Franchise Canada September/October 2020

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How Mary Brown's Chicken is adapting to serve customers and support franchisees – including the launch of Spicy Chicken

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Sam & Ama r Pangly, OPA! of Gree ce multi-store operators, Calgary & Airdrie, AB

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2020 CFA Hall of Fame Award Congratulations to all Canadian Franchise Association (CFA) members for winning the special 2020 CFA Hall of Fame Award!

This year’s Special Hall of Fame Award was presented to CFA member franchise companies in recognition of their outstanding performance and contribution to the CFA member community during COVID-19.

To learn more about CFA member franchises, visit

www.LookforaFranchise.ca

MEET THE BEST FRANCHISEE OF CANADA

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How BeaverTails is adapting to serve customers and support franchisees Patrick Marcovecchio, BeaverTails franchisee, Montreal, QC

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A Canadian Franchise Association Publication / FranchiseCanada.Online

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Display in business until Oct. 31, 2020

2020 CFA Hall of Fame Award Congratulations to all Canadian Franchise Association (CFA) members for winning the special 2020 CFA Hall of Fame Award!

This year’s Special Hall of Fame Award was presented to CFA member franchise companies in recognition of their outstanding performance and contribution to the CFA member community during COVID-19.

To learn more about CFA member franchises, visit

www.LookforaFranchise.ca

MEET THE BEST FRANCHISEE OF CANADA

THE FRANCHISE ADVANTAGE IN UNCERTAIN TIMES

PIZZA FRANCHISES ACROSS CANADA POWER YOUR FRANCHISE SEARCH WITH

A Canadian Franchise Association Publication / FranchiseCanada.Online

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THRIVING THROUGH INNOVATION

How Mary Brown's Chicken is adapting to serve customers and support franchisees – including the launch of Spicy Chicken

PM 41043018 $4.99

SEPTEMBER | OCTOBER 2020

Display in business until Oct. 31, 2020

2020 CFA Hall of Fame Award Congratulations to all Canadian Franchise Association (CFA) members for winning the special 2020 CFA Hall of Fame Award!

This year’s Special Hall of Fame Award was presented to CFA member franchise companies in recognition of their outstanding performance and contribution to the CFA member community during COVID-19.

To learn more about CFA member franchises, visit

www.LookforaFranchise.ca

MEET THE BEST FRANCHISEE OF CANADA

THE FRANCHISE ADVANTAGE IN UNCERTAIN TIMES

PIZZA FRANCHISES ACROSS CANADA POWER YOUR FRANCHISE SEARCH WITH

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Sam & Amar Pangly, OPA! of Greece multi-store owners, Calgary & Airdrie, AB

How OPA! of Greece is adapting to serve customers and support franchisees

SEPTEMBER | OCTOBER 2020 PM 41043018 $4.99

THRIVING THROUGH INNOVATION

Display in business until Oct. 31, 2020

2020 CFA Hall of Fame Award Congratulations to all Canadian Franchise Association (CFA) members for winning the special 2020 CFA Hall of Fame Award!

This year’s Special Hall of Fame Award was presented to CFA member franchise companies in recognition of their outstanding performance and contribution to the CFA member community during COVID-19.

To learn more about CFA member franchises, visit

www.LookforaFranchise.ca

NEW NAME. NEW FOOD. NEW LOOK. Exciting franchise opportunities now available at locations near you.

Visit our website to check out our new store design concept, rolling out across Canada. www.mmfoodmarket.com/en/new-shopping-experience

CONTENTS FRANCHISE

SEPTEMBER/OCTOBER 2020

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15 COVER STORY

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Serving Quality with Care How three quick service food franchises are adapting and innovating in response to the current economic crisis and pandemic

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FEATURES

24

Grab a Slice Franchise Canada takes you on a tour of pizza franchises across the country The Franchise Advantage Why franchised businesses can quickly and successfully fill market gaps in difficult economic times

Woman of the Franchising World Best Franchisee of Canada Kelly-Anne Pelley shares insight into her franchising accolades

28

Finding Beauty in a New Franchising Future How four salon and spa franchises are adapting to a new reality for personal care services

34

Built-in Support System Four franchising families share how they stick together through the challenges and triumphs

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www.cfa.ca | www.FranchiseCanada.Online

52

Special Focus: Commercial & Residential Services Why you should consider a franchise in these sectors!

Franchise Canada is published by the Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online

DEPARTMENTS

54

HOME-GROWN & LOCALLY-OWNED 100% Canadian Franchise Systems

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MILLENNIALS IN FRANCHISING Opportunity in Delay With a few challenges under his belt, millennial franchisee Tianchen Liu is ready to thrive with Pür & Simple

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LEADERSHIP PROFILE Building a Values-Driven Business Gordon Gamble reflects on how a strong entrepreneurial foundation and a two-year volunteer work sabbatical led to his PuroClean success

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A DAY IN THE LIFE A Time for Transition Jodi Pickles embraces the shift to virtual education as part of her dynamic role as an Oxford Learning franchisee

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THE FIRST YEAR A Fantastic Franchise Adventure McDonald’s franchisees Pierre Marois and Pierre Jacoub are cultivating their own culture of success in Nova Scotia

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ICONIC BRAND Building Community Roots COBS Bread has the right ingredients to continue its growth through tough economic times

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

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FRANCHISE FUN Fostering Franchise Growth CEO Ken Otto is helping Redberry Restaurants expand with more Canadian locations

OUT CHECK ISODES EP BONUSASON 2.5 IN SE N3 SEASOSOON G COMIN

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FRANCHISE TUTORIAL Tutorials 15 & 16 This issue: • Term of Agreement and Renewals • Renewal Fees and Redesign Costs

Tune in to the Franchise Canada Chats Podcast!

COLUMNS

9 CFA CODE OF ETHICS 11 INDUSTRY NEWS 78 ASK THE EXPERTS 83 MARKETP­LACE 88 ADVERTISERS’ INDEX 90 GIVING BACK

Available on Google Play, iTunes, SoundCloud, Spotify, and Stitcher Radio

FranchiseCanadaChats.ca

Visit www.LookforaFranchise.ca to find further information about the franchises featured in this September/October issue.

Franchise Canada

September | October 2020 5

PUBLISHER’S MESSAGE

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THE RESILIENCY OF CANADIAN FRANCHISING

he Canadian economy has come a long way in the past two months since our July/August issue. While the economy was then just starting up again, many businesses have since reopened across Canada and franchisees have adapted to operate under physical distancing guidelines, PPE regulations, and cleaning requirements.

Throughout this crisis, Canadian franchises have proven their resiliency. Faced with unprecedented challenges, including complete business shutdowns for months, Canadian franchisees are back up and running, eager to provide products and services for Canadians in a safe environment.

Franchises have taken time throughout this crisis to learn, grow, and adapt. In this September/October 2020 Food Issue of Franchise Canada magazine, we focus on how franchises, particularly in the food sector, have embraced innovation to better serve their customers in this difficult time.

The food service category is the largest franchising sector in Canada and it was hit hard by physical distancing measures. In our cover story article on page 15, three quick service food franchises outline how they’re innovating to adapt to these challenges, and how they’re supporting their franchisees along the way.

BeaverTails, which traditionally operates in tourist areas, is providing its one-of-a-kind pastries through food trucks in community areas. The Mary Brown’s Chicken team has worked together with its franchisees to launch its spicy chicken innovation during this uncertain time. And OPA! of Greece has put franchisees at the forefront, along with a focus on technology.

Franchisees are also showcasing their resolve. Take Fredericton, New Brunswick Pür & Simple franchisee Tianchen Liu, for example. The 27-year-old was scheduled to open his restaurant doors to the public in April but was delayed in opening until late June. In the Millennials in Franchising article on page 58, Liu shares how he overcame these setbacks and turned this challenge into an opportunity.

You can also learn from other successful food franchisees throughout the issue, including multi-unit Subway ® Canada franchisee Kelly-Anne Pelley. On page 24, the Best Franchisee of Canada gold winner describes her

6 Canadian Franchise Association

experience at the Best Franchisee of the World competition and reveals the secrets behind her years of franchising success. On page 66, McDonald’s franchisees Pierre Marois and Pierre Jacoub outline their journey to multiunit franchise ownership in Nova Scotia, along with how they’re navigating challenges brought by COVID-19.

We also showcase bakery franchise COBS Bread in our Iconic Brand article on page 70, where multi-unit Calgary franchisee Jeremy Banning explains how the COBS community has helped him navigate the crisis.

While food franchises have had to innovate and adapt, so too have service-focused salon and spa franchises. On page 28, we highlight four beauty franchises that have used this time to bring their franchisee teams closer together and examine what their franchises will look like in this new distanced environment. We also introduce you to four families who operate their franchises together on page 34, where they share how they rely on each other to make it through this difficult time and continue to build their businesses.

The franchise business model itself has played a big role in helping franchisees adapt in the face of challenges. On page 49, three franchise professionals explain the benefits of franchise ownership compared to independent business ownership, and the reasons why franchises are in a good position to quickly and successfully fill market gaps left by the economic downturn.

This issue is full of stories of perseverance, showcasing the strength and tenacity of Canadian franchisees in the food sector and beyond. To learn more about the power of franchising and how to get started, we encourage you to check out our additional resources at www.FranchiseCanada.Online and to follow the Canadian Franchise Association (CFA) on social media. We hope this issue inspires you to kick-start your career in franchising so you can make your business ownership dreams come true. Stay safe!

Sherry McNeil President & CEO, Canadian Franchise Association

www.cfa.ca | www.FranchiseCanada.Online

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CFA BOARD OF DIRECTORS (as of time of print) BOARD CHAIR Gerry Docherty*, Good Earth Coffeehouse PRESIDENT & CEO Sherry McNeil*, Canadian Franchise Association 1ST VICE CHAIR David Druker*, The UPS Store 2ND VICE CHAIR Lawrence Eade, Caffé Artigiano

PUBLISHER

TREASURER Lyn Little, BDO Canada LLP

Canadian Franchise Association (CFA)

SECRETARY & GENERAL COUNSEL

VP, CONTENT & MARKETING Kenny Chan

Larry Weinberg*, Cassels Brock & Blackwell LLP

EDITOR Lauren Huneault

PAST CHAIR John DeHart*, Hartify Franchise Consulting

GRAPHIC DESIGNER Andrea Lee

CHAIR, LEGAL & LEGISLATIVE COMMITTEE

ADVERTISING SALES Jill Todd

Darrell Jarvis*, Fasken

CHAIR, FRANCHISE SUPPORT SERVICES

Kirk Allen, Reshift Media DIRECTORS

Hadi Chahin, Mary Brown’s Chicken & Taters Steve Collette, 3rd Degree Training/Actual Nutrition Sebastian Fuschini, Pizza Pizza John Gilson, COBS Bread Terry Hould, ServiceMaster of Canada Limited Andrew Hrywnak, Print Three Franchising Corporation Rimma S. Jaciw, CFE, WSI Digital Marc Laurin, MTY Group Ken Otto, Redberry Restaurants Ryan Picklyk, A&W Food Services of Canada Inc. Gary Prenevost, FranNet Stephen Schober, Metal Supermarkets Family of Companies Frank Stanschus, Little Kickers Bob Tipple, Expedia CruiseShipCenters Laura Wittholz, THE TEN SPOT Beauty Bars *Executive Committee member

NATIONAL SPONSORS

The CFA wishes to acknowledge and thank these National Sponsors for their support throughout the year.

Find out more about these companies at www.cfa.ca/sponsorship

AD COORDINATOR Andrea Lee CONTRIBUTING WRITERS

Georgie Binks, Jessica Burgess, Suzanne Bowness, Lauren Huneault, Roma Ihnatowycz, Gina Makkar, David Chilton Saggers, Andrew Schopp, Karen Stevens, Jordan Whitehouse, Kym Wolfe FRANCHISE FUN ILLUSTRATION Sam Gorrie PRINTING Premier Printing FOR ADVERTISING INFORMATION:

Jill Todd jtodd@cfa.ca

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We invite your comments, questions and suggestions. Please contact us at editor@cfa.ca or 1-800-665-4232.

© 2020, 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.

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Publications Mail Agreement No. 41043018 Legal Disclaimer The opinions or viewpoints expressed herein do not necessarily reflect those of the Canadian Franchise Association (CFA). Where materials and content were prepared by persons and/or entities other than the CFA, the said other persons and/or entities are solely responsible for their content. The information provided herein is intended only as general information that may or may not reflect the most current developments. The mention of particular companies or individuals does not represent an endorsement by the CFA. Information on legal matters should not be construed as legal advice. Although professionals may prepare these materials or be quoted in them, this information should not be used as a substitute for professional services. If legal or other professional advice is required, the services of a professional should be sought.

FSC® certification is a commitment to good forestry practices, carried from forest to consumer

8 Canadian Franchise Association

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HELPING YOU DO MORE BUSINESS IS OUR BUSINESS Create a consistent payment experience across your franchise locations.

Welcome our Consumer, Small Business and Corporate Cardmembers at your franchise locations. When franchisees accept American Express Cards, they get access to complimentary marketing programs such as American Express MapsŽš so Cardmembers know you welcome their business.

To learn more about the benefits of accepting American Express, and how we can support your marketing efforts, visit www.americanexpress.ca/canadianfranchiseassociation

1. American Express Maps features eligible American Express Card accepting small merchants and is intended for general reference purposes only. It does not represent a comprehensive list of all Card accepting merchants. Data is updated from time to time and may not be 100% accurate. For a list of eligibility criteria or to access Frequently Asked Questions please visit https://icm.aexp-static.com/content/dam/one-amex/merchant/en-ca/footer/default/CAFAQs.pdf.

CODE OF ETHICS

T

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

Franchise system and franchise support services members should fully comply with Federal and Provincial laws, and with the policies of the Canadian Franchise Association.

2. A franchisor should provide prospective franchisees with full and accurate written disclosure of all material facts and information pertaining to the matters required to be disclosed in advance to prospective franchisees about the franchise system a reasonable time [at least fourteen (14) days] prior to the franchisee executing any binding agreement relating to the award of the franchise.

3.

A ll matters material to the franchise relationship should be contained in one or more written agreements, which should clearly set forth the terms of the relationship and the respective rights and obligations of the parties.

4. A franchisor should select and accept only those franchisees who, upon reasonable investigation, appear to possess the basic skills, education, personal qualities and financial resources adequate to perform and fulfil the needs and requirements of the franchise. Franchise systems and franchise support services members of the Association should not discriminate based on race, colour, religion, national origin, disability, age, gender or any other factors prohibited by law.

5. ­­­ A franchisor should provide reasonable guidance, training, support and supervision over the business activities of franchisees for the purposes of safeguarding the public interest and the ethical image of franchising, and of maintaining the integrity of the franchise system for the benefit of all parties having an interest in it.

6. Fairness should characterize all dealings between a franchisor and its franchisees. Where reasonably appropriate under the circumstances, a franchisor should give notice to its franchisees of any contrac-

10 Canadian Franchise Association

tual default and grant the franchisee reasonable opportunity to remedy the default.

7. A franchisor and its franchisees should make reasonable efforts to resolve complaints, grievances and disputes with each other through fair and reasonable direct communication, and where reasonably appropriate under the circumstances, mediation or other alternative dispute resolution mechanisms.

8. A franchisor and a franchise support services member should encourage prospective franchisees to seek legal, financial and business advice prior to signing the franchise agreement.

9. A franchisor should encourage prospective franchisees to contact existing franchisees to gain a better understanding of the requirements and benefits of the franchise.

10. A franchisor should encourage open dialogue with franchisees through franchise advisory councils and other communication mechanisms. A franchisor should not prohibit a franchisee from forming, joining or participating in any franchisee association, or penalize a franchisee who does so.

11. A franchise support services member in providing products or services to a franchisor or franchisee should encourage the franchises to comply with the spirit of this Code of Ethics. A franchise support services member should not offer or provide products or services if legislative or professional qualification is required to do so unless the franchise support services member has such qualification.

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

Visit FranchiseCanada.Online today.

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INDUSTRY NEWS

Your source for what’s happening in Canadian franchising Canadian Franchise Association (CFA) Announces Winners of Special 2020 Hall of Fame Award In light of recent global events and their impact on the Canadian franchise community, the Canadian Franchise Association (CFA) is pleased to announce the presentation of a Special Hall of Fame Award to all CFA member franchise systems and brands.

Part of the CFA’s Recognition Awards program, the CFA Hall of Fame Award is normally presented to a singular CFA member franchise company each year in recognition of outstanding performance. Winners typically have strong brand recognition and solid business performance. They exhibit leadership in the franchise community, including helping to encourage excellence in franchising through the sharing of best practices, speaking engagements, mentoring other members of the community, and raising the profile of franchising.

This year’s Special Hall of Fame Award is being presented to CFA member franchise companies in recognition of their outstanding performance and contribution to the CFA member community during COVID-19.

“At its core, franchising is about people helping other people achieve their goals through collaboration and mutual support and throughout COVID-19, we have seen franchising’s strength shine brightly through our members,” said Sherry McNeil, CFA president & CEO. “Our members have been working extremely hard to support their franchisees. They have also been extraordinary in helping other companies in CFA community through leadership, sharing of best practices, and organic peer-to-peer

mentorship. We congratulate all of our member franchise systems, who have been remarkable and deserve to be recognized for their outstanding performance through recent times.”

The Special Hall of Fame Award was presented by video and shared on social media the week of June 29, 2020. The CFA adapted its awards program to a video format as a result of COVID-19 physical distancing regulations.

Inspiration Learning Center Welcomes Two New Franchisees in Ontario Inspiration Learning Center tutoring and private school is pleased to announce that two new franchisees have joined the franchise network in Ontario. Vincent Maharaj joined on June 23, 2020 as a new franchisee in Mississauga on Dundas Street West, while Shandy Ng joined on July 6, 2020 in the Windsor market.

“We are excited to welcome Vincent and Shandy to our Inspiration Learning Center franchise team as new franchisees in our Mississauga and Windsor markets. It is refreshing to see that they are going into business at a time like this as they start the next chapter in their lives, and it is exciting they chose us during this time. We will see a boom in the education business for the remainder of the year and as we go into 2021, and

Shandy and Vincent will enjoy this boom with us, so I am very excited for them to have joined our team at this time,” says Angel Kuang, founder of Inspiration Learning Center.

Founded in 2003, Inspiration Learning Center has expanded to 16 learning centres across the Greater Toronto Area, with its newest centres in Mississauga and Burlington in 2020. Its philosophy differentiates from other learning centres, with 5 Pillars of Potential Income: 1) tutoring - Eastern and Western methods; 2) private school - high school credits; 3) education consulting; 4) retail; and recently 5) online learning.

Inspiration Learning Center is not looking for candidates who work in the education sector, only those who love education.

PuroClean Canada Announces Complimentary Cleaning Services for First Responders Across Seven Provinces As much of North America continues to shelter in place, and many begin evaluating plans for establishing a new normal, first responders are facing elevated risk with many unique challenges. As a way of thanking those on the front lines for their dedication and service, PuroClean Canada, a restoration and remediation franchise location with 39 offices in seven provinces, announced that all offices will provide free cleaning services to first responders.

Complimentary services being offered will include the deep cleaning of breakrooms, bathrooms, vehicles, vending machines, doorknobs, and other frequent touchpoints at police or fire stations, hospitals, medical clinics, and beyond.

“Service and leadership are pillars of PuroClean’s values, and those

Franchise Canada September | October 2020 11

INDUSTRY NEWS values are reflected in those working tirelessly to limit the survival of the virus,” said Gordon Gamble, chairman and CEO of PuroClean Canada. “We are humbled to be able to offer pro-bono service to our first responders and non-profit organizations within Canada during such challenging times.”

PuroClean’s biohazard cleanup services are aimed at limiting the survival of the virus in commercial and residential environments and helping prevent its spread. For the protection of both employees and customers, all trained technicians wear properly appointed personal protective equipment (PPE) and ensure those on-site are informed of safety procedures at all times.

In addition to front line medical employees and first responders, PuroClean Canada is extending this initiative to select non-profit organizations, as well.

“We’re grateful for the dedication and hard work of those on the front lines serving our communities in the face of our incredible challenges. We are committed to doing all that we can to show appreciation and provide them peace of mind while they do their work,” said Jason Reis, president of PuroClean Canada. “The PuroClean family is comprised of franchise owners who want to make peoples’ lives better, and this is just another example of the relentless excellent service they provide on a daily basis.”

organization to postpone the conference and as a result, the company decided to reveal their new brand identity now, via virtual sessions with all stakeholders.

“This is an exciting time for our brand and our franchisees.” states Brian Bazely, CEO of Driverseat. “We have been impacted by the economic slowdown, but the situation has not slowed us down at all. We continue with our marketing efforts, connecting with members of the community, and preparing for the next stage of the new normal.”

The launch of the new Driverseat brand includes some very exciting elements. The logo has been updated, with the same familiar orange but an updated blue accent.

Its governance, core values, mission, and vision are all new for 2020.

“I could not be prouder of our marketing and franchise support team. The work they have done for this launch was incredible. To suggest that creating something this significant during such uncertain times is outstanding would be considered an understatement,” adds Bazely.

Driverseat Brand Receives Major Makeover Driverseat launched their new branding in late May, with dozens of virtual events that included franchisees, vendors, the Canadian Franchise Association, and the public.

Driverseat developed the new branding towards the end of 2019, with a plan to roll out to franchisees during the annual Driverseat conference scheduled for March 2020.

The COVID-19 pandemic forced the

Tint World® Expands in Greater Toronto Area with Pickering Location Tint World® Automotive Styling Centers™, a leading auto accessory and window tinting franchise, has opened a new location in Pickering, Ontario. This brand-new store is owned by Rob Lebovic and is the third in the Greater Toronto Area.

“Tint World® offered the ultimate solution that would allow me to own my own business and follow

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www.cfa.ca | www.FranchiseCanada.Online

my dreams,” Lebovic said. “I have a passion for the automotive industry, and I believe everyone deserves an amazing customer experience. I can’t wait for Pickering residents to see everything we can do for them.”

Tint World® Pickering offers a full range of products and services, including mobile electronics, audio video equipment, security systems, car stereo upgrades, window tinting, custom wheels and tire packages, paint protection films, nano ceramic coatings, and much more.

“We’ve been steadily expanding into Canada, and the Pickering store is a great addition to the Tint World® family,” said Charles J. Bonfiglio, president and CEO of Tint World®.

“Rob’s enthusiasm for the industry and his drive are going to ensure this new location is an asset to our brand and his community. He’s worked hard to get this store open, and that determination is going to lead to a great deal of success for him.”

Paris Baguette Targets Toronto as Growth Market As Paris Baguette’s international popularity continues to grow, the bakery-café franchise is focusing its expansion efforts on Toronto.

Based on global demand and steady growth for the bakery market in Canada, Paris Baguette is seeking development opportunities in Canada’s most populous city.

“At our core, Paris Baguette is a bakery that is French inspired and innovates through global influences,” says Gregg Koffler, vice president of franchise sales and development. “Our rich history of more than 70 years in the baking business coupled with our global identity are sure to resonate with the diverse population of Toronto. Fast casual restaurants continue to outpace industry growth and we see a great deal of opportunity for business owners in this urban market.”

Known for its delightful assortment of cakes, pastries, and breads,

INDUSTRY NEWS Paris Baguette seeks multi-unit owners and area developers who are as passionate as they are about the business and their communities.

