YOUR GUIDE TO FRANCHISING
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A Canadian Franchise Association Publication / FranchiseCanada.Online
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Where the Heart Is
Franchise brands are helping Canadians make their homes more organized, attractive, and safer than ever
AT A GLANCE Established: 1998 in Canada; 1980 in U.S. Number of units: Over 390 in Canada Investment range: $210,500 CDN to $293,500 CDN, plus working capital Contact: development@theupsstore.ca 1(888) 875-0007
Non-Traditional Opportunities With The UPS Store®. The UPS Store Canada offers more than the traditional model typically located in strip malls or on main streets. Most recently, we introduced a store-in-store model within Walmart locations in Canada. This new relationship places our brand in direct contact with millions of customers in conjunction with one of Canada's leading retailers. A number of these non-traditional locations are now open in Ontario, Quebec, and Alberta. The UPS Store Canada has an aggressive development plan related to this opportunity. This is a multicentre franchising program and represents a great business opportunity for those who are ready to do the work required of this type of investment.
JOIN CANADA’S LARGEST FROZEN FOOD RETAILER!
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CONTENTS FRANCHISE
NOVEMBER/DECEMBER 2024
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17 COVER STORY
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Join the Renovation Revolution From carpets and doors to closets and everyday repairs, we explore companies that take the pain out of making your home the most it can be
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FEATURES
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Restoration Refresh When disaster strikes, whether on a large, national scale or a closer-to-home repair is needed, these franchises are on standby
www.cfa.ca | www.FranchiseCanada.Online
Child’s (and Pet’s) Play If you live in a home where you often hear the pitter-patter of tiny feet or paws, these franchise opportunities may just be up your alley Your Guide to Franchising We’re taking you through the steps and terms you need to know before starting your franchise journey
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Welcome, New Members! New brands from across Canada bringing franchise opportunities to you
Franchise Canada is published by the Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
DEPARTMENTS
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HOMEGROWN & LOCALLY OWNED 100% Canadian Franchise Systems
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NEXT GENERATION IN FRANCHISING Seal of Approval Youthful optimism and a gungho attitude were the keys to millennial franchisee Stephen Pendura’s success in the Wise Cracks system
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LEADERSHIP PROFILE Earning His Wings A simple idea and a passion for quality took WingsUp! president Darren Czarnogorski from a student looking for inspiration to now being head of his own successful—and growing— franchise system
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A DAY IN THE LIFE Sign of the Times How a Calgary couple used franchising to bring a spark of adventure to their retirement
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THE FIRST YEAR Pouring Her Heart Out A veteran franchisee came to stake her claim in Canada and found success in the Prairies with Good Earth Coffeehouse
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COMING TO CANADA Some Like It Hot HOTWORX, a fitness concept based on infrared sauna technology, cranks up the heat as it eyes expansion to Canada
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GIVING BACK Melting Hearts, Not Cones Dairy Queen’s soft serve may give customers brain freeze, but their philanthropy warms hearts
SEASON 8 NOW STREAMING!
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SHOW ME THE MONEY 4 Franchises for $500K+
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FRANCHISE TUTORIAL Tutorials 17 & 18 This issue: • Territories and Protected Areas • Franchise Growth Formats
COLUMNS
6 PUBLISHER'S MESSAGE 10 CFA CODE OF ETHICS 14 INDUSTRY NEWS 72 ASK THE EXPERTS 77 MARKETPLACE 79 ADVERTISERS’ INDEX 80 FRANCHISE ROUNDUP
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Franchise Canada
November | December 2024
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PUBLISHER’S MESSAGE
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TURN A NEW LEAF THIS AUTUMN
here’s something about the months between the denouement of summer and the onset of winter that never fails to energize me. Perhaps because of our national emblem, fall feels somehow uniquely Canadian, and though other seasons may overshadow it, for me it’s truly a time of renewal and reflection. At the Canadian Franchise Association (CFA), fall is filled with exciting events such as our Franchise Canada Shows in Toronto and Vancouver and is when we look ahead to the next year. Our 2025 events and content lineup are already well underway! Until then, this issue of Franchise Canada covers many topics and sectors that will undoubtedly be of interest to you. If you’re new to the concept of franchising, “Your Guide to Franchising” (page 34) is full of information about where and how to start. While you should always defer to the expertise of the legal and franchise professionals that you enlist to help you in your franchise journey, this is a great place to begin your search for the answer to the question, “Is owing my own business and becoming a franchisee right for me?” On that note, as you use this magazine and other resources (such as LookforaFranchise.ca) to research potential franchise investments, remember that you have another fantastic tool at your disposal: the CFA member logo. This emblem is a sign that these companies adhere to the CFA’s Code of Ethics and are committed to delivering the guidance and support their franchisees need to succeed. Armed with this knowledge, you’ll be able to better determine which franchise is the right fit for you! In this edition, from home improvement brands (page 17) to those that specialize in restoration following disasters of all sorts (page 26), we explore seven CFA members that provide a way to impact the lives of those in their communities in an appreciable way. For those who might be in the market for a business opportunity that errs on the side of adorable, our article highlighting a handful of franchise systems that deliver services to kids and pets might pique your interest (page 30). Of course, this edition is chock-full of stories that illustrate just how far franchising can take you. Our profile on WingsUp! president Darren Czarnogorski, who saw potential in a small Ontario-based restaurant with only
four locations and grew it into a cross-province success story, shows the value in listening to those closest to you (page 55). A unique investment opportunity can be found on page 64 in our story on HOTWORX, a fitness brand new to the CFA community that is warming up to expand into Canada after finding success in the U.S. and overseas, and a devoted Good Earth Coffeehouse location owner brings us through her first challenging but satisfying year in business on page 61. Over on page 67, Dairy Queen takes us through the local-level programs and national charities that it is proud to contribute to year-round. On page 58, an Image360 franchisee discusses how she and her husband turned a “what if” into a “what next” when they purchased their Calgary, Alberta location. And though foundation repair and waterproofing brand Wise Cracks could find a home within our article on restoration companies, its up-andcoming franchisee from Kelowna, B.C. was happy to discuss how the support of the system provided him with success (page 52). As always, our experts have delivered razor-sharp takes on some of your most pressing franchise questions. Evan Hackel from The Learning Network explains the features that take a franchisee training program from good to amazing (page 72), while Daniel So of Dale & Lessmann goes in-depth on what you should consider before selling a franchise for the purpose of purchasing a new one (page 73). Whether you are new to the industry or several franchise units in, you’ll find value in both of their insightful responses. Before we get into the fever pitch of the holiday season, now is the perfect time to consider where you want to see yourself next year, and the year after that, and the year after that. As many of the franchisees in this issue can attest, being a part of a system has provided them with the stability and knowledge to reach levels they never dreamed of on their own. Fast forward to the end of 2025, and will one of them be you?
Sherry McNeil President & CEO, Canadian Franchise Association
6 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
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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
PUBLISHER
Canadian Franchise Association (CFA) SENIOR MANAGER, CONTENT & MARKETING
TREASURER Lyn Little, BDO Canada LLP
Lauren Huneault
CHAIR, FRANCHISE SUPPORT SERVICES
EDITOR Rachel Debling
Paul daSilva, RBC
CONTENT PRODUCER Daniel McIntosh
CHAIR, LEGAL & LEGISLATIVE COMMITTEE
GRAPHIC DESIGNER Andrea Lee
Andraya Frith, Osler, Hoskin & Harcourt LLP DIRECTORS
Andrew Arminen, Metal Supermarkets Chuck Farrell, Pizza Pizza 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
ADVERTISING SALES Stephanie Philbin AD COORDINATOR Andrea Lee CONTRIBUTING WRITERS
Suzanne Bowness, David Chilton Saggers, Rachel Debling, Joelle Kidd, Gina Makkar, Daniel McIntosh, Stefanie Ucci, Jordan Whitehouse, Kym Wolfe FOR ADVERTISING INFORMATION:
Stephanie Philbin sphilbin@cfa.ca
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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.
© 2024, Canadian Franchise Association. All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the publisher. Publications Mail Agreement No. 41043018
LAW FIRMS:
SHOWCASED FRANCHISE:
8 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
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.
ADVERTORIAL
Destination Florida:
How Canadian Franchisors Can Find Success in the U.S. and Become American Franchisors Expand your company into the United States—with the right approach, and the right help
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ou’ve established your franchise brand, have a portfolio of thriving franchise locations (and growing!), and are eager to keep up the momentum. Whether you feel you’ve exhausted suitable markets within your province or you’re just looking for new avenues for expansion, there’s one surefire way to keep up your growth while providing your franchisees with more chances to succeed: turn your attention south of the border, specifically to Florida.
Benefits for franchisor and franchisees Thanks to bilateral treaties established between the U.S. and Canada more than 30 years ago, there are straightforward ways in which you can expand your brand to our southern neighbour. The problem? Many franchise systems aren’t aware of these pathways, and those that are don’t solicit the correct help to ensure their success. First off, prospering south of the border doesn’t necessarily mean engaging with American buyers and suppliers who aren’t familiar with your brand or your business goals. “You don’t have to look to Americans to buy your franchise,” explains Richard Parenteau Sr., an international immigration and senior business consultant with 30 years of industry experience, and the founder of CanAm Immigration. “Every year, thousands of Canadian citizens seek opportunities to immigrate to the U.S., particularly to Florida, by investing in your franchise concept,” adds David S. Gervais, ESQ, president and CEO of New York Immigration Law Group. “Through these investments, they qualify for
David S. Gervais, New York Immigration Law Group, and Richard Parenteau Sr., CanAm Immigration
U.S. business investor visas for themselves and their families. This not only allows them to emigrate but also empowers your most successful partners to pioneer your brand in a new market, with their investment.” Beyond this, you have the chance to invite your existing franchisees to join you in expanding into Florida, assembling a “Dream Team” that puts you in the driver’s seat from day one. By transferring key employees who are crucial to their operations, they too can obtain U.S. business immigration visas for themselves and their families, with the added potential of securing permanent residency (green cards). More importantly, you can manage all your U.S. operations from Canada just as smoothly as you handle your franchise activities within Canada. And let’s not forget Florida’s key advantages: no state income tax, a booming economy, easy access to international markets, and yearround sunny weather—not the toughest of sells! Canadian franchise consultants There’s a unique bilateral agreement between the U.S. and Canada specifically designed for consultants, brokers, and ambassadors to promote trade in services between the two countries. With your expertise and
connections in the franchise industry, you have the opportunity to become a consultant ambassador in the U.S. Imagine promoting Canadian franchisors as they enter the U.S. market and helping American franchises expand into Canada. Plus, you can obtain U.S. business immigration visas for yourself and your family, securing your future while driving growth for your franchise clients— another win! “Through CanAm Immigration and the New York Immigration Law Group, we make the process seamless. Our ‘Dream Team’ of licensed professionals is here to guide you every step of the way. We’re your one-stop shop, where knowledge is power and careful planning leads to success,” emphasizes Parenteau. Putting family first Relocating to a new country can be both exciting and overwhelming, but organizations like CanAm Immigration and the New York Immigration Law Group are here to make the journey smooth and stress-free. Their dedicated “Welcoming Team” is ready to assist you with every detail, from finding the perfect home to ensuring your children are enrolled in the best schools, and even financing support. You’ll have all the help you need to settle into your new life in the U.S., making the transition seamless and helping you feel right at home from day one. Since 1994, CanAm Immigration and the New York Immigration Law Group have been leaders in business immigration, helping over 7,000 businesses secure 27,000 U.S. business immigration visas and permanent residencies.
CanAm Immigration and the New York Immigration Law Group offer free consulting and invite members of the Canadian Franchise Association to explore their educational program. For more information regarding their services, visit www.canamimmigration.com or email rparenteau@canamteam.com.
CODE OF ETHICS
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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.
10 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
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ranchisors are challenged to juggle two key objectives that can often seem very opposed: maintaining a unified brand image while empowering franchisees to create customized, local marketing campaigns. Balancing these two priorities requires the right tools and support systems, including a centralized digital marketing platform that allows control at the franchisor level and customization at the franchisee level. When implemented effectively, email marketing doesn’t just provide another communication channel—it becomes a powerful relationshipbuilding tool. By delivering personalized, consistent messages, franchises can connect more deeply with their customers, driving engagement and loyalty. Why Email Marketing? One of the top benefits of email marketing is that it helps franchisees to stay top-of-mind with their customers. Whether it’s a simple “Thank you for subscribing” or a birthday message with a special offer, email is the easiest and most effective way to let your customers know you value them. And the benefits are numerous: • Inspires engagement and loyalty: By delivering personalized content and email campaigns, franchises can capture and keep the attention of recipients. • Establishes expertise and credibility: Email marketing enables franchises to provide content that keeps subscribers up to date about what’s happening, demonstrates expertise, and builds credibility with customers.
• Increases brand awareness: Email marketing is a great way to reinforce a franchise-wide brand identity by showcasing your voice, style, and mission through a direct line to customers and prospects. • Boosts sales: Whatever your target audience looks like, you can encourage a first-time buyer to click “add to cart” or a longtime shopper to stay true to your brand. For franchises to effectively use email marketing and reap these benefits, however, the right solution and controls are key. This is where a centralized solution drives success. 6 Ways Centralized Marketing Drives Franchise Success The best marketing strategy for franchises leverages a centralized platform that balances brand consistency with local flexibility. Here’s how franchisors that take this approach support franchisees in their marketing efforts: 1. Brand consistency across locations: Centralized templates ensure that franchisees can per-
sonalize messages while keeping the brand identity intact. 2. Centralized campaign management: Franchisors can deploy large-scale campaigns from a central platform to ensure every customer receives consistent messaging. 3. Local franchise empowerment: Franchisees are empowered to create localized campaigns that fit their regional markets while staying aligned with the brand’s strategy. 4. Campaign approval process: To safeguard brand standards, franchisors can approve franchisee-generated email campaigns before they go live. 5. Simplified opt-out management: Managing email lists across multiple locations is one of the biggest challenges in franchise marketing. With features like global unsubscribe, customers who opt out are removed from all lists, ensuring compliance. About Constant Contact Constant Contact makes digital marketing easy and effective for franchises around the world. Whether an emerging franchise or a complex franchise group, organizations benefit from our powerful SaaS platform that delivers a simplified marketing experience with less time spent and better results. With cutting-edge technology, best-in-class deliverability, and award-winning customer support, we help franchises maintain brand consistency, empower their franchisees, and support growth.
To learn more about how Constant Contact centralizes email marketing for organizations like yours, visit constantcontact.com/franchise or schedule a call/demo by emailing partners@constantcontact.com.
INDUSTRY NEWS
Your source for what’s happening in Canadian franchising Subway continues to expand its global presence with over 10,000 future restaurant commitments Subway, one of the world’s largest restaurant brands, is reaching new milestones as it makes progress on its global growth strategy to expand its footprint, while delivering a highquality, convenient guest experience around the world. Over the past three years, Subway has signed more than 20 master franchisee agreements, resulting in over 10,000 future restaurant commitments and contributing to over 40 per cent of the brand’s new restaurant openings this year. Seven of the 20 master franchise agreements have been signed in 2024, marking its entry into Paraguay and Mongolia and significantly expanding its presence across France, the Czech Republic, Luxembourg, Belgium, Switzerland, Liechtenstein, Brazil, El Salvador, and Guatemala. In total, these agreements will result in 2,000 future restaurant commitments, with more agreements expected before the year’s end. Subway’s international growth, coupled with its focus on attracting multi-unit operators, including large, national corporate partners, has accelerated new restaurant openings. The brand is on track to more than double the number of new restaurant openings in 2024, compared to 2019 (pre-COVID). “Subway’s global growth strategy of partnering with well-resourced, experienced multi-unit operators is proving to be successful,” says Mike Kehoe, global chief development officer at Subway. “By working with the right partners, we are making significant strides in modernizing our brand image with both new and remodeled restaurants, improving
our overall guest experience, and growing digital sales.” As part of Subway’s smart growth strategy and ensuring restaurants are in the right location, image, and format, the brand is also focused on strengthening its non-traditional business, which accounts for approximately one quarter of its global footprint. This includes signing new and expanded development agreements with brands like Love’s Travel Stops and strengthening long-term retail relationships with leading companies, such as Walmart and Aramark. Subway is also taking advantage of its flexible format to grow its presence in airports, with partners like Areas in Mexico and Spain, as well as on college and hospital campuses. “Subway’s flexible format allows the brand to fit into various retails spaces, with low investment requirements, making it an ideal opportunity for a multi-unit franchisee or national partner looking to expand their portfolio,” says Kehoe. CertaPro Painters raises over half a million for breast cancer research CertaPro Painters recently launched its Paint it Pink campaign for the sixth consecutive year in partnership with the Breast Cancer Research Foundation (BCRF) and Breast Cancer Canada to help raise money in support of breast cancer research. Since 2019, CertaPro’s Paint it Pink has raised $555,000, which equates to approximately 11,000 hours of BCRF research. CertaPro Painters franchisees who participate in Paint it Pink will donate a percentage of every painting project completed between October 1 and November 30, 2024. Local
14 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
businesses and CertaPro corporate team members will also participate in fundraising events. CertaPro aims to increase its donations every year, with a goal of achieving $160,000 during the months of October and November 2024. All donations will go to the Breast Cancer Research Foundation in the U.S. and Breast Cancer Canada. If CertaPro reaches its 2024 funding goal, its Paint it Pink campaign will support roughly 3,200 hours of research for BCRF or the equivalent of 64 patients’ enrollment in a BCRF-supported clinical trial. “The idea for Paint it Pink originated from a CertaPro franchisee who lost his wife to breast cancer and asked how our company could spread awareness and support the cause,” says Mike Stone, president and CEO of CertaPro Painters. “As a company, we strongly believe in helping those in need, supporting our employees and franchisees, and serving the local communities where we live. Our Paint it Pink initiative is incredibly important to us as it gives us the opportunity to live our core values and allows us to help pay it forward by supporting BCRF’s mission of achieving prevention and a cure for breast cancer.” CertaPro’s Paint it Pink campaign will consist of several initiatives this year, including: • A Paint it Pink social media campaign will go coast to coast this year and have fun “painting” recognizable North American landmarks pink, including the Golden Gate Bridge, Times Square, the CN Tower, and more! • Participating franchisees will have a dedicated Paint it Pink page on their local CertaPro website with links to important resources and how to get involved.
