CFA CODE OF ETHICS

CODE OF ETHICS

The Canadian Franchise Association (CFA) is dedicated to encouraging and promoting excellence in franchising in Canada. Each member of the Association agrees to abide by the CFA Code of Ethics and to further the Association’s goals of encouraging and promoting ethical franchising in Canada. Each member of the Association agrees to comply with the spirit of this Code of Ethics in its general course of conduct and in carrying out its general policies, standards and practices. The following are considered by the Association to be important elements of ethical franchising practices: 1. Franchise system and franchise support services members should fully comply with Federal and Provincial laws, and with the policies of the Canadian

Franchise Association. 2. A franchisor should provide prospective franchisees with full and accurate written disclosure of all material facts and information pertaining to the matters required to be disclosed in advance to prospective franchisees about the franchise system a reasonable time [at least fourteen (14) days] prior to the franchisee executing any binding agreement relating to the award of the franchise. 3. All matters material to the franchise relationship should be contained in one or more written agreements, which should clearly set forth the terms of the relationship and the respective rights and obligations of the parties. 4. A franchisor should select and accept only those franchisees who, upon reasonable investigation, appear to possess the basic skills, education, personal qualities and financial resources adequate to perform and fulfil the needs and requirements of the franchise. Franchise systems and franchise support services members of the Association should not discriminate based on race, colour, religion, national origin, disability, age, gender or any other factors prohibited by law. 5. A franchisor should provide reasonable guidance, training, support and supervision over the business activities of franchisees for the purposes of safeguarding the public interest and the ethical image of franchising, and of maintaining the integrity of the franchise system for the benefit of all parties having an interest in it. 6. Fairness should characterize all dealings between a franchisor and its franchisees. Where reasonably appropriate under the circumstances, a franchisor should give notice to its franchisees of any contractual

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

LOOK FOR EXCELLENCE

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

REINVESTING IN CANADIAN COMMUNITIES

eSupply Canada is helping Canadians build strong local businesses through franchising

BY LAUREN HUNEAULT

Calling all entrepreneurial and community-minded Canadians: the new eSupply Canada franchise concept could be just the ticket to help you build a successful, home-based business, while also creating local connections and keeping revenue within your community. eSupply Canada, an Indigenousowned company, is an online distributor of office, janitorial, and industrial supplies. It uses a drop ship model, which means supplies are only purchased as customers complete orders online. Steven Vanloffeld, eSupply Canada’s founder and CEO, says the company sources more than one million high-volume products all businesses need to operate, directly from manufacturers and national wholesalers.

“Our suppliers have over 100 years of combined experience, so that allows us to lean on their warehousing, distribution, and logistics expertise, which saves costs. And our group purchasing model gives us access to volume pricing that allows us to compete with the big box retailers,” explains Vanloffeld. “We operate in a space where big box retailers dominate the landscape. So how do we compete? Well, we need to go local. We need local owners who are on the ground and love building relationships to be the go-to supplier for local business owners.”

And that’s where franchising comes in, as Vanloffeld looks to expand the business through local franchise owners.

Keeping revenue in communities

Vanloffeld says the idea for eSupply came to him when he sat on Council at his First Nation and noticed the volume of supplies coming into his community—and the amount of revenue that was leaving. “Because there were few businesses within our community, the majority of our revenue left and went to the surrounding towns, retailers, and big box stores,” he notes. “I said, ‘There has to be a better way. How do we keep revenue within the community? How do we reinvest those resources into people, into jobs, into creating wealth and reinvesting it back into the community?’”

When a representative from a major office supply chain visited for the third time in a week, the wheels started turning. Vanloffeld quickly learned that not only is there great volume in office supplies, but the margins are also high. He started thinking beyond just office supplies, to other community needs, including janitorial and industrial supplies, and decided he was ready to launch the business.

It turned out Vanloffeld’s instincts were right: he says eSupply Canada’s first year was a “rocket ship ride” that fostered great success. To scale the business, he’s turning to franchising so local owners can help build the business in their own communities.

“They can use this as a vehicle to stop the economic leak within their territories, and they can also use it as a vehicle to steal market share from the big box retailers by being

Steven Vanloffeld

the local owner who has community connections and relations with local business owners,” he explains.

Growing through franchising

Vanloffeld says that as a First Nation business, eSupply Canada is grounded in diversity, and helping those from underrepresented communities access opportunities that may not have been available to them in the past.

To support that initiative, eSupply Canada has two different franchise models in place, notes Vanloffeld. “One is open to all Canadians, and that’s through our territory model,” he says, adding that there are 352 territories across Canada. The second is a First Nation Community Ownership model, where a First Nations community can purchase an eSupply franchise.

“We’re looking for Indigenous franchisees. But we’re also looking for franchisees who represent the cultural fabric and makeup of all communities across Canada. We want our owners to reflect the diversity and the demographics of Canada,” he says. “Diversity is really what sets us apart. It’s who we are and what we value.”

With this in mind, Vanloffeld says a major benefit to franchising with eSupply is its “incredibly low barrier to entry, because we focus on individuals who come from underrepresented communities. We want them to acquire an eSupply Canada franchise and build an incredibly successful business.” The franchise fee is $25,000, and because it’s a homebased business, there are no costly long-term leases or capital requirements. Franchisees just need access to a computer, phone, internet, and vehicle.

Vanloffeld notes that they’ve also partnered with Fanshawe College in London, Ontario to provide franchisees with a four-day training program, where they learn the ins and outs of the business, from prospecting to overcoming objections and using CRM software. Owners receive a micro-credit from Fanshawe upon completing the training.

Additional support from the eSupply corporate team means franchisees can focus on the most important aspect—making sales. “We handle the shipping, the distribution, the customer service, and even returns. We want them focused on sales and growing great businesses, while we at corporate handle everything else behind the scenes,” explains Vanloffeld.

Built for business

While the benefits are numerous, Vanloffeld says developing a sales mindset is one challenge that eSupply franchisees face. “You need to have the stamina to deal with rejection and play the long game, because this is essentially a sales business. We can train some of that into you, but really, you need to have the personality to be able to withstand and overcome objection.”

Vanloffeld says eSupply franchisees should also be creative, have strong budgeting skills, and have business acumen. “We’re looking for people who are entrepreneurial— everybody says that!” he says with a laugh. “We’ve put in place a great system and great training that works. We want our owners to use what has proven to be successful for us, make it their own, and go and build strong, local businesses in their territories.”

Bright franchise future

eSupply’s formal franchise recruitment process launched in June, and the team is aiming to bring 10 franchisees on board by the end of 2023. With the recruitment process well under way, Vanloffeld says the launch of the redesigned website will come next. “We’ve invested heavily in our website so our owners have a really strong, reputable, well-designed website that they can stand behind,” he says.

Vanloffeld says he’s also in “fullon recruitment mode right now” to fill out his management team as the company grows. This will be vital, as he has lofty goals for what eSupply can achieve.

“In terms of the long-term vision, I have a goal to grow this to 300 units,” he explains. “We’re bringing opportunity to individuals from underrepresented communities and equitydeserving individuals, so they have an opportunity to create an amazing business, as well. I don’t see anyone else out there doing that—we’re uniquely positioned within this landscape.” ●