“We offer versatile store footprints and our concept succeeds in a variety of environments, from urban centres to suburban shopping centres,” continues Koffler. “Though the restaurant industry is facing unique challenges at this time, we’re seeing positive steps being taken to support our industry and business owners.

Based on this outlook, we are bullish about the long-term prospects of owning a Paris Baguette franchise and are eager to meet with the bestin-class operators in this city.”

In targeting Toronto, Paris Baguette plans to strengthen its presence as a global franchise concept. The most compelling selling points for franchise partners include strong average annual sales, proprietary recipes, and an engaged leadership team.

Inner Spirit Holdings Achieves 50th Spiritleaf Store Milestone Inner Spirit Holdings Ltd., a Canadian company that has established a national network of Spiritleaf retail cannabis stores, announced further expansion of the Spiritleaf brand into Ontario with store openings in Guelph and Ottawa, and into Newfoundland and Labrador with a store opening in St. John’s.

The St. John’s store marks the 50th store in Canada, making the Spiritleaf brand the largest in the country by store count.

“It’s so satisfying to be putting roots down into these new com-

munities and to deliver a premium retail cannabis experience to customers that’s enabled through our passionate and deeply invested local franchise owners. Spiritleaf’s people are doing such a wonderful job of expanding the company and entering new markets and communities, and we truly appreciate the warm welcomes we’re receiving from our neighbours and guests,” said Darren Bondar, president and CEO of Inner Spirit.

Inner Spirit Holdings also noted further expansion activity with more than 30 new stores across Canada in various stages of development.

Subway® Restaurants to Add 50,000 Jobs in Communities Across North America With record unemployment levels across Canada and the U.S., Subway ® Restaurants announced its local franchise owners seek to hire approximately 50,000 jobs in North American restaurants, including just under 6,000 in Canada. This effort further deepens the brand’s community connections, as Subway can be found in almost every community across Canada, and directly addresses some of the devastating effects of the COVID-19 crisis.

Subway recognizes the importance of supporting its communities and providing safe, reliable job opportunities to those seeking employment – now more than ever.

Starting this summer at participating North America restaurants, thousands of job opportunities will be available ranging from entry-level to management.

“As our business continues to see a growing demand for our value offerings, curbside pick-up, and delivery, we are happy to support such a large-scale employment opportunity to meet the demands of our guests,” said Aidan Hay, Subway VP of operations for North America.

“We’ve been fortunate that a majority of Subway restaurants remained

open the past few months and are so appreciative to the franchise owners and their employees who have made that possible. For existing and new employees, it is important to us that each one feel valued and safe when working in our restaurants.”

Subway continues to roll out appropriate safety procedures that protect restaurant employees and guests alike. Over the past several months, Subway has been a leader in enhancing its operational procedures to keep restaurants safe and clean.

Measures such as closing its dining rooms, working with third-party delivery partners to ensure contactless delivery, sourcing masks for restaurant employees and plexiglass shields at registers, requiring appropriate social distancing guidelines in restaurants among employees and guests, reinforcing stringent health and food safety standards, and providing its franchise owners with guidelines for employee wellness checks have allowed Subway to keep its restaurants running safely. As the brand moves forward with new employment opportunities, safety will remain its top priority.

Franchise Canada September | October 2020 13

ADVERTORIAL

Key Financial Data for Successful Restaurant Operations

F

inancial data is imperative for every business, but it is especially critical for the restaurant industry given the current environment. Many locations were operating on a take-out only basis, or physically shutdown for an extended period, resulting in cash positions being tighter than ever. Timely financial data can help restaurant owners make strategic decisions.

Where can you find this information?

Restaurant owners can obtain and compile their financial data through different systems and applications, such as: • Point of sale system • Bank accounts • Supplier portals • Payroll registers • Bookkeeping program Knowing where to find this data, and putting it together into an accessible, readable format allows the restaurant owner/operator to understand their current financial status.

Cash is king With the reduction in revenues due to lower foot traffic and increased physical distance required in establishments, along with increasing delivery fees, PPE costs and cleaning protocols, cash is more important than ever. Regular cash flow forecasts should be prepared, addressing questions such as: 1. What will the restaurant look like with reduced occupancy?

2. What are the 3, 6, or 12 month forecasts?

3. What payments have been deferred, and which will be

coming due when, such as taxes, rent, and loan payments?

4. Where will financing come from for any shortfalls?

Boosting restaurant profitability Staffing • With changes in capacity, staffing requirements will need to be reassessed.

• Analyzing changes to customer traffic and behaviours can allow you to adjust staffing accordingly.

• Consider reviewing hours of operation to compare revenue to cost of labour and other relevant expenses to ensure that variable costs are being covered off.

Especially as restaurants have seen a change in the sales mix with online ordering and delivery, being physically open the same hours as before may not make sense.

Inventory control • Projecting anticipated sales with period-over-period financial data can help in planning inventory purchases during specific periods. As your restaurant ramps up operations, it’s important to review spoilage and high cost items on a regular basis to ensure they are being effectively managed.

– Spoilage = too much inventory – High cost items = low turnover & theft • Consider payment terms and lead-time in supplier selection when possible to reduce carrying costs. Suppliers offering longer payment terms provide the opportunity to deploy cash in other ways, effectively providing

interest free financing to your operations.

• Consider reducing menu options as operations ramp up to decrease the requirement for different types of inventory. By streamlining options that use the same ingredients, the physical number of products needing to be on hand will be lower, and the spoilage risk will reduce as well due to higher turnover of each item.

BDO can help Owners should be able to focus on operating their business instead of chasing bookkeeping errors or financial data. We provide the bookkeeping, payroll, and year-end accounting to help restaurant owners rebuild and manage through change. Check out https://insights.bdo.ca/restaurants to discover how we can help you.

Lyn Little, CPA, CA National Franchise Industry Leader BDO Canada LLP Direct: 905-633-4942 llittle@bdo.ca

COVER STORY

Serving Quality with Care How three quick service food franchises are adapting and innovating in response to the current economic crisis and pandemic

BY JESSICA BURGESS

There's no doubt that economic distress is being faced around the world as the COVID-19 crisis continues, leaving many businesses facing difficult decisions and navigating unprecedented scenarios. Here, three quick service food franchises – BeaverTails, Mary Brown’s Chicken, and OPA! of Greece – share how they’ve been adapting to these challenges and making their way forward with strength and optimism.

Franchise Canada September | October 2020 15

COVER STORY

16 Canadian Franchise Association

www.cfa.ca | www.FranchiseCanada.Online

COVER STORY

BeaverTails BeaverTails has been serving up a bit of “classic Canadian” fare since 1978, when they began offering their unique pastries at a craft fair outside Ottawa, Ontario.

Since then, the company has grown steadily, particularly in the tourist market. Given the current crisis around the world, this has of course been a source of stress for quick service food franchises all over who rely on seasonal influxes of customers.

“Travel and tourism stopped … and non-essential restaurant consumption was also steeply curtailed,” shares CEO Pino Di Ioia, adding that the company was forced to pivot to their less-traditional markets. “Suddenly, instead of servicing music festivals and major fairs, our food trucks were parked at local grocery stores and Canadian Tire outlets, serving our delicious gooey happiness to Canadians.”

“We are also expanding our community shops programs,” continues Di Ioia, “so that our guests don’t have to visit a tourist area to enjoy the pastries that made us famous. Going forward, you can expect to see us in more local communities, allowing our community shops to be beacons of happiness in communities.”

BeaverTails is also uniquely poised in the market with its competitive costs, small footprint, and simple takeout operations going strong. “These are all directions we were actively developing before COVID-19,” Di Ioia says, “but we will more aggressively develop them in the months and years ahead.”

Franchisee Patrick Marcovecchio seconds Di Ioia’s sentiments, adding, “Given the current economic climate, our profitability has not taken much of a hit. I think once we fully understand the new avenue with the food trucks, not only will it stay a part of the business, but it will allow us to increase profits as well.”

Indeed, Marcovecchio has already invested in another food truck unit for the summer, given the increased

demand. “Through the power of social media,” he continues, “we are actually doing quite well.”

Furthermore, BeaverTails head office continues to develop its training and support systems to reflect the changing world. “We have an active franchise advisory committee, which will continue to be integral in influencing our priorities. In addition, while we have used remote video conferencing technology for years, we are envisioning increased use of software to facilitate longdistance communications and learning for our franchisees,” says Di Ioia.

The top priority is the well-being of franchisees. “We need our franchise partners to be happy individuals,” Di Ioia continues, “who truly enjoy serving our guests and sharing our uniquely delicious joy with each individual guest.”

Marcovecchio agrees: “Our clients have an attachment to us, so we want to make sure their experiences are over the top all the time.”

And as people look to find small moments of joy in what is a stressful time, it’s clear that quick service restaurants have a key role to play, and are eager and willing to adapt to better serve customers all over the country.

BEAVERTAILS STATS Franchise units in Canada: 142, US: 13, International: 6 Franchise fee: $30K Start-up capital required: 40% cash of total investment Investment required: $250K-$350K Training: 1 week hands-on, branding & operations ongoing support Available territories: All of Canada, US, International In business since: 1978 Franchising since: 1992 CFA member since: 2010 To learn more, visit www.LookforaFranchise.ca

Franchise Canada September | October 2020 17

COVER STORY

Mary Brown’s Chicken Mary Brown’s Chicken, which got its start in St. John’s, Newfoundland in 1969, has a rich history to draw on as the franchise moves forward in today’s world. “This crisis has shown us that we are proactive and agile,” shares Jeff Barlow, VP of marketing. “We can quickly change procedures and policies when needed. We believe we have the trust of our guests and franchisees to do what’s best. That trust is the foundation of where we go from here.” Guests can continue to look forward to the quality food and service that they know and love, including product launches, like the new Spicy menu.

The new menu includes the launch of the Spicy Big Mary Chicken Sandwich and the Spicy Signature Chicken, both of which have plenty of heat, flavour, and kick. Darlene Giles, creative director for Mary Brown’s, adds that the company is confident these new menu options will appeal to a growing customer base hungry for spicy options. “In a marketplace filled with spicy fast

18 Canadian Franchise Association

food options, especially spicy chicken sandwiches, we believe we have crafted the one to beat!” Giles says.

The company wants to continue to serve their customers regardless of how the service itself must change given the times we’re in.

“We’re still opening stores; we’re still growing as a franchise,” Barlow explains, adding, “Post-crisis, we intend to continue with that trend.”

During the crisis,” he says, “our franchisees have been supported across all functional areas – operations, finance, marketing, development, and beyond – with expert guidance and financial relief where needed. We rallied behind our franchisees to give them the tools to continue to operate successfully. Financially, Mary Brown’s has provided a tier-based royalty reduction plan on sales results, giving the greatest relief to the stores needing it most – notably, those without delivery and/or drive-thru.”

As well, a top priority is taking care of their own – franchisees and their communities. “Take care of your

www.cfa.ca | www.FranchiseCanada.Online

COVER STORY

CHICKEN

staff,” says Barlow. “Treat them well, provide incentives, and acknowledge ‘extra-mile’ efforts.”

Part of Mary Brown’s success during the current crisis also comes from a strong marketing approach, with a guest-centric mindset. “We had to do a 180-degree turn and change all our plans, to increase sales but also to do our part to support our guests and all Canadians during this difficult time,” Barlow says of the company’s strategies since COVID-19 measures went into place across the country.

Building on that, Barlow adds: “Our brand is known for philanthropy. People remember kindness – it’s a great way to build awareness and attract guests. To help frontline workers, we created ‘Mini Mary Moments’ – food drops to key frontline workers in hospitals, grocery stores, and many more key services,” he shares.

“We also implemented a special family deal,” he notes, “promoted through digital channels, acknowledging that guests are looking for comfort food at a good price to feed their families.”

Barlow’s insights speak to the company’s ongoing commitment to supporting the communities that support the restaurants and giving back wherever possible. “Mary Brown’s is going forward with confidence and optimism!” says Barlow, knowing that trusting their foundation is the way to longevity and future success.

MARY BROWN’S CHICKEN STATS Franchise units in Canada: 170+ Corporate units in Canada: 18 Franchise fee: $25K Start-up capital required: $250K+ Investment required: $650K+ Training: 3 weeks Available territories: All of Canada In business since: 1969 Franchising since: 1969 CFA member since: 1982 To learn more, visit www.LookforaFranchise.ca

Franchise Canada September | October 2020 19

COVER STORY

Raj and Pam Chahal, franchisees in Calgary, Alberta

20 Canadian Franchise Association

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COVER STORY

Dorrie Karras, CEO

OPA! of Greece Founded in 1998, OPA! of Greece has been a trusted part of Canada’s quick service food landscape for more than 22 years. The franchise has faced the same challenges as other food service companies since COVID-19 changed the way Canadians are looking at health and safety concerns, but it remains steadfast in its commitment to bringing good food to people across the country.

CEO Dorrie Karras, who has been with the company for 20 years himself, considers OPA! an industry leader in supporting franchisees through these difficult times.

“Our shareholders agreed to take a 66 per cent royalty cut during the height of the pandemic in order to ease the burden on the franchisees,” he shares. “We know our franchisees are the heart of our operations, and we do everything we can to support them. I was a franchisee before taking on the CEO position, so I understand the challenges of franchisees firsthand.”

Raj and Pam Chahal, franchisees in Calgary, Alberta, can attest to this best-in-class support. “Our franchisor has been there for us every day, providing us with updates announced by local, provincial, and federal governments, offering us help by providing us with the right material, such as floor signs for social distancing,” says Raj. “There was a lot of fear in the market about eating out,” he explains, adding that this, along with mandatory closures, meant lower sales, layoffs, reduced hours, and limited expenditures. In response, OPA! head office has worked to ensure the appropriate health and safety measures are being taken across the franchise, and they are also providing economic support when it matters most.

“Our franchisor announced that they would be reducing the royalties from six per cent to two per cent and marketing costs from three per cent to one per cent due to the pandemic, and they have deferred all royalties and marketing payments to help their franchisees with cash flow,” notes Raj. Karras shares that although the franchise has been impacted by the current crisis, it doesn’t mean that looking to the future has slowed. “Development and growth remain two of our priorities, even during these times.

There are several new locations opening in the next year throughout British Columbia, Alberta, Saskatchewan, Manitoba, and Ontario.”

Furthermore, OPA! is well positioned to navigate a changing world through innovative technology available to food-service franchises throughout Canada. “Online ordering, third-party delivery, and curbside pick-up are some of the areas we will be shifting our efforts to,” Karras says, as they look to provide all customers with the safest, most efficient experience possible.

OPA! OF GREECE STATS Franchise units in Canada: 102 Franchise fee: $25K Start-up capital required: $125K-$200K Investment required: $340K-$450K Training: Yes Available territories: All of Canada In business since: 1998 Franchising since: 2001 CFA member since: 2010 To learn more, visit www.LookforaFranchise.ca

Franchise Canada September | October 2020 21

It’s a new era for restaurants.

Restaurant owners can improve operations by: 

Using data to manage labour and food costs



Outsourcing non-core functions



Leveraging technology

Learn how BDO professionals can help improve your restaurant’s financial health on insights.bdo.ca/restaurants

Assurance | Accounting | Tax | Advisory www.bdo.ca

From left to right: Subway® Canada franchisees James and Kelly-Anne Pelley; Subway® Canada business development agent Tom Vokey and his partner Margaret Ann Judge; and Canadian judge John DeHart, past chair of the Canadian Franchise Association board of directors.

WOMAN OF THE FRANCHISING WORLD Best Franchisee of Canada Kelly-Anne Pelley shares insight into her franchising accolades

BY LAUREN HUNEAULT

T

he past year was one for the record books for multi-unit Subway ® Canada franchisee Kelly-Anne Pelley. In the spring of 2019, Pelley was named the Canadian Franchise Association (CFA) Franchisee of the Year Gold winner for the Traditional Franchises category. Fast forward to January 2020, when she was recognized as the Best Franchisee of Canada Gold winner and travelled to Florence, Italy to participate in the Best Franchisee of the World global competition.

“It was an unbelievable honour to represent Canada at this competition and to win the award for Best Franchisee of Canada,” says Pelley, who travelled to Florence for four days with her husband. They were also accom-

24 Canadian Franchise Association

panied by a Subway ® Canada franchisor representative and Canadian judge John DeHart, Past Chair of the CFA Board of Directors.

To determine the Best Franchisee of Canada, sponsored by the CFA and The Business Exchange, three judges evaluated the candidates, who were nominated by their franchisors. While Pelley won Gold for the Best Franchisee of Canada, Paul and Lyne Bimm from TWO MEN AND A TRUCK Canada won Silver, and Seema Ahluwalia from Oxford Learning Centre won Bronze.

As the Canadian finalist, Pelley participated in the Best Franchisee of the World global competition from January 31 to February 1 alongside finalists from other regions,

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WOMAN OF THE FRANCHISING WORLD

“ASIDE FROM THE HONOUR, I GUESS IT JUST KIND OF LETS ME KNOW THAT WHAT I’VE BEEN DOING FOR THE LAST 28 YEARS, I’VE BEEN DOING A PRETTY GOOD JOB. IT VALIDATES THE WORK I’VE PUT INTO MY CAREER.” including the United States, Mexico, Brazil, and DACH (Germany, Austria, and Switzerland). Isabella Kling from the DACH region, with fitness franchise Mrs. Sporty, was named the Best Franchisee of the World winner.

A new, enlightening experience Pelley says she and her husband James thoroughly enjoyed their learning experience at the global competition. “When we went to Italy, it was really interesting because we got to meet some franchisees from different franchises, and also their franchisors, from different countries,” she explains.

“Being the first candidate from Canada to attend this competition, it was a different perspective as well, because none of us knew what to expect. But the process was really well organized and very enjoyable. And they allowed us to have lots of meet and greet time.”

Pelley notes that the process involved introductions of each candidate by their franchisor, along with individual interviews with the panel of judges. She says she enjoyed time with other franchisees, including winner Kling, whom she described as “a real crackerjack.”

While Pelley and her husband were only in Italy for four days, Pelley says they made the most of their limited time in the region. “The first day, we had free and we did a little tour on our own of the area with our franchisor, who came with us. One of the days, after our interviews, they had a private tour of a museum set up for us. The final night, they had their gala. We got to see a lot of the area because it was located on a high floor of a hotel and it was beautiful.”

With this experience under her belt, Pelley is eager to recommend that franchisees participate in the future: “Oh my goodness, for sure. Absolutely!”

Recognizing hard work This was an experience of a lifetime, and for Pelley, it was also an affirmation of the decades of hard work that went into her businesses. “Aside from the honour, I guess it just kind of lets me know that what I’ve been doing for

the last 28 years, I’ve been doing a pretty good job. It validates the work I’ve put into my career,” she says.

Pelley has a long and storied history with the franchise business model. She was introduced to franchising by her parents, who started with a coffee franchise when Pelley was about 14 years old. She worked with them until she pursued a degree in commerce from Dalhousie University in Halifax, Nova Scotia.

“I knew my goal was going to be to own a franchise, but I didn’t know which one. As a student, I became a very loyal customer of Subway ® and I started my quest to own one when I was in my third year of university,” she explains. “I had talked to some franchisees on Robie Street [in Halifax] – they were young guys and they were so pumped about Subway ®. I had applied from that point on and I was accepted the summer when I finished my third year. I opened my franchise after I graduated the next year.”

Pelley and her husband started with one store in Corner Brook, Newfoundland and eventually expanded to six franchises throughout the province. They purchased 10 more stores in Cape Breton, Nova Scotia when their daughter Emily joined the team, and Emily moved to the region to operate the newest additions.

Born for franchising Pelley says her success in franchising can largely be attributed to her affinity for the business model. She enjoys following the proven guidelines set out by the franchisor, while building on them with her own innovations.

“I’m the absolute perfect candidate to be a franchisee because I’m a rule follower by nature,” she explains, noting that it’s also important to maintain a strong presence in the community through sponsorships and volunteering.

While Pelley and her family now own 16 Subway ® franchises in Atlantic Canada, she recognizes that it wasn’t always smooth sailing.

“The very first challenge was when I opened the Subway ® here in Corner Brook all those years ago, people

Franchise Canada September | October 2020 25

WOMAN OF THE FRANCHISING WORLD

didn’t even know what Subway ® was – all they thought about was an underground train. I was also the very first smoke-free restaurant way back then. I had multiple people tell me, ‘you’re never going to make it being nonsmoking.’ But we stuck to the healthy values of Subway ® and we were able to grow to three franchises in Corner Brook right now,” Pelley says. She notes that another challenge was juggling children with her career but says being self-employed provided her the flexibility to put her family first.

A family affair The Pelley family has been working together in franchising from the start. Pelley says their family dynamic has been another source of their success. “My husband and I have been together since I was 13 years old, so we have carved out our roles right from day one. We try not to step on each other’s toes; we respect each other’s boundaries,” she notes. “Having our oldest daughter Emily work with us is absolutely amazing. She wants everything done perfectly and she’s up to date on all the technology, so she’s great. The only disadvantage I can think of is that if something happens, we’re all affected, because we’re all in this business together.”

26 Canadian Franchise Association

As for what’s next for Pelley, she says, “We’d like to purchase more stores, we’re always open to new ideas.

My parents are still in the franchising business with coffee, our other daughter has a pizza franchise, so we have three generations of franchising in our family. We’re always on the lookout to see what other opportunities are available.”

For those considering franchising, Pelley stresses the importance of doing your due diligence, especially when it comes to connecting with other franchisees in the system. “Talk to as many franchisees that are willing to give their time. I know cold calling out of the disclosure document is sometimes a little scary, but you really have to do that,” she advises. “And if you can get the opportunity to spend time in-store with a franchisee before actually putting your name on the dotted line, that would be a great idea, to see what their daily lives are like and what it’s like to spend time in a store.”

“I just want to sincerely thank the Canadian Franchise Association for giving me this opportunity and thank you to Subway ® Canada for nominating me. I’m blessed.

I love my life as a franchisee and I would encourage anyone to follow that route,” she adds.

www.cfa.ca | www.FranchiseCanada.Online

ADVERTORIAL

On the Cutting Edge Franchisees are the lifeblood of the thriving Great Clips, Inc. brand

BY JESSICA BURGESS

W

hen Beth Nilssen, Great Clips, Inc.’s director of franchise development and product, speaks about the Great Clips franchise system, it’s easy to see how this walk-in salon operation has been thriving since opening its first location on the University of Minnesota campus in 1982.

“The founders realized that salons in that day were often closed on weekends and required appointments. They recognized there was a need for hair salons that focused on the needs of the customer and what was convenient for them,” Nilssen says. “We service the entire family and focus on what we do best: haircuts. That means we don’t do colour services or waxing — we provide customers with a great haircut for a great price in a convenient setting.”

All Great Clips salons are owned and operated by local franchisees, so franchising truly is the foundation of the company. “Local owners are the lifeblood of the Great Clips brand and system,” Nilssen says. “We want our franchisees to be involved and engaged in their business by being involved and engaged in their communities. Local franchisees are invested in the success of the people and the community.”

The company tries to stay at the forefront of technological industry

advances while never losing the personal touch that has made Great Clips so successful and enduring.

The Great Clips app allows clients to check in online (which can also be done on the website) and to “save” a place in line before they walk in the door.

“Once they are in the salon, our Clip Notes service gives stylists notes from the customers’ previous cuts so they can create the same great cut each time,” explains Nilssen. “This technology enhances the experience, but it doesn’t replace the actual experience of a stylist showing how much they care about the customer by giving them a great haircut.”