INDUSTRY NEWS • Many CertaPro franchisees connect with neighbouring businesses to raise awareness by painting them pink during the campaign or partner to host local fundraising events such as a 5K run or picnic. • CertaPro’s corporate team gets involved by participating in a step challenge whereby all donations go to Paint it Pink. Team members donate to participate in the step challenge, and if the goal is met, CertaPro will contribute up to $4,500 in addition to stepping efforts. Anyone can get involved in Paint it Pink by making a donation to support breast cancer research. Whether you’re a business, community member, or individual looking to make a difference, your contribution can help bring us one step closer to a cure. Drama Kids sets the stage for growth with new Canadian master franchisee International children’s drama franchise Drama Kids is celebrating a significant milestone with the recent appointment of Eleanor (Ellie) Reynolds as the master franchisee for Canada. Reynolds, a seasoned professional boasting over 15 years of experience in the franchising industry, combines her wealth of expertise with a profound passion for empowering young minds through drama. In her new role, Reynolds is propelling Drama Kids’ expansion efforts across the country. Her proven track record in amplifying the visibility and success of diverse organizations equips her with a unique perspective to enhance Drama Kids’ presence and impact within the Canadian market. “With my extensive experience, I have cultivated a vast skillset and indepth knowledge about brand development and franchising,” explains Reynolds. “I’m confident that my expertise can bring a positive impact to Drama Kids. Following its recent
rebrand, I believe the timing is ideal for us to realign our mission in Canada, ensuring that Drama Kids sustains its growth and flourishes in 2024 and beyond.” For over four decades, Drama Kids has been unwavering in its commitment to creating a nurturing and empowering environment for its students. Through its noncompetitive approach, it encourages children to be themselves, allowing them to thrive and develop skills that will last a lifetime. Its comprehensive self-development program is designed to build confidence, enhance communication and social skills, nurture self-esteem, foster critical thinking, and much more. Under Reynolds’ leadership, Drama Kids strives to not only enhance its brand presence but also to grow its dynamic network of likeminded franchisees who share the brand’s mission. “The surging demand for this invaluable service in Canada signals an exhilarating opportunity, and I’m keenly aware of its boundless possibilities,” says Reynolds. “One of my primary responsibilities will involve
the recruitment of new franchisees into the Canadian network. Canada remains untapped in terms of quality drama education, and Drama Kids’ innovative approach, coupled with a fresh strategic vision, pledges to create a lasting impact on the lives of children and franchisees alike.” Cadence Franchising reaches its 50-brands-served milestone within two years of launch Cadence Franchising, an agency dedicated to helping franchisors achieve excellence in franchise development, recently announced a milestone reached—50 franchise brands served in two years. The significant milestone validates the industry’s need for the modern solution offered by the company. With a specialized focus on lead nurturing, Cadence delivers sensible CRM solutions, tells compelling brand stories, and crafts exceptional sales experiences for great franchise brands, big and small. The company’s services are designed to maximize interest in the franchise opportunities offered by their clients and
Franchise Canada November | December 2024
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INDUSTRY NEWS empower franchisors to increase their conversions and accelerate the growth of their networks with quality franchise partners. Long-time colleagues and friends Corey Nicholson and Cindy Hill founded Cadence in 2022 to help contemporary franchisors manage their leads in a better way before. Based in Oakville, Ontario, the company has expanded its agency headcount to 16 and now serves franchisors in North America, Australia, New Zealand, and the United Kingdom. “Our vision is clear. We’re determined to be the go-to providers of modern lead nurturing solutions for ambitious franchisors that want to grow discernibly, anywhere in the world. I’m proud of the passionate team we’ve built to do it,” says Nicholson, CFE, founding partner and CEO of Cadence Franchising. “We’re committed to achieving franchise sales excellence,” adds Hill, CFE, founding partner and COO. “I’m proud that so many incredible brands have entrusted us to welcome, nurture, and qualify their aspiring franchisees the Cadence way!” Cadence Franchising is a National Sponsor of the Canadian Franchise Association (CFA) and are active community members. Koala Insulation opens first franchise location in Canada Koala Insulation is excited to announce the opening of their first Canadian franchise location based in Cambridge servicing KitchenerWaterloo. The rapidly growing leader in residential, commercial, and industrial insulation services has been on a mission to fill a need for eco-friendly insulation services, dedicated to improving energy efficiency, comfort, and indoor air quality. The first Canadian location, led by local entrepreneurs Justin Prittie and Greg Quaile, is aligned with the brand’s recent rapid expansion in the U.S. to over 400 franchises in four years, and franchise system
goal of 100 franchises with multiple unit ownership Canada wide within five years, including 35 offices covering all major centres across Canada, excluding Quebec. “The preliminary focus for Koala Insulation in Canada will be on opening and expanding nationally, starting with the Ontario market,” says Ian Gordon, COO, Koala Insulation Canada. “We are beyond thrilled that our first Canadian franchise location is now a reality and are looking forward to making Koala Insulation the go-to choice for those seeking topquality insulation and a more healthy and comfortable living environment for everyone, from environmentally conscious homeowners to construction professionals alike.” The brand, ranked #147 on Entrepreneur magazine’s prestigious Franchise 500 list and number one in the New and Emerging Franchise category in 2024, is ready for the Canadian market. “The vision for Koala Insulation is to become the trusted leader in Canada for residential, commercial, and industrial properties. We are excited to be the first to bring the brand’s proven model for excellence in service for delivering high-quality installation, customer support, and commitment to innovation in sustainability to the Kitchener-Waterloo area,” adds Prittie. Prittie has found success within the franchise space, owning and operating a TWO MEN AND A TRUCK® Kitchener-Cambridge-Waterloo franchise for the past 12 years, another franchise system under the Herity umbrella of brands. After seeing a growing demand in home efficiency in Canada and a need to reduce greenhouse gasses and support the environment at the same time, Prittie and Quaile, both seasoned business owners, aligned with the brand’s promise to deliver on a high bar for customer satisfaction, and provide versatility and value through ecofriendly insulation services.
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“With Koala Insulation under the Herity umbrella, it has provided an incredible foundation of trust, integrity, and a forward-thinking approach that aligns perfectly with our mission to deliver eco-friendly, energy-efficient solutions,” adds Quaile. “Herity’s long-standing commitment to quality and innovation empowers us to expand with confidence, knowing we’re part of a larger vision focused on creating sustainable, comfortable living and working environments for customers across Canada.”
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From carpets and doors to closets and everyday repairs, we explore companies that take the pain out of making your home the most it can be BY RACHEL DEBLING
Home improvement is so much more than tearing down walls and slapping on a new coat of paint. By elevating one’s surroundings, people can find comfort, solace, stress-relief, and so much more. In fact, you could say that for some, home care is the new self-care! These brands are helping Canadians from coast to coast find peace in their homes with every service call and product order. Whether you’re in the market for a household update or are searching for a business opportunity that matches your personal interests, these four companies will deliver.
Franchise Canada November | December 2024
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Door Gurus Let’s face it: doors aren’t necessarily the most stimulating of topics. It’s a fact even those closest to the subject matter will admit. “It’s not sexy, but it’s necessary,” jokes Kim Hiebert, half of the duo, along with her husband Darren, who have brought Door Gurus to the franchising scene after perfecting their knowledge of the construction and installation industry over 45 years. “My husband is the face of the brand, I’m the business behind it.” He brought a wealth of hands-on expertise in both product installation and the training of technicians, while she had amassed years of experience as a former business owner, franchisee, and social worker. The latter career path has had much overlap with her current one, as she’s found it valuable to be able to gauge the disposition of staff and customers, and to react accordingly. “It’s super helpful in building our own teams,” she says of her social work experience. “Understanding how to build capacity in people, not just in numbers. You as a human being have to be able to manage the growth you want. Building your financial capacity also goes along with building your personal capacity for growth.” Door Gurus came to fruition after Darren retired from business ownership in the door service industry. To keep busy, he started fixing residential doors, rather than the
large industrial work he was used to. That’s when he realized that there was a gap in the market. “He was like, ‘I can teach people how to make great money off this,’” Hiebert recalls. “And not by [overworking] themselves.” This stemmed from his personal history of working 80 to 90 hours a week—“Our kids never saw him,” Hiebert says—and his desire to ensure this didn’t happen to others. Teaching people how to build their own legacy, while still making good money and having time for their families, was the ideal retirement plan for the couple. And thus, Door Gurus was born. One thing that sets their offering apart from others, aside from the wide variety of jobs that they specialize in (companies that service front doors often don’t know what to do with garage doors or have the ability to do both residential and commercial work, for example), is the quality of their service people. Hiebert recalls having technicians come to the house when she had a young family; they were often unkempt, dirty, and sometimes rude. Which is why Door Gurus prides itself on its uniformed, skilled, friendly staff made up of people you would be happy to let into the sanctity of your home. “We are a premium service brand,” says Hiebert. “But we deliver on those results, and we are serving a niche in the residential and commercial community that is really
18 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
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overlooked.” The brand is looking for investors who have the all-important growth mindset and are willing to scale alongside the company. “We are the first in the door market to franchise a fully comprehensive door repair/service company in Canada, serving both residential and commercial property owners, so we’re really excited about that,” she says. And the future looks bright, even though the thought of tackling a new challenge may not be everyone’s ideal retirement plan. And the best part for Hiebert? Being the supportive backbone her crew needs.
“I lean more to the team support and development— what does the team need—and really creating a team that feels good when they're delivering their job. Being a part of us. And so that's my favourite part, watching people expand.”
Learn more at LookforaFranchise.ca
Franchise Canada November | December 2024
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Alison and Lee Elliott, End of the Roll Regina
End of the Roll Flooring Centres Since the boom of DIY home renovations in the early aughts, nearly everyone fashions themselves a modern-day Bob Vila. Where in-house touch-ups can fail, there are, thankfully, plenty of brands that specialize in supporting household projects meant to freshen and rejuvenate dated interiors. Take End of the Roll Flooring Centres, a wellrecognized name in Canada’s flooring supply sector. A lot has changed since the company was founded nearly 40 years ago, but it has been able to keep up with the rapidly changing industry in which it operates, and even surpass expectations. “The world has changed a lot, especially in the world of home improvement,” says Mark Baese, End of the Roll’s national marketing director. “And specifically with flooring, the way people buy flooring and do home improvement today is much different than it was even a decade ago.” Baese points to its online tools, such as the spatial visualizer which allows customers to “insert” flooring into their room on their phone, that ensures the clients of franchisees are happy with the outcome, before laying down a single strip of carpet, tile, wood, laminate, or vinyl. For long-time franchisees of the system, these innovations can mean a lot. But it’s not the main reason that many End of the Roll location owners remain in the system for decades: it’s the level of care that the franchisor shows its franchisees. Plus, notes Baese, in the End of the Roll system, franchisees are given a bit more flexibility and creative space to make their location and their business truly their own. Even within the brand’s franchise agreements, he notes, it’s recognized that every store will operate and look a little bit different—a fact that he feels only strengthens the value proposition for incoming franchisees. “If they're more comfortable doing things a certain way, we don't necessarily restrict it, as long as it doesn’t go against the brand, and the end result is the same,” he explains. One such franchisee is Alison Elliott, who owns End of the Roll’s Regina location with her husband, Lee. They came aboard in 1997, after Alison took a job at a location in Edmonton, where she had just finished her chemistry degree. The idea of ownership piqued her interest, and when a location became available in Saskatchewan, she and her then-fiancé, who was originally from the province, jumped at the chance—and never looked back. “My mother was right,” laughs Elliott when asked if she regrets not using her degree. “I was always meant to be in numbers and business.” As an added bonus (and though it may be seen as “cliché,” as Elliott admits), the network of franchisees
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“THE WORLD HAS CHANGED A LOT, ESPECIALLY IN THE WORLD OF HOME IMPROVEMENT. AND SPECIFICALLY WITH FLOORING, THE WAY PEOPLE BUY FLOORING AND DO HOME IMPROVEMENT TODAY IS MUCH DIFFERENT THAN IT WAS EVEN A DECADE AGO.” – Mark Baese, End of the Roll’s National Marketing Director
across the province is exceptionally close, bordering on family, with some even going so far as to hop on a plane at a moment’s notice to cover for another owner when disaster strikes. Elliott herself has been on both sides of such a transaction, accepting help when needed and coming to the rescue without being asked. That intense level of friendship extends to her store’s staff, some of which have been on the team for nearly two decades. “One person has been here for 18 years, one lady has worked here twice, left to go try real estate, and she's back,” says Elliott. “And I have had two other salespeople that have left to try something else and then come back
on different occasions. I think that that speaks to the overall culture here.” With such solid foundations and strong support, it’s no wonder that both Baese and Elliott marvel how much time truly flies when you’re having fun.
Learn more at LookforaFranchise.ca
Make a Career Helping Students Get Better Grades Opening Your Own Oxford Learning Location Starts Right Here. Join us! With four decades of proven success in Canada, Oxford Learning is paving the way for a better future for Canadian students and successful franchise owners. • • • • • •
Fully-Integrated System Unparalleled Training & Support International Brand Recognition Personal Fulfillment & Financial Security Award-Winning Marketing Proprietary Curriculum and Processes
Invest in Brighter Futures As A Franchisee
franchise.oxfordlearning.com 1.888.559.2212
Proudly Canadian
Franchise Canada November | December 2024
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ShelfGenie When people step into your home, it’s not the trendy wall colour or a unique antique lamp they notice first—it’s the presence, or absence, of clutter. Short of upgrading to a larger space, the best way to manage clutter is with a well-organized closet or cupboard system. That’s where ShelfGenie, a Neighbourly company, comes in. ShelfGenie was founded on the belief that, with the right organizational approach, any house can be more functional and, in turn, more beautiful. The mission to change lives through organization was one of the reasons that brand president Tony Ditzler was interested in the company in the first place. “What initially drew me to ShelfGenie was its immense potential to transform people’s lives,” Ditzler shares. “It's not just about shelves; it's about enhancing the experience in the most personal space—your home.” The company communicates this belief by creating and installing high-quality, durable custom GlideOut shelving units tailored to fit any area of the home.
Known for their ease of use and lasting quality while being easy on the eyes, these shelving units offer a premium experience that stands apart in a market often filled with short-term solutions, making them one of the brand’s key differentiators. “In a market full of quick-fix solutions, ShelfGenie offers something lasting,” says Ditzler. “Our solutions are not just custom—they’re tailored down to the millimetre, ensuring every customer receives a product that fits their unique needs. This level of customization sets us apart, providing solutions for every corner of the home.” For its franchise owners, ShelfGenie offers the opportunity to lead remarkable projects unlike any they’ve seen before. Recently, one of their U.S.-based location franchise owners completed a residential project outside of Austin, Texas, that not only included a much-needed Glide-Out pantry solution but also a custom bar system for entertaining, including a conversation-starting Designer Wine Rack Glide-Out, showcasing the brand’s versatility and aesthetic appeal.
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“OUR SOLUTIONS ARE NOT JUST CUSTOM—THEY’RE TAILORED DOWN TO THE MILLIMETRE, ENSURING EVERY CUSTOMER RECEIVES A PRODUCT THAT FITS THEIR UNIQUE NEEDS.” – Tony Ditzler, President
ShelfGenie franchise owners also benefit from ongoing support in everything from marketing to training in the latest industry technologies. Being part of Neighbourly’s extensive network has its perks, too. As Ditzler points out, Neighbourly provides its franchise owners with access to the nearly 30 other home-based services in its roster to help reduce costs while improving the customer experience. With no need for a physical storefront, franchise owners can enjoy lower overhead costs and a business model that supports work-life balance. “Our ideal franchise owners are innovators who understand that small changes can make a big difference,” says
Ditzler. “They’re passionate about delivering excellent customer service and unafraid to challenge the norm. “Our franchise owners are not just business owners; they’re partners in building a brand that leaves an unforgettable mark. At ShelfGenie, we don’t just build shelves. We build better lives.”
Learn more at LookforaFranchise.ca
Email franchising@potikkis.com for opportunities to be part of the Canadian dream.
Franchise Canada November | December 2024
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JOIN THE RENOVATION REVOLUTION Paul Switzeny, Founder
The HandyForce The saying goes, “Jack of all trades, master of none.” That’s why marketing a company as the best at everything can often backfire—unless you have a solid team of techs waiting in the wings. The HandyForce was built on that belief when in 2010 founder Paul Switzeny and his wife bought a “fixer-upper” condo. They had no difficulty finding companies that would gladly take on the big renovation work, but problems arose after the service was done and paid for. “Inevitably, there were things that weren’t totally done correctly, and they wouldn’t come back, or there were other little pieces that maybe weren’t a part of it,” he remembers. Realizing he needed a tradesperson to smooth over the rough edges and finish these jobs, he started searching but was unable to find someone to fit his standards for professionalism and reliability. “I thought, geez, if I need this, there’s going to be other people who need it too,” he says. “And so I started the company on Craigslist, posting two ads: one looking for a handyman to hire, and the other saying I had a handyman for hire.” He connected the two, and 14 years later, The HandyForce is a full-fledged operation that recently entered the franchise industry, in an effort to expand even further and ensure an influx of high-quality technicians. “Sometimes you get a guy that has the skills but a bad attitude,” or vice versa, he says of the challenges in finding the right fit. It’s a facet of the business that Switzeny is passionate about: the company works with high schools to help train and bring in talented students who are looking to enter the workforce right after graduation. Many of these students aren’t interested in college, he explains, and teaching them hands-on skills will help them secure well-paying jobs in specialist fields, hopefully with The HandyForce.
But it’s not just Switzeny who’s steering the ship. Corporate project manager Justin Mohammed is one of the main supports for franchisees at The HandyForce. In his role, he sees all sides of any given project, from managing the staff of corporate locations and material sourcing to finding quality subcontractors and ensuring customer satisfaction. For the company’s franchisees, he serves as the point person for operations, helping them search for technicians and stock. He knows first-hand the support their partners receive. “The biggest benefit [of the system] is the knowledge and experience that you get,” explains Mohammed. “Plus, there’s the flexibility you have—that you can take a young kid from not knowing anything to becoming someone that has a promising career, especially putting them through the Master Handyman program [the certification created by The HandyForce].” Nader Hemmati, the company’s first franchisee, shares this enthusiasm. After searching for a business opportunity for quite a while, he stumbled across The HandyForce. “It’s the kind of business people need,” he says of his choice to become a location owner. Homeowners often look at the big-picture jobs, like redoing a kitchen or bathroom, but they don’t ever want to think about the smaller jobs, such as that leaky drain in the laundry room—until it becomes necessary to address it. “People need this service regardless of inflation, or the economy,” Hemmati notes. “Things are going to break! Things are going to need to be upgraded. It will never end.” Paired with a marketing strategy that includes everything from organic web traffic to guerilla tactics and a behind-the-scenes team that truly cares about the services they provide, The HandyForce’s perennial business
24 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
JOIN THE RENOVATION REVOLUTION Justin Mohammed, Corporate project manager
model is an option for those looking to balance their work life and home life. Better still: the relationships that will undoubtedly develop, and the effect one can have on people’s lives. Switzeny recognizes this privilege all too well. “Things like, ‘I need my toilet to flush’ or ‘I need my roof to stop leaking,’” he says. “Those are essential things, but also things that really, really matter. “We had a family not too long ago that was pregnant, and they needed to convert one of the rooms to a nursery
Nader Hemmati, Franchisee
for their child. That’s a really, really significant thing that we got to be part of.” And for The HandyForce, it will certainly not be the last.
