights! “Remember that each challenge is an opportunity to learn and grow,” advises Nirula. “With the right mindset, dedication, and a collaborative approach, a Pacini franchise can be a rewarding venture.”

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

COMING TO CANADA

EXCITING THINGS A BREWIN’ For The Coffee Bean & Tea Leaf™, entering the Canadian market isn’t as simple as crossing the border—it’s all about finding the perfect partners to bring their quality products to Canuck consumers BY KYM WOLFE

e Canadians love our coffee, and almost half of us also drink tea on a daily basis. Seeing a vibrant coffee and tea culture with untapped potential, The Coffee Bean & Tea Leaf™ has decided to bring its premium beverage brand to Canada through franchising. As a leading global roaster and retailer, The Coffee Bean & Tea Leaf offers an extensive selection of specialty coffee and tea blends from around the world. From its early days in Southern California, the company has expanded to more than 20 countries over the past 60 years and today has over 1,100 locations in the U.S., Asia,

and the Middle East. Now it has set its sights on being Canada’s go-to for premium tea and coffee, as well as pastries and other small bites. “The opportunity to expand into Canada is exciting,” says Sanjiv Razdan, the company’s president of the Americas and India. Razdan notes that The Coffee Bean & Tea Leaf doesn’t use a cookie-cutter approach in all new territories but works to understand cultural nuances and customizes each location to best serve its local market. What doesn’t change, regardless of the location, is the company’s commitment to serving the highest quality coffee and tea, sourced directly from growers around the globe.

Franchise Canada May | June 2024

COMING TO CANADA Big brand, small footprint With an integrated supply chain and worldwide distribution capabilities, the company owns the process from field to cup. The Coffee Bean & Tea Leaf travels to small farms, worker-owned co-operatives, and family-owned estates to source its coffee beans and tea leaves. For its coffee, The Coffee Bean & Tea Leaf says it buys from the top one per cent of the world’s Arabica beans, roasting in small batches to produce its carefully crafted flavour categories. The Coffee Bean & Tea Leaf cafés are typically 800to 1,800-square-foot cafés, ranging in building type from end caps with high visibility and access to drive-thruonly formats. Non-traditional cafés range from shopping mall, to airport, casino, grocery, or university campus locations. These café footprints are highly scalable. It’s interesting to note that even a 200-square-foot kiosk tailored for high-rise office buildings can serve 80 per cent of The Coffee Bean & Tea Leaf menu. The ideal size and type of each unit is decided based on the local market, says Prabs Moodley, head of busi-

ness development for the Americas. “We have in-house expertise to study the markets as we try to understand local movement and the areas where people live, work, and shop. From cafés to drive-thrus to kiosks to malls, there is tremendous flexibility to be present where consumers are.” And while the company has global designs that franchisees can leverage, there is also flexibility within the design framework, she adds. This allows each and every location to provide a memorable customer experience that respects cultural nuances. Looking westward The company plans to break into the Canadian market initially in Alberta, focusing primarily on Edmonton and Calgary for the first few years, and then expand east. “We want to enter Canada in a respectful way,” says Moodley. “And we need a franchisee with a deep understanding of the Canadian consumer landscape to work with us.” To that end, The Coffee Bean & Tea Leaf is looking to partner with a Canadian franchisee investor—either

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

COMING TO CANADA

Sanjiv Razdan, President of the Americas and India

Dominic Bruno, Franchise Sales Manager

an individual or a group with a lead partner—with the capacity to open multiple locations in Alberta fairly quickly. Ideally, it will be someone who is familiar with the brand, likely through travel or because they’re newcomers who enjoyed The Coffee Bean & Tea Leaf in their home country. “We are looking for a like-minded partner who is passionate about our brand, with experience in the food services industry, who has the necessary capital and market knowledge to build operational capacity,” says Razdan. The Coffee Bean & Tea Leaf aims to work with franchisees with a proven track record of successful multi-unit food and beverage development and operations. While the franchisee isn’t expected to be on-site managing the daily operations, they’re expected to be hands-on in terms of working with The Coffee Bean & Tea Leaf team to customize each unit and build a strong presence in Alberta. In an ideal world, that will result in an investment of approximately $50 million over the first five years, with a minimum of 10 locations opening in the first two to three years. “Having 10 cafés in high-visibility locations will quickly build greater brand awareness,” says Moodley. “And once you hit approximately 10, certain economies of scale in supply chain, operational management, and marketing are possible.” Setting cross-country goals Building on Alberta’s success, The Coffee Bean & Tea Leaf plans to expand to other provinces, working with new multi-unit franchise owners and offering them the flexibility to make adaptations that will cater to local tastes and preferences in each market. Single-unit franchises may be available, but only for smaller, non-traditional formats like in-store kiosks and cafés located in airports, university campuses, and hospitals. The brand’s goal is to open 100 cafés in total across Canada by 2029. The company has a successful business model and infrastructure that has been honed over six decades,

Prabs Moodley, Head of Business Development for the Americas

offering extensive training and support to all new franchise partners. There’s a real estate and development team to assist with store design, site specifications, and construction. New franchisees in the Americas, along with their managers, travel to a corporate stores and training centre in Los Angeles for a deep dive into all aspects of the business. The company’s training team then travels to the new franchise location two weeks before its opening to train staff on-site and stays for the first week following launch to ensure a smooth start. The Coffee Bean & Tea Leaf team includes a corporate operations director and a dedicated franchise business consultant who support day-to-day operations; a product development team that creates exclusive and proprietary recipes for beverages, pastries, and café meals; and a marketing team that provides resources and guidance to increase brand visibility and help maintain the integrity of The Coffee Bean & Tea Leaf name, while continuing to expand and strengthen the brand around the world. Once the company identifies the ideal franchisee, it helps its new owner build the business, aligning with its strategic international expansion goals. Just as importantly, the franchise wants to ensure that any potential new owner has thoroughly researched The Coffee Bean & Tea Leaf, understands the brand, and has assessed that it’s the right fit for them. “In our cafés, we bring together global flavours and stories, sparking curiosity about our world with every cup,” says franchise sales manager Dominic Bruno. “Above all, we love growing with franchisees who are committed to excellence and can’t wait to share our coffee and tea with the world!”