What does the ideal Great Clips franchisee look like? “The most successful Great Clips franchisees are great people managers,” Nilssen shares. “This is a people-driven business, and franchisees need to drive the culture of their organizations from the top. They are also driven to succeed, willing to stick with it through challenges, and focused on the long-term success of their business by developing their teams.”

Every new franchisee is supported with a comprehensive onboarding program, which is a blend between the online Great Clips University and multiple in-person training events. “Beyond that,” says

Nilssen, “franchisees can send their staff to ongoing education offered throughout the year. They also have multiple opportunities every year to get together and learn from their peers.” Franchisees are encouraged to explore professional development and growth, whether at conventions, conferences, or through local support opportunities.

“Over 1,200 Great Clips franchisees have been working hard to hone our systems and processes for the last 40 years,” Nilssen shares. “Know that when you invest in a franchise business, you don’t need to recreate the wheel. Stick with the plan, listen to the experts, develop relationships with other franchisees in the systems, and stick with it. By franchising with Great Clips, you can be an entrepreneur and a business owner with the power of a national brand behind you.”

“That being said,” Nilssen adds, “being a business owner is a challenge, no matter what industry you are in. The support and resources of our corporate staff are dedicated to assisting our franchisees and helping them achieve greater success.” n

For more information about Great Clips, Inc. franchise opportunities, please contact: www.greatclipsfranchise.com • franchise@greatclips.com • (800) 947-1143

Finding Beauty IN A NEW FRANCHISING FUTURE

How four salon and spa franchises are adapting to a new reality for personal care services

BY GEORGIE BINKS

The COVID-19 pandemic has presented tough challenges for service-focused businesses in Canada, but salon and spa franchises have shown their resiliency over the past months. When government regulations caused salon and spa franchisees to close their doors to the public, the following four franchises used this time to learn, grow, and adapt for a different future.

Here, we share insights from four beauty franchises about the changes that are coming out of this tough period, and the reasons why personal care services continue to be a mainstay in Canadian communities and a draw for prospective franchisees.

28 Canadian Franchise Association

www.cfa.ca | www.FranchiseCanada.Online

FINDING BEAUTY IN A NEW FRANCHISING FUTURE

Fuzz Wax Bar Women everywhere can thank a $7 sweater at a thrift store for creating a partnership that has led to one of the hottest wax bars in the country (hot as in successful, not ‘ouch’.) Fuzz Wax Bar co-founder Florence Gaven Rossavik recalls meeting co-founder Jessie Frampton at a thrift store in 2012 and sharing a pet peeve. “We quickly became friends and soon discovered we were looking for a wax that was fast, affordable, in a clean, inviting environment - tough to come by at the time.”

Fuzz Wax Bar is a membership-based wax bar franchise. And it’s the membership aspect that is key to the franchise’s success. “Unlike most waxing concepts that are very seasonal, our members visit us on a monthly basis all year round. It means our franchise partners have recurring revenue, high client retention, and brand loyalty within their community,” says Gaven Rossavik.

She says, “From the clients’ perspective, we offer the best waxes at the best prices, with the most streamlined experience possible.” Flexible hours and speed waxing are also available. The franchise also provides clients with products that allow for a complete waxing routine.

Franchisees don’t need a business or spa background.

Gaven Rossavik says training and support/operations are built for everyone. “Franchisees possess a peoplefirst, positive outlook on life.”

Franchisees receive ongoing support with everything from site selection, staff hiring and training, to maintaining and growing their local community as well as ongoing support.

As for the COVID-19 pandemic, Gaven Rossavik says the franchise has been closed since the pandemic began (as of early June). “During that time, we’ve been able to elevate our sanitation protocols, increase our e-commerce systems, and discover new ways to innovate within the wax bar. Although this time has been very difficult, it’s certainly allowed us to narrow our focus and energy on amazing innovations.”

FUZZ WAX BAR STATS Franchise units in Canada: 4 Corporate units in Canada: 7 Franchise fee: $45K Start-up capital required: 50% of investment Investment required: $304K-$432K Training: Initial and ongoing training included Available territories: All of Canada, US In business since: 2012 Franchising since: 2014 CFA member since: 2014 To learn more, visit www.LookforaFranchise.ca

Franchise Canada September | October 2020 29

FINDING BEAUTY IN A NEW FRANCHISING FUTURE

Tan on the Run When Tan on the Run founder Nicole Hyatt started her company 15 years ago, she had no idea her successful franchise would have her spray tanning the likes of musicians Lady Gaga and the New Kids on the Block, or morphing 400 extras into Egyptians for the X-Men movie, just to name a very few.

In no time at all, Hyatt had requests for training and decided to turn the company into a franchise in 2007.

Tan on the Run visits customers everywhere from their homes and offices to motels and more. “We've gone into some really strange places car dealership bathrooms - some random places.”

She says the benefit of the brand’s offering from a client’s perspective is, “Franchisees are extensively trained, the product is exclusive to Tan on the Run franchisees.”

Most franchisees are mobile, although some franchisees have a studio in their home. “We’re mobile based, which, in a time like this is nice because we don't have the overhead. Although we're not making revenue, we're not heavily into debt,” says Hyatt.

In fact, the COVID-19 pandemic has shut down company spray tans, although franchisees are delivering product to customers. They’ve also

30 Canadian Franchise Association

been able to chat with each other on the company’s own platform, which has been a comfort, says Hyatt. “We've got 35 women going through the exact same thing at the same time. Everybody is helping each other.”

Going forward, she says, “I know we're going to be able to make it work.

We’re going to walk in with a mask, we’re going to sanitize, and that would be our norm anyway. We can keep a good distance doing the service.”

The company has locations across Canada and also in Egypt, Namibia, Mexico, and Trinidad.

Challenges for franchisees include staying self-motivated, and, Hyatt says, “It’s a mix between hustle and personality. You have to be constantly engaged and on your game.”

TAN ON THE RUN STATS Franchise units in Canada: 37, International: 6 Corporate units in Canada: 1 Franchise fee: $200-$400 monthly Investment required: $10K-$25K Training: One week Available territories: All of Canada, International In business since: 2006 Franchising since: 2007 CFA member since: 2016 To learn more, visit www.

LookforaFranchise.ca

www.cfa.ca | www.FranchiseCanada.Online

FINDING BEAUTY IN A NEW FRANCHISING FUTURE

THE TEN SPOT Beauty Bars When eight 10spotters, as THE TEN SPOT Beauty Bars employees are known, had the company’s signature ‘x’ tattooed on their bodies last year in Charlottetown, Prince Edward Island, it was evident the franchise had some pretty devoted employees.

It’s that kind of devotion THE TEN SPOT Beauty Bars founder and CEO Kristen Gale, who started her brand in 2006, inspires. In 2012, Gale started franchising and today, there are more than 70 bars awarded with 33 locations in operation across Canada and now in the United States.

The franchise’s beauty bars offer manicures, pedicures, waxing, and laser services. “We hire those who are not only highly skilled, but can really create a deep and meaningful connection with our guests,” says Gale.

She says the big challenge for franchisees can be hiring and managing their own team. “If you’re not an exceptional people manager, it can be difficult to find the best estheticians and coordinators to help you run your business.”

Gale says the franchise offers a detailed system of guidance and training to get franchisees from onboarding to grand opening. “After they’re operational, we move into a systemized approach to profit maximization coaching and, as needed, ongoing support.”

Gale says the COVID-19 crisis has affected the business negatively but there are some silver linings. All beauty bars had to close, but, she says, “We’re much more bonded having gone through this together.”

Guests can still purchase products and sign up for an online beauty school, where trainers teach them how to do the perfect at-home manicure and purchase customized manicure and pedicure kits on their website.

Franchisees don’t need a background in the salon or spa industry. When it comes to an ‘ideal’ franchise partner, Gale says, “Our brand wants to be the biggest beauty bar company in the entire world - it’s a huge goal, and we’re looking for someone who’s hungry to help us make that happen.”

THE TEN SPOT BEAUTY BARS STATS Franchise units in Canada: 32 Franchise fee: $50K Investment required: $295K-$399K Training: Included in the franchise fee Available territories: All of Canada In business since: 2006 Franchising since: 2009 CFA member since: 2013 To learn more, visit www.LookforaFranchise.ca

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FINDING BEAUTY IN A NEW FRANCHISING FUTURE Tommy Gun’s Original Barbershop Tommy Gun’s Original Barbershops are inspired by the look and feel of the Chicago golden age of the 1930s barbershop scene, but offer modern amenities and styles with a focus on creating the ultimate guest experience.

“Our focus is on the investment our guests make in their look by offering premium services including hot-towel shaves and haircuts as well as our strong selection of grooming products,” says Nick Kammermayer, franchise development manager for TG Corporate Holdings Limited.

The Canadian-owned company was founded in 2009 and started franchising the same year. Today, there are over 70 locations across the country. Tommy Gun’s has also since expanded into Australia and the United States.

Kammermayer says they are a leader of the industry in Canada, pushing the level of excellence and execution to new heights by always looking at growth opportunities and innovative operations.

“The owners of Tommy Gun’s saw a gap in the marketplace,” says Kammermayer. “In addition to a great haircut experience from a highly trained Tommy Gun’s Barber, the guest is entertained with the in-mirror TV, free beverage, and Tommy Gun’s signature scalp massage during their wash.”

Franchisees, also referred to as business partners, receive ongoing guidance, training, and support, including detailed operational manuals and guides, an online learning portal (Tommy Gun’s University), a National Education Program for barbers, national networking programs promoting the brand, and an exclusive intranet site.

Like every other industry, the COVID-19 pandemic

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FINDING BEAUTY IN A NEW FRANCHISING FUTURE

has impacted Tommy Gun’s. “Luckily sanitization and cleanliness procedures were already a part of our daily routine in the barbering industry. We’ll continue to monitor, adapt, and enhance our practices of these and any updated safety measures,” says Kammermayer.

Business partners don’t need a background in the salon or spa industry. Kammermayer says, “The ideal Tommy Gun’s business partner is someone who’s passionate about the development of their team, focused on creating a quality customer service experience, attentive to their business, and driven to nurture it.”

TOMMY GUN’S ORIGINAL BARBERSHOP STATS Franchise units in Canada: 70, US: 1, International: 15 Corporate units in Canada: 3 Franchise fee: $30K Start-up capital required: $250K Investment required: $450K and up Training: Minimum 5 days Available territories: All of Canada In business since: 2009 CFA member since: 2009 To learn more, visit www.LookforaFranchise.ca

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Built-in Support System Four franchising families share how they stick together through the challenges and triumphs

BY KAREN STEVENS

When faced with challenges in difficult times, it can be an immense help to lean on loved ones for support and guidance. No one knows this better than families who operate franchise businesses together, who benefit from the built-in support system that comes with working with your nearest and dearest.

Here, Franchise Canada introduces you to four franchising families who share how they work together to overcome obstacles, while also making sure to celebrate their successes.

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BUILT-IN SUPPORT SYSTEM Ricardo Pereira and Jody Anderlich, owners of a Lice Squad.com franchise that services Brampton, Vaughan, Woodbridge, and the surrounding area in Ontario.

Lice Squad.com Jody Anderlich and Ricardo Pereira, owners of a Lice Squad.com franchise that services Brampton, Vaughan, Woodbridge and the surrounding area in Ontario, were drawn to the business because it allows them to support their community with head lice removal services, community education about head lice, and pesticide- and chemical-free products. “We wanted to offer a service that is specifically beneficial for families and children; we felt very strongly about this franchise idea,” says Jody.

The couple was also interested in the strengths of the Lice Squad.com franchise system. “The branding is very present and strong within the community, the products and services have already been developed, and they continue to innovate,” Jody says.

The pair loves working together. “Being in business with my life partner and best friend is ideal because we always are looking out for each other’s best interests,” Jody explains. She says that one of the biggest benefits of franchising with a family member is they can problem solve and brainstorm anytime. “Our family life and our work life just kind of blends together.”

However, this benefit can sometimes be a challenge, too. “Usually, if you have differing opinions or disagreements, they get left at work when you go home for the day, whereas in this situation disagreements come home with you, so you have to find a way to work on that,” Jody advises.

COVID-19 has presented a big challenge for the business, as they had to temporarily close their clinics. However, the couple adapted with virtual consultations and contact-free delivery of the products. “We're also using this opportunity to fine tune our online marketing and

prepare our clinic for when we are back up and running,” Jody says.

If you’re thinking about going into franchising with a family member, the couple has some key advice: “You want to work with someone who complements your strengths and weaknesses and provides a balance,” Jody recommends. “Develop a solid plan ahead of time with clear expectations for everyone involved. That way you'll be less likely to have issues further down the road.”

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BUILT-IN SUPPORT SYSTEM

MaidPro Before joining MaidPro, Barbara Szymanski spent 17 years working her way up the ranks in a global QSR chain where she got to see firsthand how following a franchise’s system leads to results. “When we came across MaidPro I wasn't sure what I wanted to do quite yet, but I knew I wanted to be my own boss,” she recalls.

Along with her husband Wade, they made the decision to go with MaidPro because they were really impressed with the leadership and business model.

“I knew that if we copied the model, then we would be successful as well,” Barbara says.

Barbara started the business on her own first, and Wade helped with the finances on the side while he ran a mortgage brokerage. At the beginning, Barbara covered everything from sales to marketing to customer service to training, but it got to the point that she had to hire someone. Since Wade was on the fence about continuing in the mortgage business, “We had a conversation and decided he would come on board full time so that we could grow the business together,” Barbara recalls.

The couple says part of their success is owed to their clearly defined responsibilities. Wade takes care of the finances and Barbara takes the lead on the operations, sales, training, and customer service.

When the COVID-19 crisis first hit, they were concerned, but they soon realized that as a detailed cleaning company, they were already ahead of the game. “We just had to tweak a few little procedures here and there and add a few little things,” says Barbara.

The franchisor was a big help with daily COVID-19 update meetings and a fast turnaround on new training materials. “They really did pull together and really tried to be available as much as they possibly could for everybody,” says Barbara.

Nine years into their business, the couple offers this advice for franchisees: “Decide who's doing what and then stay in your lane,” advises Wade.

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BUILT-IN SUPPORT SYSTEM

Deven

Sharon and Winston

Deven and Hema

Hema and Deven

Winston, Zachary, and Deven

Speedy Auto Even before they immigrated to Canada, the Ramroop family had decided that they wanted to own and operate a family business. “We were confident that with the pooling of our complementary skills, we were well positioned to build a successful business,” says Sharon, or “Mom,” as her family and customers like to call her. Sharon, her husband Winston (“Pops”), son Deven, and daughter-inlaw Hema all work together at their location in Brampton, Ontario.

The family chose a Speedy Auto Service franchise because of its 60-year legacy in the automotive business, as well as the company culture. They like being part of the Speedy Auto family for its brand recognition, centralized marketing, and the support of other local franchisees to maintain customer relationships.

In order to keep the shop running smoothly, everyone has defined roles. Deven is the overall manager while Sharon is responsible for developing and maintaining the customer relationships. Winston manages the garage/repair area and inventory and Hema assists with staffing.

“Decisions are made as a team and are based on everyone’s input,” says Sharon. She notes that while opinions might differ from time to time, they’re all working toward the same goal. “We aren’t simply just building a business but rather are focused on building a legacy we hope to pass down,” she says.

According to Sharon, working with family has both benefits and unique challenges. “You know your family has your back and your best interest at heart,” she says.

However, “There are always times where you disagree, but these are always internally worked out.”

COVID-19 has created new challenges for the business. They’ve seen a decrease in business since there have been fewer cars on the road. Plus, they implemented safety measures such as barriers to protect both staff and customers, face masks, sanitizer, and handwashing sinks.

Sharon has some practical advice for potential franchisees: “Ensure that you have a work plan, strong work ethics, and that you make the time to constantly revisit the plan to stay on track.”

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BUILT-IN SUPPORT SYSTEM TWO MEN AND A TRUCK Canada Husband-and-wife team Chi and Cynthia Nwajiaku are the proud owners of a TWO MEN AND A TRUCK moving franchise in Calgary, Alberta. Before going into franchising, Chi was a logistics professional and Cynthia was a human resources manager. Balancing their schedules was problematic. Today, they’re able to spend time together while working and they’re able to arrange their schedules around family events.

The transition to working together went smoothly because of clearly defined roles. “We know our different strengths and constraints and always discuss issues beforehand,” says the couple.

Getting the franchise up and running involved a few hurdles. “The biggest challenge we faced was finding a source of capital to allow our new business to get on its feet and grow,” the couple recalls. For example, the approval for truck financing took longer than expected; however, they were able to rely on the franchisor for support. “They reached out to the banks to provide support through the loan application process,” they explain.

Along with so many other small businesses, the COVID-19 pandemic has had a huge impact on operations. “We’ve had to innovate by offering contact-free

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BUILT-IN SUPPORT SYSTEM services such as virtual in-home move estimates, contact-free delivery of moving boxes and supplies, and Kick it to the Curb contact-free junk removal services,” they explain. Additionally, their office and vehicles are thoroughly cleaned and disinfected every day and they ensure that movers are taking every precaution to stop the spread of COVID-19.

The couple has some practical advice for those considering going into franchising with family members. “Select a winning brand that provides excellent support, and, when working with a family member, make sure everyone is on the same page as it relates to the long-term goals of the business.”

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Franchising Information:

Tammie Verna (905) 637 4741

tammie.verna@idq.com

Franchise Canada September | October 2020 39

Grab a Slice

Franchise Canada takes you on a tour of pizza franchises across the country Canadians have been seeking additional comfort over the past months, and pizza is an ultimate comfort food. Add to that the convenience of takeout or delivery options, and it’s easy to see why pizza restaurants remain a popular choice with Canadian consumers.

Pizza franchises throughout Canadian communities are catering to these cravings with unique offerings available across the country. Here, Franchise Canada maps out pizza franchises from coast to coast, highlighting what sets each franchise apart, and providing the details you need to know as you consider your franchising future.

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241 PIZZA

Since opening its first store in Toronto in 1986, 241 Pizza’s focus has been on delivering great value while maintaining high standards of quality.

It currently has over 70 locations and continues to focus on growth throughout Canada. Its recognized 241-0-241 phone number and userfriendly online ordering solutions have made it even easier for customers to order their favourite pizza.

241 Pizza offers a robust franchise system to prepare each new franchisee for success, including: site selection and lease negotiation; business/ pizzeria training program; food and equipment sourcing; pizzeria opening assistance; research and development; advertising and promotion; ongoing business development; and more.

Franchise units in Canada: 75 Corporate units in Canada: 1 Franchise fee: $20K Start-up capital required: 40% of the purchase price Investment required: $175K-$225K Training: Comprehensive 3 week training with opening assistance and ongoing support Available territories: AB, NB, NL, NS, ON, SK In business since: 1986 Franchising since: 1986 CFA member since: 2008

ASSEMBLI CUSTOM-MADE SALADS AND PIZZAS

Assembli Restaurants invites guests to create amazing custom-made salads and pizzas in a smart, fun, creative way. It strikes the right balance between fresh, healthy, fast, and casual. The process is simple: customers choose the ingredients and it’s made for them, all at one price.

With Assembli, franchisees can be their own boss and proudly bring fresh, good-for-you food to their neighbourhood, all at the same time.

Corporate units in Canada: 3 Franchise fee: $35K In business since: 2017 Franchising since: 2017 CFA member since: 2018

BOSTON PIZZA

Boston Pizza is Canada's number one casual dining brand with more than 55 years in business, over 390 locations across Canada (and growing), and more than $1 billion in annual system-wide gross sales. Boston Pizza franchisees benefit from superior site selection, industry-leading low food cost, ongoing training and support, state-of-the-art restaurant technology, and award-winning advertising campaigns and sponsorships. Boston Pizza famously does not collect royalties or co-op fees on alcohol sales.

Boston Pizza provides an extensive seven-week in-restaurant training program for new franchisees and their management team. Team member training begins two weeks prior to launch and support continues after opening through Regional Business Managers.

Franchise units in Canada: 397, US: 20, International: 16 Corporate units in Canada: 4, US: 2 Franchise fee: $60K Start-up capital required: $300K minimum (unencumbered) Investment required: $1.7M-$2.6M Training: 6-8 weeks Available territories: All of Canada, US In business since: 1964 Franchising since: 1968 CFA member since: 1992

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GRAB A SLICE

FAMOSO ITALIAN PIZZERIA + BAR

Famoso is a premium casual full service Italian Pizzeria + Bar passionate about authentic ingredients, pizza techniques from Naples, and Italian family kept recipes. Famoso serves traditional Neapolitan pizza and recently introduced New York Sicilian Style thick-crust pizza, as well as traditional Italian dishes, including tapas, pastas, sandwiches, and entrees. Famoso believes the key to success is a strong commitment to excellence and true passion for what they do.

All Famoso restaurants offer dinein, takeout, and delivery. A typical restaurant location is 2,200-2,500 square feet, with a rustic-modern décor.

Famoso’s newest concept, Famoso Pronto, is an owner-operated fast casual restaurant with Famoso’s same commitment to authentic Italian Neapolitan and New York Sicilian Style thick-crust pizza. This streamlined, compact-size version offers a lower investment, in combination with quick table turns for an efficient business model that maximizes profit.

Firecrust serves up salads and pizzas with a focus on providing customers with a variety of customizable options and an excellent dining experience.

Whether it's epic shakes or the numerous vegan, vegetarian, and gluten-friendly options, Firecrust ensures the highest-quality products at an amazing value.

Firecrust franchisees have the direct benefit of having a highly experienced executive team standing behind them every step of the way. Franchisees receive an initial six-week training program, as well as ongoing and extensive training to ensure up-todate, well-rounded cooking, product, and systems knowledge.

Single and multi-unit franchises are presently available in a variety of markets.

Franchise units in Canada: 29 Franchise fee: $45K Investment required: $700K (full size, full service), $400K (Famoso Pronto) Training: 8-12 weeks Available territories: All of Canada, US, International In business since: 2007 Franchising since: 2009 CFA member since: 2012

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FIRECRUST CUSTOM SALADS + PIZZAS

Franchise units in Canada: 4 Franchise fee: $30K Start-up capital required: $150K Investment required: $425K-$500K Training: 6 weeks Available territories: AB, BC, MB, NB, NS, ON, SK In business since: 2009 Franchising since: 2015 CFA member since: 2015

www.cfa.ca | www.FranchiseCanada.Online

GINO’S PIZZA

Gino’s Pizza specializes in gourmet pizza and specialty side orders for walk-in, pick-up, or delivery, serving the Ontario market for over 25 years with over 90 locations. It offers unique marketing and local store marketing programs to promote directly to homes, apartments, schools, and businesses each week. Gino’s Pizza also has an easy to remember 3104466 (GINO) central telephone number and centralized call centre with friendly knowledgeable agents to process orders. Gino's Pizza is positioned to expand to 110 stores as it embarks on an expansion program across Ontario and Eastern Canada.

Franchise units in Canada: 97 Corporate units in Canada: 1 Franchise fee: $20K Investment required: $230K-$285K Training: Included and ongoing Available territories: All of Canada In business since: 1981 Franchising since: 1982 CFA member since: 2012

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GRECO PIZZA

Greco Pizza is a pizza chain with 105 total units and award-winning marketing like “310 3030” and “debit at your door.” It’s also home of the flavoured crust and famous donairs and OvenSubs.

Greco helps franchisees select a site and begin construction, and then provides the franchisee and their staff with the expertise to help ensure their success. Franchisees also receive ongoing marketing and advertising support.