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Canadians Love Massage Addict! Consistent year over year revenue and clinic location growth makes it clear that Canadians are passionate about the Massage Addict experience. Join in on the success. Become a Franchise Owner! Recurring revenue Low investment and start-up costs On-going, best-in-class support Strong consumer demand and loyalty Contact us at Franchise@massageaddict.ca or call 1-880-550-1080 ext. 5 to learn more. Proudly Canadian
MassageAddict.ca
Franchise Canada November | December 2024
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RESTORATION REFRESH When disaster strikes, whether on a large, national scale or a closer-to-home repair is needed, these franchises are on standby BY STEFANIE UCCI
26 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
RESTORATION REFRESH
911 Restoration Budding entrepreneurs with an empathetic spirit and clear communication skills can find a warm home in the 911 Restoration brand. With a slogan like “The Fresh Start Company,” it’s clear that this franchise always puts its people first. “We operate with the mentality that ‘we hope we won’t have to work with you’ [due to disaster], but if we do, we strive to treat customers with empathy while providing them a fresh start,” says Idan Shpizear, founder and president of 911 Restoration. Shpizear’s journey with the brand began in 2003 shortly after moving to the U.S. from Israel. His first job in the restoration industry was at a carpet cleaning business that he took ownership of within just one year. From there, Shpizear founded 911 Restoration, and the rest is history. 911 Restoration began as a single-location water, fire, sewage, and mold restoration and remediation concept in Van Nuys, California. It became a franchise in 2007 and today supports 110 franchise owners across 325 territories in the U.S. and five franchisees in Canada, explains Shpizear. At head office, the corporate team has more than 35 employees and a strong, female-led executive team. It’s a tight-knit team, but one that puts care above all else. “Our franchisees are more than just a number to
us. Recently, our team made the decision to cap our total number of franchisees at 450 over the next five years to ensure we provide each one with personalized, exclusive, and tailored support,” says Shpizear. The 911 Restoration brand is well positioned in a recession-resistant industry. “We’re living in a period of rapid weather change and natural disasters, which, though unfortunate, will continue to drive a strong demand for restoration services that are not always tied to the state of the economy,” notes Shpizear. “When something breaks or gets damaged—whether by water, fire, or mold—it needs immediate care. That’s where the opportunity lies for prospective franchisees, as demand for jobs will rarely be scarce.” The 911 Restoration team looks for franchisees who are aligned with the company’s culture of empathy and a human-first approach to service. “It’s hard to teach empathy and care, but it’s easy for us to teach the hard skills that come with an industry like restoration,” says Shpizear. “This mindset, combined with a business development background, helps set franchisees up for success in their communities.”
Learn more at LookforaFranchise.ca
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RESTORATION REFRESH
“WHAT MAKES PUROCLEAN STAND OUT IS OUR DNA: WE DON’T JUST CUT AND TEAR A CLIENT’S PROPERTY—WE ARE TRUE RESTORERS, AND WE LOOK AT PROJECTS IN A WAY THAT IS BENEFICIAL TO THEM, BOTH FROM A TIME AND COST PERSPECTIVE.” – Joe Pietras, Owner/Operator PuroClean It’s all about customer service at PuroClean, where restoration experts provide an unmatched experience to clients who have experienced property damage. It’s a company that, like others featured in this article and like so many across the country, truly puts caring for its people first. At a time when restoration services are so imperative and the world is seeing more damage caused by weather and natural disasters, a franchise in this industry is an opportunity to provide a service that many people may not even know exists. “They don't know how to deal with it. So, if they don't deal with it properly, they can actually make it worse. Our standards are the highest level of service we can provide,” says Joe Pietras, owner/operator of four PuroClean franchise locations, three of which serve the Calgary market. Based in Alberta, Pietras owns a location in Lethbridge which he opened in 2010. A few years later in 2016, he had the opportunity to also acquire the Calgary locations, which he co-owns with business partner, Curtis Quinton. As someone who has grown up around franchising his entire life (Pietras’ family owned several franchises in Manitoba, where he worked in his youth), becoming a franchisee in his adult years just made sense. Thanks to a franchise consultant who helped him investigate a couple of businesses based on his personality traits, Pietras found PuroClean. It was an excellent opportunity to continue what he was already so good at: solving problems and helping people. “Being part of a franchise network always seems to provide better service levels,” says Pietras. “What makes PuroClean stand out is our DNA: we don’t just cut and tear a client’s property—we are true restorers, and we look at projects in a way that is beneficial to them, both from a time and cost perspective.”
He explains that the ideal PuroClean franchisee is someone who understands that, while their restorations are top-notch, exceptional and relentless customer service is the true benefit that they’re actually selling. “In our industry, everyone has the same style of equipment and is run by industry standards,” he says. “But [someone who understands] that our brand means something and we’re there to provide an exceptional experience is truly the perfect franchise owner for us.” His advice for success, regardless of company or industry, is to make sure you have a full understanding of your disclosure documents, so you don't encounter any surprises. And look at the franchise network’s corporate model. “Some are a little less hands-on and can make franchise owners feel more like a number, and others actually make you feel like family,” says Pietras. “I highly recommend going after the ones that make you feel like family.”
Learn more at LookforaFranchise.ca
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RESTORATION REFRESH
SERVPRO When disaster hits, the pros are always ready. Operating with the tagline “Like it never even happened,” SERVPRO’s size and scale are unmatched. With more than 2,200 locations in Canada and the U.S., the SERVPRO brand strives to help each and every customer by bringing their tagline to life—making the aftermath of catastrophic events like they never happened. “It is an unfortunate reality that weather can damage our communities, homes, and businesses, and we feel like we are doing what we can to help people take back that control when they are involved in some type of weather-related disaster,” says Brian Voss, senior vice president and chief franchise operating officer. Voss joined the SERVPRO team in 2021 as a military veteran and experienced franchise operations executive. He notes that he immediately felt drawn to the mission and purpose of the brand, owning the privilege to be part of the effort to help expand across Canada. Having entered the Canadian market more than 10 years ago, growth has been steady for SERVPRO, and there is an excellent opportunity to expand this growing brand. When large-scale disasters hit, SERVPRO crews are the folks who hit the ground running when it’s time to clean up the aftermath of devastating events. While millions of people watch from afar on social media, SERVPRO teams are on the scene to help clean up real-life events, like Hurricane Helene that recently
destroyed communities across Florida and the southern U.S. “SERVPRO has a national storm network that can be activated after significant events,” explains Voss. “This network allows for the exchange of critical information between our teams and gives any franchisee— no matter where they are based—the opportunity to join the storm effort and begin cleanup.” Franchisees who invest in SERVPRO have the opportunity to provide very rewarding work that helps serve the communities they live in, adds Voss. Their teams are available 24/7 to respond to both residential and commercial property damage. Franchise owners benefit from comprehensive operating systems, training facilities, and continuous professional development, equipment support, an on-site meteorologist, professional cleaning supplies, and of course, a strong brand name. “The SERVPRO network works together to ensure that no job is too big or too small. No matter the size of the disaster, commercial or residential, SERVPRO can help bring your property back to its pre-loss condition,” says Voss.
Learn more at LookforaFranchise.ca
Franchise Canada November | December 2024
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Child’s (and Pet’s) Play If you live in a home where you often hear the pitter-patter of tiny feet or paws, these franchise opportunities may just be up your alley BY JOELLE KIDD
Whether they have kids or fur babies, Canadians want the best for their children and pets. That’s why brands that cater to parents and paw-rents alike have seen success in marketing specialized products and services with a side of caring and compassion. Franchise Canada spoke to three brands with three unique offerings, all primed for growth in these sectors.
30 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
CHILD’S (AND PET’S) PLAY
Bosley’s by Pet Valu When Adam Woodward, senior vice president of franchise store operations for Pet Valu, was just starting out at the company, he remembers one of his first store visits: a woman came in and told the owner that her cat had died. “It was nothing more than that,” Woodward remembers— she shared her news, and shared a cry and a hug with the store owner. That was when he realized the pet sector is more than a retail business. “It’s not just about moving a bag of milk, or a hamburger. We’re selling relationships—we’re selling love.” This same mindset is at play in every Bosley’s location, one of the Pet Valu family of brands based in B.C. Though acquired by Pet Valu in 2010, Bosley’s has been around since the 1970s. With these deep roots in the province, the brand is focused on being community-minded and sharing hands-on expertise with customers. “The Bosley’s customer wants the expertise, they want the connections, they want to talk about their animals,” says Woodward. Along with selling pet food, treats, accessories, and apparel, Bosley’s offers grooming services and partners with local animal rescues to facilitate pet adoption.
The pet sector has seen huge growth since the COVID19 pandemic, Woodward notes; an estimated three million pets were welcomed into Canadian homes between 2020 and 2022. Along with the boom in pet ownership, Woodward says he’s seen growing trends like more interest in pet accessories, and particularly apparel. (Bosley’s B.C. customers love the brand’s matching dog and human raincoats, according to Woodward.) Bosley’s franchisees receive intensive training and ongoing hands-on support for the first year of operation. The Pet Valu team also helps new franchisees find locations and offers resales of corporate stores. Potential Bosley’s franchisees need to be based in B.C. and have an entrepreneurial spirit and desire to get out into the community. When selecting franchisees, Woodward says, “I’m looking for operators, not investors. I’m looking for people that will want to go into the store, will want to work day to day, [and] will want to connect with their customers.”
Learn more at LookforaFranchise.ca
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CHILD’S (AND PET’S) PLAY
Jolly Bubble Marketing expert and mother of two Niki Chen had a simple idea: a fantastic indoor playground for kids. “We wanted to improve the design [and] equipment quality” of a typical playground, says Chen, CEO of Jolly Bubble. “Families can find a better place to host their birthday parties and let the kids play safely and have much more fun.” Chen and her co-founder Ellen Yu (who has a background in kids’ retail) opened the first Jolly Bubble location in Markham, Ontario, in June 2023. Just over a year later, they’ve expanded to a second location (Richmond, B.C.) and are looking to grow quickly, with a focus on Mississauga, Oakville, Vaughan, and other areas across Ontario and Canada in 2025. The franchise model is a perfect fit for the concept, Chen says. A proven system based on the brand’s expertise is imperative for navigating the difficulties of real estate (zoning for indoor playgrounds can be tricky), construction, safety standards, and equipment. In the flagship location, they’ve also pioneered creative educational programming, like music and arts classes for toddlers and infants. Along with operations training, the brand consults with franchisees to create bespoke playground designs that fit their space. “We do the design with our in-house design team, which can be whatever theme [they] want—
space, a garden—all based on the franchisee’s ideas,” Chen says. The brand also helps with social media marketing, including partnering with influencers to get the word out on Jolly Bubble’s cute, photogenic interiors. There’s always a new generation coming up, so kids’ services are a great industry to be a part of, Chen says. Jolly Bubble capitalizes on the trend toward modern, eye-catching, and Instagram-worthy outings. But the brand also provides an essential service for parents: birthday parties. “[Kids] have a birthday once a year, and this is the most important day of their lives,” Chen says with a smile. “They want to invite all their classmates, and parents want to find a place where they can bring all these kids together and they don’t need to prepare the food, don’t need to worry about the decorations.” While it is a fun and profitable business, Chen says, it’s also a stressful one. “Babies will cry, parents will have complaints, kids will spill juice on the floor,” she says. But at the end of the day, “Parents appreciate us, and kids love it.”
Learn more at LookforaFranchise.ca
32 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
CHILD’S (AND PET’S) PLAY
Water Babies Canada For Water Babies, finding a niche means the brand can be the best at what they do. “We teach swimming to babies and toddlers right from birth through to just over five [years old],” says Sarah Sundin, chief operations officer for Water Babies Canada. “So we’re very specialized, which means that we can be the best that we can possibly be—and that follows through absolutely everything we do, from the program that we operate to the research and development that goes into designing it.” With more than 65 locations that teach over 40,000 children each week, the U.K.-based brand has come far with this standard of excellence. As Sundin notes, all of Water Babies’ swim instructors complete between 150 and 200 hours of training. While Water Babies takes a rigorous approach to training and research, it’s a love for kids that makes the brand thrive. In fact, it’s what drew Sundin, a chartered accountant by trade, to the concept. “I had a very corporate career before this and then was on maternity leave. I’d heard about Water Babies before I had my son,” she says. “I got on their wait list, I took him to classes, and I fell in love with the whole program. I’d heard amazing things about it, and he started swimming at eight weeks [old].” Most Water Babies franchisees are teachers, though no background in swim instruction is required to start. Franchisees typically start by filling every role, from teaching to admin work, and recruit office staff and other
instructors as they grow their business. What makes Water Babies unique, Sundin notes, is its low overhead; because the brand doesn’t buy and build its own facilities, but instead rents space at local pools, franchisees can get started with a lower financial commitment. While the industry saw a downturn during pandemic lockdowns and a boom immediately following the lifting of COVID-19 restrictions, Sundin estimates that services like swimming lessons have evened out to a consistent demand. “Ultimately, parents want to enrich their children’s lives. They want to provide a variety of opportunities, activities for their child to learn and develop,” she says. Franchisees with Water Babies complete an initial six weeks of training and then receive structured, ongoing support from the franchisor. The brand is actively recruiting franchisees from across Canada, and though they don’t need an aquatics background, Sundin notes they should be passionate and eager to learn. “You can’t teach someone to have a passion for babies and toddlers and teaching swimming,” says Sundin. “So really it’s that we want people to be invested in their business.”
Learn more at LookforaFranchise.ca
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Your Guide to Franchising
We’re taking you through the steps and terms you need to know before starting your franchise journey This content is taken from the CFA’s March 6, 2024, Learn & Grow webinar titled “Fundamentals of Franchising,” hosted by Kristen Gale, founder and CEO of THE TEN SPOT.
So, what exactly is franchising? Franchising is when a company licenses their brand’s intellectual property, products and services, and operational procedures and manuals to location owners, who are called franchisees. Conversely, companies who enter the franchise industry by licensing their brand are called franchisors. Franchisees “buy in” to the franchise system to get access to pre-built procedures. The concept actually began not with McDonald’s as many people believe, but with a woman from Oakville, Ontario, who in the 1880s launched a salon business and decided to teach her method to other women. Eventually, she grew her company to 500 locations, an amazing achievement in 2024 let alone the 19th century!
• Leaning on financial experts to ensure that they are in good fiscal standing.
How does a company begin franchising? Deciding whether to get into franchising isn’t a casual decision for businesses. And after investigating their options, some businesses realize that they aren’t yet at a stage where they can successfully franchise, either due to a lack of resources, experience, or other factors. Once they are ready, however, a company can prepare themselves to enter the franchise industry by: • Ensuring they have trademarked all their intellectual property (IP) and business concept, including branding, logos, wordmarks, operational programs, etc. • Soliciting the help of a lawyer who specializes in franchise law to create their franchise agreement.
From there, they can license their business concept to franchisees. Six provinces currently have franchise legislature that outlines the contractual obligations between a franchisor and its franchisees: British Columbia, Alberta, Manitoba, New Brunswick, Ontario, and Prince Edward Island (while Saskatchewan’s The Franchise Disclosure Act has received royal assent, it has not yet come into full force at the time of publication). Under these laws, franchisors must provide a franchise disclosure document and franchise agreement to their franchisees within a specific time frame (usually 14 days) and containing specific material information.
34 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
YOUR GUIDE TO FRANCHISING What are some of the terms I need to know? Below is a list of definitions that you should familiarize yourself with as you begin your franchise journey. As with any investment, it’s always best to solicit the help of professionals, whether they be franchise law experts or franchise consultants, before making what is likely the biggest decision of your life. Franchise disclosure document (FDD): The FDD gives you intel about the franchisor you are looking to partner with. It’s a document provided to franchisees that outlines how the franchise system is run and other aspects of the business, including: • The company’s ownership structure, including the C-suite and their roles • The trademarks they own • A ll costs associated with launching a franchise location (turn to page 36 for more) • Ongoing fees charged by the franchisor to the franchisee • The training and support that a franchisee will receive • Other non-monetary obligations the franchisee will have to the franchisor • The non-monetary obligations that the franchisor has to the franchisee • Some historical revenue (though not always included) • Contact information for current and former franchisees (included so that you can ask them about their experiences within the system) • A copy of the franchise agreement (you will want to read this ahead of time, which is why it’s included in the FDD) Franchise agreement: The franchise agreement outlines the parameters of the relationship and details all the responsibilities that the two parties have to each other. It's included in the FDD (in provinces where it is a requirement) and serves as the contract between the franchisor and the franchisee—which is why it is important to always get a franchise law specialist to look it over before signing. Initial fee: Also called the franchise fee, this is a set, one-time fee that helps cover your training and other preparation costs needed to get you fully prepared to own and operate your business. The franchisor doesn’t make a lot of money off this; instead, it’s used to help support you in finding contractors, financing, a proper location, etc. After all, it takes a village (and a ton of work) to go from signing the agreement to being fully open and operational! Royalty fee: This is an ongoing fee that the franchisee pays to the franchisor based on sales and is applicable as soon as your business is open. It’s often six per cent of topline sales, though it can vary, and it covers your ongoing right to use the franchise’s branding, logos, trademarks, suppliers, and more. It will also help support innovations that the brand will make during the time you own a location. Because it’s a percentage of your reve-
nue, the better a franchisee does, the better the franchisor does in return. And the more locations a franchise system has, the larger their intake. Marketing fee: Some franchisors also charge a marketing fee, which is also known as an ad fund fee or brand fee, among other terms. It’s a collection of funds that the franchisor gathers from all franchisees and uses to instigate large, often national marketing campaigns. This is of great benefit to every franchisee, as it helps with brand recognition from coast to coast. After all, a single location may not be able to afford a celebrity endorsement, but with a large pool of funds, signing an athlete or movie star is a possibility that the franchisor can explore. What are the benefits of franchising? Franchising offers benefits to both the brand and the franchisee. For the franchisor, it helps them grow their company without having to resort to taking out a loan from a friend, loved one, business partner, or financial institution. For the franchisee, they are able to open their own business under the guidance of a proven system that has already worked out the major kinks in its corporate locations or with previous franchisees. It is often easier to find success when you have the expertise of a franchise system and its strong branding behind you. Another benefit is that the potential for profit is within the franchisee’s hands. The franchisor-franchisee relationship is a fantastic dynamic, wherein as a franchise’s location owners find success and grow their small businesses, the franchisor benefits through ongoing fees (see “What are the terms …” at left) with the added bonus of increased brand recognition. And the better the franchise does, the more money the franchisor has to invest back into the system—it’s a win-win! Note that franchisors cannot guarantee a specific revenue or income for a location. If they do try to overpromise or claim untold riches, consider that a huge red flag. While both the franchisee and the franchisor should be aligned in the profit goals for the location, it’s worth bearing in mind that most new businesses take a while to become profitable.
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YOUR GUIDE TO FRANCHISING What are the associated costs that are laid out in the FDD? To best prepare franchisees for the realities of launching their business, an FDD will include a breakdown of all costs associated with launching the franchise location. This initial investment breakdown will include all large and small purchases/necessities that may not be assumed by a new franchisee (you don’t know what you don’t know until you know it!), and can include, but is not limited to: • For brick-and-mortar businesses: All estimated costs for built-out, drawings, permits, construction, coordination, custom millwork, and anything else that needs to be set up prior to launch, as well as first and last month’s rent. For national brands in several provinces or markets, a breakdown by region may be included. • For mobile, home-based, or other business types: The cost of trucks, kiosks, websites, etc. • Legal fees (this includes having the franchise agreement reviewed—not to make any changes, as the agreement is not usually customizable, but because you will want to understand exactly what you are signing) • Initial local marketing costs • Wages needed to train staff (as you will need to set them up for success before you throw open the doors) • Other financial responsibilities of the franchisee, such as software subscription charges or insurance fees specific to the industry What are some ways I can determine the right franchise system for me? There are many different types of businesses in the franchise industry—in fact, it encompasses almost every sector. There are more than 60 categories of businesses
in the Canadian Franchise Association’s (CFA) membership alone! Attending tradeshows, such as the Franchise Canada Show, coming to Toronto’s International Centre on February 1 and 2, is a great way to research your options and meet face to face with franchisors who are looking to expand through prospective franchisees like yourself. The CFA’s online directory (LookforaFranchise.ca) is another fantastic resource for whittling down your options. You can search for franchise opportunities by geographic location, investment level, category, and much more, and it allows you to reach out to the franchisor directly for more information and to express your interest. Again, it’s always best to rely on the advice and opinions of those who have been there before, whether current or former franchisees, franchise law experts, or franchise consultants. There are plenty of ways to enter the franchise industry, and even more benefits—namely, being your own boss!