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Franchise Canada May | June 2024

GIVING BACK

Labour of Love

On a local and national scale, TWO MEN AND A TRUCK® Canada finds plenty of ways to give back BY SUZANNE BOWNESS

t’s not so much how you give back, but that you do give back. That’s the message TWO MEN AND A TRUCK Canada uses to empower their franchisees to help their community. It’s even in their slogan: “Movers Who Care ®.” As the largest franchised moving company in North America, TWO MEN AND A TRUCK started in the early 1980s with two brothers who needed a way to make extra money in high school. Thirty years later, the company has over 400 locations worldwide, and moved into Canada in 2005, now with 30 locations. Straddling the U.S. and Canada means that the company has cross-border national charities; for instance, in the U.S., an initiative called Movers for Moms collects donations to deliver to women’s shelters each spring. In Canada, the company contributes to The Mikey Network, a charity focused on heart health and safety, and in 2022, the franchise participated in supporting Ukraine and the Ukrainian community in Canada. “I often say, when it comes to giving back to the community, you can calculate the return on investment in [terms of] the warm and fuzzies,” says Chuck Resnick, chief operating officer of TWO MEN AND A TRUCK Canada. “I’ve always had an overriding belief that consumers expect that corporations give back to the community from which they prosper.” But its charitable endeavours don’t stop there, and several additional local and Canada-wide programs further prove that the company doesn’t just have a truck: it has a heart. Spreading awareness, improving access One of TWO MEN AND A TRUCK’s Canada-wide partnerships started close to home: the venture capital firm that

owns the company had a partner named Michael Salem, who passed away years ago from sudden cardiac arrest while playing golf. Wanting to honour his memory, his partners created The Mikey Network in 2003, both to raise public awareness about heart-healthy lifestyles as well as to place defibrillators across the country so that people who suffer a cardiac event can have a better chance at survival. (The Mikey Network website notes that defibrillators can increase the odds by up to 50 per cent.) Today, over 3,000 MIKEYs (The Mikey Network’s term for public access defibrillators, also called automated external defibrillators, or AEDs) have been placed in public spaces across Canada and the U.S., in locations such as school boards, recreational facilities, Royal Canadian Legion branches, art galleries, summer camps, and GO Transit stations in the Greater Golden Horseshoe region of Ontario. Every TWO MEN AND A TRUCK moving truck has a defibrillator on board through the Mikey On Board program, an initiative that places mobile MIKEY defibrillator units in vehicles that regularly travel throughout local communities. According to The Mikey Network, 6,500 people, including children and teens, experience sudden cardiac arrest every year in Ontario, and the Heart and Stroke Foundation of Canada estimates that 60,000 episodes happen outside of hospitals each year across the country. Another program within The Mikey Network is Mikey’s Kids, which helps families across the country who have children with congenital heart issues and whose physicians recommend they get an AED for their homes. Families can apply to receive a MIKEY from the organization for free (the kits cost around $2,000, and these children often need to have them at their side 24/7). The Mikey

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GIVING BACK

Network also expanded the Mikey Young at Heart program with an app that offers high school students the chance to earn volunteer hours by learning CPR/AED. Brad Wheeler, a TWO MEN AND A TRUCK franchisee in Etobicoke, Ontario, knows first-hand the impact of this particular endeavour, and once he learned more, he was inspired to pay it forward, personally and professionally. “One of my friends, an executive at Heathwood Homes (an affiliate of TWO MEN AND A TRUCK), was friends with Michael (Salem),” he says. “As soon as I knew that TWO MEN AND A TRUCK was involved in giving back, I took what they do on the corporate side, and I just knew that I could bring it to my whole community. “I want to know that I can drive from every corner of my territory, and everyone will know that they can call upon me, not just to work. It’s not just the business transaction—they can call on me for help.” Walking the walk Helping is what Wheeler and his crew do best. Throughout the year, they undertake multiple charitable initiatives in the community. After all, as he says, without the community to support his franchise, they wouldn’t be in business. From the annual Etobicoke-Lakeshore Santa Claus Parade from which all proceeds go to charity, to picking up and delivering furniture to women’s and youth shelters, to participating in book drives that benefit both local and overseas organizations, to the recent Coldest Night of the Year walk that raises funds for programs for the unhoused, Wheeler is always on the lookout for a new endeavour to join. And it’s not just for the exposure that these events provide his company—Wheeler says the feel-good aspect of his involvement is what drives him to engage in such a hands-on way. “I always tell people I don’t want them to use our services because I give back to the community—I want you to use our services because we are good at what we do,” he explains. “No matter who you are, what you do, if you