Greco is a leader in marketing, with initiatives including online ordering, 310-30-30 (a one phone number system), Facebook and Twitter presence, debit/credit at the door, Grecoville 30-minute delivery system, oven bags, crustless pizza, oven subs, and much more.

Franchise units in Canada: 105 Corporate units in Canada: 2 Franchise fee: $20K Start-up capital required: $50K-$90K Investment required: $150K-$240K Training: Yes, required 2 weeks Available territories: NB, NL, NS, ON, PE In business since: 1977 Franchising since: 1977 CFA member since: 1987

KONZ PIZZA… IN A CONE®

LITTLE CAESARS

Konz Pizza…in a Cone® has been in the fast food industry all over the world for over 30 years, and nothing compares. In an increasingly fastpaced environment, Konz Pizza…in a Cone® has identified a way to get pizza to the consumer in a way that’s comfortable and convenient in all scenarios. Pizza in a cone means no mess or spills and is kid approved.

Konz Pizza…in a Cone® has created an incredible business model for both entrepreneurs and experienced restaurant owners. Its proven concept offers flexibility, ease of operation, full training, a turnkey business, and is easy to serve, difficult to forget.

Franchise units in Canada: 9 Corporate units in Canada: 1 Franchise fee: $25K In business since: 2013 Franchising since: 2015 CFA member since: 2020

In a hurry-up world, Little Caesars® has what it takes with its HOT-NREADY® pizza concept. Pizza is one of the world’s favourite foods and pizza lovers crave the great value, outstanding quality, and convenience of Little Caesars® HOT-N-READY® pizzas. Little Caesars® proven recipe for success is based on passion, commitment, and values dating back to 1959, when Little Caesars Enterprises opened the first store.

Little Caesars provides ongoing training and support, and its proven, simple operations foster growth for franchisees. The franchise is growing, looking for franchisees to help bring HOT-N-READY pizza to communities nationwide. There are opportunities in nearly every province across Canada.

Franchise fee: $20K Start-up capital required: $100K Investment required: $401K-$629K Training: Yes Available territories: All of Canada, US, International In business since: 1959 Franchising since: 1962 CFA member since: 2015

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NEW ORLEANS PIZZA CANADA

PANAGO PIZZA

With over 30 years of innovation and a modern store design, Panago is a national brand that delivers a unique pizza experience. The menu includes a variety of fresh, quality toppings, eight meats raised without the use of antibiotics, 100 per cent organic tomato sauce, and dough made from Canadian wheat, as well as vegan and gluten-free options.

High-quality ingredients, product innovation, and unwavering commitment to delivering great value to customers have positioned New Orleans Pizza as a leading brand in Northern and Southwestern Ontario.

Its centralized call centre and userfriendly online ordering solutions have made it even easier for customers to order their favourite pizza. One hundred per cent Canadian owned and operated since 1978, New Orleans Pizza is committed to using local core ingredients in its pizza.

The New Orleans Pizza franchise system includes site selection and lease negotiation, three-week training program, food and equipment sourcing, opening assistance, advertising and promotion, ongoing business development, and more.

Franchise units in Canada: 39 Franchise fee: $20K Start-up capital required: 40% of the purchase price Investment required: $175K-$225K Training: Comprehensive 3 week training with opening assistance and ongoing support Available territories: ON, NS In business since: 1978 Franchising since: 1978 CFA member since: 2006

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With over 200 locations, the systemwide sales exceed $170 million, and one in five Panago stores have annual sales exceeding $1 million.

Panago is fully committed to extensive training and education for owners and staff about products, procedures, and store management. All franchisees continue to receive ample support from Panago to ensure ongoing business success.

Franchise units in Canada: 183 Corporate units in Canada: 6 Franchise fee: $25K Start-up capital required: $200K Investment required: $560K (average) Training: Initial and ongoing training Available territories: AB, BC, ON, SK In business since: 1986 Franchising since: 1986 CFA member since: 2004

www.cfa.ca | www.FranchiseCanada.Online

PAPA JOHN’S PIZZA

Papa John's International is the thirdlargest pizza delivery company in the world. The company was founded on the principle that “Better Ingredients” make a “Better Pizza” and it takes its use of premium ingredients very seriously. That’s why in just over 33 years, Papa John’s has grown to more than 5,200 restaurants worldwide.

Papa John’s provides operators with six to eight weeks of initial training, along with ongoing training for the operator and their team. As its rapid international expansion continues, Papa John’s is seeking highly qualified Area Developers for Canada.

Franchise units in Canada: 144, US: 2554, International: 2042 Franchise fee: $25K USD per unit Investment required: $195K+ USD per unit Available territories: AB, BC, MB, NB, NS, ON, QC, SK, US, International In business since: 1984 Franchising since: 1985 CFA member since: 2006

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PIZZA 73

“A better meal, a better deal” is the promise Pizza 73 delivers every time. Pizza 73 focuses on the commitment to provide its partners a comprehensive training program, experienced operational support, and superior marketing team. Its diverse menu offers great-tasting pizzas, delectable shrimp, fresh salads, and a supreme line of chicken products that keep customers begging for more.

Look no further if you can add the final ingredient of great customer service to Pizza 73’s recipe.

Pizza 73 provides ongoing overall administrative services such as marketing, accounting, central call centre management, commissary management, computer support, new development, and monitoring of operational standards.

Franchise units in Canada: 7 Corporate units in Canada: 80 Franchise fee: $30K Investment required: $350K-$450K (+ Administrative Fees) Training: 4-6 weeks Available territories: AB, BC, SK In business since: 1985 Franchising since: 2002 CFA member since: 2016

PIZZA DELIGHT

Pizza Delight started out as a small take-out restaurant in Shediac, New Brunswick and has grown to a chain of over 70 restaurants across Atlantic Canada and Ontario. Pizza Delight is a family restaurant serving an Italianinspired menu of pizza, pasta, and salads.

Pizza Delight has three different models, including full dining rooms with table service, takeout and delivery counters, and food court units. The Pizza Delight operations team has more than 185 years of operation expertise in the restaurant industry and the team’s 360° experience is shared throughout the network on a daily basis.

Franchise units in Canada: 68 Corporate units in Canada: 1 Franchise fee: $15K-$30K Investment required: $100K-$150K unencumbered equity Training: 4-6 weeks Available territories: NB, NL, NS In business since: 1968 Franchising since: 1969 CFA member since: 1997

PIZZA DEPOT

A Pizza Depot franchise is a turnkey operation. Its expert team of professionals works full time scouting new locations; they’re committed to finding ideal locations and follow a proven formula when establishing a location. Innovative store design ensures that each location is pleasing and comfortable.

Pizza Depot is committed to the success of all its franchisees. It offers the skills and support needed for a successful business through its comprehensive training program, covering areas such as general store operations, customer service, sales support, and marketing. Ongoing support is also provided to ensure Pizza Depot stores continue to be in tip-top condition.

Franchise units in Canada: 35 Corporate units in Canada: 1 Franchise fee: $20K Start-up capital required: $100K Investment required: $192K-$250K Training: Yes Available territories: All of Canada In business since: 2000 Franchising since: 2002 CFA member since: 2007

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PIZZA HOTLINE

PIZZA HOTLINE STONE-FIRE’D

Tried and tested in the Manitoba market for over 30 years, Pizza Hotline Takeout & Delivery has consistently been a market dominator, beating out local, national, and international pizza players year after year. With an emphasis on value and quality, robust and thought-out process, backed by delicious food offerings, and strong franchise support services, this concept is unbeatable. Its slogan, “Great pizza at a Great price,” says it all.

Pizza Hotline has successfully delivered exceptional value, service, and quality to its customers for over 30 years. Pizza Hotline Stone-Fire’d has built on the success of its sister brand and serves the “better pizza” market with its signature Napolitana crust, cooked in front of customers and ready to be served in 180 seconds.

Pizza Hotline provides accounting and operations support, an omni-channel order taking centre, internal marketing, technology and information systems, logistics and supply chain optimization, and more.

Franchise units in Canada: 24 Corporate units in Canada: 1 Franchise fee: $30K Investment required: $400K Training: 6-12 weeks Available territories: All of Canada, US In business since: 1987 Franchising since: 1993 CFA member since: 2013

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Pizza Hotline Stone-Fire’d is looking for partners who are aggressive, smart, and successful; partners who want to be part of an exciting growth strategy and are committed to excellence.

This concept is the perfect choice for someone looking to open up in urban or metropolitan centres.

Franchise units in Canada: 24 Corporate units in Canada: 1 Franchise fee: $30K Start-up capital required: $350K Investment required: $400K Training: 6-12 weeks Available territories: All of Canada, US In business since: 1987 Franchising since: 1993 CFA member since: 2013

www.cfa.ca | www.FranchiseCanada.Online

PIZZA HUT CANADA

Pizza Hut doesn’t ever want to blend in: pushing boundaries is part of its heritage. They are the creators of the original Stuffed Crust, the brand who first delivered pizza to places like the White House, the top of Mount Kilimanjaro, and to outer space. Pizza Hut stands for bold innovation.

The first Pizza Hut opened in Canada in 1968. Pizza Hut Canada has nearly 500 units from coast to coast, primarily delivery and takeout channels.

Franchisees complete an extensive eight-week training program, and Pizza Hut provides the training curriculum for managers and team members.

Franchise units in Canada: 469 Available territories: Please see PizzaHut.ca In business since: 1968 Franchising since: 1968 CFA member since: 2019

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PIZZA NOVA

PIZZA PIZZA

PIZZA STUDIO

Pizza Nova franchisees join a proven small business management system with a comprehensive and awardwinning marketing program, and become a part of a company that cares about them as much as it does about the food it makes.

Franchisees can build their own successful Pizza Pizza franchise with the support they need to succeed.

They’ll benefit from comprehensive training, a huge support team, and a beloved brand with a recipe for success that’s been tested for over 50 years. Pizza Pizza Limited is also the owner of over one hundred Pizza 73 outlets in Western Canada.

Pizza Studio has partnered with some amazing franchisees and is always looking for more. Pizza Studio Canada offers an exciting business opportunity with many benefits in the fastest growing segment in the restaurant industry. There are two development opportunities: food court locations and store front locations. Pizza Studio is looking for franchisees with experience in developing and operating restaurants in the proposed territory.

The Pizza Nova story began in 1963 when a young Italian family opened the first Pizza Nova location. Today, Pizza Nova is still family-owned, represents over 140 locations, and is one of the leading pizza chains in Ontario. Its success is largely attributed to an unwavering commitment to the quality of the product, and to the incredible team of people that represent Pizza Nova.

Franchise units in Canada: 140 Corporate units in Canada: 1 Franchise fee: $20K Start-up capital required: $175K-$200K Investment required: $450K-$525K Training: Yes Available territories: ON In business since: 1963 Franchising since: 1967 CFA member since: 1995

As a leader and innovator in the quick service restaurant industry since 1967, Pizza Pizza is committed to quality, service excellence, and customer satisfaction. Franchisees can achieve financial stability and build equity, and comprehensive training and operational support are included.

Franchise units in Canada: 421 Corporate units in Canada: 6 Franchise fee: $30K Start-up capital required: Minimum of 30% of purchase price in unencumbered cash Investment required: $200K-$650K Training: 6-8 weeks Available territories: BC, MB, NB, NL, NS, ON, QC, SK In business since: 1967 Franchising since: 1974 CFA member since: 2002

Pizza Studio is leading the charge in the fast casual pizza segment, offering a variety of artisanal crusts, specialty sauces, premium meats, and fresh vegetables at affordable prices. Pizza Studio lets the imagination run wild with each custom-built pizza and salad.

Franchise units in Canada: 4, US: 50, International: 5 Corporate units in Canada: 3, US: 2, International: 5 Franchise fee: $45K Start-up capital required: $125K-$225K Investment required: $250K-$350K Training: 3 weeks Available territories: AB, BC, MB, NB, NS, ON, SK In business since: 2012 CFA member since: 2016

Franchise Canada September | October 2020 47

GRAB A SLICE

PIZZAVILLE INC.

TOPPER’S PIZZA

Pizzaville is a 100 per cent Canadian owned and operated franchise chain of pizzerias, serving delicious stone-baked pizza and panzerotti to Southern Ontario communities since 1963, under the same ownership since 1979. Stone baking is the original and traditional way to bake pizza and it’s what makes their pizza special.

With over 80 locations and growing, the company is a recognized and dependable brand with a high standard for consistent quality product and firstclass customer service.

Topper’s Pizza is a family-owned business founded on a century-old Toppazzini Italian family recipe for Authentic ItalianBread™ pizza dough, great customer service, and family values. Its pizzas are high-end flavour masterpieces with a dedication to premium ingredients, hand-made fresh dough, and brand-exclusive unique recipes for over 20 specialty pizza recipes, dips, and more.

Pizzaville franchisees receive the benefits of marketing, operational support, dedication to customer service, specialized in-house services, and product development.

Franchise units in Canada: 80 Corporate units in Canada: 1 Franchise fee: $25K Start-up capital required: $100K-$200K Investment required: $250K-$400K Training: Yes Available territories: ON In business since: 1963 Franchising since: 1979 CFA member since: 2003

48 Canadian Franchise Association

Topper’s Pizza first began in Sudbury, ON and now is the established customer-favourite in Northern Ontario with an ever-expanding market across Ontario. Topper’s Pizza offers support from its experienced advisors from analyzing the business plan through to building the franchise and ongoing operations.

Franchise units in Canada: 31 Corporate units in Canada: 7 Franchise fee: $25K Start-up capital required: $150K-$200K Investment required: $350K-$490K Training: 4-6 week training program Available territories: ON In business since: 1982 Franchising since: 1989 CFA member since: 1996

www.cfa.ca | www.FranchiseCanada.Online

TOSTO QUICKFIRE PIZZA PASTA TOSTO QUICKFIRE Pizza Pasta is a boutique fast-premium concept created with one goal in mind – to bring handcrafted Romano pizzas and fresh-made pastas mainstream.

Its passion and tough love for authentic Italian cuisine has brought to life a pizza parlour and pasta bar showcasing authentic flavours and fresh ingredients.

TOSTO is always on the hunt for great partners whose personal, professional, and financial qualities go hand in hand with what they believe it takes to bring TOSTO to life. The TOSTO team will be there every step of the way to provide support throughout the entire process, from the signature to the opening and beyond.

Franchise units in Canada: 1 Corporate units in Canada: 1 Franchise fee: $25K Start-up capital required: $175K-$300K Investment required: $500K-$800K Training: 1 month Available territories: All of Canada, US In business since: 2015 Franchising since: 2015 CFA member since: 2016

The Franchise Advantage Why franchised businesses can quickly and successfully fill market gaps in difficult economic times

BY LAUREN HUNEAULT

T

here’s no question that Canadians are experiencing unprecedented challenges in the face of the COVID-19 pandemic. Months of closed doors or limited business have had a major impact on Canadian businesses, with owners forced to make difficult decisions, including some who have had to shutter their operations.

While this is a trying time for Canadians, it’s also a time of opportunity for those looking to start their own business. As the economy begins to open again, franchised businesses are in an excellent position to do so quickly while filling any market gaps left in the wake of this economic crisis.

The time is right for franchising Joel Friedman, president, JSF Franchise Group, says the tough economic climate can lead to more people turning to franchising. “The realization that they have little or no job security is a real concern for people in corporate employment and they become highly motivated to control their destiny. Franchising will boom during these times,” he explains. He notes that he signed four new franchisees since March 23, 2020, when everything shut down. “It was with people who took this time to look at what they wanted in their life and it was to be an owner.”

Wayne Maillet, president of Franchise Specialists, says this is the perfect time to open a franchise. “As the

economy grows stronger, franchising will play a part in the rebound of the economy as we get back to the new ‘normal.’ Opening a business post COVID-19 provides many advantages,” he explains.

He points to the large labour pool that exists since many have lost their jobs, lowered interest rates, and increased lending from banks, along with government support programs and incentives as examples. He also notes that business closures will have an impact.

“There are prime locations that will become available and it can be expected that landlords will be willing to negotiate favourable rents for prime locations,” he says, adding that “Vendors and suppliers have been hit by the crisis and may have pent-up inventory. New franchisees will be able to leverage the better pricing and terms that will be available.”

The power of franchising in times of crisis Greg Windle, director, national industry programs at CIBC, says franchisees have advantages in an uncertain economic climate, including the built-in support that comes with the franchise business model. “A well-run franchise system thrives not only on the entrepreneurial spirit, business acumen, and local market knowledge of the franchisees but also on the support provided by the franchisor and the knowledge sharing of best practices amongst the network of franchisees,” he explains.

Franchise Canada September | October 2020 49

THE FRANCHISE ADVANTAGE

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50 Canadian Franchise Association

Franchisor support, notes Windle, comes in the form of a trusted brand, sharing best practices, providing financial relief directly (i.e. financial aid programs) or indirectly (i.e. royalty relief), providing access to key financial partners and sources of funding, and providing information on government assistance programs. Franchisee-to-franchisee support comes in the form of increased availability of information and the sharing of best practices.

“All of these benefits of being a part of a franchise system give the franchising model great potential to accelerate the path to normalcy for a franchisee emerging from an economic downturn when compared to an independent, non-franchised competitor,” explains Windle.

The franchise advantage While an individual owner may not have experience with economic downturns or be able to quickly roll out a new strategy required to adapt to challenges, the benefit of being part of a franchise system is having access to that experience and those tools.

“Successful franchise business owners are being innovative to continue to succeed, pivoting to adapt to the new normal. One of my clients is having weekly conference calls with all the franchisees who are sharing what they are doing to adapt, change, and continue to grow during these unprecedented times,” explains Maillet. “As a new business owner, you can capitalize on the experience of others who are in the same business as you, facing the same challenges. The alternative is being in business on your own and having to adapt and change based on trial and error.”

Friedman notes some additional advantages to joining a franchise system instead of going it alone, including initial and ongoing training and the higher success rates of franchises versus start-up businesses.

He also points out that you may find it easier to secure financing for a franchise and it may also cost less to buy a franchise than to start your own business of the same type.

“It will be much easier – and less expensive – to attract customers with a brand that’s established,” he adds. “You’ll also benefit from any national advertising campaigns that your franchisor is running, and other franchisees can offer up their experience and suggestions. You have operational systems and processes that can be standardized to provide a consistent product or service by all franchisees. You have many minds working at head office that can change direction to go with the trends and times.”

Mohammed Jehangir, director, packaged loans & strategic partnerships, CIBC, says franchisees also have an advantage when it comes to financing. “All other things being equal, franchise business owners with a track record of business success and strong franchisor backing do have quicker/easier access to business financing. While franchisors do not typically provide guarantees to financial institutions for the liabilities of their franchisees, financial institutions take comfort in knowing that there is another party to any lending agreement that has a substantial stake in the success of its client,” he explains, adding that that banks typically offer a suite of lending solutions to franchisee clients, from direct provision of operating lines and term loans to federal government-backed lending solutions.

“New independent business owners with a three-year historical track record of financial success are in most circumstances going to have to

www.cfa.ca | www.FranchiseCanada.Online

THE FRANCHISE ADVANTAGE rely on personal resources and personal liability lending sources to fund their start-up business,” notes Jehangir.

“New franchisees, on the other hand, have been vetted and qualified by a franchisor for both business aptitude and personal net worth. These two things, combined with the knowledge a lender will have as to what support that the franchisor will provide going forward to ensure that the franchisee is successful, may be the difference between qualifying for bank financing or not.”

Words of wisdom from the experts Friedman emphasizes the importance of undertaking a thorough self-evaluation before you make a franchise investment decision, regardless of the economic climate.

“You need to look at yourself and understand if you are ready to take the risk. If you’re able to follow a system, then franchising is for you. Every good franchise I met in my career may not have always agreed with the policies and system, but they still always followed them,” he advises. “You need to choose the right franchise – buy a franchise that you will enjoy not based solely on the bottom line.”

Windle and Jehangir from CIBC encourage those considering franchising to cover all their bases. “First,

do your research on what franchise systems were performing well pre-COVID and industries that are likely to rebound quickly. Second, make sure you have substantial personal liquidity and that you are prepared to use it to support your new business, as there will be more uncertainty going forward,” they advise. “Explore the support the franchisor has provided to their franchisees during the pandemic and carry out a thorough review of the franchise agreement with a franchise lawyer to ensure the clauses provide the necessary protection should there be a second or third wave of the virus or similar situation in the future.”

“Finally,” they add, “be patient. In this period of uncertainty, the road to success may be less clear, but those who are well-capitalized, have a plan, and stick to it will emerge from the period of uncertainty as strong players moving forward.”

“Take advantage of the benefits provided by a post COVID-19 business environment,” adds Maillet. “Do your homework and find a franchisor that is providing a high level of support and is adapting to the new marketplace.

Have the confidence of knowing that the pandemic will come to an end. Now is a great time to explore franchise opportunities.”

Franchise Canada September | October 2020 51

SPECIAL FOCUS: COMMERCIAL & RESIDENTIAL SERVICES

At Your Franchise Service

Franchises are helping Canadians keep properties in tip-top shape

P

roperty ownership comes with a lot of responsibility, and with lives busier than ever, property owners can’t do it all on their own. Between maintenance, renovations, and upgrades, and then outdoor concerns like lawn care, painting, and more, there are a variety of ongoing needs when it comes to commercial or residential property upkeep.

Luckily, property owners have a whole host of options to turn to when a maintenance task, repair, or renovation falls outside of their area of expertise, or when they simply don’t have time in their busy schedules to deal with overseeing or completing these projects.

Read on to learn more about the benefits of investing in the commercial and residential services category!

Franchises provide a wide range of services for commercial and residential property owners, including cleaning, landscaping, painting, home improvement, moving, carpet and upholstery cleaning, exterminating and pest control, and much more.

Residential Services are Important to Canadians

These services are key economic drivers:

Residential construction is a key economic driver in Canadian communities:

Services to Buildings and Dwellings:

62,203 establishments $284.5 thousand average revenue The category can be broken down further: Janitorial Services:

$209.3 thousand

Exterminating & Pest Control Services:

Landscaping Services:

1,250 establishments $299.0 thousand

average revenue

Other Services to Buildings & Dwellings:

average revenue

22,844 establishments $386.8 thousand Carpet and Upholstery Cleaning Services:

1,667 establishments $225.8 thousand

average revenue

$294.1 thousand average revenue

(Statistics Canada, 2018)

69% of Canadians own a home 4 in 5 millennials want to buy a home $4 trillion in assets in Canadian homes

1.2 million jobs $76.9 billion in wages $160.8 billion economic activity (Canadian Home Builders’ Association, 2018)

Home Renovation is Popular in Canada

Nearly half of home owners were looking to complete renovations in 2019: • 2017 – 48%

• 2018 – 45%

• 2019 – 49% Top renovation projects in 2019: • Basic maintenance –

average revenue

• Landscaping – 42%

50%

• Bathroom renovation – 36% (2019 CIBC Poll)

52 Canadian Franchise Association

www.cfa.ca | www.FranchiseCanada.Online

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Even in these challenging times, Canadian franchises remain an attractive investment. It doesn’t matter whether the system repairs hockey sticks, sells coffee and baked goods, creates valuable keepsakes, or offers a chance to get fit and eat nutritiously after a workout. The right concept, hard work, and continuing support for every franchisee means success is there for those who can look beyond the current circumstances and towards a brighter business future.