We want to hear from you! If you have any additional questions, the CFA team is here to help! Reach out us with your queries, and you may see your question addressed in an upcoming article, podcast, or video!
36 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
WELCOME, NEW MEMBERS! New brands from across Canada bringing franchise opportunities to you
The Canadian Franchise Association (CFA) is made up of franchise systems that adhere to our Code of Ethics and provide Canadians from coast to coast with the opportunity to own their own business, but not be in business on their own. Since July 2023*, we’ve welcomed dozens of new brands into our fold and are pleased to introduce them to you here. Join us in saying hello and a hearty congratulations to these brands that have taken the step to show their commitment to franchising excellence. Welcome to the CFA family! *The members reflected here joined or re-joined the CFA between July 1, 2023, and August 1, 2024.
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WELCOME, NEW MEMBERS!
6ixty Wings With 60 distinctive and unique flavours of wings, paired with its eye-catching branding, 6ixty Wings’ fast casual concept, ideal for shopping malls and postsecondary campuses, has been rapidly expanding across Canada. Franchisees will receive in-depth, hands-on training at one of the brand’s locations that is customized to fit their lifestyle in a full- or part-time format and tailored to fit their previous experience. 6ixty Wings’ marketing program will help new franchise locations get off on the right foot through its social media campaigns, professional corporate website, locationspecific promotions, and much more.
Big Frog Custom T-Shirts & More For more than 15 years, Big Frog Custom T-Shirts & More has been supporting local communities in all their custom apparel needs. From sports teams to small businesses, Big Frog’s customer base is always in need of the type of full-service printing and graphic services that their franchisees provide each and every day. A true turnkey operation, Big Frog takes pride in putting the fun in owning a custom t-shirt franchise thanks to its easy-to-follow business model and daylight operating hours for true work-life balance. Franchisees benefit from high-gross margins and multiple revenue streams, making it recession-resistant. After all, as the brand itself says, “Everyone wears a t-shirt!”
Learn more at LookforaFranchise.ca
Learn more at LookforaFranchise.ca
CarePatrol
Cheezed
The senior care industry is expanding rapidly, with no signs of slowing down. CarePatrol is dedicated to delivering top-quality care to Canadian seniors nationwide, whether they need inhome assistance or are transitioning to a suitable senior living community.
Grilled cheese sandwiches are one of the ultimate comfort foods. If you agree, and you have a passion for serving good food fast, owning a Cheezed franchise location may be right for you.
Franchise owners serve as senior living advisors, guiding older adults and their families in finding the right level of care to meet their needs. Franchisees take pride in supporting their local communities and benefit from a business model that offers a low investment requirement, strong earning potential, and comprehensive training to guide them through every step of the process.
Learn more at LookforaFranchise.ca
This new quick-service concept delivers a menu of intriguing takes on the lunchtime staple within a cozy interior, complete with wood accents and exposed brick, reminiscent of a cabin. For franchisees who are dedicated to quality and creativity, Cheezed provides a proven business model, in-depth training, and ongoing support. A low investment and simple operations add to the benefits of being a Cheezed location owner.
Learn more at LookforaFranchise.ca
38 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
WELCOME, NEW MEMBERS!
Cleaning Depot by PBJ Cleaning Depot is a provider of janitorial and sanitation products for hospitality and office spaces. Since launching in 2003, the brand has developed relationships with large vendors, including Dustbane, Kimberly-Clark, Kruger, and Nilfisk, so franchisees can take advantage of a supply chain chocked with name-brand products. Although sanitation experience isn’t necessary, Cleaning Depot is looking for franchisees who are passionate about customer satisfaction. Mentorship and development programs offer comprehensive training, combining theoretical knowledge with hands-on learning and allowing incoming franchisees to thrive from day one. Startup costs range from $155,000 to $240,000.
Fitness Machine Technicians As the only provider in North America that offers both fitness equipment repair and preventive maintenance services in both national and international commercial and residential sectors, Fitness Machine Technicians offers interested investors a unique opportunity to own a business with residual income potential due to its established, recurring maintenance contracts. The system’s low investment level and vast menu of service options, including maintenance, repair, assembly, disassembly, and commercial installation services, make Fitness Machine Technicians ownership a viable year-round business. Plus, its customer pool is large, with potential for requests coming from colleges and universities, health clubs, physical therapy centres, property managers, and more.
Learn more at LookforaFranchise.ca
Learn more at LookforaFranchise.ca
FRSTeam
Fuwa Fuwa Japanese Pancakes
Restoration is the bread and butter of FRSTeam, a full-service solution provider that renews its customers’ objects, including clothing, furniture, and electronics, to their former glory, in record time. Working with insurance companies, FRSTeam determines what needs to be removed from a premise in order to be restored and what can be worked on within the home, easing the amount of disruption that occurs. Combining service, integrity, and quality into its menu of services, FRSTeam is looking for franchisees to help take its brand across Canada. Hand in hand with head office, selected franchise location owners will leverage its proprietary training and operational methods to deliver unmatched service to customers looking for a port in the storm in the wake of a disaster.
Learn more at LookforaFranchise.ca
Bringing a Japanese favourite to Canada was goal number one for the founders of Fuwa Fuwa Japanese Pancakes when they opened their first Toronto location. The company’s handcrafted, fluffy, soufflé pancakes are a social media hit, and the brand is now looking to expand into additional markets to make their delicacies a true Canadian staple. Requiring a small footprint (800 to 1,500 square feet) and low staffing requirements (one to two people during the week and two to four over the weekends), Fuwa Fuwa ownership is perfect for those who wish to help customers “sweeten their day.” Add its unique product to the Canadian market and ongoing support from head office, and the brand looks like a tastier option by the minute!
Learn more at LookforaFranchise.ca
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WELCOME, NEW MEMBERS!
GC Burger
HARVEST Clean Eats
GC Burger’s “Great Canadian” recipe is a fan favourite, delivering a combination of high-quality fresh ingredients and bold, inventive flavours. GC Burger is quickly establishing itself as a powerhouse in the restaurant scene, and the brand is looking for prospective franchisees to partner with and take the company to the next level.
Owning a HARVEST Clean Eats location means taking pride in serving fresh, nutritious meals that don’t skimp on flavour. For interested parties looking to invest in a system that puts health above all other factors, appealing to the large demographic of Canadians who are concerned about the quality of their food, look no further.
With the brand poised for expansion across Canada and beyond, ideal locations include bustling downtown districts or near colleges and universities, with flexible space options ranging from 300 to 500 square feet in food courts to 2,000 square feet for street or strip mall locations. Each location operates with a dedicated team of five to 10 staff per shift. If you have restaurant management experience and a passion for delivering great food and service, GC Burger wants to hear from you!
A tech-forward brand, HARVEST Clean Eats leverages the power of online ordering and other interfaces to make the process of both running a store and ordering from one equally simple. With a supply chain that relies on local farmers and other suppliers, each dish brings HARVEST Clean Eats’ motto to life: they are out to change the way people think about fast food.
Learn more at LookforaFranchise.ca
HOTWORX
iCRYO
Combining challenging workouts with infrared heat with unlimited, 24-hour access for members, HOTWORX is revolutionizing the way fitness fans fit in their workouts. Offering a selection of 30-minute isometric (such as yoga) and 15-minute high-intensity workouts led by certified virtual instructors, HOTWORX provides convenient fitness solutions that provide more workout in less time.
For those looking for a standout franchise investment in an intriguing market, iCRYO is a health and wellness brand leading the way in medical aesthetics with a menu of services that cater to a number of concerns. The brand’s 300 locations offer its customers body sculpting, IV infusions, whole-body cryotherapy (which uses cold temperatures to freeze and eliminate body fat), compression therapy, and more.
The small footprint of each studio accommodates over 500 sessions every day with little hands-on effort. The brand has found success in the United States, the U.A.E., Saudi Arabia, and Ireland, and has more than 700 open locations worldwide, further proving its strength as a brand.
Territories across Canada are currently available for approved partners, and franchisees will benefit from the experience and guidance of the company’s leading marketing team, best-inclass equipment and supplies, and 24-hour support from those who know the system inside and out. Become an investor in this personal health services brand and help bring affordable, professional, and convenient services to eager audiences from coast to coast.
Learn more at LookforaFranchise.ca
Learn more at LookforaFranchise.ca
40 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
WELCOME, NEW MEMBERS!
Jolly Bubble
Kargo Today
In many households, it’s the kids that hold the purse strings. And for a brand like Jolly Bubble, parents had better watch out, because their children are about to find their new favourite place to burn off energy. Whether customers are booking birthday parties or just dropping off their kids while they shop, Jolly Bubble provides a fun and friendly service that every member of the family can appreciate.
Founded in 1999 as The Delivery Guys Inc., Kargo Today is a 25-year-old company that offers same-day cargo transportation services with a diverse fleet, including cargo vans and 24-foot trucks. Their commitment to B2B customers is reinforced by advanced dispatch and tracking software, emphasizing reputation, relationships, and client support.
Franchisees are set off on the right foot with the brand’s onestop supply chain management system, product innovation that puts amusement at the forefront, membership tiers that encourage repeat visits and word of mouth referrals, and much more. Contact the brand to learn what makes Jolly Bubble different from other indoor playgrounds in the Canadian market.
Kargo Today is expanding its network through franchising, dedicated to aiding franchisees’ success via comprehensive training and support. This expansion ensures customers benefit from Kargo Today’s logistical support across various markets. The business model is distinguished by its low entry cost and scalability, providing franchisees with the opportunity to capitalize on substantial margins within a business showcasing strong unit economics.
Learn more at LookforaFranchise.ca
Learn more at LookforaFranchise.ca
Koala Insulation
KTV Working Drone
In Canada alone, more than $58.5 billion is spent on home improvement projects each year. As a Koala Insulation franchisee, you can take a slice of the growing Canadian market with a company that has sold over 400 franchise locations in the United States in just four years.
Franchisees with a fear of heights, fear not! The KTV Working Drone system means that you and your team can clean the exteriors of buildings of all sizes from the safety and comfort of the ground, thanks to an innovative drone system that provides a necessary service in a new, eye-catching way.
Whether you decide on an executive or owner-operator role, Koala Insulation Canada’s proven marketing model helps drive leads to your door and connects you with consumers who are searching for the services you offer. You’ll feel good about a system that values and advocates for the environment and the communities in which they do business.
KTV is looking for Canadian partners who align with their values and are searching for a novel investment that stands out from the crowd. Its brand is recognized in dozens of countries, from Argentina to Uruguay, meaning location owners benefit from the strength of a renowned brand and an established system.
Learn more at LookforaFranchise.ca
Learn more at LookforaFranchise.ca
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WELCOME, NEW MEMBERS!
Light Owl
Menbow Ramen
Canadians invest a lot in their homes, which means that they want (and deserve) to show them off. Enter Light Owl, a Vancouver-based company that specializes in exterior lighting. From illuminating a home’s façade to its backyard patio, Light Owl’s team of lighting experts work hand in hand with their clients to highlight all their property has to offer—literally.
A quick scan of TikTok will reveal many things, but most importantly that ramen is having a moment. Enter Menbow Ramen, a modern quick service restaurant that delivers bowlfuls of rich flavours and perfect textures to its devoted fans.
Light Owl’s clients benefit from its easy-to-use system that’s environmentally friendly and on the cutting edge of technology. For its franchise location owners, a variety of offered services, from maintenance to installation and beyond, ensure the business remains busy year-round. Plus, Light Owl’s support of OWL, a rehab and recovery centre in Delta, B.C., means every customer has the opportunity to make an important impact on B.C.’s wildlife.
Owning a Menbow location means being a part of a growing trend in the culinary world, especially within Canada, where international foods of all types are experiencing renewed interest. The brand is searching for hardworking individuals who are ready to take the company to the next level, and thanks to its proprietary training, the only acumen you’ll need is a desire to succeed in business.
Learn more at LookforaFranchise.ca
Learn more at LookforaFranchise.ca
Mezza Lebanese Kitchen
Mo’Cha Bubble Tea
Award-winning Mezza Lebanese Kitchen is a fast-casual favourite with over 30 years of experience, known for its authentic Lebanese cuisine and signature dishes like shawarma, souvlaki, donairs, and falafel. With 20-plus locations in Atlantic Canada, Mezza has built a reputation for fresh ingredients and family values. Now expanding to Alberta and Ontario, Mezza partners with business owners who see the brand’s potential for national success. Franchisees benefit from a proven 35-year business model, comprehensive training, and ongoing support from a dedicated team. Mezza offers an exciting opportunity to bring authentic Lebanese flavours to new communities while building a successful business with a trusted brand.
Learn more at LookforaFranchise.ca
Cute logo? Check. A product that’s in high demand? Check. Everything a franchisee needs to make a splash in their local market? Absolutely! With Mo’Cha Bubble Tea, opening your own tea shop is a dream that can come true, much faster and with more stability than if you went at it alone. Selected partners are paired with one of the brand’s franchise business leaders to guide them through every step of the set-up process. The company’s head office team never rests on its laurels and is always looking for new ways to improve their system, such as by staying on top of the latest flavours and health trends, which is why Mo’Cha consistently ranks as the number-one bubble tea brand, which means better brand recognition and potentially more traffic for its location owners.
Learn more at LookforaFranchise.ca
42 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
WELCOME, NEW MEMBERS!
Paris Baguette
Pearle Vision
There’s a little taste of gay Paris is in every bite of Paris Baguette’s treats. The French-inspired bakery-café serves baked and brewed goods with high-quality ingredients. Pastries and cakes are made fresh on-site at each café and are delivered to guests in a warm and welcoming atmosphere.
When Dr. Stanley Pearle founded his own optometry practice in 1961, he did so with the intention of providing superlative eye care. Since then, his philosophy has grown the brand to 400-plus units across the U.S. and Canada with the driving factors of best-in-class doctors and a premium assortment of frames and lenses to serve their loyal community of patients and customers.
Paris Baguette provides a convincing franchise option with its range of menu items, from breakfast sandwiches to wraps and salads, allowing franchisees to capture guests during all dayparts. The brand stands out from traditional café systems with its stylish desserts and a unique café design that recalls the arrondissements of the City of Light. For a minimum capital investment of $500,000, franchisees can bring Paris to their neighbourhood with Paris Baguette.
With Canada’s growing elderly population, franchisees in the vision care industry are primed to take advantage of a population that needs consistent eye care, and Pearle Vision has the tools to meet that need successfully. Prospective franchisees gain access to the brand’s established supply chain and its turnkey marketing program, which provides local and national marketing opportunities. Owners are also able to supplement marketing on the local level with brand-approved marketing and receive additional support from field marketing managers.
Learn more at LookforaFranchise.ca
Learn more at LookforaFranchise.ca
Potikki’s
Poulet Rouge
Potikki’s puts a Canadian twist on Indian classics. The fusion concept offers halal, gluten-free, vegan, and vegetarian options to satisfy a range of dietary needs. Since opening its first location in downtown Halifax, the brand has looked to expand throughout Canada’s eastern market and beyond, with potential landing zones in Ontario, Manitoba, Saskatchewan, and British Columbia.
Poulet Rouge brings a fresh twist to the growing bowl market with a menu centred on grilled chicken, paired with wholegrain bases, crunchy vegetables, and flavourful sauces. Since opening its first restaurant in 2012, the brand has been redefining the fast-casual dining experience.
Franchisee training comprises seven days in-store at the Halifax location, followed by training in the franchisee’s location before opening. With limited existing locations and a novel concept, prospective franchisees have the opportunity to get in on the ground floor of a budding franchise system.
Learn more at LookforaFranchise.ca
Poulet Rouge is on an exciting growth trajectory across Canada and is actively seeking franchise partners. Potential investors who are passionate about serving healthy, halal-certified meals are invited to reach out and bring Poulet Rouge to their neighbourhood.
Learn more at LookforaFranchise.ca
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WELCOME, NEW MEMBERS!
Qwench Juice Bar
Raw Canvas Skin Clinic
Qwench Juice Bar is bringing its organic mandate to the smoothie market. For Qwench, serving delicious, nutrient-rich smoothies should be an all-natural affair, which is why the brand makes all the juices and milks in each of its smoothies and juices fresh in store every day. While the smoothie market may seem oversaturated, Qwench falls back on its 10-year foundation to stand out from the pack.
Raw Canvas Skin Clinic is a private skincare clinic offering medical-grade treatments and products that bring the clinic experience home. Offering everything from treatments for skin conditions and scar revision to tattoo and laser hair removal, Raw Canvas positions itself as a one-stop shop for all medi-spa treatments.
Qwench seeks franchisees with previous business experience and a desire to operate a health-conscious franchise. Training is provided over two weeks at a location in Hollywood, California, followed by one week at the franchisee’s location. The training covers customer service, hiring, maintaining equipment, and overseeing the cost of goods. Franchisees also get access to marketing that focuses on the local area, so neighbourhoods can feel the location’s presence immediately.
Franchisees can position themselves for success in the burgeoning industry with the support of the franchise. Esthetics experience is ideal but not necessary, as the comprehensive training is designed to ensure owners are fully ready to oversee their locations. Training is provided over eight weeks and includes ongoing support; plus, franchisees also benefit from system-wide integration with customized online booking and point-of-sale systems and a team of location assistance experts.
Learn more at LookforaFranchise.ca
Learn more at LookforaFranchise.ca
REBEL GREEK
Renue Systems
These rebels certainly aren’t without a cause! Drawing from the traditions of Greek cuisine, REBEL GREEK offers popular classics from the Mediterranean like spanakopita and gyro with local, unconventional twists. Many of its ingredients are imported directly from Greece, meaning franchisees can rest assured that they’re serving authentic, quality goods to their guests, no matter where their location may be.
Renue Systems is the leading provider of comprehensive deep cleaning services to the hospitality industry. Its industry expertise and strong reputation have resulted in preferred vendor partnerships with a number of international companies including Marriott, Hilton, Hyatt, Best Western, InterContinental, and others. With more than 30 years of experience, the company has developed tremendous industry knowledge and relationships to assist its nearly 30 offices throughout North America and a growing number overseas.
Although experience isn’t necessary, food and managerial experience go a long way when approaching the franchise. Incoming franchisees can get training and support directly from the brand’s founder who, on top of his tenure at REBEL GREEK, brings a decade of experience as a quick service restaurant owner.
Learn more at LookforaFranchise.ca
Renue Systems prioritizes collaboration and integrity in its franchisees above all in order to meet the exacting cleanliness standards of the hospitality industry. The turnkey business package includes its proprietary equipment, chemicals, and supplies, with full training, marketing assistance, and businessbuilding support.