can make an impact on someone’s life, you will be spiritually better, emotionally better, and always have your head raised high.” Resnick notes that giving back is actually a line item in the company’s budget, and that beyond the national charities that are championed by all franchisees, he also works with each franchisee to determine how much money to set aside for community giving. He encourages franchisees to give back to their local youth sports teams or even to pitch their own initiatives, which have produced some heartwarming community contributions. As an example, Resnick recalls the efforts of an Ottawa franchisee who in 2018 offered free moving services—including a crew on standby for a month—to anyone affected by the tornadoes that ripped through an Ottawa-Gatineau neighbourhood, as well as pick-up and delivery of donations to food banks. Another example is a franchisee in Calgary, Alberta, who has developed a relationship with a non-profit called The Mustard Seed that helps with homelessness and poverty reduction. Besides the obvious benefit to the community, Resnick says that giving back also helps with employee engagement. “If I was working for somebody that was so given to giving back, that’s a good feeling. It gives them a good feeling for their employer and for the brand,” he says. He adds that franchisees are also very good at sharing their efforts and getting people involved through platforms like Facebook and Instagram. And of course, the company is there to help with graphics and promotional support. “We make sure that they have a budget to give back to the community, and we want them to, but we don’t have to force them. They like to do it. They’re happy to do it, and it’s ingrained in our culture.”

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Franchise Canada May | June 2024

✓ Franchise Growth ✓ Franchise Visibility ✓ Franchise Communications CONTACT GEORGIA SOURTZIS georgia@fishmancanada.com +1 647-716-9877 www.fishmancanada.com

SHOW ME THE MONEY

4 FRANCHISES FOR $150K TO $250K Franchising is about diversity, and opportunities can be found in nearly every industry and business sector. It’s a great way for Canadians from all walks of life to go into business for themselves but with the support of a franchise system behind them. One of the most important considerations for a prospective franchisee is investment level, including figuring out a budget that fits with your financial situation and goals. Here, Franchise Canada showcases franchise systems in which you can invest $150K to $250K. Big Frog Custom T-Shirts & More

Greco Pizza Restaurants

With nearly 100 locations in the U.S. and growing, the garment printing retailer Big Frog is strategically positioned for Canadian expansion. Pioneering a unique direct-to-garment printing model, Big Frog provides franchisees with a low capital investment, state-of-theart green technology, and a company culture embraced by its franchisees. Offering customers no minimums, no set-up fees, and fast turnaround, it emerges as a compelling choice for local clients, ranging from sports teams to small businesses, fostering repeat business. Big Frog actively supports franchisees in site selection, lease negotiations, store design, marketing, equipment procurement, and more.

Now with more than 100 restaurants to its name, Greco Pizza has been changing the face of the pizzeria landscape with a varied menu that includes donairs and its trademark OvenSubs. Greco Pizza assists its franchisees from the beginning of their franchise journey all the way through to launch and beyond, with an oncall team dedicated to their success. Additional support is available through Greco’s parent company, Grinner’s Food Systems Limited, which has 18 full-time employees dedicated to franchising and licensing.

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EverLine Coatings and Services Ltd. Founded in 2012, EverLine Coatings is a line striping and pavement maintenance company that caters to the needs of property owners and managers across North America. This fast-growing franchise is mainly businessto-business, offering its customers savings through maintenance rather than replacement with services such as sealcoating, crack filling, custom stenciling, and more. With a proven business model, exceptional training and support, and protected territories, EverLine Coatings helps franchisees take control of their future in a business designed for lasting growth.

Signarama Signarama is the world’s largest signage franchise with nearly 800 locations worldwide and has been in business for more than 30 years. Operating in the profitable signage sector—a multi-billion-dollar industry— Signarama franchises accommodate a wide variety of customers, from companies looking for exterior signage to event planning teams preparing for tradeshows and other occasions. Many Signarama locations are available across Canada, and experience with signage is not required. Signarama has also implemented a royalty cap, allowing franchisees to make the most money possible and achieve their ROI quickly. In addition, its turnkey franchise package includes assistance with finances, site selection, and equipment installation to help ensure launch goes smoothly.

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Franchise Canada May | June 2024

2024 Events MFV INTERNATIONAL FRANCHISE EXPO May 30 – June 1 | New York, NY

Partnership event with MFV Expositions/Comexposium

FRANCHISE CUSTOMER EXPERIENCE CONFERENCE June 18-20 | Atlanta, GA

Partnership event with Franchise Update Media.

Franchise Expo South

September 6-7 | Ft. Lauderdale, FL

Partnership event with MFV Expositions/Comexposium

IFA ADVOCACY SUMMIT

September 9-11 | Washington, DC

FRANCHISE LEADERSHIP AND DEVELOPMENT CONFERENCE October 16-18 | Atlanta, GA

Partnership event with Franchise Update Media

Franchise

EMERGING FRANCHISOR CONFERENCE November 18-20 | Austin, TX

SMARTer franchise.org/events

Scan here to learn more about these events and plan your year with IFA!