BY DAVID CHILTON SAGGERS

3rd Degree Training/Actual Nutrition

Franchise units in Canada: 6 Corporate units in Canada: 1 Franchise fee: $34.9K-$49.9K Start-up capital required: $50K-$175K Investment required: $100K-$175K Training: 5-7 days at corporate headquarters in Stratford, PE Available territories: All of Canada, US In business since: 2008 Franchising since: 2013 CFA member since: 2019 To learn more, visit www.LookforaFranchise.ca

Steve Collette and his wife Pamela were in their later 20s and starting to think about how to change their unhealthy lifestyles. They tried exercise classes and different gyms, but nothing did the trick, so they created their own workout routines. These caught on and soon friends joined them, and a part-time business was born.

That was 10 years ago in Stratford, Prince Edward Island.

Today, that business is now a full time, growing concern with six franchises spread over Prince Edward Island, New Brunswick, Nova Scotia, and Langley, British Columbia. CEO and Co-founder Collette says 3rd Degree Training/Actual Nutrition began franchising in 2014. “We didn’t want to move too fast,” he says from his Stratford head office. “Now we have the models down pat.”

There are three models in the system: there’s the owner-operator, another that sees an investor hire staff to run the business, and a third for those who want to buy franchises strictly as investors. Most of his franchise enquiries come from men, says Collette, but most of his franchisees are women. But, irrespective of gender, all investors have to be “wowed” by his system’s models.

A background in health and nutrition will help but isn’t necessary, Collette says, because he can teach the program. However, sales and marketing and business development exposure are very useful, as are strong community roots. Business training takes five to 10

54 Canadian Franchise Association

days at head office for all investors, and there’s continuing education after that. A 3rd Degree franchise costs $150,000 to $175,000 and an Actual Nutrition franchise costs $70,000.

3rd Degree Training offers exercise classes in a gym, and Actual Nutrition provides freshly prepared meals such as burrito bowls, pasta salads, and fruit parfaits.

Some 3rd Degree locations offer Actual Nutrition meals and some don’t, and non-members of a 3rd Degree gym can also buy meals, but Collette says the two brands are intertwined. “The two of them working together is definitely the way of the future,” he says.

Collette wants to expand from coast to coast, and his business model targets smaller markets. His smallest is in Montague, Prince Edward Island, a town of just 2,800 people. Collette’s “sweet spot” for a franchise is 2,500 to 3,000 square feet. All locations have an open concept and unlimited membership.

When COVID-19 hit, Collette moved his workouts online, and now offers multiple live classes on Facebook that are also recorded for members to use when convenient. As for Actual Nutrition, he says, “They’re closed.

We had to bite the bullet.” They will reopen when postvirus restrictions are lifted. The benefits of investing with 3rd Degree Training/Actual Nutrition are clear, says Collette: three financial models, a strong system, and an attractive lifestyle for franchisees.

www.cfa.ca | www.FranchiseCanada.Online

Caffe Artigiano

Franchise units in Canada: 3 Corporate units in Canada: 16 Franchise fee: $30K Investment required: $200K-$550K Training: Yes! Artigiano Academy prepares all management and franchise partners to operate a Cafe Artigiano, plus offers ongoing support for all team member training.

Available territories: AB, BC In business since: 1996 Franchising since: 2020 CFA member since: 2020 To learn more, visit www.LookforaFranchise.ca

Caffe Artigiano is a coffee culture mainstay in Vancouver, British Columbia. Its design and atmosphere were imported more than 20 years ago from Italy by the Piccolo brothers. The current owner and custodian of the brand is Knightsbridge Capital Partners, which is owned

by Vancouver-based Dean Shillington.

At the moment, the system is entirely corporate, says Shillington, although he intends to turn Caffe Artigiano’s 17 locations in Vancouver and Calgary into franchises – or cooperative partnerships, as he prefers to call them.

And he’s been readying for that day. Caffe Artigiano has launched a mobile app, and partnered with DoorDash,

the food delivery service. Training was expanded, too, using Zoom, and even his staff stayed busy painting café doors and windows.

When the business climate allows, Shillington says he wants to expand his system in British Columbia and Western Canada more generally. “We’re doing very well with the West Coast and want to continue perfecting our service offering here, then expand elsewhere,” he says.

A Caffe Artigiano location is 1,000 to 1,500 square feet with a large patio, and the cost of a franchise ranges from $150,000 to $550,000. Unlike many coffee shops, those in the Artigiano system all have different décor, and eventually the Vancouver Mural Arts Society will decorate the outside and the inside of its cafes through an exclusive long-term partnership. Training for franchisees, managers, baristas, and everyone in between is provided at the Artigiano Academy in Vancouver and takes four to eight weeks, depending on their previous coffee experience.

As for potential franchisees, Shillington says he wants a “conversation with people who see coffee as a career.”

Sales and marketing experience would also be welcome, with Shillington calling that exposure “a key strength.”

The benefits of investing with him are numerous, he says. Caffe Artigiano is a well-established brand with a large footprint in Vancouver, extensive operational know-how, and excellent and ongoing support.

Franchise Canada September | October 2020 55

Stick Fix

Franchise units in Canada: 8, US: 2 Investment required: $35K+ Training: 5 days In business since: 2004 CFA member since: 2019 To learn more, visit www.LookforaFranchise.ca

Hockey is played just about anywhere there’s a level surface. And it’s thanks to hockey that Calgary’s Cliff Hendrickson is the owner and founder of Stick Fix. Advances in technology can lead to more expensive hockey equipment, so Hendrickson reasoned 20 years ago that there would be a business repairing composite (carbon fibre) items, sticks in particular, that can cost up to $400 each. Since starting Stick Fix, the company has expanded and now fixes any and all composite sports equipment including bicycles, skates, and rackets. Hendrickson has repaired about 21,000 sticks in 20 years, with the sticks coming from individuals and pro teams such as the Calgary Flames in the National Hockey League.

Stick Fix now has 10 franchises, six of them in Western Canada and others in Sudbury, Ontario and Halifax,

56 Canadian Franchise Association

Nova Scotia. There is also one in Ohio and one in Texas in the United States. Hendrickson will consider expansion anywhere but says whoever joins the system must be prepared for the hard work and long hours of being an owner-operator.

Each franchisee receives an exclusive territory, which includes at least 10 indoor ice rinks, and the minimum cost of a franchise is $35,000. Hendrickson himself provides each franchisee’s five-day training. “There’s a lot of skill involved,” says Hendrickson. “It’s not a quick in and out.” Franchisees will need a strong work ethic, he says, and the ideal franchisee will be someone who’s stable and approaching middle age. He notes that two of his most successful investors came from the oil industry.

As for the effects of COVID-19 on his business, Hendrickson says, “I’ve got no business. In Alberta, there’s not a single skater. I’ve just had to endure (the downturn).” However, now that the province has started lifting its emergency regulations, Hendrickson expects to be back working flat out again and telling potential investors about the benefits of Stick Fix. They include, he says, an original concept, an established system, and a low cost of entry.

www.cfa.ca | www.FranchiseCanada.Online

WP Creations

Franchise units in Canada: 34 Franchise fee: $50-$125/month Investment required: $3K+ Training: Included Available territories: AB, BC, MB, NB, NL, NS, NT, NU, ON, SK, YT In business since: 2001 Franchising since: 2001 CFA member since: 2018 To learn more, visit www.LookforaFranchise.ca

The WP Creations franchise concept started as a way to provide women with the opportunity to work from home, raise their kids, and contribute financially to their families, and has since grown into an established brand offering life casting services.

“Behind this brand are a team of women who possess an entrepreneurial spirit, who want to support and grow with each other while making connections in their communities,” says Jamie Berube, president and CEO of WP Creations.

WP Creations (formerly Wee Piggies & Paws) got its start when founder Debbie Cornelius wanted to have a unique keepsake - a 2D handprint - made for her husband for Father’s Day. When she saw that no one around her was safely creating these keepsakes, she decided to make her own, and soon others were asking for the service, too. “She grew the business to the point of needing to expand, and from there, a franchise model was created,” notes Berube.

WP Creations now has over 30 locations across Canada. Berube says the franchisee team, comprised entirely of women, is the cornerstone of the brand’s success.

“We support each other and despite mostly not having met each other in person, we feel like a family. We root for one another. We have also proven to be a sustainable business, as we were able to transition from inperson to online service during the pandemic shutdown with very little impact to our team,” explains Berube.

When COVID-19 struck, franchisees were set up with online stores to sell jewelry, photo crystals, and canvases. The core life casting service also needed to adapt, and clients can now purchase life casting and impression DIY kits online, which includes a face-to-face virtual service where artists walk them through the process of life casting on their own.

“It has been extremely successful, and we have received incredible feedback that not only are clients happy to not have to wait to create these keepsakes, but they love the idea of being involved with the process,” says Berube.

Berube says the ideal WP Creations franchisee is willing to learn and take feedback, but most importantly “is a team player, who will learn from mistakes and support her teammates.” Franchisees receive hands-on training, along with a start-up kit containing the tools and materials they’ll need once they open. They also have access to the online “university,” a business coach to help with start-up and beyond, and a private Facebook group which provides ongoing peer support.

Berube’s advice for those considering franchising: “Follow the system. It’s built on years of experience, trial and error, and successes. Everyone is different and each franchisee has their own strengths, so to hone in on your individual strength and use it alongside the already set up system will allow for greater potential for success.

And when in doubt, ask!”

Franchise Canada September | October 2020 57

MILLENNIALS IN FRANCHISING

OPPORTUNITY IN DELAY With a few challenges under his belt, millennial franchisee Tianchen Liu is ready to thrive with Pür & Simple

BY SUZANNE BOWNESS

58 Canadian Franchise Association

www.cfa.ca | www.FranchiseCanada.Online

MILLENNIALS IN FRANCHISING

H

is visit may have been almost two years ago, but Tianchen Liu remembers exactly what he ordered the first time he ate at a Pür & Simple breakfast franchise: the Baconado, a skillet filled with bacon, avocado, tomato, pepper, onions, and white cheddar on a bed of home fries. Clearly, the meal made an impression.

“The food’s quality, and the service I received, were perfect. I had never experienced anything like that in New Brunswick,” says Liu. Fast forward to this spring, and Liu paid the restaurant an even higher compliment: he became a franchisee.

Besides the food, Liu says that Pür & Simple also impressed him with its brisk trade, especially in a place like Moncton, New Brunswick, not known for its abundance of brunch spots. Walking in on a weekday, the store was full of happy customers. “It was a Monday! For brunch? A Monday would be their slowest day,” notes Liu. He was also impressed by the size of the restaurant’s menu and the fact that the choices were just a bit more artisanal than the average (they have eight variations of eggs Benedict and five versions of avocado toast, just to name a couple of categories). He also liked the fact that the restaurant’s price point is affordable, and its food is on the healthy side, a trend he sees as having growth potential.

Browsing the menu on the day of his first visit, Liu noticed they were on the lookout for franchisees in Fredericton. After emailing and then meeting with the franchisor, Liu confirmed Pür & Simple was a good fit (he had already been looking into other quick service options).

Something to offer Liu also had something to offer the franchisor: the perfect Fredericton location. Even though he’s only 27, owning a restaurant is somewhat of a second career for Liu, who is already an established real estate investor with clients in China and the United States. That meant that he already owned a strip mall, potentially perfect for the new venture. Showing the franchisor clinched the deal, not least because the strip mall is so ideally located. “They think it’s a great location,” says Liu.

“We have 5,000 apartments within three miles, with lots of offices and car dealerships.”

After signing with Pür & Simple, Liu got to work: because he owned the strip mall, he was able to customize the space even further to configure it ideally for a restaurant. He also underwent training at Pür & Simple’s head office location in Montreal, three weeks of everything from paperwork to restaurant management to marketing. Things were moving fast, but on track for a great spring launch on April 23, 2020.

Yes, April. To back up, Liu took his three weeks of training in March. When the world shut down due to COVID-19.

Calm in a crisis For someone who had his business opening delayed by a global pandemic, Liu speaks pretty optimistically. Yes, he had hired 29 staff members. Yes, he had to stall the prospect of any revenue for who knew how long (remember when the world thought it would only be a couple of weeks?). Yes, the thrill of that first breakfast rush would have to wait.

In spite of all that, though, Liu says there were reasons to be philosophical in the face of adversity. “We had no inventory, no staff scheduled, no expenses,” Liu explains, expressing gratitude that he hadn’t faced the same loss of thousands of dollars’ worth of food as some restaurants had. Maybe some of his patience was also rooted in the fact that this was not the restaurant’s first delay: he was supposed to launch in the fall but the contractor

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Franchise Canada September | October 2020 59

MILLENNIALS IN FRANCHISING front of house, which is server and host, they’re perfect.

Most of them are part-time students, or people who just graduated. Fantastic resumes and they’ve worked in different restaurants. I think my team is really good,” says Liu, adding that he hired a general manager with 20 years of restaurant experience.

On hold like the rest of us during the pandemic, Liu decided to wait on the radio ads, Facebook marketing, and other geotargeted online ads that were the hallmark of his franchise’s marketing plan, although he did send out some postcards around the neighbourhood. But again, with social distancing, this was not the standard launch, even in June. “Normally with the franchise’s other openings, they do radio ads a week before opening, but we all agreed that we might want to stop because we don’t want overflow the restaurant when we don’t have open capacity,” says Liu. Liu is also gearing himself up for the new venture, where he plans to throw himself into the operations side of the business. “I’m definitely going to be a hands-on owner,” he says.

he’d hired had passed away and he’d had to make other arrangements. Perhaps this restaurant just had its own timeline in mind.

By delaying opening day to June, Liu adds that he was also able to focus on implementing strategies important to making both staff and customers feel safe in the “new normal” of a pandemic. “We got fully loaded,” says Liu. “We put arrows on the ground and signage on the wall, and masks for our staff. We got all ready to go.”

Liu was also glad to see that the franchise’s commitment to uniformity, organization, and open communication didn’t waver during the crisis. “While some restaurant owners may print their own arrows, Pür & Simple created new signage, with their own logo. It looked perfect in the restaurant.”

Opportunity in delay Liu also says that the pandemic circumstances also offered the potential to avert one of the bigger challenges of a busy restaurant business: the possibility that new staff would be stressed or overwhelmed by the busy pace of a restaurant. Liu believes that the forced restrictions limiting restaurant capacity may have helped his staff ramp up more comfortably to working in a fastpaced, customer-focused environment. “We were able to open with half the seating, I would say 60 per cent.”

Perhaps his spirits also remained high because he was really pleased with his team and knew they would be ready to go once things opened up. “The team at the

60 Canadian Franchise Association

Advice for future franchisees When it comes to franchising advice, Liu advises by example. He looked into six different restaurant franchises and when he picked Pür & Simple, he visited every single Pür & Simple location in New Brunswick, plus the one in Halifax, to confirm the brand’s consistency. “At every store, I experienced the same quality of service and food. That’s key for franchise restaurants,” he says.

He also lets people discover that he’s wiser than his years, admitting that he has had people seem skeptical of his abilities due to age. “Once we know each other, they will know that I’m a decent man. That I can do business with them just as good as other people. And I guess the upside is because I’m younger, I’m willing to try new stuff and my mind is more open,” he says.

Having launched in the COVID-19 era was also a learning experience, one that only cements the need to go above and beyond. “It’s all about making the customer feel safe,” says Liu. PÜR & SIMPLE STATS Franchise units in Canada: 18 Franchise fee: $35K Start-up capital required: $250K Investment required: $500K-$750K Training: Up to 3 weeks theoretical and practical training, 3 weeks of grand opening training and support Available territories: All of Canada In busines since: 2016 Franchising since: 2016 CFA member since: 2016 To learn more, visit www.LookforaFranchise.ca

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LEADERSHIP PROFILE

Building a Values-Driven Business Gordon Gamble reflects on how a strong entrepreneurial foundation and a two-year volunteer work sabbatical led to his PuroClean success

BY ROMA IHNATOWYCZ

T

he launch of PuroClean in Canada was precipitated by a somewhat unusual occurrence: its CEO had just completed a lengthy, two-year sabbatical doing relief work in the highlands of Bolivia and in Mali, West Africa.

While most C-suite executives jump from one comfortable corner office to another, Gordon Gamble went from digging latrines and building hospitals to overseeing the launch of a large damage restoration business in Canada. A long-time entrepreneur with a string of successful business ventures behind him, Gamble had felt a need to “refill his fuel tank,” he explains. His fuel of choice was volunteer work with the Canadian charity Hands Across the Nations (HATN).

Most people don’t consider labour-intensive work in developing countries a go-to escape to reboot their batteries. For Gamble, it was the right decision at the right time.

“I needed to switch gears and really engage in something that was not just about ‘corporate’ and not just about me,” explains the PuroClean Canada founder and CEO.

“Over the years your values can get jaded if you push yourself too hard and stop focusing on the right things along the way. I saw it as spending a couple of years recalibrating my value system to make sure that whatever I engaged in during the golden years of my career had a good foundation.”

The international relief work proved the perfect bridge to running a service-based company that comes to the aid of home and business owners when they need it most.

Self-described as “The Paramedics of Property Damage,” PuroClean delivers emergency services that cover everything from water, smoke, and fire damage to mould removal, biohazard cleanup, and restoration. About 80 per cent of their business is with insurance companies.

Also helpful was a lifetime of successful entrepreneurial experience, starting with an auto aftermarket business that Gamble introduced to Alberta when he was still in his early 20s. He had been studying business administration and working on the side, investing in real estate to build equity to one day own his own business.

Franchise Canada September | October 2020 61

LEADERSHIP PROFILE

Two years into his college studies he purchased the development rights in Western Canada for an auto care franchise called Ming Auto Care Centres.

“I couldn’t wait to get my own business,” says Gamble, who had found his niche and never returned to school.

“I grew up in a small-town setting in rural Alberta, where you had to carve out your own path. It required a pretty high level of resourcefulness, and that was one of the main things that inspired me to venture out on my own.”

Seven years later, with Alberta facing an economic downturn, Gamble sold his stores to a private purchaser and the development rights back to the U.S. parent company. He packed up his family and moved to Toronto, where he purchased a ServiceMaster franchise. He expanded this business to three franchises, eventually selling the amalgamated operation to his general manager before moving on to his next big venture, Mr. Handyman.

Gamble grew the Canadian operation of the home repair chain to 11 locations before selling the rights in 2006. It was at that point, in the middle of what can only be described as an entrepreneurial winning streak, that Gamble surprised everyone by stepping off the treadmill and embarking on relief work abroad. He was 52 years old at the time.

A fresh start The sabbatical proved a valuable experience on both a personal and professional level. Re-energized by the experience, Gamble was primed for a fresh start and new adventures upon his return. As chance would have it, he was soon approached by American friends who were

62 Canadian Franchise Association

looking for a Canadian to introduce their PuroClean business north of the border.

At first glance, it didn’t look promising: there were already around 11 banner groups in Canada in the damage restoration business, so it was a very mature market. But after spending a few months visiting PuroClean operations in the U.S., Gamble sensed a different business style and warmed up to the idea.

“PuroClean didn’t run their businesses with tradespeople as leaders; they developed more of an executive model, which appealed to me. Good business leaders can always find skilled tradespeople and contractors, but the reverse doesn’t happen nearly as often. And I hadn’t really seen that in the Canadian market,” says Gamble.

The company was also using the latest ‘dry in place’ technology for flood repairs, which eliminates the need to tear out floors, drywall, and cupboards, shrinking the claim cycle from months to weeks. “Not only does that make a big difference to the insurance company, but also to the people that live in that property,” says Gamble.

“We preached that sermon around the country for about five years before it really started to catch on. But when it did, almost every insurance carrier began to adopt it.

This was really gratifying for us because we felt we were a lonely voice in the wilderness for years.”

Gamble instilled his own value system into the business, focusing on building a strong community culture with an identifiable, shared cause. “We’re a tightknit, collaborative group and our fundamental cause is that we exist to make people’s lives better. If we make a decision that runs counter to that cause, then it doesn’t matter

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LEADERSHIP PROFILE

Jason Reis wins Franchise of the Year in 2013. In 2020, Jason became President of PuroClean Canada.

The first MVP Award

Gord Gamble and Jason Reis present Joel and Heidi Nelson with the “Brand Pride” award.

The first PuroClean Canadian Conference in 2013

how much more money we’re going to make, we’re missing the goal,” he says.

Finding the right team of franchisees was, and remains, important. Gamble looks for people with strong character, competence, and chemistry. Their competence is measured by their professional accomplishments, and their character by talking to people who have worked with them and looking at how they live their life.

Chemistry, on the other hand, is a bit trickier.

“We send prospective franchisees around to our existing franchise operations, and if we get a report card back that has low marks on the relationship side of things then we take that very, very serious,” says Gamble. “A lot of organizations run on character and competence, and don’t view chemistry as being quite as important. But I think that if you fall short on any one of those ‘three Cs’ you will pay for it down the road.”

Today, PuroClean has 38 franchises in Canada spread across seven provinces. It has grown its revenue per location by 300 per cent over the last five years and is now focused on broadening its footprint, particularly in the interior of British Columbia, northern Ontario, and Quebec.

The COVID-19 pandemic has impacted its operations, with insurance claims down substantially: “Losses normally happen when nobody is at home, and these days, most everybody is home.” But on the flipside, the company’s sanitization services are now in high demand, including the application of antimicrobial treatments that inhibit the survival of the virus on surfaces. The CN Tower, Metrolinx, and several large grocery chains are among its growing list of clients requesting this essential service.

The company also launched a charitable initiative to help sanitize workspaces of frontline workers. Funds have been redirected to communities, along with a request to shortlist places most in need. “It could be food banks, ambulances … Each local operation draws up a list and then we sanitize and apply antimicrobial products free of charge,” explains Gamble.

This charitable venture is in keeping with Gamble’s overall approach to business, and reflects lessons learned during his two years of relief work, especially the importance of helping others. He shares a few words of wisdom on this: “One of the things that serves as fuel for your gas tank is gratitude. People who are ungrateful and feel like victims tend to have a much higher chance of burnout than somebody who has a stronger sense of gratitude. I wanted to fill up my gratitude quotient, and serving others helped with that. It gives me a whole new sense of appreciation.”

At a time like this, that has proved a most valuable lesson.

PUROCLEAN STATS Franchise units in Canada: 38, US: 247 Franchise fee: $59K Start-up capital required: $200K Investment required: $220K Training: 15 days at HQ, 10 days mentoring, 5 on site Available territories: All of Canada, US In business since: 1990 Franchising since: 1991 CFA member since: 2008 To learn more, visit www.LookforaFranchise.ca

Franchise Canada September | October 2020 63

A DAY IN THE LIFE

A TIME FOR TRANSITION JODI PICKLES EMBRACES THE SHIFT TO VIRTUAL EDUCATION AS PART OF HER DYNAMIC ROLE AS AN OXFORD LEARNING FRANCHISEE

BY KYM WOLFE

J

odi Pickles describes franchise ownership as “a dynamic role,” with its share of daily rewards and challenges. As a self-described optimist, she says she regards each obstacle as an opportunity for learning and growth. That learning and growth curve really ramped up earlier this year when COVD-19 forced a very quick pivot to move lessons onto virtual platforms, transition students to an online learning environment, and equip staff to work effectively from home.

For two decades, Pickles’ Oxford Learning centre in Kitchener, Ontario followed a predictable schedule.

Teachers would be on site working with students Monday to Thursday from 4 p.m. to 8 p.m. and on Saturday mornings from 9 a.m. to noon. There would be full-day camps in the summer. Pickles and some staff would be at the centre weekdays before classes started, looking after administrative tasks and doing outreach and promotion. But the majority of staff would be on site with the students late afternoon to early evening and Saturdays, delivering customized tutoring and helping students acquire transferable learning and critical thinking skills.

