Buy a Franchise in Canada

FRAN5 franchise brokers offers free franchise consultations and helps buyers steer clear of common franchising mistakes stay tuned until the end of this video for contact details Today we're discussing buying a franchise in Canada Canadians seeking to enter the world franchising would be wise to heed some friendly advice while many franchise brands do offer Canadian availability and may indicate long track records of success US based successes may not translate into the Canadian marketplace. Our respective countries are two distinct markets with different laws societal mindsets economies and very different weather patterns. Would a frozen yogurt franchise player equally well in in Nunavut as in Orlando Florida? likely not. A decision to buy a Canadian franchise will be made easier if other Canucks have invested before you if there are several operational franchises in Canada with strong histories of success it's more likely that success can and will be replicated but not always guaranteed. Franchises that have little to no Canadian presence may appear to be a great opportunity by being first to market and that may be so, but while the upside could be great so could the downside. We often see franchisors eager to break into the Canadian market glossing over essential territory analysis leaving the poor Canadian franchise buyer to use their investment as a test case or guinea pig. Not fun at all and while there have been many success stories from being the first new kid on the Canadian block it's important that several key points be explored. Firstly demographics how is your Canadian proposed territory compare with current operating franchises in the USA. A quick comparative analysis of the population the economy annual incomes and other demographic data can indicate differences and similarities. If there's a lot of similarities you're more likely to succeed. Laws and regulations. Are their Canadian laws or by-laws regulations that may restrict or impede any existing business processes used by the franchisor don't make the mistake of assuming the franchise or his checked all regulations and laws and be sure to ask many questions in this area both of the franchisor and your local government official. Contact agencies who oversee these matters and confirm that the proposed initiatives are feasible in Canada. Franchise segments such as Senior Care, home nursing, food services often have complex models that require specific federal or provincial licensing once you establish the approvals can be obtained -then determine how long will these take and are you in a financial position to wait weeks or months with no franchise income waiting for those approvals. Another point what I look at is societal differences. It may not be politically correct but the truth is Canadians we're different from Americans and that may be stereotypical but if the stereotype saves you from making a disastrous franchise buying decision so be it. A franchise branded as well and L.A may not necessarily translate to a Toronto or Vancouver market. Intensive market research is critical at this stage including the exploration of comparable existing Canadian franchise models if applicable, and possibly investing in a market survey or even SWOT analysis. You're also going to want to look at geography - can this franchise brand be supported in large areas with Canada size driving distances spread widely over rural areas. How far are your customers typically willing to drive to get to your store location or if you're mobile and not retail how far would you have to drive to retain profitability and to get your business. Canada has far less cities than the USA with much smaller population bases and generally they are spread out over much more land mass. Another important point to consider: weather... Sun Tanning franchises ethnic food franchises, gym franchise Yogurt franchises... all these are affected by seasonality and weather patterns obviously a Michigan-based franchise will fare similarly well in a Windsor Ontario Canada environment but Los Angeles to Winnipeg.... that's going to be a different story altogether. And those are just a few points if you'd like to speak with a franchise broker to discuss your Canadian franchise options we're under contract with over 500 Brands and can help walk you through the franchise research and selection process visit us at FRAN5.com for more and to arrange your free consultation thanks for watching