ASK A LEGAL EXPERT What’s the importance of franchise advisory councils? IN A 2018 BOOKLET TITLED “BUILDING A FRANCHISE ADVISORY COUNCIL THAT GETS RESULTS,” published by Franchise Business Review, the authors state: “Franchise advisory councils (FACs) are a critical franchise business and relationship-building tool: they can build franchisee loyalty and trust, increase support and buyin to corporate initiatives, create better programs, and minimize resistance to change, among other benefits.” Although those benefits are geared towards franchisors, they cannot be realized without franchisee support and participation. In fact, the benefits of a well-operated franchise advisory council accrue to all members of the franchise system, including the franchisor and the franchisees. In franchising today, a common topic of conversation among franchisors and franchisees is whether and when an FAC should be established. The next topic is what the involvement of franchisees will be. The answer to the first topic is that most franchise systems should have some form of FAC, but only when the time is right. While it is difficult to generalize, key factors are the maturity of the system in terms of years and number of franchises. The answer to the second topic is that a properly established FAC should have a fair balance of franchisor and franchisee involvement. Franchisors should not dominate the operation of an FAC. Let’s look at these issues in more detail. Franchise system policies are contained in manuals which, while confidential, are usually accessible by franchisees on electronic platforms maintained by the franchisor. Many franchisor policy manuals contain a section dealing with FACs. An FAC will be established by the franchisor, operate according to a defined set of rules and procedures, and can deal with a variety of issues. The constitution of the FAC will usually be determined by the franchisor. Meetings should be held regularly, and for larger systems, regional FACs might be necessary. Minutes of meetings should be made available with transparency and in good time after meetings. FACs do not make policy decisions but do make strong suggestions for the franchisor to consider. Franchise agreements may have some mention of FACs, but the agreement will often be silent on this subject. Franchisees are required to conform to the agreement and the franchisor’s policies, which will likely change and be modified from time to time. However, though not included in the agreement itself, policies have the same force and effect as if contained in the agreement. As stated above, the fundamental principle for FACs to contribute to the growth and success of the franchise system

is that they must be supported by both the franchisor and the franchisee body to have credibility. Franchisees should participate in FACs whenever possible. The initial operational elements of an FAC will usually be taken care of by the franchisor: costs, budgets, type of entity, name, charter, mission, scheduling of meetings, bylaws, and rules and regulations. While there is no specific rule as to when an FAC should be formed, in my experience, any franchise system with at least 10 units should have established some sort of FAC, or be seriously considering the formation of an FAC. It is never too late for franchisees to suggest to a franchisor that they would like to have a working FAC established and to assist the franchisor by giving suggestions as to the membership and structure of the council. In the past, some franchisors have established FACs but used them as a means of operational control with little meaningful involvement by franchisees. These FACs inevitably fail and result in a lack of trust between the franchisor and its franchisees. A failed FAC may result in the formation of a dissident franchisee association which may consider or initiate litigation, particularly class actions, over issues that have been ignored by the franchisor. For an FAC to succeed, it must have the support of the franchisor’s key management and the franchisee body. Membership is not necessarily equal in numbers. There should be a dedicated member of management who has the responsibility of ensuring the operational aspects and reporting to the CEO. Management representatives should be available to address issues on the agenda of meetings, but they don’t need to be sitting board members of the FAC. The majority of members on the board should be franchisees. Initially, the franchisor may select franchisee members, or propose a mechanism whereby members can be selected by the franchisee body. For example, a national franchisor may determine geographical areas in which franchisees elect members to the board. The terms of board members should be fixed, and there should ideally be a rotation of members. (Continued on next page.) Frank Zaid Mediator, Arbitrator, and Business Operations Consultant Frank Zaid FRANlegal Support Services fzaid@frankzaid.com

Franchise Canada May | June 2024

ASK A LEGAL EXPERT (continued from page 59) Franchisees should be aggressive in suggesting topics for consideration at meetings and be positive in their participation. Meetings are not for personal matters and should be conducted in the best interests of the franchise system. Franchisee costs of travel and out-of-pocket expenses should be covered by the franchisor, and the franchisor should also budget for the operating costs of the FAC. Franchisees should realize that a well-operated FAC will benefit the franchisee body if the FAC is operated with respect for each party and in consideration of the ideas and views of the franchisees. FACs can be very beneficial to a franchise system in times of stress, economic downturn, and unexpected emergencies. For example, many franchise systems turned to their FACs during the pandemic for guidance and goal setting, as well as information sharing, to assist

struggling franchisees and to lobby governmental bodies for assistance. In several leading court cases involving well-known franchise systems, the courts have reviewed the involvement of FACs in dealing with good faith and fair dealing issues in franchise system disputes. The courts have favoured franchisors that have operated their FACs in a fair and balanced manner and disapproved of franchisors that have operated their FACs unfairly or with little regard for the interests of their franchisees. Prospective franchisees should ask franchisors if they have an FAC and obtain details of the operation and goals of the FAC. Franchisees should encourage the formation and operation of an FAC and, for those who are prepared to spend the time, become a member of the FAC to benefit their fellow franchisees and the franchise system at large. As stated above, an FAC is a critical franchise relationship and business-building tool.