That all changed when the province of Ontario closed all schools and on-site supplemental learning centres in mid-March of this year.

“I still can’t believe how quickly we were able to respond … it was incredible, really. We were told we had to close our centres on the Monday of March break, and by the following Wednesday we had moved all of our classes online,” says Pickles.

The quick and successful transition was due in large

64 Canadian Franchise Association

part to the franchise supplying the digital versions of each student’s individualized package of learning materials, she says, as well as the staff quickly learning to use the online tools, and becoming comfortable with working with students in online meetings. “Everything was converted, from our assessment tools to our entire curriculum, a virtual platform and meeting links were set up, and it was all created and delivered to us very quickly.”

Parents were kept in the loop throughout the process, and given the choice to continue sessions online instead of in person. At Pickles’ location, just over 85 per cent of existing students transitioned to virtual sessions. In addition, her client base grew, as more parents were looking for ways to ensure their children were engaged in education from home. “The franchise immediately increased social media and online promotions,” she says.

“Our brand is trusted and strong, and that has helped us grow our new online model.”

Pickles acknowledges that Oxford Learning didn’t have today’s strong level of brand recognition when she first opened her centre 20 years ago. Nor was supplemental education as popular as it is today, so when she first started out, much of her role involved outreach, marketing, and promotion.

Today those things still take up a large part of her time each day. It takes time to build a client base, and the nature of the business means that there is always a need to bring in new students. Pickles cautions new franchisees to be patient, and to be prepared to put in a lot of hours at the beginning.

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A DAY IN THE LIFE

“There’s quite a lot of competition in this industry, so you need to be able to explain what Oxford Learning does, and what differentiates us. We focus on the basics of math, reading, writing, and spelling, and we do have a component of ‘homework help’ for other subjects, but really we’re not just here to teach or tutor,” she says.

“Through the Oxford Learning system, students learn how to learn, and how to figure things out independently.

Those are skills that they will use not just at school, but also at work and in other areas of their lives.”

Learning from experience Pickles was drawn to Oxford Learning as a post-secondary graduate who was exploring career options. She knew she wanted to do something to help people, and she had seen firsthand how challenging school can be for some students. “My younger brother had learning difficulties, and I watched what he went through. Because he didn’t fit the mold, he was put into special education classes, he was picked on, it really affected his self-confidence. It was really heart wrenching. There was nothing wrong with him, he just learned differently. And there was nothing like Oxford Learning in Kitchener at that time.”

A few years later, her father became an Oxford Learning franchisee, and he was the one who encouraged Pickles to explore it as an option for herself. “My initial reaction was, ‘Really? Will I have to be able to teach Grade 12 math?’” Not necessarily, she learned; she could hire teachers to do the teaching. She and her husband decided to take the plunge. “I was 27 years old, one of the youngest franchisees at the time,” she recalls.

While some Oxford Learning franchisees do have a teaching background, Pickles feels that having good business, leadership, sales, and people skills are the key elements to success for any franchisee. And you have to love working with people. “As the franchise owner, you can choose what you want to do,” she says. “You can do the assessments and face-to-face meetings with parents – that’s the rewarding part of the business – or you can hire staff to do that. You can do all of the paperwork and behind-thescenes work yourself, or you can hire a bookkeeper.”

As a franchise owner, you do need to have a finger on the pulse of all areas of the business, but you don’t have to do everything on a daily basis. “Hire people whose skills complement your own,” Pickles advises. “I hired a full-time Education Director from day one, even before I had any students. When the phones started to ring, we were ready! When we got to the point that it was too busy for one teacher, I hired another.”

Today, Pickles employs two full-time and about a dozen part-time staff. “It is hard at the beginning – you might want to do it all yourself to save money. I have seen too many new owners try to do it all, and they burn out.

Passion fizzles and you don’t grow.”

Two decades in, Pickles has never lost the passion she had when she first opened her centre’s doors. “What I love about Oxford is that we can really make a difference in a child’s life, we can totally shape a child’s future for the better. With the Oxford Learning system, they become active learners and their self-confidence builds.

It overwhelms me at times, seeing the impact my team has on a student. It is unbelievably rewarding!”

“Oxford has a proven system to follow,” she adds.

“It allows me to focus on people-building, and not get bogged down in all of the system details. Head office is very supportive. They listen to the people in the field, and they encourage franchisees to share our successes so that we can learn from each other.”

OXFORD LEARNING CENTRES STATS Franchise units in Canada: 121, US: 27, International: 4 Franchise fee: $40K + Applicable Taxes Investment required: $103K-$267K + Applicable Taxes Training: Two weeks at Head Office, with additional online training materials, webinars, manuals, and on-site training. Additional Training: Regional workshops, allfranchise meeting/convention Available territories: All of Canada, US, International In business since: 1984 Franchising since: 1991 CFA member since: 1993 To learn more, visit www.LookforaFranchise.ca

Franchise Canada September | October 2020 65

THE FIRST YEAR

A Fantastic Franchise Adventure

McDonald’s franchisees Pierre Marois and Pierre Jacoub are cultivating their own culture of success in Nova Scotia

BY JORDAN WHITEHOUSE

I

t was January 2014, and Pierre Marois and his husband, Pierre Jacoub, were ready for a change. Marois had spent the previous 15 years as a vice-president at an engineering firm in Montreal, while Jacoub had been a project manager at TD Insurance. Both in their early 40s at the time, Marois and Jacoub wanted a new adventure: their own business. One day, Marois turned to his husband and said, “Why not McDonald’s?”

“Are you serious?” replied Jacoub. Sure, they were both huge fans of the brand and wanted the backing of a strong franchise, but neither had experience running a restaurant or even knew any McDonald’s franchisees.

“Yes!” was Marois’ enthusiastic response.

It didn’t take long for Jacoub to get excited too; he rapidly filled out the online application. Now they have five McDonald’s locations in Nova Scotia, but looking back, the two admit that their initial decision was based mostly on instinct.

66 Canadian Franchise Association

Today there are more than 38,000 McDonald’s locations worldwide, and in 2019, the company had over $100 billion in system-wide sales. In a public note to shareholders in early 2020, Chairman of the Board Enrique Hernandez, Jr. also noted that in 2019, McDonald’s franchisees had record — or near record — cash flow in most markets. In Canada, there are more than 1,400 McDonald’s locations, and more than 90 per cent of them are locally owned and operated.

Once Jacoub and Marois went through multiple interviews and an in-restaurant evaluation, they were approved in June 2014. Marois elected to complete training part-time, completing over a year and a half of parttime training that totalled 1,500 hours of in-restaurant instruction, plus classes at head offices in Montreal and Chicago. In the midst of all of it, they also welcomed twins Justin and Nora in 2015, who were born through surrogacy. Once training was completed, the Pierres

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THE FIRST YEAR Pierre Marois (left) and Pierre Jacoub with their children Justin and Nora.

finally got the call they were waiting for: two restaurants were available in Yarmouth and Barrington Passage, Nova Scotia.

Some view training and location as barriers, for Marois they were attractors, given they speak to the success of the brand, and the ability to purchase proven existing businesses.

The two south shore towns weren’t the first locations the Pierres had in mind. However, when the two visited that fall, they quickly realized it would be the change they were ready for. “We were honestly a little hesitant at the beginning. As a gay couple with young children moving to a smaller communinity, we did not know what to expect,” says Jacoub. “But when we visited, it didn’t take but a moment to say, ‘Oh yeah, those fears are allayed.’

Pretty much the minute we got out of the airport.”

Off to a successful start They officially took over the two restaurants in February 2018, and Jacoub says they had a “very successful” first year at both restaurants. That was mainly due to the experienced and seasoned management teams already in place. Employees and guests were very welcoming too.

Some even introduced them to the mayor and different business owners in the area.

There were challenges, of course. Leaving family and friends in Montreal and finding daycare wasn’t easy, nor was finding the right balance of personal and professional time. “When you’re passionate about something, and you’ve invested so much time and money, you don’t

always know when to turn off that switch,” says Jacoub.

Eventually, though, they learned to dedicate Sundays as family-only days and to be more efficient with their time.

Sometimes that means heading into the home office after the kids go to bed to get work done.

By the summer of 2019, they were ready to grow, and on August 1st, they purchased the Liverpool McDonald’s and two more in Bridgewater, including the Walmart location. Pandemic aside, that was another year of firsts.

The former owner had been in place for 48 years and had a culture that was different than what the new ones wanted to cultivate. For the Pierres, part of that culture is about making sure guests know how thankful the restaurant is for their business. Another part is about making sure they are offering the best that McDonald’s has to offer, which is why the Pierres completely renovated two of their restaurants.

The third part of that culture is about investing in their people. That means listening to the input of every employee and sending them to training, as well as hiring a human resources manager, says Jacoub. “We’re a big company now, employing 260 people, so we wanted to make sure there is someone dedicated full-time to our people.

And, it’s not just processing payroll and doing logistical things — it’s making sure that our people are happy.”

During the pandemic, the HR manager has been calling employees to make sure that they are doing well, and staying safe. Overall, though, Jacoub says the entire team has faced this unprecedented challenge with a “grace and dedication that gives me goosebumps.”

Franchise Canada September | October 2020 67

THE FIRST YEAR There are a lot of questions about what the future will hold. The Pierres say they feel fortunate to be part of the McDonald’s system. When Marois met with a franchisee in Montreal in 2014, he remembers him saying that McDonald’s would never let him down. “And that’s more true now than ever,” says Marois. “At the beginning of the crisis, our CEO Chris [Kempczinski] sent us a message that said we will do the right thing for our employees, for our guests, for our brand, and nobody will fail.”

They’re passionate about giving back to the province and community that has been so welcoming. That has included dedicating time and/or funds to Ronald McDonald House Charities, Red Cross, the Yarmouth Hospital Foundation, Gay Pride, and even the weekly Mayor’s Tea at the Yarmouth Information Centre in the summer, where they welcome visitors and promote the area.

As for any words of wisdom the Pierres would share

with anyone considering McDonald’s as a franchisee, it’s simply this: enjoy the voyage. “Just know that if you sell everything, pack your bags, and move — it’s going to be a fantastic adventure,” says Marois. “When I look back, it’s fantastic how we’ve been rewarded and privileged with McDonald’s.”

MCDONALD’S RESTAURANTS OF CANADA STATS Franchise units in Canada: >1,400 Franchise fee: $45K Investment required: $700k unencumbered funds Training: 9 months to 1.5 years Available territories: All of Canada In business since: 1967 Franchising since: 1968 CFA member since: 1976 To learn more, visit www.LookforaFranchise.ca

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68 Canadian Franchise Association

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PEACE

OF MIND WITH A COBS BREAD BAKERY

Franchise with a business that provides a product that’s essential to every day life – with a trusted franchisor.

Learn more about owning a local bakery with COBS Bread at COBSBread.com/StartSomethingGood

ICONIC BRAND

BUILDING COMMUNITY ROOTS COBS Bread has the right ingredients to continue its growth through tough economic times

T

BY GINA MAKKAR

here’s nothing better than freshy baked bread.

Stepping into a COBS Bread bakery is akin to strolling past a French boulangerie, its heady scent reminiscent of the warmth and cosiness of childhood kitchens. With today’s uncertainty, we’re reaching for creature comforts more than ever. COBS is proof that a brand can rise to a challenge, meet the needs of its community, and emerge stronger. They are a true iconic brand.

Rising up COBS Bread is a part of the Bakers Delight family, an Australian franchise started in 1980 by Roger and Lesley Gillespie. In 2003, the first Canadian COBS bakery opened its doors in Edgemont, North Vancouver. Today,

70 Canadian Franchise Association

bakeries across Canada serve fresh, handcrafted breads and treats at over 125 locations, with plans to continue to expand.

Vice president John Gilson says the original Canadian brand opened corporate stores that mirrored its Australian locations to establish the business before putting a franchisee’s capital at risk. “We wanted to get into the market and test the franchise out,” says Gilson.

As the brand matured, Canadians, who often opt for sweet treats, began to include bread in their purchases.

“People realize the bread is healthy, has no additives and preservatives. The mentality changes from initial trial to dedication, and when you get to that dedication point, you find that a lot more bread is sold. That’s when we know we have our roots in a community.”

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ICONIC BRAND

Over the years, the company has layered in additional products, like cinnamon buns and scones in a variety of flavours. Higher fibre bread, a seedy sunflower flax sourdough, and mini pizzas are among some of COBS Bread’s best sellers. “We are always looking to add to our offerings. We are very focused on what we do.”

Keep calm and bake Over the last few months, pandemic anxieties spurred customers to push the panic button and clear out grocery stores, including bakeries. Gilson says sales were at a record-high the first week of isolation before stabilizing and then creeping upward again. Ninety-five per cent of COBS bakeries have experienced consistent growth throughout this time. “More people are living at home, having lunch there, and not going out to eat. They are prepared to spend a little more on themselves and willing to spend more on a quality product; not that it costs more to purchase COBS product, but it’s the perception.”

COBS took its cues from grocery stores, implementing safeguards like social distancing markers and plexiglass barriers at counters. Since the stores can only welcome three customers at one time, many of the loaves were pre-sliced with the goal to move product quickly and limit lineups.

The right ingredients Gilson says franchisees with experience managing teams in a food environment start strong out of the gate, as they are accustomed to the demands. He adds that franchisees come from all walks of life and can learn the skills they need over time with the right support.

The COBS process allows prospective partners to invest in the idea before becoming a franchisee. A discovery day incorporates working in a store to get a firsthand feel of the environment and gauge initial impressions. A three-week period at the start of a four-month training process allows franchisees to further test the waters before becoming fully committed. “It’s a 10-year commitment, and we don’t want them to fail.”

With only one chance to impress a new community, Gilson says opening support is a big priority. An operations team provides ongoing support, gradually pulling back when the franchisee is ready. “We’d rather invest that time initially and get it right the first time.”

Gilson advises prospective franchisees to look at other businesses and ask questions. “See what kind of support you will get. Talk to other franchisees. Ask them what it’s like. Are they happy? Do they make money?

Ask those honest questions.” He adds that investing in a recession-proof concept is fruitful in the long term.

When crisis hit, COBS remained steady and predictable, proof that tasty, fresh-baked bread is always in style.

Sweet success Jeremy Banning opened his first COBS location in Calgary in 2015. Today, he owns three locations, with a fourth one in the works. A long-time employee of the A&W corporate office, Banning was able to use his experience to leverage his COBS success while staying closer to home for his young family. When starting out, he says one of the keys to success was to be on the ground, in the store and in the community, connecting with staff and customers.

Franchise Canada September | October 2020 71

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ICONIC BRAND

“IT’S REALLY THE TYPE OF BUSINESS THA T MAKES YOU FEEL LIKE YOU A RE A BENEFIT TO THE COMMUNITY. YOU A RE FEEDING PEOPL E AND YOU A RE FEEDING THEM SOME THING HEAL THY.” “I learned how to make bread from the ground up, because if all else fails, you are the head baker. It’s definitely a wide appeal for those willing to work hard and come in for those early hours. I went from not being able to bake to running a bake team on my own.”

There’s camaraderie in the COBS family. The store Banning trained at became a partner store, where he could reach out and talk about some of his struggles. A few years later, he helped train a new location and in turn, became a partner store for him. “COBS has done a really good job of developing a community within their bakeries.”

To add a little fun to function, regional meetings where bakers and franchisees come together allow franchisees to network and allow bakers to rise to the top with a bread competition. “In addition to sharing sales, you can visually see who has overcome making a difficult product or see what looks extra good for customers.

It helps identify where the expertise is and encourages franchisees on what they can do better.”

With the current pandemic, Banning’s stores were busy during the panic-buying period. After a short decline, sales are back to normal. “You have to deal with some of that volatility, but the positive thing is that bread is a fresh product and the purchase cycle is quick.”

He adds that as long as customers are coming in, they can solve challenges like making different types of bread to fill the needs of people eating at home. “When you are associated with a good brand, sales can be stronger and more consistent, so when things like this happen, you still have that time to react and make changes because your sales don’t disappear in one day.”

Banning says their simple approach of bread made fresh with no preservatives and colours, and leftovers that go to charities daily, is a formula that fits well with a customer’s desire right now to know where their food comes from and what it’s made of. “The thing that attracted me to COBS is being in a business in the community, so times like this, we’re your traditional-style local bakery where

bread gets made every day and you know what’s in it. I think that helps when people are scared.”

Banning says the first couple of years in business is about learning and growing the team. “There’s artistry in bread baking. You want to be able to tell the difference between a great loaf of bread and an average loaf of bread. There’s a skill to own and pass along, too.”

He says that when franchisees are connected to a business that is their primary source of income, they are not distracted. “With the focus on being in the stores, there’s a little more responsibility. You are not sitting on the beach checking your emails to see how the store is doing. You are working hard now to sit on the beach later.”

Banning says that the sky is the limit for COBS franchisees if they are on board to get up early and work hard while fostering soft skills to grow a solid team. “COBS has been around long enough to be stable, and it’s growing exponentially right now so it’s a good opportunity.”

Beyond the great business opportunity, he also enjoys the community connection, baking with local Boy Scout troops or helping a family through a tough time. “It’s really the type of business that makes you feel like you are a benefit to the community. You are feeding people and you are feeding them something healthy.” It’s proof that bread is happiness. Bread is nourishment. Bread is love.

COBS BREAD STATS Franchise units in Canada: 118, US: 2 Corporate units in Canada: 5 Franchise fee: $0 Start-up capital required: $125K-$300K Investment required: $200K-$1M+ Training: 16 weeks, $10K training fee Available territories: AB, BC, MB, NB, NL, NS, ON, SK, US In business since: 2003 Franchising since: 2006 CFA member since: 2008 To learn more, visit www.LookforaFranchise.ca

Franchise Canada September | October 2020 73

SHOW ME THE MONEY

4 FRANCHISES FOR $150K-$250K Franchising is about diversity. Franchise opportunities may be found in nearly every industry and business sector. It’s a great way for Canadians from all walks of life to go into business for themselves but with the support of a franchise system behind them.

One of the most important considerations for a prospective franchisee is investment level. Figuring out a budget that fits with your financial situation and goals will help you to zero in on the franchise opportunities that might be the best match.

With so many opportunities, there is a franchise for everyone at a variety of investment levels.

Here, Franchise Canada showcases franchise systems in which you can invest for $150K-$250K.

Crepe Delicious

Image360

Crepe Delicious is the largest and fastest growing creperie and gelateria. Specializing in innovative crepes and handcrafted gelato, Crepe Delicious takes pride in being a leader in the trend towards healthier eating. Serving breakfast, lunch, dinner, and dessert, Crepe Delicious offers fresh, nutritious, and tasty food for people on the go. The unique concept combines low food costs with excellent site selection to provide franchisees with the recipe for success.

Franchise units in Canada: 31, International: 14 Corporate units in Canada: 1 Franchise fee: $25K Start-up capital required: $100K Investment required: $100K+ Training: Pre-opening training, grand opening support, ongoing support Available territories: All of Canada, US, International In business since: 2004 Franchising since: 2005 CFA member since: 2009 To learn more, visit www.LookforaFranchise.ca

Image360 is a sales-driven solutions provider in the areas of graphics, signage, and displays of virtually every description. An Image360® centre is a full-spectrum provider of all types of visual communication products and services. Today’s sign shop is a quasi-advertising agency featuring full-colour designs and graphics. Image360 opens every new centre with state-of-the-art graphic equipment in order to meet the needs of everyone from the small business owner to corporate clientele.

Franchise units in Canada: 4, US: 293, International: 4 Franchise fee: $40K USD Start-up capital required: $75K USD Liquid Capital Investment required: $196,497-$370,473 USD Training: Yes Available territories: AB, BC, MB, NB, NS, NT, NU, ON, SK, YT, US In business since: 1986 Franchising since: 1987 CFA member since: 2007 To learn more, visit www.LookforaFranchise.ca

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SHOW ME THE MONEY

Pita Land Inc

PostNet

Pita Land Franchise - Your Healthier Alternative to Fast Food. Need a fresh new franchise opportunity?

Join forces with Pita Land and profit from the megamovement to healthier fast food choices. It has food courts, hospitals, malls, plaza, and street locations.

Franchise units in Canada: 30 Franchise fee: $25K Start-up capital required: $212.8K-$388K Training: 240 hours (6 weeks) Available territories: BC, MB, NB, NL, NS, NT, NU, ON, QC, SK, YT In business since: 2003 Franchising since: 2007 CFA member since: 2011 To learn more, visit www.LookforaFranchise.ca

Far more than a printing and shipping franchise, PostNet entrepreneurs serve their communities by offering a range of business services, paired with a consultative approach and a dedication to helping customers find solutions. PostNet offers everything from business cards to eye-catching signage, as well as packing and shipping services with major shipping carriers. Plus, as a PostNet entrepreneur, you’ll receive training and support from a franchisor who is with you every step of the way.

Franchise units in Canada: 8, US: 201, International: 466 Franchise fee: $35K Start-up capital required: $43K-$85K Investment required: $243,580-$298,880 CAD Training: 8 days classroom, 7-10 days on-site Available territories: AB, BC, MB, NB, NS, NT, NU, ON, SK, YT, US, International In business since: 1992 Franchising since: 1999 CFA member since: 2004 To learn more, visit www.LookforaFranchise.ca

Find franchises by investment level on LookforaFranchise.ca

Want to find franchises at a particular price point? Searching by investment level is just one of the search options available on Franchise Canada’s online franchise directory at LookforaFranchise.ca.

This website is powered by the Canadian Franchise Association and part of Franchise Canada’s suite of products for aspiring franchise owners. Build your profile on LookforaFranchise.ca and browse available franchises, request more information directly from the companies you’re interested in, and access exclusive Franchise Canada content online.

Franchise Canada September | October 2020 75

FRANCHISE FUN

Fostering Franchise Growth

CEO Ken Otto is helping Redberry Restaurants expand with more Canadian locations

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FRANCHISE FUN Redberry Restaurants is one of Canada’s largest and fastest-growing quick service restaurant (QSR) franchisees, operating two iconic global QSR brands: Burger King and Pizza Hut. CEO Ken Otto notes Redberry is Canada’s largest Burger King franchisee, with 111 Burger King locations in Quebec, Ontario, and Manitoba, and also proudly owns and operates more than 20 Pizza Hut restaurants in Alberta.

With more than 130 locations, Otto says Redberry will continue to grow in Canada, as evidenced by the recent signing of an area development agreement with Burger King to build 103 new Burger King restaurants in the next five years.

Here, Otto, a self-professed energetic early riser and builder, shares his insight into Canadian franchising, including how both franchisees and franchisors can continue to foster franchise growth. We also highlight his personal side as he emphasizes the importance of dreaming big, spending time outdoors with family, and unwinding with a taste of awesome tequila. Read on to learn more!

The most interesting thing I’ve done recently is…

Sailed a catamaran in the British Virgin Islands with my family.

In its best form, work is…

Fun. A good franchisee…

Is an advocate and growth engine for their franchisor.

A good franchisor…

Builds a highly profitable, sustainable, and world-class operation system for their franchisees.

My top advice for prospective franchisees is…

Commit 98 per cent of your time to the flawless execution and being an advocate for the 98 per cent of the system that is right.

Spend 2 per cent of your time on the 2 per cent that needs work. Simply, you bought and are paying for a system. Use it; don’t fight it.

My top advice for new franchisors is…

Know how to make money for your franchisee. A great concept, even loved by your customer, is useless to a franchisee (and you) if it does not make lots of money.