Learn more at LookforaFranchise.ca
44 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
WELCOME, NEW MEMBERS!
Sabai Thai Spa
Safe Sweat
Sabai Thai Spa brings the essence of Thai-inspired hospitality into the busy lifestyles of the average Canadian guest. The tradition of Thai massage blended with personalized techniques that promote balance and healing means each guest can get an experience tailored to their needs, including traditional massages, facials, and reflexology. A range of service enhancements that include essential oils, deep tissue, tension balm, and more.
Safe Sweat provides a happy medium between home workouts and big-box gyms. The brand’s facilities offer private space equipped with top-of-the-line equipment and digital programming, providing a luxury experience at a price point that won’t break the bank.
Incoming franchisees can benefit from a high percentage of return customers due to Sabai Thai Spa’s established business model and exclusive skincare line. The brand is seeking to expand beyond its primary flagship in Vancouver, British Columbia, to the rest of Canada.
For franchisees who want to be early investors in a boutique system, Safe Sweat provides opportunities in communities across the country. Other benefits include the brand’s comprehensive training and support and multiple revenue streams on top of membership fees, including personal training sessions and retail product sales.
Learn more at LookforaFranchise.ca
Learn more at LookforaFranchise.ca
Senior Helpers
Sprayer Hub
A global brand that specializes in caring for seniors with agerelated health issues such as limited mobility and cognitive decline, Senior Helpers is synonymous with compassionate care. The brand has expertise in Alzheimer’s and dementia care, providing additional peace of mind for clients whose family members need professional-level care.
Sprayer Hub is a retail brand that supplies spraying equipment and accessories for the painting, rustproofing, and lubrication industries. The brand also offers rentals, financing, and equipment repairs (servicing) in its all-in-one units, and offers an alternative revenue stream through the addition of its on-call repair service.
Priding itself on its status as an affordable franchise opportunity, with a $65,000 franchise fee and modest ongoing royalty fees, Senior Helpers also offers assistance in securing financing to its selected franchisees. Even better, no experience in the senior care industry is needed.
While the brand is new on the scene, Sprayer Hub is a division of Lemmer Spray Systems Ltd. which has been providing quality products and services since 1965. Franchisees of Sprayer Hub have access to approximately over 60,000 industrial products, while procurement and logistics are handled by its internal team, meaning franchisees can focus on their business. Sprayer Hub is seeking individual investors with complementary technical backgrounds. Training is also provided, and as the store hours are 8 a.m. to 5 p.m., the franchise provides excellent work-life balance.
Learn more at LookforaFranchise.ca
Learn more at LookforaFranchise.ca
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WELCOME, NEW MEMBERS!
Studio Kiku
SWAT Wildlife Inc.
Studio Kiku provides tattoo removal and skincare services, with attention to detail and precision inspired by Japanese culture. Franchisor Billy DeCola has a personal edge in the industry as a long-time celebrity tattoo artist. His time-tested knowledge of skin has led him to share the skills with those who want to continue to love the skin they’re in.
SWAT Wildlife Inc. is a leading animal control company based in Toronto, specializing in humane and effective wildlife management. They tackle a wide range of wildlife issues, ensuring safe coexistence between residents and animals. With a focus on prevention, SWAT Wildlife conducts thorough inspections to identify potential entry points and property concerns, implementing tailored exclusion strategies to keep wildlife at bay. SWAT is also equipped to do attic insulation, demolition, and restoration services.
As tattoos have become increasingly ubiquitous, the demand for removal has also grown. As a Studio Kiku franchisee, the brand offers partnerships with industry leaders who share their proprietary techniques developed through years of experience. No tattoo removal experience is necessary, and training offers a wide range of resources, including video tutorials, interactive content, and custom modules.
Franchisees can get on board with a business that has a wide range of revenue streams and break into Canada’s $2.2 billion pest control market. SWAT also has an in-house call centre, taking scheduling issues off the plates of franchisees. Training is covered through 21 days of in-class and on-the-job training at the company headquarters in Toronto.
Learn more at LookforaFranchise.ca
Learn more at LookforaFranchise.ca
SweatHouz
The Coffee Bean & Tea Leaf
SweatHouz is a trendy, membership-based spa franchise where members get access to private suites for an infrared sauna session and cold plunge. The franchise aims to be an addition to a well-rounded, wellness-focused lifestyle. In addition, the brand’s proprietary app lets clients book sessions or purchase memberships, packages, and merch from the comfort of their phones. Prospective franchisees with SweatHouz are trained with franchisee support, potential territory options, and a review of the brand’s unit economics. SweatHouz seeks franchisees with entrepreneurial experience who want to make an impact on their community in a safe, inclusive, and positive way.
Learn more at LookforaFranchise.ca
For those looking to raise the local profile of an internationally recognized brand, The Coffee Bean & Tea Leaf’s (CBTL) premium offering and presence might be just the ticket. The company prides itself on sourcing high-quality coffee beans and tea blends for its product, so franchisees know they’re getting and serving the best. Meanwhile, the brand provides excellent service for franchisees as well. After 60 years, and with 1,100 stores worldwide, CBTL is able to offer franchisees a range of retail formats, including traditional retail, airports, and university campuses. CBTL is seeking franchisees willing to commit to additional units with a multiple-store commitment over a period of years.
Learn more at LookforaFranchise.ca
46 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
WELCOME, NEW MEMBERS!
The DRIPBaR
Tire Butler
For people looking for another addition to their health and wellness routine, The DRIPBaR is a franchise supplying cellular wellness using intravenous (IV) therapies, helping clients find health beyond the typical means of diet, exercise, and traditional medicine. The company’s research and development council are working to advance client care in this emerging industry.
Tire Butler has been servicing the cars of the Greater Toronto Area for over 13 years, with 520,000 tires changed by their highly trained and certified technicians. While mobile tire changes make up the bulk of its service, the brand also offers interior detailing and rim repairs.
Canada has a large market of healthy individuals looking for cutting-edge ways to stay in shape. For franchisees, The DRIPBaR offers a model of profitability in a high-growth sector. Investing in the burgeoning healthcare opportunity costs up to $441,500, and as the build-out comes with everything franchisees need to start, the brand is a fit for semi-absentee owners like retirees.
Tire Butler has been perfecting its franchise offering for over a decade and is ready to offer their proven system to prospective franchisees in B.C., Quebec, Alberta, and Ontario. Franchisees can also make use of the brand’s established platform to service hitches, racks, cargo systems, and provide interior detailing. Those with a vision of making the automotive industry more convenient, reliable, and customer-centric are invited to apply.
Learn more at LookforaFranchise.ca
WrapZone An early adopter of the fast-fresh model, WrapZone has been supplying B.C.’s Okanagan region with healthy food since 1997. WrapZone serves a series of signature wraps, bowls, salads, and smoothies—drawing from the cultural flavours of Greek and Thai food, among others. The projected cost of opening a WrapZone franchise is up to $350,000, covering the franchise fee, leasehold improvement, marketing, legal, and accounting coverages.
Learn more at LookforaFranchise.ca
Zerorez Carpet & Air Duct Cleaning Zerorez stands out in the cleaning industry for its specialty in carpets, rugs, and upholstery, and additionally cleaning and sealing tile and grout. The brand also uses its own proprietary Zr Water—soft water that’s been electrolyzed and oxidized to better release dirt and bacteria and maintain cleanliness in the home. The eco-friendly cleaning is a boon for franchisee marketing, along with the technology, techniques, and cleaning formulas provided in technician-led training. With that comes a suite of marketing collateral, discounted prices with associated vendors, and a variety of leadership development opportunities, including two annual system-wide conferences for owners and managers.
Learn more at LookforaFranchise.ca
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Everything you need to create your franchise future! Buying a franchise can be an overwhelming process. The good news is you don’t have to do it alone. Franchise Canada is here to guide you through the franchise process, with everything you need in one spot. FranchiseCanada.Online
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HOMEGROWN & LOCALLY OWNED
100% CANADIAN FRANCHISE SYSTEMS
When searching for a franchise to invest in, most people want a brand that has a unique value proposition, something that makes it stand out from the crowd. The following companies, all born and bred in Canada, show that a one-of-a-kind concept can be the tipping point that takes a prospective franchisee from consideration to signing on the dotted line. BY DAVID CHILTON SAGGERS Cheezed
Nick Kardos loves to tell the story of how his system began. He and his older brother Dan and their childhood friend Justin Beraldo were in Kardos’ house in Wasaga Beach, Ontario. Kardos says they were talking and “enjoying a couple of cocktails” when the idea of a system that sells grilled cheese sandwiches—the ultimate comfort food for many—came up in conversation. That was in 2019, and by 2022, Cheezed was up and running in Blue Mountain, a resort town a couple of hours north of Toronto and a short drive from Wasaga Beach. “The success in Blue Mountain has been fantastic,” enthuses Kardos, Cheezed’s president, who’s currently supervising the preparation for another store in Barrie, Ontario. It will also be corporately owned, but franchised locations are soon to follow. “From 2019 onwards, it was always going to be franchising,” he says. “We built the system so it’s as easy to run as possible.” Easy to run, yes, but that shouldn’t be interpreted as “taking it easy.” Kardos plans to open five franchises per year over the coming years, particularly in areas of Ontario south of Blue Mountain. He’ll let the franchisees choose their own locations, whether in a mall or streetfront, but they’ll have to produce the right numbers to get the go-ahead. “I want to see lots of data to back up their choice,” explains Kardos. The cost of a franchise can be as low as $248,500, which includes fit-out, equipment, and soft costs. Training will take place at both corporate stores, and there will be a further 40 hours of onsite instruction.
Among the qualities he looks for in an investor, Kardos says dedication to the system is a given, and prior business and food experience “would be great.” And as for who his customers are—and who his future customers will be—he says they could be anyone from vacationers to local grandmas and their grandchildren. Another target market he’s looking to court is what he calls “the late-night crowd.” For prospective franchisees looking to get into a novel brand, the benefits of a Cheezed franchise include a lower cost of entry than traditional restaurants, a cost-effective operation, an adaptable model for any store size, and a unique menu of a dozen sandwiches created largely by Kardos, his brother, and Beraldo. Kardos’ favourite, for the record, is Southbase Chicken, which is prepared with garlic butter, mozzarella, bacon, and ancho chipotle, and costs $13.99 at tourist locations and $11.99 at standard stores. For those who may initially balk at the price, he points out with a chuckle that it’s cheaper than the beer selling for $16 a pop in Blue Mountain. On top of that, a range of premium meats, cheeses, and sauces turn the everyday craving to a decadent affair. And let’s be honest: for those late-night consumers the brand wants as customers, when they stumble into the streets after a carefree night out, the sight of a Cheezed location will likely be the highlight of their evening.
Learn more at LookforaFranchise.ca
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Nuttha and Jacques Goutier
Sabai Thai Spa
When a local business is finding success, it’s easy to rest on your laurels. Sometimes it takes a push—from a partner, a consultant, or even your wife—to take it to the next level. Jacques Goutier is candid when speaking of business growth and the foresight of his wife, Nuttha Goutier. “Nuttha has been prodding me for a long, long time about franchising,” he admits. Now, after a couple of decades of reminders, their brand, Sabai Thai Spa, founded in 2005, is fielding calls from interested investors, and potential franchisees are being considered in British Columbia, Alberta, southern Ontario, and the U.S. Asked why it took so long to start franchising, Jacques concedes, “We probably overdid it on the preparation side.” Nuttha was born and raised in Thailand and is a huge fan of Thai massage, its surrounding culture, and its emphasis on wellness and rejuvenation. She moved to British Columbia in 2001 to work at a resort before moving to Vancouver four years later where she opened Sabai Thai Spa. Now she and her husband, who is a registered massage therapist, own seven corporate locations, all in the Lower Mainland region, which they run from Port Coquitlam. Looking to the future, the duo are in the market for real estate that would bring their spas to strip malls and streetfront locations of about 2,500 square feet. Why? These areas would lend themselves to “nurturing the neighbourhood,” as Jacques puts it. The cost of a franchise varies from about $600,000 to more than $950,000, and the company is getting interest from men, women, and couples. They say, too,
that some exposure to franchising would be an asset, as would some business experience. However, Jacques notes that first-time franchisees can learn to run a spa if they’re interested in the concept. What’s harder, adds Nuttha, is managing hourly employees, including registered massage therapists. As for Sabai’s guests, Jacques says they’re split equally between men and women, and the system has every age demographic covered. They’ll come in for massages, of course, other spa services such as facials, and the spa’s Sabai Essentials lineup of skincare products, ginger tea, and aromatherapy oils and diffusers. But they’ll come in for something else as well: wellness. Massage isn’t just something to treat an injury, says Jacques, and Nuttha agrees. She says in Thailand, massage is a way of life with a strong element of socializing associated with it. The benefits of a Sabai franchise are numerous, says Jacques. The system has territories available, is open to multi-unit investors, and can ride the “cultural enthusiasm movement.” On top of that, its team takes a systematic approach to marketing, and Sabai has the advantage of being first to market, too. For those interested in location ownership, they’re ready and willing to bring you along for the journey.
Learn more at LookforaFranchise.ca
50 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
Emre Ozgur and Andrea Kloegman
Safe Sweat
At some point, most of us have set fitness goals, only to find that the traditional gym environment makes them hard to keep. Safe Sweat is redefining this experience with a first-of-its-kind concept that’s breaking down barriers to fitness and creating a new option in the fitness industry. Traditional gyms can be intimidating, and Safe Sweat’s CEO and co-founder, Emre Ozgur, knows this first-hand. Based in Surrey, British Columbia, Ozgur brings years of industry experience, starting as a personal trainer and working his way up to C-level business executive. Alongside co-founder Andrea Kloegman, who has dedicated 30 years to the fitness industry, they’ve set out to build an environment accessible to everyone, regardless of fitness level. Their answer? Safe Sweat’s unique private FITsuites, ranging from 150 to 250 square feet to provide an inviting space for exercisers of all experience levels. “We set out to answer a simple question: ‘Do people truly want a more private fitness experience?’” says Ozgur. “The answer couldn’t have been clearer—a resounding yes. People crave a space where they can focus on themselves, free from distractions, judgment, and the crowds of traditional gyms.” Safe Sweat’s first location opened in Surrey in 2022, offering eight private, fully equipped FITsuites. Each FITsuite features resistance training, cardio, recovery technology, and a customizable environment to create a space personalized for each user.
The company is looking for franchisees who are not just business-savvy but also passionate about offering welcoming wellness spaces. “Little acts of kindness toward gym-goers make all the difference,” emphasizes Kloegman, noting that franchisees with experience in service industries and who align with Safe Sweat’s values of inclusivity and kindness will thrive in this unique model. Franchisees benefit from hands-on training from Ozgur and Kloegman, both online and in person at Safe Sweat’s headquarters in Surrey. With an easy-to-operate model that prioritizes members’ well-being, Safe Sweat offers ongoing support to franchisees to better ensure lasting success. Poised for expansion across North America, Safe Sweat locations are expected to open in 2025, and the brand is currently seeking 2,000 to 4,000 square foot “Grade A” real estate locations to ensure maximum visibility and impact. Supported by lower operating costs, streamlined operations, and a low-labour model, Safe Sweat provides a scalable opportunity that maximizes profitability and offers a chance to own a part of the future of fitness, bringing motivation and results to each client with privacy and personal attention.
Learn more at LookforaFranchise.ca
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NEXT GENERATION IN FRANCHISING
SEAL OF APPROVAL Youthful optimism and a gung-ho attitude were the keys to franchisee Stephen Pendura’s success in the Wise Cracks system BY KYM WOLFE
W
hen he launched his Wise Cracks business in Kelowna, B.C., in 2019, Stephen Pendura’s appearance would cause some homeowners to ask warily, “How long have you been doing this?” Being an entrepreneur can be challenging, he says, because people might doubt your ability based simply on your age—especially when they’re trusting you with their house, likely their biggest investment. Pendura was happy to reassure potential customers that he had over 15 years of experience in the construction industry, and that Wise Cracks, a leader in the foundation and waterproofing industry since 1991, often backs up its work with a lifetime warranty, depending on the service. The franchise specializes in structural repair, basement waterproofing, and sump pump installation. But being young definitely has some advantages too, Pendura adds, especially “when working in tough areas like crawl spaces, and handling the long labour-intensive hours that some jobs require.” Youthful energy was also helpful during his business’ start-up phase, since he continued working fulltime as a cement specialist for a pool business. On weeknights, after designing and pouring cement for in-ground pools during the day, he was doing estimates for Wise Cracks and completing these projects on the weekends. “I did this for close to a year until I felt busy enough to focus solely on Wise Cracks,” he says. “Now Wise Cracks is full-time, all year.”
52 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
NEXT GENERATION IN FRANCHISING
Building on experience In previous construction jobs Pendura had laid weeping tiles for drainage, waterproofed foundations on newconstruction builds, installed sump-pumps, and operated heavy equipment, which has come in handy when he’s required to excavate foundations for older structures that need exterior waterproofing. “I have a solid understanding of how water behaves around basements, and how to minimize its impact on foundations,” he says. Pendura had also worked with a variety of construction waterproofing materials and was drawn to Wise Cracks in part because of the quality of the proprietary technology and products that he has access to as a franchisee. “The resin that Wise Cracks has developed is the best in the business,” he boasts. Although he already had a solid foundation of construction skills and experience, Pendura was eager to learn as much as he could during his initial two-week training at corporate head office in Halifax, Nova Scotia. “I was fairly new to foundation injections, and I’ve always learned best doing things hands-on,” he says. “I also learned a lot by shadowing experienced Wise Cracks franchisees and seeing how they interact with customers, do estimates, handle invoicing, etc.” Pendura feels that having a strong work ethic and providing excellent service are also keys to his business success. “My role is to solve my customers’ problems as efficiently as possible,” he says. Returning phone calls and voicemails promptly, being punctual for estimate appointments, sticking to the initial quote without any hidden extras, ensuring that the client fully understands
every aspect of the project, showing up on time to do the work, getting it done right and on schedule, and leaving the job site clean—all those things build trust, and they mean a lot to Pendura’s clients. His efforts are paying off: the excellent reviews that he received garnered him Kelowna’s 2024 Consumer Choice Award for Business Excellence in Waterproofing & Foundation Repair. “This prestigious award is particularly meaningful because it’s based on client feedback, reflecting their satisfaction from initial contact to project completion,” he explains. Putting trust in the experts When you’re a solopreneur, it can be hard to find enough hours in a day to consistently maintain that high level of client contact, complete the actual jobs, and also look after the behind-the-scenes administration and paperwork, plus marketing and promotion tasks. Pendura hired a bookkeeper, accountant, and lawyer to work with him from day one, and about six months in he started to outsource social media tasks, hiring another small business to handle creating Facebook and Instagram content. But he was still handling all the hands-on work and client contact himself. “My biggest challenge was trying to do everything myself, which eventually led to burnout,” he says. He hired a couple of summer students and started subcontracting parts of some projects, and says, “Finding a couple of great employees I can rely on has made a huge difference in how much work I can handle, and the overall success of the business.”