ASK A MARKETING EXPERT How do franchisors harness data to better understand their franchisee leads? And as a would-be franchisee, how can I ensure that my online presence paints a good picture for my ideal franchisor? IN THE FAST-PACED, highly competitive world of franchise development, understanding potential franchisee leads is paramount to franchise system success, and as the landscape evolves, so do the methods for both identifying and nurturing these leads. One of the most powerful tools at any franchise brand’s disposal today is data—it’s how franchisors can best determine which investors are right for them. And as a prospective franchisee, being aware of these strategies can help you ensure you land at the top of your most favoured franchise’s wish list. Leveraging data effectively offers franchisors invaluable insights into the demographics, characteristics, attitudes and values, and unique preferences of their prospective franchisees. Harnessing this knowledge provides a powerful boost by enabling franchise brands to tailor their strategic approach and maximize lead conversion rates. Data-driven decision making needs to be the cornerstone of any franchise brand’s business strategy. By collecting and analyzing data at various stages of the franchise development process, franchise brands can gain a comprehensive understanding of their target audience,

refine their marketing strategies, and ultimately drive franchise growth. Here’s how franchise brands can harness the power of their data to better understand their franchisee leads, and how prospective franchisees can ensure they are on the radar of companies that best suit their interests, demographics, and investment level. Build buyer personas The first step for franchisors in leveraging data effectively is to develop detailed profiles of its potential franchisees. They start by gathering information on demographics, professional backgrounds, financial capabilities, and other relevant criteria. By compiling this data from various sources such as lead generation platforms, website analytics, and social media insights, franchise brands can develop a holistic view of their target audience and tailor their messaging to better resonate with their potential franchise lead. For prospective franchisees, LinkedIn and other networking platforms can be a valuable tool to research brands of interest and put their best face forward. Think

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

ASK A MARKETING EXPERT of social media as an extension of your résumé. You can stand out by getting recommendations and endorsements from your community and by linking any certifications that boost your online presence. Remember that your online presence is accessible to all—even franchise development specialists who are attempting to determine whether they want to offer you a franchise agreement. Perform behavioural analysis Beyond the demographic information, understanding the behaviour of franchisee leads is essential for franchise brands to predict their likelihood of conversion. Analyzing online interactions such as website visits, email opens, and social media engagement will provide further insights into lead intent and overall interest levels. By tracking these behaviours over time, franchise brands can start to identify patterns and refine their outreach efforts to effectively nurture leads through the sales funnel. Personalize marketing campaigns Have you found since beginning your search for a franchise to invest in that you’ve been delivered a deluge of ads online and on social media? Using comprehensive buyer personas and behavioural insights, franchise brands can successfully create highly targeted, personalized marketing campaigns such as these. By segmenting leads based on shared characteristics or interests, brands can deliver tailored messages that better resonate with each audience segment, increasing both engagement and conversion rates. Whether through email marketing, social media advertising, or targeted content creation, brands are using personalization to attract potential franchisees in today’s competitive market. The takeaway for those on the hunt for the perfect franchise brand: keep your eyes open when scrolling through your feed and be mindful about your search terms to better help those franchise opportunities come to you.

Instigate continuous optimization The final key to success in data-driven marketing is continuous optimization based on real-time feedback and performance metrics. Franchise brands must regularly monitor the effectiveness of their campaigns, track key performance indicators (KPIs), and adjust their strategies accordingly for long-term success. Lead conversion rates, cost-per-lead, and franchise sales are some of the KPIs that organizations can leverage for valuable insights. This data can then be used to refine targeting strategies, optimize messaging for different audience segments, and ultimately maximize return on investment. It’s by embracing a culture of experimentation and iteration that franchise brands can stay ahead of evolving market trends. Once you have selected and successfully launched your own franchise location, this facet applies to your business, too. Whether your franchise system has a marketing department that handles all locations’ online and local advertising, you’ve tapped a marketing expert to take on your promotional needs, or you’re going at it alone, these metrics are important for you to monitor, analyze, and use to implement change. In today’s competitive landscape, data is not just a resource—it’s a strategic imperative for success. Embracing a data-driven approach is essential for franchise brands, and franchisees, looking to thrive in an ever-evolving market environment.

Marty Menard President and Chief Business Development Officer GIANT Creative marty@giantcreative.ca

Franchise Canada May | June 2024

FRANCHISE TUTORIAL

TUTORIAL 11: THE FUNDAMENTALS OF FRANCHISING

INTRO TO INVENTORY WITHIN YOUR FRANCHISE BUSINESS, typically one of the major expenses is the inventory. Inventory is defined as all the goods and materials that are held in stock and used by a business for the day-to-day operations. It may be the products you sell, as in a retail store. It may be the raw food products that you use to create meals, such as in a restaurant. Or it may be parts or materials you use to provide a service, such as in an automotive repair business. The amount of inventory that franchisees are required to carry or stock will vary depending on the requirements set out by each franchise concept, and this is usually clearly defined within the operations manual. There are some valid reasons why the franchisor requires franchisees to stock inventory. Sometimes it can take significant lead time for certain suppliers to fill franchisees’ orders, so it’s imperative that the franchisee has inventory to keep the business going. There will be times when some products will be in demand more than others, such as during a promotion. By stocking inventory, the franchisee is creating a safeguard to meet the demands of the customer. By having significant inventory, a franchisee is allowing the customer to purchase what they need, when they need it. If you don’t have the inventory to provide products and services, your customer may go to your competition. Costs of inventory will vary from a few thousand dollars to hundreds of thousands of dollars, depending on the business model. There’s often a tendency for franchisees to gravitate towards getting inventory as cheaply as possible. However, this needs to be weighed against product quality, reliability, and warranties. All these variables will affect the overall brand. A franchisor will take all of these things into account when sourcing and pricing inventory. Inventory stocked and used by the business is an integral representation of the entire franchisor’s brand. The franchisor will usually have clearly defined policies regarding what products can be carried. They will also define an approval process if a franchisee wishes to add or remove specific items from the approved inventory list. An inventory purchase agreement or supplier agreement will address issues like shipping terms, product warranties, pricing, procedure for placing orders, and return policies. The franchisor will provide a clearly defined supply chain, or approved suppliers, from which