The most important thing in life is…

Family.

The most positive influence on my life as a person is…

My wife Julie.

One of the most enjoyable things to do is…

Spend time outdoors doing cool things like biking, boating, and skiing.

The key to success is…

Dream big. Then write it down.

Build a team to make it happen.

The hardest thing for me to do is…

Slow down.

My favourite drink is…

Super awesome tequila.

If I could change one thing…

I would have more hair.

If I could meet anyone…

I would meet the CEOs of Restaurant Brands International (RBI) and Yum! Brands.

The person who has had the most positive influence on me as a businessperson is…

My dad, Gunter Otto.

I’d like my friends to describe me as…

There for them.

The accomplishment I look forward to the most is…

Everyone I have the privilege to lead and work with feels they are achieving their lifelong goals and dreams.

My personal motto is…

Make it Happen.

One necessary item on my life’s “to do” list is…

Stay healthy.

Canadian franchising is…

World class.

My franchise system began because…

There was a need for franchisee consolidation in Canada.

Franchise Canada September | October 2020 77

Q A

ASK A LEGAL EXPERT Why is the start of my franchise relationship the best time to think about the end of it?

THE PERIOD in which prospective franchisees begin to seriously consider entering into a franchise relationship is undoubtedly an exciting time for them. During this period of investigation, it is natural for prospective franchisees to focus their attention on questions that loom large during the start of the relationship: How much money will I make? What will my expenses be? How much of an investment is required? How strong is this brand? What support will I have?

While answering those questions is undeniably important, it is easy for a prospective franchisee who is focused on the start of the business relationship to ignore no-less important questions about how that relationship can come to an end.

Franchise agreements can come to an end in any number of ways. They can expire naturally when their term and any renewal terms end. They can be terminated by the franchisor for reasons such as non-compliance with the franchise agreement. They can be rescinded by the franchisee if certain important information about the franchise was not completely or properly disclosed.

They can be transferred if, for instance, the franchisee wishes to sell the franchise to another, or new, franchisee or back to the franchisor.

In deciding whether to enter into a franchise relationship, prospective franchisees would be well-advised to turn their attention to the circumstances surrounding the termination and transfer provisions in the franchise agreement that they are being asked to sign.

Natural expiration Franchise agreements are typically for a fixed term, with one or more renewal terms. In some cases, the term is defined to be for a certain period, such as five or 10 years. In other cases, the term may be defined to expire sooner if, for instance, the premises are governed by a head lease that expires sooner than the term of the franchise agreement.

To be entitled to a renewal, the franchisee must typically meet certain strict requirements. These could include modernizing the premises, which often involves a significant renovation cost. The franchisor also typically requires a renewal fee and that the franchisee be in strict compliance with the franchise agreement at the time of the renewal. To exercise its right of renewal, the franchisee must normally provide written notice to the franchisor within a fixed period prior to the expiration of the term; failure to provide timely notice could result in the loss of the renewal right.

franchisee will typically entitle the franchisor to terminate the agreement before its term expires, either immediately or after first giving the franchisee an opportunity to “cure,” or, correct, the breaches.

Curable breaches tend to be relatively less serious than non-curable ones, and would normally include the first one or two late payments of royalty fees, the failure to provide reports of gross revenues or other financial reporting to the franchisor, the failure to comply with the system’s standards, and the sale of unauthorized products or services.

Non-curable breaches would typically include the franchisee’s insolvency, the loss of any lease governing the franchised premises, repeated breaches of an otherwise curable breach, the franchisee’s abandonment of the franchise, the forced closing of the franchise by government authorities, conduct on the part of the franchisee that materially impairs the franchisor’s goodwill or that endangers public health and safety, and intentional under-reporting of royalties.

Bases for termination by the franchisee Franchise agreements usually do not permit the franchisee to terminate. A franchisee experiencing financial difficulty or lack of support from the franchisor may find itself without any contractual remedies other than attempting to sell the franchise to another, or new, franchisee or back to the franchisor; however, a sale to a third party would almost certainly require the consent of the franchisor, and franchisors frequently withhold such consent.

An abandonment of the franchise may result in litigation by the franchisor, particularly if, after abandonment, the franchisee enters into a business that is competitive with the franchisor.

Transfer of the franchise Most franchise agreements permit the franchisee to sell the franchise to a new, or existing, franchisee, or back to the franchisor, but only if certain strict conditions are met. The franchisor will want to be satisfied that any proposed purchaser has the sufficient capital and experience to operate the franchise. The franchisor will also typically require payment of a significant transfer fee. The franchisee usually must be in compliance with

Bases for termination by the franchisor A breach of the terms of the franchise agreement by the

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Idan Erez Associate Hoffer Adler LLP ierez@hofferadler.com

ASK A LEGAL EXPERT the franchise agreement at the time of the proposed transfer. The franchisor may insist that the franchisee’s principal(s) will personally guarantee the performance of the buyer for a period of time.

The franchisor may also wish to buy the franchise, but is not obligated to do so and may not always be in a financial position to do so.

These comments relating to transfers also apply in circumstances when the franchisee or its principal dies or becomes disabled and his or her heirs or successors wish to continue to operate the franchise.

Conclusion Before signing the franchise agreement, the prospective franchisee should pay close attention to the term, renewal conditions, and termination and transfer provisions in the franchise agreement. Ideally this review

Q A

should be undertaken in consultation with a franchise lawyer, with a view to identifying whether the provisions are commercially reasonable and, if not, negotiable.

The prospective franchisee should also investigate its franchisor’s culture of termination. Some franchisors are less tolerant of breaches than others. The franchise disclosure document is required to list former franchisees whose franchise agreements have been terminated. The prospective franchisee should investigate the circumstances of those terminations, including, where appropriate, by contacting such former franchisees. A search of reported court decisions and the court’s files with respect to the franchisor may also be appropriate.

By focusing not only on how the franchise relationship will start, but also how it could end, the prospective franchisee can make a better, more informed, and wellconsidered decision before making its investment.

ASK A FINANCE EXPERT

Why is it a good time to consider franchising as a new career option?

IN TODAY’S WORKFORCE, people tend to change careers and jobs quite a bit. According to Workopolis, a shorter stint at jobs has become the standard, as 51 per cent of people now stay in any one role for approximately two years. Millennials will, on average, have roughly four jobs over their first 12 years in the job market. On the whole, it is expected that Canadians will hold around 15 jobs over the life of their careers.

As tenure in a single job has become shorter, careers now have greater fluidity. But this fluidity – whether or not by choice – can lend itself to career opportunities.

Owning a franchise business is one of those opportunities and can be impactful for those looking for a career change, at any stage of their professional lives.

Before looking at the opportunity that franchising presents, it is worth looking at how different franchise models are best suited to people at various life stages.

Tier 1 franchises – a franchise that’s a household name – often have a higher price tag and are more selective about who they accept. More often than not, these types of franchises select people who have been selfemployed previously, have significant assets, and are looking for a new challenge or to add to their existing portfolio of investments.

The health and lifestyle focused franchises – tier 2 – tend to attract a younger demographic who are looking to start out, who have come into some money recently, or have come to realize that they were looking for something more than what their current job could offer.

Tier 3 franchises – quick service restaurants (QSR) – are another popular option as they have lower entry barriers and there is a large selection of franchise types.

These are geared to those new to the country and those looking for networks that are growing.

It’s important to keep in mind that, when starting any franchise, there will be an upfront capital commitment. The amount of capital required by the franchisor will vary depending on the franchise. For franchises that are well known, a franchisee may be looking north of $750,000. For health and lifestyle focused franchises or QSRs, the investment may sit under $450,000.

While there is an upfront cost, franchising has some distinct advantages for those looking to start their own business and pivot their career.

Proven business model One of the key advantages of starting a business under a franchise model is that the franchisee is working with (continued on page 82) Joseph Pisani Director North American Industry Sectors, Franchise Finance BMO Bank of Montreal (BMO) bmo.com/franchising

Franchise Canada September | October 2020 79

FRANCHISE TUTORIAL

TUTORIAL 15: THE FUNDAMENTALS OF FRANCHISING

TERM OF AGREEMENT AND RENEWALS ALL FRANCHISE AGREEMENTS HAVE A FIXED TERM. They come to an end. That is the nature of a licensing relationship. A licence has a beginning and an end. You are not buying the right to use the brand but instead leasing it, like the lease of a commercial space. At the end of the term you have the ability to renew the agreement for a further term, or you can end the relationship.

The length of the term will vary. Often the term is five or 10 years and sometimes as long as 15 to 20 years. The length of the term is outlined in the franchise agreement.

It will often coincide with the length of your lease. The length is dependent upon the total investment amount.

If you have invested over $1 million, you will typically require a longer term than, say, if you invested $100,000.

The term should be long enough to pay off your business loans and get a return on your investment.

At the end of the term, you typically have an option to renew. The option is usually your choice, provided that you meet the renewal conditions. Such conditions might include; • You are in good standing and in compliance under the terms of the existing franchise agreement • You have notified the franchisor of your desire to renew (typically six months prior to the end of the term) • You sign a current franchise agreement, which may or may not have terms and conditions that are substantially different from the original agreement • You pay a renewal fee • You upgrade your location and equipment to the current standards, specifications and/or image • You have secured a lease on the location • You and your staff complete renewal training • You sign a general release regarding the expiring license agreement Be sure to give the appropriate notice of your desire to renew. If you forget and miss the deadline, the franchisor may assume that you’re not intending to renew and find another franchisee to take over the location at the end of your term.

The length of the renewal term is often the same as the original term, but sometimes is shorter. Some franchises allow unlimited renewals, while other franchises only permit one renewal term. Each franchise is different and you need to read the terms of your franchise agreement to get clarity.

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Upon renewal, be aware that the new franchise agreement may be substantially different from the original. The franchisor may increase the royalty or other financial commitments, thus changing the financial returns of the business. This is common if it was a new franchisor and you were one of the first franchisees. For established franchisors, however, the financial terms typically remain the same and instead the revisions in the agreement reflect changes in law to more fully protect franchisor and system-wide interests. There may also be changes to reflect new technology or adjustments to territories to reflect changes in population and demographics.

As part of the renewal process, you may be provided with a disclosure document if you are located in British Columbia, Alberta, Manitoba, Ontario, New Brunswick, or Prince Edward Island. Provincial regulations in general state that a renewal is exempt from requiring disclosure if there has been no interruption in the operation of the business, unless there has been a material change.

The fact that you’re being required to sign a new franchise agreement that may be different could be considered a material change. Franchisors are wise to lean on the side of caution and provide full disclosure.

If you choose not to renew the franchise agreement, the franchisor has the right to issue the franchise to someone else. You would be giving up your rights to use the brand and operating system of the franchise. Most franchise agreements have a non-competition clause that would prevent you from continuing to operate the same business independently. You would have to go into another line of business, but, after 10 years, you may be ready for a change. In many cases, however, if you’re looking for an exit strategy, you would be better off financially to renew the franchise agreement and sell the franchise assets to a new party and transfer the licence. This allows you to get a greater return on your investment or, in some cases, minimize your losses.

Be sure to read and fully understand your franchise agreement with regards to the term and renewal. Have a franchise lawyer review the new agreement and assist you in getting clarity as to your new obligations, which may be substantially different from the ones you had previously. A good understanding of the terms of your new franchise agreement will allow you to better plan your business and your personal future.

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FRANCHISE TUTORIAL

TUTORIAL 16: THE FUNDAMENTALS OF FRANCHISING

RENEWAL FEES AND REDESIGN COSTS WHEN IT COMES TIME TO RENEW your franchise agreement, there will typically be some costs in the form of a renewal fee and redesign or remodelling costs. You will want to plan for these costs and be prepared financially when it comes time to renew your franchise agreement for a new term.

The costs of renewal will be defined in your franchise agreement. Costs will vary from zero to a few hundred dollars to a percentage of the current franchise fee or, potentially, to the amount of the initial franchise fee.

How much the franchisor will charge reflects their attitudes and market conditions. A low fee that basically covers the administrative costs communicates that the franchisor values its franchisees and retaining these relationships. A high renewal fee communicates that the franchisor places a high value on the brand. They know that if you don’t want to renew, they have other prospective franchisees that will gladly assume the franchise.

The renewal fee represents the opportunity cost lost by not awarding it to someone else. With many franchisors the fee is typically somewhere in the middle, representing both of these attitudes. On average, the renewal fee is between $3,000 and $5,000, paid in full at the time of entering into a new franchise agreement for the renewal term.

It makes sense for the franchisor to encourage renewals and keep costs to renew low. The alternative is to spend a lot of time, effort, and money on finding new franchisees, finding new locations, and training the new franchisee. There is the potential loss of goodwill resulting from customers who had built relationships with the local franchisee operator, not to mention the strained relationships with remaining franchisees who see their fellow franchisees leaving the system.

Upon renewal, there will typically be a requirement to upgrade and/or modernize. This may include changes to the branding elements, equipment and technology, and/ or remodelling the physical premises of your location.

This requirement is found in your franchise agreement.

If your agreement has a longer term, it may require that changes be made during the term as well, not just at the time of renewal. Franchisors will provide a reasonable amount of time to make the changes, but will often not renew your agreement unless the changes are made.

Changes in the system are required in order for the brand to evolve, develop, and remain competitive.

Clauses requiring change allow the system to evolve, while maintaining uniformity and consistency over time.

Franchisors will often involve the franchisees and allow them to provide input to the changes through a franchisee advisory council or committee. Examples of changes that might be required could be as simple as repainting the walls and replacing carpet with new colours. The colours that were in fashion in the ‘80s may look very out of date today. There may be strategic changes.

Drive-ins were popular in the ‘50s, whereas today it is the drive-thru. Or there may be menu changes. Adding pizza to the menu would require pizza ovens and other modifications to the kitchen.

All of these changes are at a cost, ranging from a few hundred dollars, to hundreds of thousands of dollars.

Some franchisors will offer financial assistance to facilitate these changes. Some franchise agreements will set a cap as to the cost of these changes, but it’s very difficult for franchisors to forecast what the changes and the applicable costs will be five to 10 years into the future. As a result, the franchise agreement will speak of required upgrades in general terms.

Another cost that may be incurred at time of renewal is training to upgrade the franchisee and staff. If there is new equipment, your employees will need to be trained on the new equipment and processes. You will need to cover costs of your staff as they go through the training, as well as paying the travel, accommodation, and meals for the trainer to come to you or, alternatively, for you to go to head office.

Before you renew your agreement, have a full understanding of what the total costs are going to be and ensure that you have access to the funds required. Your franchisor will assist you. You will want to ensure that you have sufficient time in the renewal term to get a return on your new investment. Successful franchisors will be sensitive to this fact, while at the same time balancing this against the need to keep the brand current and contemporary. It’s in the best interests of the brand and the system as a whole.

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FRANCHISE TUTORIAL

STUDY QUESTIONS TUTORIAL 15 1. T he length of the Term of Agreement is always 10 years. True or False? a) True b) False 2. You should give notice of your intent to renew your franchise agreement: a) i mmediately after signing your initial agreement b) after the term of your initial agreement has expired c) at least six months prior to the end of your term 3. Upon renewal, your new franchise agreement may be substantially different from the original.

True or False? a) True b) False 4. I f you choose not to renew your franchise agreement: a) the franchisor has the right to issue the franchise to someone else b) you give up your rights to use the brand and operating system c) you may not be able to continue to operate the same business independently d) all of the above Answer Key: 1) b 2) c 3) a 4) d

TUTORIAL 16 1. R enewing your franchise agreement might require updates to: a) b randing elements b) equipment and technology c) the physical premises of your location d) all of the above 2. Some franchisors offer assistance or set a cap for the cost of these changes. True or False? a) True b) False 3. T he cost associated with renewing your franchise agreement: a) is always a few hundred dollars b) is always the same amount as the initial franchise fee c) is always a percentage of the current franchise fee d) varies depending on the franchisor and market conditions 4. You

and your staff might have to upgrade your training when you renew your franchise agreement. True or False? a) True b) False Answer Key: 1) d 2) a 3) d 4) a

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ASK A FINANCE EXPERT (Continued from page 79) a proven business model. The franchisor will have a playbook to helping with franchise success – anything from marketing collateral, to hiring best practices, to operation guidelines.

There is still a lot of work on the franchisee’s part in order to turn a franchise business into a success, but not having to start from scratch can be incredibly beneficial.

Data and analytics Another advantage of transitioning to a franchise business is tapping into resources that the franchise network will provide, such as data and analytics on franchise performance.

For franchisees, data can be a powerful tool and provide insight into the strategies that help fellow franchisees at a store level. The franchise brands that leverage data (and analyze that data) can tailor systems for various regions or cities. If the franchise brand deploys data and analytic capabilities, it can be incredibly valuable to tap into that information as much as possible. Now more than ever, data lays the groundwork for a successful business.

Profitability While not applicable completely across the board for franchise businesses, some franchises – health and lifestyle focused and QSRs – have a smaller hurdle to profitability relative to other franchises and starting a business from scratch. The lower the profitability hurdle, the quicker the franchisee will be able to make and (hopefully) keep the business profitable.

To help with profitability, it’s a good practice to have a business plan in place. With a business plan, the franchisee can map out what’s needed to attract customers and determine the number of people that need to consume a service or purchase a product to be successful and start seeing growth.

Understanding your sales cycle is also crucially important. To help you better understand the cycle, look at whether the business is seasonal (so you will know when to expect ebbs and flows) and how dependent it is on variables like foot traffic. If a chunk of your business depends on getting customers in the door, look to supplement that with an online storefront for when traffic might be lighter. This will be especially important, as consumer preferences change as a result of prolonged social distancing from COVID-19.

When in the midst of a career transition, franchising can be an exciting opportunity. In a lot of cases, as an owner, it can provide greater work-life balance and flexibility. If done right, it can be an exciting opportunity for business success.

www.cfa.ca | www.FranchiseCanada.Online

MARKETPLACE

Helping you do more business is our business. When you accept American Express® Cards, you gain access to higher spending customers and a greater number of business clients. We also help franchisees grow through business solutions that include cash flow management, providing working capital opportunities and lucrative rewards. Contact us to find out more about how we can help your Franchise grow.

CFA Member Since: 2017 Web: www.amex.ca/canadianfranchiseassociation Email: franchisesolutions@aexp.com

BDO Canada LLP 20 Wellington St E Toronto, ON M5E 1C5 Phone: (905) 633-4942 Fax: (905) 633-4939 Web: www.bdo.ca Email: llittle@bdo.ca Contact: Lyn Little, National Franchise Leader BDO understands that the changing business landscape and shifting market trends means that traditional franchise business models may be jeopardized. Our experts help franchisors and franchisees devise plans to implement key business and financial strategies to deal with these issues. From compliance such as FDD reporting, domestic and international tax strategies and risk management, to cloud accounting, financing, M&A and strategic growth services, we can help you accomplish your goals.

In Business Since: 1921 CFA Member Since: 2000

BMO Bank of Montreal Established 1817. CFA-MSS member since 1980. Major Canadian chartered bank, providing a full range of domestic and international financial services. The Bank’s National Franchising Services Group focuses exclusively on the franchise marketplace.

We provide assistance by way of Financial Services Programs and banking arrangements to both the established and emerging franchise systems operating in Canada.

We understand franchising. We have the expertise necessary to fully understand your business and to respond with a comprehensive package of loans, cash management and electronic banking services suited to your network’s distinctive circumstances. The Bank of Montreal recognizes that franchising is a significant contributor to the Canadian economy and we are committed to its continuing success.

For more information, contact us at BMO Bank of Montreal, National Franchising Services, 55 Bloor St. W., 17th Floor, Toronto, Ontario M4W 3N5 Contact: Joseph Pisani at 1-877-629-6262, E-mail: franchising@bmo.com Or visit bmo.com/franchise

Browns Socialhouse is more than a restaurant or a bar.

And it’s better than either – combined.

Browns Socialhouse is a fresh, hybrid concept that successfully bridges the gap between upscale casual dining and neighbourhood pub. Blending “local ingredients” such as Owner-Operators that live in the markets they serve with great sites that many of our competitors simply can’t fit into, Browns Socialhouse delivers: • Great experiences to its guests…in their own communities • Industry-leading innovations that create operational efficiencies for franchise owners Our Mission at Browns Restaurant Group is to grow world-class restaurant brands that create wealth and opportunity for our partners. We are looking to partner with top-notch restaurant industry veterans that have paid their dues in the Casual Dining arena but want more than just a paycheque to show for it… Our brands can fit into a number of market opportunities, but it starts with YOU….

Let’s chat, if you’re “Feeling Social” about the idea of owning your own Browns Socialhouse, Browns Crafthouse or Liberty Kitchen.

207A-3540 West 41st Ave. Vancouver, BC V6N 3E6, Canada Phone: (604) 630-0885 Fax: (604) 630-0887 Web: http://www.brownssocialhouse.com Email: franchising@brownsrestaurantgroup.com

Franchise Canada September | October 2020 83

MARKETPLACE

WORLD’S MOST SUCCESSFUL BAKERY FRANCHISE • A trusted brand – Nearly 700 locations worldwide and 35+ years’ experience franchising • A robust model – COBS Bread is built on providing exceptional product, friendly service and a welcoming environment for all customers • Community focused – All bakeries donate to hundreds of local schools, groups and charities across Canada • Authenticity – COBS Bread operates with honesty and transparency • No initial franchising fee for new bakeries • Flexible financing options Awards 2015 Recipient CFA Award of Excellence in Franchising, Silver Award Winner

Crepe Delicious is the largest and fastest growing creperie and gelateria. Specializing in innovative crepes and handcrafted gelato, we take pride in being a leader in the trend towards healthier eating.

Serving breakfast, lunch, dinner and dessert, Crepe Delicious offers fresh, nutritious and tasty food for people on-the-go. All of our Crepes are made in a open concept kitchen for customers to witness their food be prepared fresh before their eyes. Not only do we offer our numerous sweet crepes, we also offer savoury Crepes with hearty veggies and proteins to satisfy any craving.

Our premium gelato is a perfect complement to Crepes, which is proudly made in house with fresh ingredients, while also offering vegan options.

Our unique concept combines low food costs with excellent site selection to provide our franchisees with the recipe for success.

2010 & 2012 Recipient CFA Award of Excellence in Franchising, Bronze Award Winner

Single-unit, area development and master franchises available for this innovative specialty food concept.

2011–2020 Recipient CFA Franchisees’ Choice Designation

www.crepedelicious.com

Contact the COBS Bread Franchising Team E franchise@cobsbread.com P 1 866 838 COBS (2627) W www.cobsbread.com/franchising

Phone (905) 326-2969 Toll Free (877) 582-7373

We are a world-class franchisor with a commitment to quality,

Driverseat Driverseat Chauff eur Services Chauffeur Services

info@crepedelicious.com

Driverseat having more Chauffeur than 7,100 stores Services in more than 29 countries. DQ

Grill & Chill® offers a variety of soft-serve treats along with a full Driverseat is the emerging trend in home basedand franchise linelatest of hamburgers, hotdogs, chicken salads. As an ongoing systems, blazing a new industry in personal transportation.

Our applications for expansion program, we are presently accepting franchise partners marketing, strategizing andmust growing DQ®specialize franchisesinacross Canada.

Candidates have business their business,acumen, while their Coachmen (drivers) on transporting superior people skills focus and desire to work with a proven ® customers andfranchise their vehicles, through unique services. system.