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NEXT GENERATION IN FRANCHISING
Pendura appreciates that he’s never felt like he was flying totally solo. He says being part of the Wise Cracks concept feels like being part of a happy family—one whose members are spread from coast to coast. “Even with the significant time difference between Halifax and Kelowna, I always feel supported by head office,” he notes. “They respond promptly to calls, texts, and emails. Their years of experience and wisdom are invaluable. They’ve seen it all, so even if I’m stuck on a more challenging project, sending them a picture often leads to quick solutions. Their expertise and proven track record help reassure customers that they’ve made the right choice with Wise Cracks.” Andrea Mackey, Wise Cracks president and CEO, notes that franchises can provide younger entrepreneurs with guidance and proven methods for running a successful business. “Many of our older successful franchisees often comment that they wish they had found our opportunity when they were younger,” she says. There is also a strong sense of community among Wise Cracks franchisees, who regularly connect and share ideas through monthly Zoom meetings. “We’re a tight-knit group,” says Pendura. “We talk about what is working well, where we’re facing challenges, and materials and products that are proving effective. It’s a collaborative space where everyone contributes to helping each other’s business grow successfully.” Mackey adds that there are currently opportunities to join Wise Cracks in six provinces. For those interested in
ownership, the franchise is looking to enter markets in Manitoba, P.E.I., Quebec, and Saskatchewan and expand the brand’s presence in Alberta and Ontario, particularly within Northern Ontario communities, where their services are often needed. When Pendura first started thinking about running his own business, he chose to go the franchise route and looked for a company that would complement his existing skills and allow him to keep growing as he learned from them. “What attracted me to join a franchise was the sense of security that comes with their knowledge and professionalism right from the start. It removed the fear of building a brand-new business from the ground up.” Although he admits that starting and running your own small business can be nerve-racking at times, Pendura enjoys being his own boss and making his own decisions. He would encourage other young people who are exploring business ownership to look at franchise options. “Don’t be afraid or nervous about taking the first step toward working for yourself,” he advises. “Do your due diligence on the franchisor, and ensure you feel confident in the level of support you will receive from head office.”
Learn more at LookforaFranchise.ca
54 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
LEADERSHIP PROFILE
Earning His Wings A simple idea and a passion for quality took WingsUp! president Darren Czarnogorski from a student looking for inspiration to now being head of his own successful—and growing—franchise system BY JORDAN WHITEHOUSE
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LEADERSHIP PROFILE
B
ack in 2004, a young Darren Czarnogorski was fresh out of university and working for an investment firm in Montreal. He considered doing an MBA, until his dad sat him down one day and asked him a question: Do you really want to be stuck in front of a spreadsheet your whole life? “I definitely did not,” Czarnogorski remembers with a smile. “That was not my cup of tea.” Instead, his dad suggested buying a small business and working on the front lines, mopping the floors, doing the dishes, hiring and firing—“all that fun stuff,” as his dad put it. He didn’t have to think long. The thought definitely had a certain appeal. “I was a young guy, 24 years old, and the idea of running a business was just really exciting,” he says. “I’d learned all this theory in school and now I wanted to apply it.” The small business he eventually bought was called WingsUp!, a wings restaurant that focused mainly on delivery and takeout. With only four locations in Ontario at the time, it wasn’t well known. Still, Czarnogorski thought that the wings were really good and that the straightforward concept and small store footprints made a lot of sense. He was hooked. Flash forward 20 years, and that youthful excitement is still there. It helps that WingsUp! has grown to 35 locations across Ontario and will soon expand outside the province. But Czarnogorski says that what really gets him up every morning is the chance to work with other entrepreneurs. “It’s the ability to meet new people and help them get into business and fulfill their dreams,” he says. “That’s really rewarding. If I can do that every day, then I’m a pretty happy person.” Finding his flock WingsUp! started as The Incredible Wing Ding in 1988 in Milton, Ontario. The rebranding came in 1999, and by the time Czarnogorski bought the company in 2004, there was the one corporate store in Milton and three other franchise locations in Ontario. By 2011, Czarnogorski and his team had slowly grown the franchise to nine locations; however, it was during the pandemic when expansion started taking off. In August 2021, there were 15 locations. Today, on top of the 35 active locations, 11 are in construction or development and five are coming soon to places such as Calgary, Vancouver, and Surrey, B.C.—the first WingsUp! locations outside of Ontario. “We’ve really just been in line with the shift that’s happening out there—people doing more things at home,” says Czarnogorski. “People are working from home, enjoying their entertainment from home, shopping from home. And so that’s what separates us—that we deliver
something to your home that’s quick, convenient, and high quality.” Still, while timing has been on WingsUp!’s side in recent years, you always need a good team to be successful, says Czarnogorski. He admits that early on he probably didn’t appreciate how important it was to have strong, intelligent people around him. “I always thought that you could hire whoever and we’ll make it work. And so for years, I’d work with people who had no interest. I was kind of in a bubble.” That bubble burst several years ago. “Now I know that working with the right people, building the right team, surrounding yourself with supersmart people that are really hard working and dedicated to the greater cause makes all the difference,” says Czarnogorski. “I think once we started thinking like that, we found that we accelerated a lot faster and we got a lot better at what we do.” Driven by details Working with smart, hard-working people also makes the job of leading a franchise a lot more fun, says Czarnogorski. Today, some of his favourite times at WingsUp! are when he gets to dive into the details of the business with his team. That could mean trying to understand the nuances of customer service or the company’s supply chains. Or even dissecting store signage and design. “It’s always interesting,” he says. “I never get bored because there’s always something coming up, always something to learn.” The upside for WingsUp! franchisees is that they get the cumulative benefit of all that learning, intelligence, and hard work from the head office team, says Czarnogorski. “When a new partner joins and they’re unsure about something, they have a resource in us that they can work with. We can share all our experiences and all our mistakes so that they don’t have to make the same ones.” As for what WingsUp! looks for in potential franchisees, it varies between the operations, marketing, and supply chain teams. For Czarnogorski himself, he wants to make sure that he can get along with franchisees and that they can be engaged in the day-to-day of the business. “A lot of the skills that are there to be learned can be learned. I wouldn’t say our process is overly complicated,” he says. “So what I want to see is the ability to work through problems together and that they’re dedicated to the brand, that they want to work on it.” Words of wisdom In the immediate future, the goal of WingsUp! is even more growth. By the end of 2024, the franchise will have opened over 40 locations. Czarnogorski says that there’s no doubt the cross-Canada expansion will continue, and the company may even soon dip its toe in the U.S.
56 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
LEADERSHIP PROFILE
(From left) Dave Hopkins, Director of Training & Operations; William Wang, Area Manager; Darren Czarnogorski, President
“We’ve been starting to do franchise shows in Texas, of all places, but we just think that our product and what we do and how we do it aligns really well with that state,” he says. “We think it’s a growing state. We think it’s a well-diversified economy, and we see a gap in specifically what we do.” Other priorities for the years ahead include continuing to improve partnerships with food delivery apps, continuing to improve the customer service experience, and continuing to sell high-quality, fresh, never-frozen chicken wings. “It’s a narrow focus, and that’s by design,” says Czarnogorski. “If you have a 5,000-square-foot restaurant and half your seats are empty, but you’re doing delivery, that’s not a very profitable model. Because we make really good wings, take up little bits of real estate—between 800 to 1,200 square feet—we make that business model quite profitable for our franchise partners.” Those franchise partners also have to put in the work across all parts of the business to see results, he adds. Which is why Czarnogorski’s biggest piece of advice for any franchisee is to not ignore local store marketing, especially in the early years. “For the first year or two, this is incredibly important,” he says. “You have to see it as an investment in future success.” Czarnogorski says new franchisees tend to minimize local marketing at the start, not knowing how much
business they can expect. In reality, cutting marketing is the worst thing one can do in that situation. Patience and perseverance, he advises, is the best way to approach it. “There is a time component that can be frustrating; an expectation of instant benefit,” he explains. “But that is not how marketing works. You have to get out there, be part of your community, get to know other people, repeating your message and spreading the word until you get the results you desire. And this will never happen if you cut your marketing expense.” Twenty years after his dad first floated the idea, Czarnogorski is definitely getting the results he desires from his business. And to think that none of it would have happened if he hadn’t learned that big lesson about team building. “That’s what I’d wished I’d known when I was first starting out here—just how important it is to find and retain really intelligent, hard-working people,” he says. “If you have a strong team around, you can accomplish just about anything in the world. The rest is all just challenges to figure out together.”
Learn more at LookforaFranchise.ca
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A DAY IN THE LIFE
A DAY IN THE LIFE
Sign of the Times How a Calgary couple used franchising to bring a spark of adventure to their retirement BY SUZANNE BOWNESS
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fter retirement, some people put up their feet or take up golf. Emma Southwood and her husband, Dan Kolody, decided to become franchisees. As a nod to their new life stage, the pair set some criteria for their post-retirement venture, mainly that they were looking for increased quality of life— as in, weekends off. Vowing to do their research, they approached a franchise broker to explore their options. “The franchise broker was really grand,” recalls Southwood. “Listened to what we wanted, in terms of our aspirations, hopes, what was important to us, and then matched us with a bunch of franchises.” From there, they began a process that Southwood says felt like dating. “Some of them fell off during that time for different reasons. And Image360 was the one at the end. We went
down to see them, they rolled out the red carpet on Discovery Day, they answered my millions of stupid little questions. They impressed us with the depth of their knowledge and support levels.” As a graphics and signage business, Image360 provides other businesses with custom signs and graphic solutions, including environmental graphics, mobile graphics, wayfinding signage, and promotional displays. From custom signage outside a retail store to vehicle wraps that advertise a business on the road, to window decals on a car dealership, they’re the kinds of graphics that people see out and about, every day. As a one-stop shop, Image360 simplifies the process for creating and supplying clients’ visuals, plus it ensures that a company’s branding is consistent throughout these visual elements.
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A DAY IN THE LIFE
Fit to print Besides the great vibe she got from the franchisor, Southwood also had a comfort level with visual communications, thanks to her former career in sales and marketing. “When it comes to ideas, talking about branding and branding strategy, that’s not unfamiliar to me.” Kolody’s background in the window film industry was also a fit, and while the pair knew there would be a technical learning curve in the production aspect, they felt energized by the thought of joining a franchise in this space. So, they took the plunge and signed up for the territory of Calgary South, aiming to complete training in March and then open their doors in…May 2020, as luck would have it. Not the best timing for a new business. Despite the pandemic, Southwood said the new business survived fairly well, in part because their property manager, who is also a commercial developer, was very supportive. “When COVID happened and they had tenants moving in and out of their properties, they threw business our way, in terms of doing sign installations or removals,” says Southwood. “They introduced us to their tenants and others in their network.” Soon, they added another commercial property client, and their network continued to grow.
Today, repeat customers remain a major source of business, although referrals, word of mouth, digital advertising (on Instagram and YouTube), and networking (in their case, the Calgary Construction Association and their local chapter of the global networking group BNI) also play a large part in driving revenue. Southwood still counts commercial property managers as some of her best clients. The franchise also does window graphics for retail stores and businesses, which Southwood loves because of the opportunity it provides for creativity. Aside from Southwood and Kolody, the operation includes two other employees, and they divide up the work according to their skills. The workday starts around nine in the morning with a “work in progress” meeting where the team reviews current and upcoming projects. From there, the crew runs out to work on their action items. Routines and challenges For Southwood, daily tasks include two important facets of the business: sales and management. But beyond that, client consultations (both in person and virtual), creating estimates, sourcing materials, and supply chain are all in a day’s work. Kolody handles a lot of the production and
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A DAY IN THE LIFE
“I love it—the minute you put the signs up, they’re going to be out their door. They’re going to be highfiving each other.” – Emma Southwood
installations, although Southwood occasionally steps into the fray as well. (Case in point: she spoke with Franchise Canada via a Zoom interview while wearing a fluorescent green safety vest, after briefly stepping off site from a parking lot signage installation.) Since opening more than four years ago, challenges at their location have mainly been the production learning curve and staffing. But thankfully, each challenge has become more manageable as they’ve gained experience. Given the technical nature of the sign business, Southwood says that at the start she and Kolody spent a disproportionate amount of time working on production. Now that they’re a few years into running the business, they’re working on putting processes in place and looking for technologies that can support their operations. They also have their searchlight on for new technical talent that can be hard to come by. Because potential clients are served with automated online quotes from general-purpose graphics providers and even Amazon, their business has to be very responsive and must focus on customer service as a differentiator. All these lessons learned are tips that Southwood would pass along to new franchisees, along with the advice to really lean on head office and follow the franchise system. Franchise fan Southwood is also glad she chose Image360, as she notes that her franchisor is always thinking ahead about new innovations. “You get industry knowledge. They bring that next level of forward thinking, like about AI, just all these really relevant topics,” says Southwood. “The franchise brings that to you in a consumable fashion, in terms
of how you can put it into your business. Cutting-edge stuff that can keep you innovating and growing.” She also appreciates the support of the two coaches provided by the franchise, one for the overall business and the other for sales and growth. “You wouldn’t get those things if you went [into business] as an independent. And then there’s also the sense of camaraderie when we reach out to other franchise members.” Despite the learning curve, Southwood says the sign business is very satisfying in terms of making a difference to customers, and she loves the fact that she gets to use her creativity every day. “We said when we started that we wanted to create something, we didn’t just want to sell. This was something that, for us, made us feel like we were making a difference. This business does that. The best moments are like, right now, we’re installing parking lot signs. How simple is that? But the clients are standing right over there, and they’re watching us install these signs, because these parking lot signs mean the difference in a level of frustration between them and their neighbours. They’re very excited. “I love it—the minute you put the signs up, they’re going to be out their door. They’re going to be high-fiving each other.”
Learn more at LookforaFranchise.ca
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THE FIRST YEAR
Pouring Her Heart Out A veteran franchisee came to stake her claim in Canada and found success in the Prairies with Good Earth Coffeehouse BY RACHEL DEBLING
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hirteen years as a foodservice franchisee in South Africa certainly set the foundation for Aarti Singh’s career as a Good Earth Coffeehouse owner in Calgary, Alberta. Even so, it still wasn’t as straightforward a path as she had initially imagined. “My first year was not without its challenges,” she admits. With the support of her franchisor, and though initially fraught with unforeseen hiccups that required her to be on her toes and ready for anything, she was able to come out on the other side of her first year in operation stronger, more confident, and somehow even more optimistic than before. A personal balancing act On top of her job as owner of the bustling coffee shop, the life half of Singh’s work-life balance is filled with infinite responsibilities that must be upheld outside of her workday. “Having recently relocated to Canada, the days have been busy trying to juggle new routines,” she explains. “As females, we tend to wear many hats, as a mother, wife, daughter, professional, and more.” Thankfully, Singh had a positive role model to look up to, one which she modelled her approach to life and business around. When Singh was a child, her mother was also an avid entrepreneur, and she set an example for how her daughter would eventually tackle issues within her business while trying her best to balance an equally busy home life. “From a very young age, I [watched] her navigate the challenges of entrepreneurship with grace, determination, and unwavering confidence,” she recalls. “Seeing her break barriers and excel in a male-dominated industry was both empowering and motivating. She defied stereotypes and
proved that gender is not a limitation when it comes to achieving success.” These lessons are among those she hopes to pass along to her own daughter one day. In her adult years, Singh began a career in optometry and completed her MBA, which pushed her toward business ownership. And after building an impressive CV of franchise experience overseas in a pizza restaurant system, Singh knew that when she moved to Canada, she wanted to continue along the same path. The business model and strong branding of Good Earth caught her eye as she researched investment options in the Calgary area. “I explored many franchise brands but was eventually drawn to Good Earth Coffeehouse. I loved that it was a Canadian brand that shared many of my values,” she says. “Good Earth’s focus on building connections within communities, and its sophisticated offering and the commitment to sustainable practices, resonated deeply with me.” Once she found a brand that aligned with her passion for business and innovation, Singh applied, and was delighted to find out that the company agreed she would thrive in their system. With the help of her franchisor, she secured a location and threw open the doors to her business on June 23, 2023, eager to discover what the Canadian market held. Learning (and responding to) local needs Two areas where Singh recognized she needed to apply her flexibility and practicality to make her new venture work were in understanding Canadian consumer preferences and the preferred way to do business outside of her home country. “Adapting to the Canadian market was a steep learning curve,” she admits. “Leaning heavily on past experiences and my ability to quickly adapt to ever-evolving circum-
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THE FIRST YEAR
stances helped me navigate these challenges.” She also credits the founders and CEO of Good Earth, who were always available to lend an ear along with ample opportunities for discussion and guidance. “I’m also grateful for the incredible support from my family who allow me to freely follow my dreams and ambitions,” she adds. Out-of-the-box thinking has helped Singh persevere and grow her location’s customer base beyond its neighbourhood. Identifying a potential synergy between her brand’s catering service and Calgary’s expansive aviation industry, she used her business knowledge to address the issue, to the benefit of her store, her airline partners, and their professional clients. “My team now also provides daily inflight meals and catering services to private charter flights and jets,” she says. “It was an opportunity to expand our reach and bring the same quality of food and service that we’re known for in my coffeehouse to a new market.” This additional stream of revenue has strengthened her business and the reputation of Good Earth among a fresh, jet-setting consumer base. But she’s not stopping there. “I continue to explore different opportunities and gaps and hope to soon bring more into the operational fold,” Singh shares. A friend of the earth One of the aspects of owning a Good Earth franchise that most appealed to Singh, and that helped her find success in the crowded coffee category, was its commitment to the environment and making a big difference in small ways. These values, which overlapped with her own, were what solidified her resolution that owning a location was the right move for her. “Good Earth is about more than just serving coffee. It’s about fostering community, serving amazing products while remaining committed to sustainability,” Singh explains. “Additionally, being part of a recognized brand with a strong support system has given me the confidence to run the business smoothly while exploring new opportunities for scale.” The fact that Good Earth’s head
office support team handles aspects such as suppliers, logistics, and marketing means she can put her attention where it is needed most: on day-to-day operations. Looking in the rearview mirror, Singh relishes how far she’s come, and looks forward to where the next stage of her ownership journey will take her. While she knows her education and experience have been the main drivers in her success, she acknowledges that Good Earth has helped do a lot of the heavy lifting. “I am proud of having made the transition into the Canadian market,” says Singh. “My short-term goal is to remain focused on scaling the business and pursuing new opportunities that may present. I am also focused on adding value in our community and continuing my growth within the Good Earth Coffeehouse family and making a lasting impact in the Canadian market.” For those looking to become franchisees themselves, Singh wholeheartedly recommends it, noting that even though having an MBA and business ownership experience can go a long way, franchising is still a pathway for anyone hungry to make a life—and a name—for themselves. “While having a business background and experience in running a franchise helps, it’s only a part of the many ingredients required for success,” she says. “My advice is that you should not be afraid to get your hands dirty, as you must be able to lead by example. Assembling a dedicated and motivated team is also crucial for franchisee success.” With an attitude like that, who knows where the next year will take Singh and her Calgary location. After all, she and her business have already entered the stratosphere—quite literally!
Learn more at LookforaFranchise.ca
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COMING TO CANADA
SOME LIKE IT HOT
HOTWORX, a fitness concept based on infrared sauna technology, cranks up the heat as it eyes expansion to Canada BY GINA MAKKAR
Whether you’re a seasoned fitness pro or new to the workout world, there’s an exciting new workout solution that will soon be available to Canadians. HOTWORX, a 24/7 exercise studio, offers sessions led by virtual trainers in an infrared sauna environment that turns up the temperature on your regular, everyday sweat sessions—literally.