the franchisee is required to buy all products. (The topic of approved suppliers is covered in more detail in the next tutorial.) When reviewing a franchise opportunity, ask the franchisor to review inventory policies so that you can better understand the operations of the business and what will typically be a substantial expense. Speak with franchisees and get their perspective. Are they happy with the product quality? What have been their challenges in inventory management, and how have they resolved these challenges? Have the inventory suppliers delivered product in a timely fashion and provided adequate return policies? As the cost of doing business is on the rise, it’s very simple but important to maintain inventory control. Shrinkage, a business term that refers to unplanned and unwanted loss of inventory, can be caused by theft, damage, spoilage, and accounting errors. Within the operations manual, the franchisor will typically provide details to assist franchisees on how to store the inventory, minimize loss from shrinkage, and get the most use out of the products. It’s good business practice to make sure that the entire inventory is insured. It’s possible that the inventory may be covered under a blanket policy for the whole operation. In some cases, depending upon the type of inventory, it may be special coverage that you have to purchase from your local insurance broker. The policies regarding insurance are typically defined by the franchisor within the franchise agreement or operations manual. Most businesses require inventory to run the business and service the customer, and it often represents one of the biggest expense items. Belonging to a franchise offers some distinct advantages when it comes to inventory, as a strong franchise will often allow franchisees to purchase inventory and products at a lower cost than if they were an independent business, due to volume purchasing. The franchisor will also ensure product quality and good return policies and will regularly research better inventory sources. While this is being done behind the scenes, it allows you, the franchisee, to focus on building your business and servicing the end customer.

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

FRANCHISE TUTORIAL

TUTORIAL 12: THE FUNDAMENTALS OF FRANCHISING

INTRO TO APPROVED SUPPLIERS SUPPLY CHAINS, OR APPROVED SUPPLIERS, are suppliers that a franchisor has identified, investigated, and approved to provide their product or service to the system’s franchisees. The franchisee is typically required, under the terms of the franchise agreement, to purchase only from approved suppliers. The franchisee can order with peace of mind and confidence knowing that the products, equipment, and services meet the franchisor’s specific qualifications, and that they’re getting a good price and level of service. A strong franchise system will use approved suppliers to maintain control over the quality of products and services that are delivered to the end customer. The franchisor is able to create a duplicable business model and ensure the customer has a consistent experience. This in turn reinforces the brand. The franchisor often sets high standards and requirements for the suppliers and regularly monitors them through the franchisees. Strong franchisors will reject suppliers who let their quality control fall below the specified standards that were outlined at the time of approval. Continuing with a supplier that isn’t up to par affects brand integrity and inhibits optimal franchisee performance. There are certain considerations that a franchisor will take into account when reviewing a supplier beyond quality. Some considerations include: • Is the pricing competitive? • W hat is the timeline between ordering and receiving product? • Does the supplier provide the franchisee regular training on products and equipment? • Is there merchandising assistance for the franchisee? • What is the warranty policy? • Is there a time frame for taking back faulty products and equipment? • W hat is the delivery schedule, and what are the charges? • What are the payment terms? Thirty, 60, or 90 days? Franchise systems will often permit franchisees to introduce new suppliers for review, to ensure that franchisees are getting the best offerings available. If the franchisee finds a supplier they feel is superior to the current supplier, they can send the contact information to the franchisor for screening. If the supplier is found

suitable, they’ll be added to the approved suppliers list. Some franchisees may find a specific product at a lower price, but it’s important to look at the bigger picture. Although one or two of the products may be less expensive, one must look at the full “basket of goods” being provided by the supplier. All the considerations listed above need to be taken into account. Franchisors will regularly monitor approved suppliers. This is often done through a supplier’s evaluation questionnaire provided by the franchisor to franchisees. If the franchisor doesn’t provide a standard evaluation form, the franchisee can submit a short written evaluation of the service, quality of product, and pricing received from the suppliers. These reports allow the franchisor to ensure that the supplier is delivering on what was originally agreed to. Many franchisors will negotiate volume rebates from suppliers. These represent funds that are typically paid back to the franchisor based on buying performance. Rebates are typically disclosed in the franchise agreement, and how these rebates are used will vary. Some franchisors will keep the rebates to offset the costs of negotiating and monitoring the approved suppliers. Other franchisors will forward the rebates directly to the franchisees. Others will put the rebates, or a portion of the rebates, into the marketing fund for the benefit of the system as a whole. In general, most Canadian franchisors will use approved suppliers based in Canada. Buying inventory (Continued on next page.)

Franchise Canada May | June 2024

FRANCHISE TUTORIAL from American suppliers can sometimes end up being counterproductive. Although the price to purchase American products can initially be competitive, when you add in duties, tariffs, exchange rate fluctuations, and delivery charges, the cost of the product can often become prohibitive. There are numerous benefits to the franchisee for using approved suppliers. These benefits include: • Ensuring consistency in the brand. • Providing the best possible prices for franchisees and further discounts based on volume buying. • Franchisees not having to spend valuable time shop-

ping for products, and instead can focus on servicing the customer and building the business. • Additional benefits negotiated such as warranties, purchasing terms, and aftermarket support. When a franchisor approaches suppliers to negotiate terms for multiple locations, they’ll have more clout than if you, as an independent business, approached on your own. An approved supplier program is an integral part of a franchise model and provides real benefits to both the individual franchisee and the franchise system as a whole.