A DQ4Grill & Chill has aProtected total investment of terrritories available throughout Canada- and the U.S.or more. The candidate approximately $800,000 $1,200,000 must have a minimum of $400,000 cash available. A DQ® Treat location can be in major shopping malls or as a free-standing required $35kis between $300,000 unit. TheTotal totalcapital investment for a- $20k retailto store Innovative Technology Platform $500,000 and up to $800,000 for a free-standing unit. Applicants $21,000 franchise must have a minimum of 40% project costfee in cash to invest.

Home based www.dq.ca No need for inventory Contact: Tammie Verna at tammie.verna@idq.com or 905.637.4741 Significant industry size No capital real estate leases 4 tier extensive training program

Driverseat system, in franchise Driverseat isis an theaward latest winning emerging trend inspecializing home based transportation solutions.

Our franchise partners build theirOur systems, blazing a new industry in personal transportation. team of Chauffeurs and growinthe brand through marketing and franchise partners specialize marketing, strategizing and growing networking in their Franchises their business, whilecommunities. their Coachmen (drivers) offer focusconsumer on transporting transportation the vehicles, tourism and hospitality industries, and customers andintheir through 4 unique services. Protected develop business partnerships generate revenue territories available throughout that Canada and the U.S. as they transport clients in their own vehicle or in fleet shuttles.

Totalcapital capitalrequired required-- $20k • Total $43Ktoto$35k $48K InnovativeTechnology Technology Platform Platform • Innovative $21,000franchise franchisefee fee • $19,000 Homebased based • Home Noneed needfor forinventory inventory • No Significant industry size size • Signifi cant industry Nocapital capitalreal realestate estate leases leases • No tierextensive extensivetraining training program program • 4 4tier

Designated Driver

Airport Chauffeur

• Airport

Assisted Transport

Vehicle Chauffeur

• Wedding Designated Driver

1-855-DRIVE-90 | info@driverseatinc.com www.driverseatinc.com

84 Canadian Franchise Association

Assisted Transport

www.cfa.ca | www.FranchiseCanada.Online

Contact Contact 1-855-DRIVE-90 1-855-DRIVE-90 info@driverseatinc.com info@driverseatinc.com www.driverseatinc.com www.driverseatinc.com

• Corporate Shuttles

Airport Chauffeur

• Tours

Vehicle Chauffeur

MARKETPLACE

Grab the Day by the Eggs® Eggspectation is an innovative upscale-casual dining restaurant concept. Founded in 1993, Eggspectation restaurants are known for their brunches. With an extensive all-day menu choices, Eggspectation offers a unique experience. From breakfast to brunch, lunch to coffee & dessert time to happy hour and dinner, Eggspectation is the place to kick back in style with friends, family and business associates and enjoy good times in this unparalleled environment.

Franchise Units: Canada 13, USA 7, International 4 Corporate Units: Canada 2, USA 1 In Business Since: 1993 Franchise Since: 1998 Franchise Fee: $50K Investment Required: $500K-$1M Training: 10 weeks Available Territories: All of Canada, USA, International CFA Member Since: 2011 7960 rue Saint-Denis, 2nd. Flr., Montreal, QC, H2R 2G1 Phone: (514) 282-0677 x 225 / (833) 838-EGGS (3447) Fax: (514) 282-8115 Web: www.eggspectation.com Email: sr@eggspectation.ca Contact: Sanjeev Rohailla, Director of Operations

Fatburger has been serving up the freshest, biggest, juiciest burgers for over 65 years. With restaurants in 37 countries, prospective franchisees benefit from investing in a concept with a proven track record. Prime ownership opportunities are available across Canada. We provide: • A highly recognized trademarked brand • Extensive initial training • Ongoing operation & training support • Marketing/advertising support • Excellent return on investment capital An upper tier quick-casual restaurant serving fresh, never frozen custom made Alberta Angus beef burgers and Buffalo’s™ World Famous Wings and Tenders, Fatburger is a recognized leader in the premium burger category. We are passionate about quality, food and service - and it shows! We offer an extensive menu and dynamic décor that brings food, fun and style together. Each meal is cooked to order using fresh ingredients and traditional cooking methods. The taste and quality of Fatburger has been inspiring fierce customer loyalty since its inception in 1952.

60 locations across Canada and growing!

For more franchise information, call us at 1-888-597-7272 or email franchise@fatburgercanada.com.

For locations and more visit www.fatburgercanada.com.

Elite Trade Painting is built on 30+ years of experience in the painting contracting business. Providing high quality residential and commercial painting services in markets across Canada.

Our support, training and custom mobile software establishes a competitive advantage for all of our franchisees. Franchises have an opportunity for business success with a lifestyle to enjoy that success. We are looking for entrepreneurs to join us today in the highly rewarding home services industry.

Franchise Units: Canada: 10 Investment Required: $85K - $110K Franchise Fee: $48K In Business Since: 1991 Franchise Since: 2012 Available Territories: All of Canada CFA Member Since: 2016 For further information: 1.877.663.5483 info@elitetradepainting.com elitetradepainting.com/franchise

PETS ARE UNDENIABLY PART OF THE FAMILY. At Global Pet Foods we believe that caring for pets means taking care of their minds, bodies, spirits, and souls. That is why when a customer walks into a Global Pet Foods store, they know they are getting the absolute best quality nutrition, accessories and service for their pet.

Since 1976, Global Pet Foods has evolved to become the largest 100% Canadian pet specialty retailer with the widest selection of holistic nutrition on the market today. Even the house brand, Nature’s Harvest, is made from only freshest human-grade ingredients, locally sourced and manufactured in Canada.

A genuine need to help pets and their families live longer, healthier lives together is what keeps our customer coming back and a notch above our competition.

Our attention to careful site selection, detailed store planning and quality “hands-on” merchandise management has resulted in time-proven, steady profitable growth within our family of stores with over $200 Million in annual sales.

Combine that with our robust Franchisee Support and absolutely everything else that provides you with a turn-key operation, you’ll see Global Pet Foods is a business truly worth barking about.

Franchised Locations: 186, Corporate Locations: 10 CFA Member Since: 2003 Contact the Franchising Team: (905) 790-9023 | Franchises@GlobalBancorp.ca

Franchise Canada September | October 2020 85

MARKETPLACE

“It’s Gonna Be Great” Great Clips is the world’s largest and fastest growing salon brand with 4500 salons throughout North America. Our salons are conveniently located in strip malls in over 130 markets.

What really makes this business concept unique is the fact that it is recession-resistant, with steady growth and multi-unit opportunity. Manager-run salons allow for flexibility in how you transition into business ownership. No haircare experience necessary!

Franchise Fee: $20K (USD) Investment Required: Net Worth $500,000 ($1,000,000 in select markets) Available Territories: Alberta, British Columbia, Manitoba, Ontario, Saskatchewan, United States Training : Yes Franchise Units Canada: 155 USA: 4350 In Business Since : 1982 Franchising Since: 1983 CFA Member Since: 2006 Find out more at www.GreatClipsFranchise.com.

We’re building the number one tax franchise team in the industry. Liberty Tax operates more than 2,700 offices throughout the U.S. and Canada. Last year, Liberty Tax prepared close to two million individual income tax returns in local offices and online. What other industry offers a growing market, even in sluggish economic times? Join forces with Liberty Tax Service and put the power of one of the fastest growing tax companies to work for your success!

16-110 Riviera Drive Markham, ON L3R 5M1 Phone: 866-894-3518 Contact: Janna Barnett Email: franchise@libtax.com Website: www.libertytaxfranchise.ca

Jani-King is the world’s largest commercial cleaning franchise with over 6,500 franchisees in 10 countries and over 50 years of experience!

The unique Jani-King Franchisee Concept, available for as low as $11,900, provides our franchisees with an edge over the competition.

By offering unparalleled support and training, Jani-King works to ensure that every franchisee has an opportunity to be successful.

Initial and on-going training, 24-hour operational support and administration assistance are all provided by Jani-King.

Ready to be your own boss? Contact us today and join the more than 6,500 other Jani-King franchise owners worldwide.

1-800-565-1873 or visit our website at www.janiking.ca or e-mail info@janiking.ca Special Note: Master Franchisor opportunities available in Saskatchewan, Newfoundland and Thunder Bay.

2020 will be a year to remember for us all! For M&M, it marks 40 years of helping Canadians put delicious meals on the table which has never been more relevant than during the recent crisis. We are extremely proud of our front line Franchise Partners, Managers and Meal Advisors who have stepped up to the table to support their customers and communities showing that while much has changed with M&M, our commitment to our customers has not! New name, new award winning design/concept offering our customers the confidence they can shop in a clean, convenient, welcoming environment. We’ve proudly met our food promise with all of our products free of artificial colours, artificial flavours, and artificial sweeteners. No other national grocery retailer can currently say that! We offer easy-to-prepare, top quality, innovative options for those looking for something different for dinner, be it our individual Premium Single Serves in their revolutionary packaging or quick to prepare skillets to feed the entire family.

Our new M&M APP makes shopping online and redeeming M&M Rewards convenient as well offering delivery in most regions and now in response to the COVID crisis we have curbside pick up available! Reach out today to find out about the opportunities we have nationally where you can be your community’s M&M brand ambassador!

For more information, visit our website at www.mmfoodmarket.com/en/franchising or call us at 1-800-461-0171.

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www.cfa.ca | www.FranchiseCanada.Online

MARKETPLACE

The Pizza Nova story began in 1963 when a young Italian family opened the very first Pizza Nova restaurant. Today Pizza Nova is still family owned, represents 140+ locations across Ontario and specializes in hand-tossed Italian style pizzas that are complemented by an extensive menu of proven favourites.

We provide comprehensive training, easy ordering from our HAACP approved commissary, location identification & design, operations support and innovative marketing initiatives that bring customers through your door.

Pizza Nova is the Official Pizza of the Toronto Blue Jays™, Toronto International Film Festival, and the CNE. Our 57+ years of success continues as a direct result of our uncompromising commitment to providing the highest quality product made from only the finest quality ingredients. In 2015 we became the first Canadian pizza company to introduce pepperoni sourced from beef and pork raised without the use of antibiotics or added hormones. We have since expanded our ‘Raised Without Antibiotics’ profile to include bacon, chicken wings , chicken pollini, grilled chicken, and smoked ham.

For more information on Franchise Opportunities please contact Meraj Jamal, Franchise Development Manager Phone: 416-439-0051 ext. 216 Email: meraj@pizzanova.com

Grab Your Slice of Life!

Pizza Pizza began in December 1967 in a 300 square foot store in Toronto at the corner of Wellesley and Parliament Street. Since then we became the biggest pizza chain in the country.

Our success stems from our customer focus. Our commitments to freshness, quality, and innovation have led us to the top of the pile in the pizza industry. Pizza Pizza delivers on its goals time and time again as we strive to make the best pizzas around at reasonable prices. Moving forward, we will continue to hold our leading position through community involvement and environmental stewardship.

Consider what Canada’s most successful pizza chain has to offer you: • A commitment to quality, • Comprehensive training freshness, customer • Site selection, lease satisfaction and innovation negotiation and professional • Superior marketing and architectural design promotional support • Knowledgeable support staff • State-of-the-art technology • Administrative systems • Ongoing professional • We supply the ingredients development • Be your own boss!

Franchising information: franchisinginfo@pizzapizza.ca www.pizzapizza.ca/franchising

Join The Future of Real Estate

Join the Quesada franchise team and discover the Joy of Mex!

The Internet has transformed everything we do. It allows visionary companies to move faster and make things happen for less money. That’s why you don’t see many ads for video store or travel agent franchises in this magazine like you once did.

QUESADA FRANCHISEE BENEFITS:

If you’ve often thought that the real estate industry is also ripe for major transformation, then it’s time to join the club.

At PropertyGuys.com we leverage people and technology in a way that makes real estate better. Our national network of over 100 franchise owners enjoy being on the cutting edge of innovation, have exclusive territories and represent a real estate platform that creates raving fans. While we’re already in over 600+ communities coast-to-coast, we’re not done growing. This could be your chance to be part of something amazing.

If you want to learn more about how you can own a piece of the Future of Real Estate please let us know by email to opportunities@propertyguys.com, phone 1-844-333-7017 or by visiting info.propertyguys.com/cfa.

• Affordable entry cost • Proven business model • Canadian owned company with hands-on franchisee support including: ° Site selection, lease negotiation, and restaurant design expertise ° Operational and management training ° Advertising and promotional support ° Systems to build sales, reduce operating costs and increase profitability Three corporate locations and over 135 franchises from coast to coast – with more locations opening every month.

Steve Gill Founder & CEO

franchising@quesada.ca www.quesada.ca/franchising/

Franchise Canada September | October 2020 87

MARKETPLACE

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 345 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.

Visit us at theupsstore.ca. We Print, Ship & More!

Locations, North America: Over 5000 Locations in Canada: Over 345 Minimum cash investment: $100,000 Total cash investment: $174,000 to $198,500 plus working capital.

For more information on The UPS Store opportunity, call 1-800-661-6232 or visit www.theupsstore.ca.

The Future is Wellness!

Community-based, health-focused multi-media marketing.

Our approach is simple. We help health-related local brands foster meaningful connections and provide them with multi-media marketing platforms that include: print, online directory & social media advertising, branding & visual identity, design, copywriting, and community management. Wellnessnews Choices for Healthy Living® is currently found in 11 communities in Manitoba, 9 in Saskatchewan, 2 in Alberta, and 8 in BC. Area developers, master franchises, multi and single-unit territories are now available for entrepreneurs who are looking for a homebased business that provides them with independence and flexibility to suit their lifestyle. Benefits include in-house creative design, an editorial team, a great reputation, initial training and ongoing support, very low overhead, and long-term residual revenues!

Call today to find out if you qualify to own YOUR own exclusive publishing territory. Don’t miss out on this amazing opportunity to make a difference in your own life and in the lives of others.

Scaling Franchise Fee Starting at 21,500 Investment Required: 36,320 WELLNESSNEWS CANADA, INC. Website: WellnessnewsFranchise.com E-mail: opportunity@wellnessnews.ca • Phone: 1-800-840-4309

ADVERTISERS’ INDEX American Express.. ......................................... 7, 9 www.americanexpress.ca/ canadianfranchiseassociation BDO..............................................................14, 22 & 23 www.bdo.ca BMO Bank of Montreal............................... 59 www.bmo.com/franchise COBS Bread............................................................ 69 www.COBSBread.com/ StartSomethingGood Dairy Queen Canada.. .................................. 39 www.dq.ca Driverseat................. Outside Back Cover www.driverseatinc.com/franchise

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Elite Trade Painting. . ....................................... 53 www.elitetradepainting.com/franchise

Pizza Nova................................................................ 38 franchising@pizzanova.com

Global Pet Foods.... Inside Back Cover www.globalpetfoods.com

Pizza Pizza................................................................. 32 www.pizzapizza.ca/franchising

Great Clips, Inc.................................................... 27 www.greatclipsfranchise.com

PropertyGuys.com.......................................... 50 www.propertyguysfranchise.com

International Franchise Association ............................................................................................... 72 www.franchise.org

The UPS Store..........................................................51 www.theupsstore.ca

Jani-King.................................................................... 33 www.janiking.ca M&M Food Market.. .............................................. 3 www.mmfoodmarket.com/en/ new-shopping-experience

www.cfa.ca | www.FranchiseCanada.Online

WHAT’S NEXT

DON’T MISS OUR NOVEMBER/DECEMBER 2020 ISSUE! The Franchising Excellence Issue Every year, the Canadian Franchise Association (CFA) honours the best and brightest in franchising through its awards program, and this November/December Franchising Excellence issue shines a spotlight on 2020’s franchising stars. Featuring the Awards of Excellence Grand Prize winners, Franchisees of the Year, and all other CFA award winners, Franchise Canada offers an inspirational glimpse into this latest lineup of franchising greats.

This issue also includes exciting franchising opportunities in a broad range of sectors, along with inspiring success stories, expert advice, and helpful ‘how-to’s to help get you out there and make a name for yourself on the franchising playing field. So get ready to spend time with this issue so you can learn from these top franchising standouts and start on your own path to franchise success!

WATCH FOR THESE INSPIRING FEATURES IN OUR NOVEMBER/DECEMBER 2020 ISSUE:* CFA AWARD WINNERS: The Canadian Franchise Association (CFA) Awards of Excellence, Recognition Awards, and Franchisees’ Choice Designation recognize the brands and individuals who are going above and beyond to build relationships and business success.

Here, Franchise Canada highlights all of the 2020 winners!

FRANCHISEES OF THE YEAR: A franchise is only as successful as its franchisees, and these Franchisee of the Year award winners are helping their brands reach new heights. In this feature, the Franchisee of the Year winners share their experiences and advice to help inspire the next generation of franchising stars.

NEW CFA MEMBERS SPOTLIGHT: Each year, the CFA brings in a new roster of franchise brands for prospective franchisees to consider as they carry out their franchise search.

Here we shine the spotlight on the CFA’s latest new members, including what sets their brands apart.

MOBILE AND HOME-BASED FRANCHISES: A growing number of Canadian franchise brands are going without brick-and-mortar business models, offering franchisees the flexibility of home-based and mobile franchise operations. If you’d prefer to run your business from home or on the road, this category may be able to provide the work-life balance you’re looking for.

LAUNCHING YOUR FRANCHISE BUSINESS: It’s critical that you carry out the proper due diligence so you can make the most informed franchise investment decision possible. But what happens after you sign on the dotted line? We take you through the steps involved in opening your franchise location to help you prepare for what comes next.

PLUS A SPECIAL FRANCHISE FOCUS ON QUICK SERVICE RESTAURANT FRANCHISES! IN EVERY ISSUE: • Industry News • Show Me the Money • Franchise Tutorials • Leadership Profile • Giving Back • Home-Grown & Locally-Owned • Ask the Experts • Day in the Life • The First Year • Franchise Fun *Editorial subject to change

FRANCHISE SUBSCRIBE NOW Subscribe to Franchise Canada E-News, CANADA our FREE e-newsletter, to receive a free digital subscription to Franchise Canada Magazine!

MAGAZINE Published by the Canadian Franchise Association

To subscribe, visit www.FranchiseCanada.Online.

Franchise Canada September | October 2020 89

GIVING BACK

Animal Care Enthusiasts

Franchisee-driven passion for charitable programs has tails wagging for Pet Valu

BY ANDREW SCHOPP FROM FINDING furry friends a forever home to spearheading national charitable campaigns across its vast franchise network, pet food and supply retailer Pet Valu considers giving back to the community a part of its DNA. When it comes to Pet Valu’s dedication to the well-being of pets across Canada and the United States, the numbers speak for themselves: more than $24 million raised by various fundraising programs, forever homes for more than 37,000 pets, and $648,000 donated to pet rescue centres in Nova Scotia, Ontario, Alberta, and British Columbia for purchasing new vehicles.

According to Rose Ferrante, vice president of marketing at Pet Valu, the franchise’s impressive track record of giving back is driven by its network of dedicated franchisees. With 360 franchise locations across Canada, Pet Valu has taken on the responsibility of being the voice of the country’s four-legged companions.

“We don’t want to just open a store, we want to be a part of a community. Helping people and pets is how we do that,” explains Ferrante.

“Our charitable programs are a badge of pride for our team of animal care enthusiasts – we often hear it’s one of their favourite things about us as a company. We also suspect that there is something particularly generous about pet parents – maybe it’s inspired by the love and devotion our pets give us.”

In May 2020, Pet Valu received the Canadian Franchise Association (CFA) Outstanding Corporate Citizen Award. The award is given annually to a franchise system that has demonstrated genuine and ongoing con-

90 Canadian Franchise Association

cern and support for a community or social service group. Award recipients are selected based on their philanthropic innovation, support, and impact on the community on a local, regional, national, or global scale.

Pet Valu received the award, in part, to recognize the franchise’s work with the Lions Foundation of Canada Dog Guides, a national charity that provides guide dogs to Canadians with disabilities. The Lions Foundation partners Canadians who are blind, visually impaired, deaf, or hard of hearing with guide dogs, who also act as critical tools for individuals with other disabilities, such as epilepsy, type 1 diabetes, and children with autism. Service-trained dogs are also specialized to help individuals whose movement is impaired.

By donating 100 per cent of proceeds generated by Pet Valu’s popular annual “Give-What-You-Can” calendar, in-store branded bandana sales, and other initiatives, the franchise has sponsored more than 135 life-changing dogs for Canadians with medical or physical disabilities across Canada.

www.cfa.ca | www.FranchiseCanada.Online

The bread and butter of Pet Valu’s fundraising for the Lions Foundation is the annual Pet Valu Walk for Dog Guides, their biggest fundraiser of the year. Held in 300 communities across Canada, Pet Valu proudly puts on the event where teams walk in support of Pet Valu fundraising initiatives.

This year, in the wake of the COVID-19 pandemic, the event shifted to a “virtual walk” to honour social distancing practices.

“Franchisees are really the driving force behind all of our charitable initiatives and do an amazing job every year,” says Ferrante. “Our franchisees are so generous and thoughtful, they are always looking for ways to go above and beyond for their community. During the COVID-19 lockdown, some franchisees delivered special Easter treats to their customers or neighbours. Recently, one of our Toronto stores delivered catered meals to the medical team at their local hospital. We’ve also sent dollars and donations to areas in need, such as wildfire relief in British Columbia and Fort McMurray.”

Looking ahead, Ferrante says Pet Valu will continue to look to its franchisees to make giving back to the community a key part of the franchise system. She adds how one of the great things about the franchise business model is the ability to spread charitable efforts across a vast network of dedicated franchisees.

“One of the best things about being a franchise business is we have business partners in communities across Canada,” she says. “Next time one sees an issue or cause that would benefit from our help, we’ll make it happen.”

We offer more than just a solution for Buster’s shoe addiction $9.2 billion dollar pet industry with proven, steady growth Start-up royalty structure that keeps profit in your pocket E-commerce platform that adds value to the bricks & mortar store Largest selection of Canadian pet specialty products on the market Strong and proven financial model with 96% of stores franchisee owned Canadian owned and operated with 190+ stores coast-to-coast Very best of natural and holistic nutrition from around the world Exclusive partnership with AIRMILESŽ

Would you like to combine your appreciation for wellness and pets into a rewarding business?

For 44+ years customers have been able to walk into a Global Pet Foods store and be confident they are getting the very best service, with the widest selection of wholesome and quality nutrition on the market today.

Franchising since 1976, Global Pet Foods has grown to become an established essential Canadian retailer with a truly unique franchise model. Allowing you to unleash the entrepreneur within and turn your passion into profits.

Turn your passion for pets into #futuregoals

A great place to start: (905) 790-9023 |

www.GlobalPetFoods.com

Choose the franchise that moves you.

We believe there is a better way to solve transportation challenges. In fact, we believe there is a better way to lead a company. Driverseat is an innovative transportation franchise with two unique service offerings. Chauffeur services (in the clients car) and Shuttle services (in fleet vehicles). Consumers use our services for airport trips and weddings, and businesses use our services for corporate travel, and employee shuttles.

Our strategic focus is on building a global transportation brand made up of entrepreneurial leaders who want something more in their life. We are laser focused on franchisee success and have built training and support systems that are second to none. Our brand promise is to out-care the competition. We expect our franchisees to keep this promise with their clients, and we keep this promise with our franchisees.

Contact us for more information! www.driverseatinc.com/franchise 855-374-8390

CFA Franchisees Choice Designation 4 Consecutive years

Winner of CFA Awards of Excellence

Extensive training and support programs

State of the art business technology solutions

Chamber of Commerce Innovation Award