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COMING TO CANADA
“BECAUSE OF OUR EXPERIENCE IN FRANCHISING, WE’RE ABLE TO GROW THE BRAND. WE HAVE A LOT OF EXPERIENCE. WE STILL MAKE MISTAKES, BUT WE DON’T MAKE THE ONES THAT WE USED TO.” – Stephen Smith, Owner and CEO
Founded in 2017 by owner and CEO Stephen Smith, the brand boasts over 700 locations worldwide, including studios in the United States, Saudi Arabia, and Ireland. Smith says his athletic background and encouragement from his football-playing father paved the way to his success. “He instilled that competitiveness [in me],” says Smith. “I guess it’s built into my DNA now. Going into an industry that involves athletics was natural for me. I have a huge passion for fitness.” “The sauna was designed for up to three members to workout and detox,” explains Smith. “As a personal trainer myself, I knew that three people is a perfect number for small group training.” From there, HOTWORX was born. Holistic sessions with an impact According to the company, its saunas use infrared heat to increase core body temperature, accelerate metabolism, and remove toxins. The HOTWORX method, called “3D Training,” claims to shorten warm-ups, activate the regenerative process, increase heart rate, and maximize calories burned, resulting in a more effective workout in less time—and with shorter workouts, more people can use the small, private exercise saunas in a single day. Twelve distinct programs also provide variety for everyone’s preferred workout, from yoga to cycling, and beginners and athletes alike can adjust the intensity to their personal comfort level. Smith is confident about the expansion. As he explains, “We’re bringing HOTWORX into Canada, but it’s still an emerging brand in some ways. Because of our experience in franchising, we’re able to grow the brand. We have a lot of experience. We still make mistakes, but we don’t make the ones that we used to.” To help steer the ship north of the U.S. border, he hopes to secure franchisees to be his feet on the ground and spearhead the Canadian development. “We are going to have a lot of new franchisees in Canada soon,” he predicts. “I expect to expand the way we did in the U.S.—probably better, since the longer you do something, the better you are.”
Effective by design The concept is rolling out its expansion plans with an eye on what Smith refers to as “white space,” underdeveloped areas that have the potential for locations. “It’s worked well for us in the U.S.,” notes Smith. “We want to find a location for every 100,000 people in the population. That’s our rule of thumb: we will give a two-mile radius of exclusive territory.” The brand has partnered with The Behar Group, a full-service brokerage and advisory firm in Toronto with expertise in the commercial real estate industry. In the United States, the market is segmented by designated market areas (DMAs), but Smith says they’re approaching the Canadian market differently. “We’re not looking at markets in terms of DMA like in the U.S., we’re looking at the markets in terms of voting territories.” With these parameters in place, Smith projects 300 to 350 locations eventually landing in Canada. In addition to those with suitable financing, HOTWORX is looking to partner with franchisees who have the desire and passion to develop the brand, and investors come from all walks of life—no gym experience required! “If someone has a fitness background, that’s an advantage, but we’re also seeing general managers who do very well, and they didn’t come from that background.” In fact, 80 per cent of their franchise growth is organic, says Smith, and many franchisees began as members who fell in love with the concept. “They’re hooked because of the experience they have at HOTWORX,” he explains. “Everything from the décor to the effectiveness of the workout.” A support system that WORX With strong programs and proprietary software in place to manage everything from point-of-sale systems to workout videos, and due in large part to its semi-private workout environments, HOTWORX was able to continue operations during COVID, scaling back their offerings and reintroducing them as barriers lifted. “I don’t know how we could
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have done it any other way,” says Smith. “Because we’re so vertically integrated in terms of our software, we were able to pivot.” Within a few days of the initial lockdowns, they launched HOTWORX AT HOME, an on-demand streaming service, and the brand came back bigger and better than ever once social distancing was lifted. Part of their success has been anticipating and responding to what may come next, even in times of adversity. “We came back strong,” recalls Smith when thinking back to those tough few years. “We hired a seasoned veteran marketing professional as VP of marketing, and he came in and did some strong things. That put us on a good trajectory.” On the topic of teamwork, Smith has been working with Jessica Materne, vice president of franchise performance for the last 20-plus years, and their work relationship has extended today to the operations of HOTWORX. “I call her ‘The General,” he jokes. “She runs our department of business coaches,” which amounts to one coach for every 50 locations, a number that is rapidly increasing. Post-COVID, the team manages daily tasks from their homes, attending virtual meetings and facility inspections via FaceTime, which Smith notes is “so much more effective” than flying to meet each owner in person. Measuring what’s important As part of HOTWORX’s success metrics, coaches are tasked with duties similar to that of a football coach, in that they teach and motivate franchisees as part of the brand’s ongoing commitment to success. “Sometimes that motivation has to come in the form of being held accountable,” says Smith. “Much like [on a] football field, it’s better to run the play that’s sent to you by the coach. It’s the same thing in franchising. We’re here to score touchdowns for the fans, and the fans are our customers. “If you want to fill your stadium—the studio—with raving fans, you better be scoring touchdowns all the
time. Execute the playbook, or the franchise system, at the highest possible level.” Smith cites many pillars of success, from customer experience to profitability. “If you’re not focused on being profitable, you’re not really an entrepreneur. You can only be truly profitable long term through the daily bliss of your customer base.” When it comes to the customer experience, he adds that the franchisee is in complete control. “For us, that means great workouts, a great concept, and great customer service.” Smith advises potential franchisees to initiate the discovery process and watch it unfold. “You can do it as fast or as slow as you want,” he says, though he suggests approaching it expeditiously, because it will set the tone of how you’re going to run your business. He adds that the interview process is a two-way street. “The prospect is going to be interviewing us, and we’re interviewing them. Either party can pull the plug at any time. […] Once we sign the dotted line together, it’s a 10-year agreement, and we both want to feel it’s the right fit.” Smith resists summing up the brand in one line but says a good product can be a guide that speaks for itself. When HOTWORX first opened, it didn’t take long to realize that its popularity sprung from the promise of more results in less time. “I guess if I were to say what our mission is, our mission is to give customers the best possible experience in the shortest amount of time for their fitness needs,” he says thoughtfully. “Saving customers time is never going to go out of style.”
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GIVING BACK
Melting Hearts, Not Cones Dairy Queen soft serve may give customers brain freeze, but their philanthropy warms hearts BY DANIEL MCINTOSH
W
hether for cooling down on hot summer days, or for celebrating significant milestones with an ice cream cake, DQ ® is often top of mind for Canadians when it comes to cold, sweet treats. But the 84-year-old soft-serve brand is known for another reason as well: its charitable impact on sick kids. Across Canada, and throughout its franchise system, the brand makes its philanthropic presence known by throwing much of its resources behind its financial backing, food donations, and visits in support of children’s hospitals across the nation. Year-round marketing efforts and product-based fundraising are also foundational to its charitable presence. Candida Ness says the brand’s connections to children’s hospitals are an essential part of its community connection. As DQ ® Canada’s vice president of marketing, she oversees the partnerships with Canada’s Children’s Hospital Foundations, which facilitates fundraisers between the brand and 12 member hospitals across the country. “Though we’re a global brand, our franchisees are very connected in their local markets,” says
Ness. “What we really like about that relationship is all dollars raised stay local.” Whether franchisees are in Ontario, Alberta, or B.C., they know that the raised funds are going directly to kids in their community. “It’s super important and super relevant, because all of us, at one point or the other, have had need for a children’s hospital, or know someone that has needed a children’s hospital.” Ness says that the partnership between DQ® Canada and Canada’s Children’s Hospital Foundations has collectively raised over $52 million since it began some 40 years ago. “In Canada, we raise about $3 million every year,” Ness notes. This is accomplished in part through the buy-in of their franchisees who, ever active in their local communities, can encourage customers to round up their orders to the nearest dollar to increase donations amounts. DQ also maintains a relationship with Funding Innovation’s Art Easel Program, which displays Canadianmade art, sport, and music prints in store locations. Customers place bids on the prints that will support the charity of choice.
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Miracle on ice (cream) While these year-round initiatives do certainly impact the brand, much of DQ staff, customers, and supporters look toward the yearly north star of fundraising, August’s Miracle Treat Day, which accounts for $2 million of what the brand raises annually. During the event, the net proceeds of every Blizzard sold are donated to local children’s hospital foundations. “It’s a huge credit for franchisees across Canada, because they’re the ones that bring Miracle Treat Day to life with all of their crews, their engagement, and their connection to the hospital,” explains Ness. “In Canada, we’re really proud of the fact that almost 100 per cent of our locations participate in Miracle Treat Day, even though it’s technically an optional program.” She says DQ franchisees and staff, along with head office support, look forward to Miracle Treat Day every year, traditionally held on the second Thursday in August. Crew members of all ages appreciate working for a brand that gives back to their local community, which helps with employee hiring and retention, and Ness says that, similarly, customers want to spend their money with brands that support local. Of course, there’s also a business benefit, as packing out a store with customers for a good cause links the brand with positive intentions in the mind of customers. “That relationship with the brand and with that particular franchisee carries on throughout the year,” notes Ness.
In order to drive awareness for the yearly event, DQ preps franchisees, especially those taking on their first Miracle Treat Day, on how to maximize the opportunity and the ways in which it allows them to set roots in their local community. In addition, some franchisees double as ambassadors for the cause: they’re situated across the country and share the benefits of philanthropic support and drive engagement among the wider body of franchisees. The brand also utilizes a full-funnel marketing campaign to drive awareness. During this year’s Miracle Treat Day, Ness travelled to stores across Edmonton, visiting children’s wards and getting a first-hand look at the excitement and engagement of franchisees in the community, and the smiles on the faces of children who needed them the most. At The Beach, a play area within the Stollery Children’s Hospital, a local franchisee distributed Blizzards to kids staying in the hospital. “It’s an opportunity for kids to get away from what they may be dealing with from a medical situation,” explains Ness. “It was just an amazing experience out there, because the energy and busyness, everything about it was really amazing. “We’re super grateful to our franchisee ambassadors as well, because we found the most effective way to get folks engaged in raising funds is franchisee to franchisee, so they understand the benefits and can have those conversations.”
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GIVING BACK
Keep going, keep giving Charitable ambition doesn’t just stop at the franchisee level, or after Miracle Treat Day is over. The DQ Cares program encourages employee volunteerism and product donations in the area surrounding the brand’s Canadian head office in Burlington, Ontario. Staff get to support a local charity of their choice, and the brand even offers two days of paid volunteer time for staff members. That could involve acting as an older sibling in the Big Brothers Big Sisters of Canada program or, with holiday season around the corner, packing holiday hampers and gift boxes for the nearby Halton Women’s Shelter. Staff members are encouraged to take leadership in creating charitable events in their community, like a cricket tournament developed by one corporate staffer and hosted at their local cricket club, now in its second year, in support of Ottawa’s Children’s Hospital of Eastern Ontario. Ness says that, overall, franchisees are extremely engaged with the DQ brand’s wider philanthropic efforts, running contests or promotions among their staff to reward team members who had the most roundups in a given week. In addition, top fundraising franchisees are invited to attend Children’s Hospital Week at Disneyland in Orlando, Florida, and come face to face with the children that their fundraising supports.
“They have champion children that’ll come from [around] the U.S. and Canada. It’s an awesome opportunity for franchisees experience their dollars at work.” It appears that charitable giving at Dairy Queen runs through the hierarchy of the company, and Ness offers a sage answer why. “Many of the things that we do in our lives can be very transactional, and I think that emotional connection for any brand is so important for loyalty and for customers to truly understand what is really at the heart of your brand. It’s not just about a transaction, it’s actually about the emotional connection and brand loyalty. “For DQ specifically, I think that also holds true. Our connection with children’s hospitals is something that we are passionate about and dedicated to as an organization, but our franchisees are also very proud. I think it makes them proud of being part of the DQ system, because we’re certainly thankful for them and everything they do.”
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SHOW ME THE MONEY
4 FRANCHISES FOR $500K+ Franchising is about diversity, and opportunities can be found in nearly every industry and business sector. It’s a great way for Canadians from all walks of life to go into business for themselves but with the support of a franchise system behind them. One of the most important considerations for a prospective franchisee is investment level, including figuring out a budget that fits with your financial situation and goals. Here, Franchise Canada showcases franchise systems in which you can invest for $500K or more. Angus Valley Montessori Schools
M&M Food Market
In the ever-growing early learning sector, Angus Valley Montessori Schools stand out by offering franchisees more than a business opportunity—it provides a platform to inspire and shape the leaders of tomorrow. With a proven curriculum that nurtures both academic and social growth, the company bring innovative, hands-on education to communities across Canada, meeting the increasing demand for high-quality early childhood education. The franchise also provides chefcurated nutritious menus, promoting wellness alongside education—unique touches that demonstrate its commitment to holistic child development. School sites range from 7,000 to 10,000 square feet and an investment of $900,000 to $2 million. For those looking to make a lasting community impact, Angus Valley Montessori Schools offers the chance to contribute to the next generation while building a rewarding business.
Since 1980, M&M Food Market has been building strong brand recognition—boasting over 400 products that are sold in more than 2,600 stores—and has entered a new era thanks to its recent rebranding, which includes a new name (it was originally known as M&M Meat Shops), new products and packaging, redesigned stores, and an everexpanding product line. The company is currently searching for franchisees to purchase new and resale locations across Canada to continue the brand’s rise in the grocery/frozen food sector. Franchise locations are available across Canada and require an investment of $100K to upwards of $500K, plus a $35K franchise fee.
Learn more at LookforaFranchise.ca
Great Clips A brand synonymous with convenient, affordable haircuts, Great Clips has experienced exceptional growth across North America since its launch in 1982. With nearly 4,500 salons found in more than 130 markets in Canada and the U.S., the brand prides itself on its recession-resistant model—after all, everyone needs haircuts, no matter the economy—and manager-run salons that allow franchisees to focus on growing the business instead of the day-to-day. Ideal franchisees will have at least $500K net worth (up to $1 million in select markets), top-notch people management and leadership skills, and a desire for business growth. No haircutting experience required! Learn more at LookforaFranchise.ca
Learn more at LookforaFranchise.ca
School of Rock Since 1997, more than 50,000 students have been empowered by the musical teachings of School of Rock, and the company is looking for knowledgeable and passionate franchisees to help make an even bigger impact. Currently the largest music school in the U.S., and with locations in 15 countries, School of Rock’s patented performance-based method of teaching is a way for investors to make a positive impact in their communities. Interested in bringing music to a new generation? Your total investment will range from $450K to $600K, and territories are available in all provinces except Quebec. Thorough training is provided to applicants deemed to be “School of Rock” material.
Learn more at LookforaFranchise.ca
70 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
ASK A TRAINING EXPERT Why are franchisee training programs important, and what are some signs of a well-thought-out and useful program? AS A FRANCHISING EXECUTIVE, a former franchise owner, and a committed evangelist for business training, my combined experiences have made me one of the most passionate believers in training that you’re ever likely to meet. Why? Simply put, training teaches people the skills they need to do their jobs better. We all know that’s true. But training plays a unique role in creating successful franchises, and in turn successful franchisees, for these reasons: • W hen a franchise has excellent training, it shows through the customer experience in its locations, attracting far more potential franchise owners. • W hen a company invests in its training model, its franchisees realize that the franchise as a whole is committed to their success. As a result, they believe more in the franchise and the brand and become committed lifelong owners. • W hen a franchise trains its franchisees superbly, sales, customer loyalty, customer support, and other sought-after benefits occur almost organically. Repeat business and profits are driven by training-led improvements, both for the system and for its wellequipped franchisees. As you can see, franchising and training enjoy a natural synergy. After all, systems thinking is foundational to both. And good franchise brands don’t think of training as an expense: they consider it an investment in their own success, and the success of their location owners. A well-rounded franchisee training program should include and address the following: Skilled training leadership. A dedicated and skilled training manager is crucial. This person oversees the planning, execution, and continuous improvement of the training initiatives. This person should be an expert— either a training consulting company or an executive with genuine training expertise. Engagement. Franchisees should have a critical role in defining their training needs and goals. This information can be gathered in meetings with a system’s franchise council (made up of franchisees) or through ongoing conversations with franchise owners. A learning management system (LMS). This is a digital platform that interfaces between franchisees and the training programs offered to them. It should present a clear organization of courses into different subject areas (sales, customer service, franchise systems, product service, etc.) to help franchisees find the training they need. It should also have a tracking function that shows when
franchisees started a training program and whether they completed it. The LMS can also automate the delivery of email communications to encourage franchisees to continue applying what they learned in training. Clear goals and metrics. Set clear, measurable goals for training programs and track progress against these metrics to evaluate effectiveness. Distributed training. It’s most efficient to deliver training that learners can access on their mobile devices or computers. Sometimes in-person learning can be a good choice too, but to streamline, track, and economize training, distributed remote training is becoming the state-of-the-art choice for many franchises. Experiential learning. Work simulations and in-person experiences teach training that is “sticky,” or memorable, and assure long-lasting knowledge. Franchises are natural environments where learners can visit operating franchise locations and learn from real-world experiences. Yet excellent, relevant videos should be part of training as well. Leadership support. Having leaders who advocate for and participate in the training program can significantly boost its success. Their involvement can encourage wider participation. Modern and relevant content. The training materials should be up-to-date and relevant to the current business environment and employee roles. Follow-up. Because training is not a “once and done” activity, franchisees should be encouraged to continue using what they have learned. Refresher training should also be provided at regular intervals. Motivation. When franchisees are offered rewards for achieving notable results during training, it can help with adherence. When on the lookout for your perfect franchise fit, make sure to ask what each system’s training offers. Go the extra mile and speak to current franchisees about their training experience, and use these insights to determine if it will live up to what you expect from a franchise investment—and what you deserve as a partner.
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Evan Hackel Advisor The Learning Network evan.hackel@learning.net
ASK A LEGAL EXPERT What do I need to know before selling my franchise location? AN OFTEN OVERLOOKED (or sometimes minimized) component of pre-purchase due diligence when buying a franchise is the careful examination of the circumstances, restrictions, and conditions under which you will be permitted to sell that franchise at some time in the future. Most franchise agreements will impose significant hurdles on the resale of a franchise, which may substantially affect your ability to sell or resell your franchise, if and when necessary. As such, it’s important to fully understand the practical and contractual limitations on a free transfer of what may be one of the largest investments that one might make. Most franchise agreements contain restrictions on transfers and impose certain common restrictions on the sale of your franchise. Chief amongst them are: • You may not sell to just anyone—the franchisor reserves the right to approve of any purchaser, and in some instances to approve (or decline) the financial terms of your proposed resale. The franchisor may take the position that the purchaser does not have the required financial strength or business experience, or that the proposed sale price is not supportable based upon the performance of the franchise itself. • A n approved purchaser of the franchised business will likely be required to sign the “then-current form” of franchise agreement in use in the system. Ideally, this won’t vary widely from the form of agreement that you will have signed, but the “then-current” form may impose additional or higher fees, further affecting the value of the franchise you are looking to sell. • You’ll have to pay a transfer fee to the franchisor and may be required to renovate or refurbish the franchise (at your cost) prior to any sale. • The franchisor’s consent to your proposed sale will almost certainly require that you be in full compliance with the terms of the franchise agreement. If you’re struggling in the operation of your franchise, you will be required to bring the franchise into full compliance, as determined by the franchisor, before you can sell. • You may be required to give your franchisor the right of first refusal to purchase the franchise before you can sell to a third party. They are typically under no obligation to purchase the franchise, but usually have the option to do so. Be mindful that the formula that they may use to assess the value for such a repurchase may be the asset value, as opposed to the going concern value, or it may simply be based upon the depreciated value of the assets of the franchise—both of which may be significantly lower than the value of the franchise as a going concern.