STUDY QUESTIONS TUTORIAL 11

TUTORIAL 12

1. The amount of inventory that franchisees are required to carry will: a) vary depending on the requirements set out by each franchise system b) usually be clearly defined within the operations manual c) both A and B

1. A strong franchise system will use approved suppliers to: a) provide varying quality of products and services delivered to the end customer b) generate income from endorsements and sponsorships c) maintain control over the quality of products and services delivered to the end user consumer

2. T he franchisor will usually have clearly defined policies regarding what products can be carried and: a) will never allow any new items to be stocked at any time b) will also define an approval process if you wish to add or remove specific items from the list c) will provide these products free of charge on an annual basis 3. It is good practice to insure the entire inventory. True or False? a) True b) False

2. F ranchisors will regularly monitor approved suppliers through: a) customer surveys b) suppliers’ evaluation questionnaires given to franchisees c) teleconferences directly with the supplier 3. Franchise systems will often permit franchisees to introduce new suppliers for review. True or False?

a) True

b) False

4. A strong franchise will often allow franchisees to purchase inventory at a lower cost than if they were an independent business. True or False? a) True b) False

4. I n general, most Canadian franchisors use suppliers based in the U.S. True or False? a) True b) False

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

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

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

MARKETPLACE

Big Frog is more than a business—it’s a lifestyle! Big Frog Custom T-Shirts & More® is a franchise concept specializing in custom-decorated apparel with more than 88 locations opened or in development in the U.S. Big Frog’s goal is to become the world leader in the $20 billion garment decorating industry. Using high-tech direct-to-garment printing, it is the only chain or franchise of its kind. Big Frog has a strong history of success and wonderful validation from its franchise owners. This exciting opportunity is now available in Canada! Franchise units in the US: 80+ Franchise units in Canada: 1 In business since: 2006 Franchising since: 2008 Franchise fee: $60K Investment: $190K+ Training: Training manuals, online courses, one week in Florida, one week onsite at your store Available territories: AB, BC, MB, NB, NL, NS, NT, NU, ON, SK, YT, US Address: 10177 – 105 Street NW, Edmonton, AB T5J 1E2 Phone: (780) 413-6163 Web: www.bigfrog.ca Email: tom@suggitt.com Contact: Tom Suggitt, CEO

At Laser Clinics Canada, we believe that everyone deserves to feel confident, inside and out. Since day one, we’ve been a business that’s aimed to help more people feel their version of good. We understand that feeling good is unique to everybody. All our services are medically backed, and our skin treatments are dermatologically approved, with a blend of market-leading expertise and technologies. Laser Clinics started in Australia in 2008 and today has over 200 clinics worldwide. Entering Canada in 2022, it brings its awardwinning, unique 50/50 business model, where the business and its franchise co-owners share equally in the initial investment, expenses, and the business performance outcomes of their clinic entity. Each new clinic comes fully furnished and is accompanied by industry-leading equipment, retail, and professional stock, including IT set-up—a true turnkey franchise! Corporate units in Canada: 6 Franchised units in Canada: 1 Investment required: $354,275-$515,025 Available territories: All of Canada In business since: 2022 CFA Member since: 2022 www.laserclinics.ca

JOIN A BRAND ON THE RISE • A trusted brand – With nearly 700 locations worldwide and 35-plus years of experience franchising, we are the fastestgrowing bakery in Canada • A robust model – COBS Bread is built on providing exceptional products, 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 – We operate with honesty and transparency, building trust through genuine practices • Get ready to roll – Utilize our national marketing fund and benefit from a comprehensive training program and ongoing support • No initial franchising fee for new bakeries • Flexible financing options Contact the COBS Bread Franchising Team E franchise@cobsbread.com P 1-844-369-COBS (2627) W www.cobsbread.com/franchising

After over 40 years of providing easy-to-prepare, top-quality foods, M&M Food Market has become a trusted and iconic Canadian brand that customers have come to rely on for a uniquely convenient and welcoming shopping environment. Canadians looking to serve real food at home that fits with their busy lives has never been more prevalent. We offer innovative products for those looking for new and different meal solutions, including more than 35 gluten-free products spanning every category. Our customers can trust they’ll find something that suits their dietary needs. The initiatives that we implemented during our recent brand transformation, such as our new store design, food innovation, digital marketing, and e-commerce (including in-store, curb-side pick-up, and delivery), along with our industryleading loyalty program, have put M&M Food Market in a position to continue to serve our loyal customer base when they need us the most. For our newest partners, we offer a comprehensive training program and ongoing operational support, along with head office support to help ease the transition into business ownership. All this, and we are growing! We have new store opportunities available across Canada. Reach out today to find out about opportunities near you! For more information, visit our website at www.mmfoodmarketfranchise.com or call us at 1-800-461-0171.

Franchise Canada May | June 2024

MARKETPLACE

Start accepting payments your way with Moneris. With a full suite of business management and payment processing solutions, Moneris offers everything you need to manage your business. Whether you run a pop-up shop, online store, bricksand-mortar location, or offer curb-side pickup, we have a solution that fits your needs. We’ll get you up and running quickly and easily, helping you to integrate our products and services to make doing business that much easier. As Canada’s #1 payment processor*, you can feel comfortable knowing Moneris is on your side. Want to learn more? Contact Isabel Mifsud at 1-855-502-6227 or Isabel.Mifsud@moneris.com. Visit moneris.com/cfa to learn more about Moneris.