• You may be restrained from using the system’s marks and logos in advertising the franchised business for sale (this is why you often see listings for “popular pizza franchise” or “established juice franchise” as opposed to seeing particular names, brands, or trademarks). This can limit the number of interested eyes that view your listing. • The competition for your sale won’t just be from other system franchises being resold or franchises from competing systems but also “new grant” sales from your franchisor. Many purchasers may not be interested in buying existing franchisees, preferring instead to purchase a new franchise (often at a comparable price) with newer equipment, in a location of their choosing, and with a clean slate. Finally, a little bit of Latin. Nemo dat quod non habet is a legal principle which means (roughly) that “no one can give what they do not have” or alternatively, you can’t sell what you don’t own. When you sign your franchise agreement, the clock starts ticking on the time remaining to operate that franchise. Remember, the grant of a franchise isn’t the perpetual right to operate that business—it is instead a grant from the franchisor to operate a business for a set period of time. As such, the more term you use, the less you have to sell. For instance, a franchisee four years into a five-year initial term may find many buyers wary of purchasing a business with one year remaining on the initial term. You can’t sell what you don’t have—and if you don’t have a sufficient remaining term for a buyer to make back their investment, the value of that dwindling right will diminish substantially. Buying a franchise can be an exciting stage in your life—but buying a franchise is different than buying any other asset that might be sold relatively easily. While you may not have the intention now of selling the franchise, circumstances may change, and understanding the legal and practical restrictions to any future sale is of vital importance.
Daniel So Partner Dale & Lessmann LLP dso@dalelessmann.com
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FRANCHISE TUTORIAL
TUTORIAL 17: THE FUNDAMENTALS OF FRANCHISING
TERRITORIES AND PROTECTED AREAS FRANCHISE AGREEMENTS will typically address the issue of territories and/or protected areas. Protected areas may be defined by distance radius, postal codes, municipalities, cities, or simply outlined as within the four walls of the franchised location. The territorial boundaries are defined in the franchise agreement and will often state that no other franchisee shall be licensed or a corporate store opened to operate under the same brand within the territory, provided that your franchise licence is in good standing and you’re living up to all terms of the franchise agreement. The intent of the exclusive territory is to protect your business sales from being cannibalized by other locations offering the same products and services in close proximity to your location. Such encroachment could detract from your business sales. It should be understood that not all franchise agreements have exclusive territories and one should read the franchise agreement carefully to fully understand the implications. Some franchise agreements will clearly state the territory is non-exclusive or simply defined as the address of the physical franchised location. Franchisors are becoming more and more reluctant to grant exclusive territories or protected areas, as it restricts the franchisor’s ability to grow the brand. Over time, new retail projects are built that provide great opportunities to build market share. The population may have substantially increased and now supports the brand having two locations. If the franchisor does not take advantage of the opportunity to expand, their competition will often do so. This may cause harm to the existing franchise location. The Right of First Refusal is often a way that the franchisor addresses this issue. In the event that the franchisor determines that the demographics have changed and a second location is justified within the territory, you’re provided the first opportunity to open the second location. If you choose not to do so, the franchisor is free to open the new location or franchise it to someone else and your original territory size is reduced accordingly. Some franchises are sales- and marketing-driven, not location-driven. Examples of these are those specializing in home renovations, window washing, and other services. They may be home-based businesses or operating out of a vehicle. The franchisee goes to the customer rather than the customer coming to a location. In these
circumstances, an exclusive territory would provide you with the benefit of not having to compete directly with other franchisees offering the same service and/ or product. However, your growth becomes restricted and limited to the size and potential of your territory. If you’re referred business outside of your territory, you’re required to turn the business over to another franchisee servicing that area. What if the sale is based on long-term relationships that you’ve developed? This has often been addressed by the franchise agreement stating that the territory is your primary market of responsibility and the only market that you can directly advertise in, but that you can service customers outside of your territory that have been referred to you or are generated through networking and advertising done within your defined territory. From a franchisor’s perspective, it has been learned that some franchisees are more sales- and marketingoriented than others. This results in some territories being fully capitalized and generating strong sales and brand recognition, while other territories remain underdeveloped and not generating the revenues they should. Franchisors are addressing this by setting policies and defining minimum sales quotas within the franchise agreement. If sales quotas are not met, then exclusivity may be lost, allowing the franchisor to enter the market or license other franchisees within the area. There is also a common practice when the franchisor is looking to establish a location in close proximity to an existing location. The franchisor will usually conduct a study to determine the potential impact on sales of the existing location. If encroachment is determined to be a significant possibility, the franchisor may abandon its plans for the new store opening or provide some kind of revenue sharing with the existing location. The franchise agreement may have other restrictions, restraints, or permissions that further define and clarify your territory rights. Examples of these clarifications include: • Restriction of sales regarding national or institutional accounts. These may be handled by the franchisor. • Prohibition on the solicitation of sales from other franchisees of the franchise system so as to prevent franchisees from cannibalizing each other, usually when there are no protected territories. • Reservation of the franchisor’s right to franchise
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FRANCHISE TUTORIAL different brands within the territory, which may or may not be a direct competitor to you. • Restriction and restraint of internet or mail sales, which have no definite boundaries. Sometimes franchisors will reserve these sales for themselves and share the revenue with franchisees or will have the orders filled by the nearest location. Reputable franchisors are as concerned about encroaching upon and cannibalization of locations as the franchisee. The franchisor also has a legal respon-
sibility to act in good faith and conduct fair dealings. The specific territory and protected area policies and terms should be outlined in the franchise agreement. As a complex issue, it requires careful reading of all terms and conditions so that you have a full understanding of exactly how protected your territory is. Have a lawyer who is familiar with franchising assist you in understanding your franchise agreement and talk to existing franchisees to learn how territory issues have been dealt with by the franchisor in the past.
TUTORIAL 18: THE FUNDAMENTALS OF FRANCHISING
FRANCHISE GROWTH FORMATS WITHIN FRANCHISING, there are a variety of different growth formats used by franchisors. These formats provide different opportunities for a prospective franchisee. Beyond the single-unit franchise agreement (in which a franchisee has a single location), there may be the following potential growth opportunities within a franchise brand. Check with the franchisor to determine if these opportunities exist with the particular brand you’re looking at. • A multi-unit franchisee will have multiple single-unit franchise agreements. These may or may not be in the same geographical area. The multi-unit franchises may be tied to an area development agreement or master franchisee agreement. • An area development agreement is an agreement to open a specific number of locations within a specific geographical area within a specific period of time. The area developer is provided exclusivity for an assigned geographical area, provided that they meet the development schedule or timelines. Note that, as each location opens, the area developer enters into a single-unit franchise agreement for each specific location. • A master franchisee agreement provides the master franchisee with the ability to sub-franchise and grant franchises to other franchisees within an assigned territory (as opposed to area developers who are opening all the locations themselves). The master franchisee will typically be responsible for opening at least one location themselves and providing some level of support to the franchisees within the assigned territory. For this support, the master franchisee will receive a portion of the royalties as compensation. Although these definitions are generally consistent amongst franchisors, there are sometimes variations.
For example, some franchisors refer to the “area developer” as a “master franchisee.” Be sure to get clarity from the franchisor as to what their definition is so that you’re both speaking the same language. Multi-unit, area development, or master franchisee agreements are all similar in that they provide the licensee with the ability to generate revenues from multiple locations. Rather than investing in one location, you invest in multiple locations so as to diversify and improve your odds of success. If one location is underperforming, it can be offset by the success of other locations. You can also have ongoing economies of scale where you share administrative costs between the locations. You can share training expenses, employees, and management. The franchisee has greater earning potential without having to go through more training or a learning curve, because you’re familiar with the brand and the operating system and are simply duplicating what you know. Multi-unit, area development, and master franchisees will usually come at a higher initial financial investment, which is offset by the potential for greater returns. You will want to ensure that you have the financial resources to open the multiple locations. Often lenders will want to see some proven performance from the first few locations before lending additional funds for continued growth, especially in today’s current economy. If you fail to meet the schedule outlined in the area development or master franchisee agreement, the franchisor may terminate the licence. You would lose any up-front fees that you had paid. You would be permitted to continue to operate the stores that you had opened but could possibly lose exclusivity for the development area. (continued on page 76)
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FRANCHISE TUTORIAL (continued from page 75) There is the challenge that, as the brand evolves, you may be required to upgrade or remodel. This may include changes to the branding elements, equipment, technology, and/or remodelling of the physical premises of your locations. With multiple locations, this can be expensive. For a master franchisee, these costs will be shared with the other franchisees that you’re supporting. However, you may have the challenge of operating your own locations while, at the same time, working to find subfranchisees. You will need to hire support staff and have the infrastructure to provide the support. You will need to grow quickly in order to have the revenues to cover the costs of this infrastructure. A person who has strong leadership and management
skills would do well as a franchisee in any of these multiunit situations. They must be able to delegate the management tasks, as they cannot be at every location at the same time. The franchisee must have the ability to work on the business rather than in the business by overseeing multiple locations at the same time. As with any franchise opportunity, do your due diligence and fully understand your rights and obligations. With multi-unit opportunities, you will need to review the area development agreement or master franchisee agreement, as well as any single-unit franchise agreements. You will need to review the single-unit agreements, as each one will be entered into as you open the location. Talk to other franchisees who are operating under multiunit agreements to fully understand the opportunity from someone who has been there and done it.
STUDY QUESTIONS TUTORIAL 17
TUTORIAL 18
1. Territorial boundaries are defined in the franchise agreement and will often state that: a) u p to two other franchisees can open and operate under the same brand within the territory. b) only corporate locations can open and operate within the territory. c) no other franchisee shall be licensed or a corporate store opened to operate under the same brand within the territory.
1. An area developer is a franchisee who: a) h as multiple single-unit franchise agreements. b) has more than one protected area within a 100 km radius. c) has agreed to open a specific number of locations within a specific geographical area within a specific period of time.
3. When exploring the possibility of opening a second location near a protected territory, the franchisor will usually conduct a study to determine the potential impact on sales of the existing location. True or False? a) True b) False 4. Specific territory and protected area policies and terms should be outlined in the franchise agreement. True or False? a) True b) False
3. Multi-unit, area development, or master franchisee agreements are similar in that they provide the licensee with the ability to generate revenues from multiple locations. True or False? a) True b) False 4. A multi-unit franchisee must have the ability to work in the business rather than on the business by working in multiple locations at the same time. True or False? a) True b) False
Answer Key: 1) c 2) a 3) a 4) a
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Answer Key: 1) c 2) b 3) a 4) b
2. The right of first refusal means: a) y ou are provided with the first opportunity to open a second location within the territory. b) you have the right to deny any opening of a second location within your territory. c) the franchisor has the right to refuse the opening of a second location if you wish to do so.
2. The master franchise agreement provides the master franchisee with: a) a controlling share in publicly traded franchise companies. b) the ability to sub-franchise and grant franchises to other franchisees within an assigned territory. c) a minimum of five single-unit franchise locations within the province.
MARKETPLACE
CanAm Immigration, New York Immigration Law Group Knowledge is Power. Planning Equals Success. For the last 30 years, we have assisted over 7,000 businesses, companies, multinationals, and investors in expanding their operations in the United States, obtaining 27,000 business visas for applicants and their families. Whether you’re a franchisor or franchisee looking to expand, a Canadian citizen eager to invest, or a franchise consultant aiming to grow your operations, we have the expertise and resources to help you succeed. Our trademark has always been free and unlimited consulting. Contact: Richard Parenteau, CEO (819) 574-4858 | rparenteau@canamteam.com www.canamimmigration.com/business-consulting/franchise-industry
Constant Contact makes digital marketing easy and effective for franchises around the world. Whether an emerging franchise or a complex franchise group, organizations benefit from our powerful SaaS platform that delivers a simplified marketing experience with less time spent and better results. With cutting-edge technology, best-in-class deliverability, and award-winning customer support, we help franchises maintain brand consistency, empower their franchisees, and support growth. To learn more about how Constant Contact centralizes email marketing for organizations like yours, visit constantcontact.com/franchise or schedule a call/demo by emailing partners@constantcontact.com.
FASTEST GROWING BAKERY CONCEPT IN CANADA • A trusted brand – With over 180 locations across Canada and 20+ years of franchising excellence, you’re investing in an established brand that Canadians trust. • A robust model – We are all about delivering exceptional products, friendly service, and a welcoming environment that keeps customers coming back for more. • Community-focused – Our bakeries donate to hundreds of local schools, groups, and charities across Canada every single day. • No baking experience required – Our comprehensive training program and ongoing operational support mean we welcome franchisees from all walks of life. • Flexible financing options – Whether you are an investor or owner-operator, we have different pathways for you. • No franchising fee for new bakeries Contact the COBS Bread Franchising Team E email@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.
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MARKETPLACE
Massage Addict is Canada’s first and largest membershipbased provider of massage therapy, chiropractic care, acupuncture, reflexology, and custom orthotics. The health and wellness industry continues to experience significant growth, resulting in a large demand for high-quality therapeutic services. As a trusted brand with over 120 clinics nationwide, Massage Addict has a proven business model that fulfills this need. Proven System for Success • Recurring revenue • Low investment and start-up costs • Quick return on investment • Best-in-class support • Straightforward in-clinic business model • 100% Canadian-owned and operated
MSA Worldwide has established an unparalleled reputation as the leading strategic and tactical advisors in franchising. We work with companies at all stages of their franchise journey to develop franchise systems, franchisee support structures, and maximize franchisee recruitment. Our decades of experience and innovative strategies enable us to design and develop unique solutions for our clients. Contact: Andrew Seid, Senior Consultant 860-523-4257 or aseid@msaworldwide.com www.msaworldwide.com
To learn more about franchise opportunities with Massage Addict, contact: Michael Mutsaerts, VP Franchise Development Franchiseinfo@massageaddict.ca or by visiting MassageAddict.ca.
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
Embark on a culinary journey with Potikki’s—the quick service restaurant that seamlessly blends India’s favourites with a Canadian twist. Established in 2022 in Halifax, Nova Scotia, Potikki’s has quickly become one of Atlantic Canada’s most diverse and exciting franchises currently on the market. Franchise fee: $30K Investment required: $300K-$500K In business since: 2022 CFA member since: 2023 Website: www.potikkis.com Get ready to join the Potikki’s family in creating a Canadian culinary legacy across Canada. Email franchising@potikkis.com for opportunities to be part of the Canadian dream.
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MARKETPLACE
Poulet Rouge brings a fresh twist to the growing bowl market with a menu centered on grilled chicken, paired with whole-grain bases, crunchy vegetables, and flavourful sauces. Since opening its first restaurant in 2012, the brand has been redefining the fastcasual dining experience. Poulet Rouge is on an exciting growth trajectory across Canada and is actively seeking franchise partners. Potential investors who are passionate about serving healthy, halal-certified meals are invited to reach out and bring Poulet Rouge to their neighbourhood. For more information, email experience@poulet-rouge.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 390 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! Locations in North America: Over 5,500 Locations in Canada: Over 390 Minimum cash investment: $100,000 Total cash investment: $210,500 to $293,500 plus working capital. For more information on The UPS Store opportunity, call 1‐888-875-0007 or visit www.theupsstore.ca.
ADVERTISERS’ INDEX Business Exchange.. ........................................................................................ 7 www.BizSold.com
Massage Addict............................................................................................. 25 www.MassageAddict.ca
CanAm Immigration, New York Immigration Law Group............................................... 9 www.canamimmigration.com/business-consulting/ franchise-industry
MSA Worldwide................................................................................................ 19 www.msaworldwide.com
COBS Bread......................................................................................................... 15 www.cobsbread.com/franchising Constant Contact................................................................................ 12-13 www.constantcontact.com/partners/enterprise International Franchise Association. . ...................................... 71 www.franchise.org M&M Food Market.. ..........................................................................................3 www.mmfoodmarketfranchise.com
Oxford Learning............................................................................................. 21 franchise.oxfordlearning.com Potikki’s.. .................................................................................................................. 23 www.potikkis.com Poulet Rouge.. ...................................................................................................... 11 experience@poulet-rouge.ca The UPS Store........................................................ Inside Front Cover www.theupsstore.ca
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FRANCHISE ROUNDUP
Insights, ideas, and opportunities to keep on your radar FRANCHISE AV CLUB
FRANCHISING BY THE NUMBERS
34.5%
The percentage of nighttime spending (between 7 p.m. and 4 a.m.) across Canada, down from 37 per cent in 2023. Fortythree per cent of Canadians say they go out to bars, cafés, and restaurants slightly or a lot less often now than in past years.
$17.20
Ontario’s new minimum hourly wage for most employees, which came into effect on October 1, 2024. The new minimum is a 3.9 per cent increase from the previous rate.
40
The number of areas (including convenience stores, power centres, and regional malls) out of 120 that saw retail rent increases in the first half of 2024, according to a CBRE report. Only two reductions to the price of rent were noted. CBRE notes cost of construction is a driving factor in the chase for space.
3.75%
The policy rate announced by the Bank of Canada in October, down 50 basis points from the previous reduction. The decision was made citing easing inflationary pressures and forecasted GDP growth.
Franchise Canada TV is the CFA’s video interview series, introducing you to franchisees and franchisors from brands in the CFA community. From grand openings to branded events and head office walkthroughs, we give you the inside scoop on your favourite franchises. Our interview with the franchisee of WingsUp!’s newest location in Toronto’s Liberty Village is coming soon, so subscribe today! And if you haven’t already left a comment or a thumbs up, we would greatly appreciate your support. Your feedback and subscription help others discover our programming and allow us to continue delivering valuable content. Every little bit helps!
THE CFA RECOMMENDS CanadianSME Small Business Podcast. CanadianSME magazine’s Small Business Podcast interviews Canadian business professionals to provide expert knowledge and tips to help the growth of small businesses. Episodes cover current trends, tools, and technology and provide success stories and inspiring information for prospective entrepreneurs.
IN THE NEXT ISSUE
UPCOMING EVENTS
The January/February 2025 issue of Franchise Canada is the Trends issue. This issue will be full of vital information around franchise trends, an economic outlook, and a close look at the innovative technology taking the franchising industry by storm.
December 4, 2024, 1-2 p.m. ET FranTalks: The Hidden Cost of Worker Financial Stress—and How to Solve it
(Sources: C.D. Howe Institute; Foodservice and Hospitality; Government of Ontario; CBRE; Bank of Canada)
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Financial stress among employees can impact everything from productivity to retention, creating significant yet often overlooked costs for employers. Join us for an exploration of the latest findings from the Canadian Employee Financial Wellness Pulse Survey and discover how to foster a more resilient, engaged workforce and mitigate the hidden costs of financial stress.