*Based on total processing volume in Canada. MONERIS and MONERIS & Design are registered trademarks of Moneris Solutions Corporation. All other marks are the property of their respective owners.

Celebrating 40 Years of Helping Canadian Students Succeed Oxford Learning® is passionate about our mission to help children achieve their highest potential. We achieve this mission using a cognitive learning model for all programs, which helps students develop new and better pathways to learning. Unlike traditional tutoring, a cognitive approach leads to lasting educational changes. This shift in the approach to tutoring makes Oxford Learning stand apart from other supplemental education options, leading to academic achievement for students, satisfaction for parents, and success for franchisees. Founded in 1984, we are an award-winning franchise system with 130 locations across Canada. Oxford Learning® celebrates multiple CFA awards, including: · Franchisees’ Choice Designation, 7-Year Designee (2018 - 2024) · Awards of Excellence Gold (2021); Silver (2022) · Franchisee of the Year 2020 (Gold); 2022 (Bronze) · Lifetime Achievement (2020) for Oxford Learning’s founder A background in education is not a prerequisite—our unique cognitive learning programs, proprietary curriculum, and comprehensive training, combined with your drive to succeed, are the only requirements! Join the leaders in Canadian supplemental education with 40 years of helping students. Explore the Oxford Learning opportunity today! 1-888-559-2212 or franchise@oxfordlearning.com

ADVERTISERS’ INDEX Big Frog Custom T-Shirts & More® .. ......................................................... 7 www.bigfrog.ca Join The UPS Store franchise network and count on the support from our experienced home office and in-field teams to get you to your grand opening and beyond. Many offer printing or shipping services, but our dedication to innovation and convenience are what keep The UPS Store at the top of our industry. With over 385 franchise locations across Canada (and continuing to grow), we have a proven track record of success! As a franchisee, you will enjoy an established system to get your business started off on the right track, in-depth training programs and ongoing support to make sure you continue to succeed, and an internationally recognized and award-winning brand to help you build instant credibility in your community. The UPS Store is there at every stage of your franchising journey. We are proud to have been designated as an essential business at a time Canadians needed us most. Visit us at www.theupsstore.ca. We print, ship, and more!

Business Exchange.. ................................................................................................ 67 www.BizSold.com COBS Bread.................................................................................................................... 14 www.cobsbread.com/franchising Fishman Canada .................................................................................................... 56 www.fishmancanada.com International Franchise Association. . ................................................ 58 www.franchise.org Laser Clinics Canada ........................................................................................... 13 www.laserclinics.ca M&M Food Market.. ..................................................................................................... 3 www.mmfoodmarketfranchise.com

Locations in North America: Over 5,000 Locations in Canada: Over 385 Minimum cash investment: $100,000 Total cash investment: $199,250 to $218,500 plus working capital.

Moneris .................................................................................. Inside Front Cover www.moneris.com/cfa

For more information on The UPS Store opportunity, call 1‐888-875-0007 or visit www.theupsstore.ca.

Oxford Learning.........................................................................................................12 franchise.oxfordlearning.com The UPS Store................................................................................................................... 9 www.theupsstore.ca

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

SELL MORE FRANCHISES NOW! Connect With Serious Franchise Buyers Through Our Omni-Channel Marketing Strategies

Website Listings 1M+ Visitors

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Email Marketing 500K+ Database

Mobile App 400% Growth

Magazine 125K Readers

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info@bizsold.com

1-877-337-1188

FRANCHISE ROUNDUP

Insights, ideas, and opportunities to keep on your radar FRANCHISE AV CLUB Franchise Canada TV was on-site in Newmarket, Ontario, for the grand opening of Ghost Taco’s corporate location. We spoke to Samantha and Grant Buckley, the co-owners and masterminds behind the budding franchise. Check out the interview on YouTube or on FranchiseCanada.Online.

FRANCHISING BY THE NUMBERS

The number of DermaEnvy Skincare franchises in Canada, after the latest opening in New Minas, Nova Scotia.

43,153

The number of hair and nail salons in Canada in 2023.

$23.3B

The amount of tourism spending in Canada in the fourth quarter of 2023.

56.5%

The growth of guava, the top ingredient in non-alcoholic beverages, on Canadian menus over the past year, followed closely by yuzu.

1.8M

The number of sandwich caregivers (those who provide unpaid care for children and care-dependent youth/adults) in 2022. (Sources: Franchise Canada; IBISWorld; StatCan; MENUMag; StatCan)

THE CFA RECOMMENDS In Business. Once a month, BDC’s In Business newsletter provides a full package of expert insights, tips, and success stories on entrepreneurs’ economic needs through original articles and online tools. Get a deep dive on topics like optimizing sales, accessing working capital, or lead nurturing by subscribing on BDC’s website.

IN THE NEXT ISSUE

UPCOMING EVENTS

The July/August 2024 issue of Franchise Canada magazine is the Excellence in Franchising issue. In this issue, Franchise Canada celebrates the winners of the CFA awards, including a cover feature on the podium winners of the Franchisee of the Year Award. Plus, read all about the top brands across Canada, as decided by their franchisees.

May 29, 2024 Franchise Awareness Day, Queen’s Park, Toronto

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

Join the CFA in helping raise awareness about the importance of franchising to the province of Ontario and the Canadian economy. June 19, 2024 Franchise Your Business, Virtual Do you have a business you’d like to grow? Learn all about expanding and scaling your business through franchising.