The Canadian Franchise Association (CFA) says there’s a growing trend of newcomers in Canada exploring franchising as a career option.
With the ever-evolving landscape of the Canadian economy, franchising has emerged as a vital sector, providing robust opportunities for immigrants seeking to establish themselves and contribute to their new communities, says the CFA.
Ryan Picklyk, Chair of the CFA Board of Directors and Senior Director of Strategic Partnerships and Franchising for A&W Canada, said for newcomers franchising provides something that a lot of industries can provide.
“And that’s a bit of certainty. It’s a proven model both in terms of the actual case of franchising or industry but also proof of concept. Starting a new business is probably one of the hardest things you can do with so many unknowns,” he said.
“Franchising kind of limits some of those unknowns because it gives newcomers an opportunity to participate in established business concepts and business models and it gives them an opportunity to be in business for themselves but not by themselves.
“I think about our business and some of the many new Canadians that we’ve welcomed to the A&W world, it’s been a great place for them to build wealth for their family, generational wealth in many cases. It’s an industry that I just think is so well suited for newcomers coming into Canada because there’s so many unknowns when you move to a new country. Franchising provides a bit of certainty that they can really rely on when they’re starting a new business.”
The CFA says about one in four businesses (23.7 per cent) are owned by newcomers to Canada, showcasing their entrepreneurial inclination.
“The percentage of immigrant owners who are science, technology, engineering or mathematics (STEM) graduates is considerably higher among newcomers than those business owners from the second and third plus generations, suggesting that the immigrant entrepreneurs have undergone higher levels of education than their Canadian counterparts,” says the Association.
“Franchising offers a structured and supportive business model, which is particularly appealing to immigrant entrepreneurs. Franchising is about being in business for yourself but not by yourself. The support that franchisors provide — including systems, training, guidance, and ongoing support — helps franchisees successfully open and operate their local small businesses, making it an ideal pathway for immigrants looking to start their entrepreneurial journey with a strong foundation and support network in place.”
According to the CFA, Ontario leads in franchise units, accounting for 48 per cent of all operating franchises. However, there is significant potential for growth in other regions, such as the Prairies, the Atlantic, and West Coast markets. Newfoundland and Labrador and P.E.I. are expected to see the largest percentage growth in franchise locations through 2025, it says.
The franchising industry is a cornerstone of the Canadian economy, being the 12th largest industry in the country and the 2nd largest franchise industry in the world. Income from franchising is projected to contribute $120 billion to Canada’s GDP by 2025, with one in 10 Canadians employed directly or indirectly in a franchise system. The average Canadian interacts with three to five franchise locations daily, underscoring the pervasive presence and influence of franchises, adds the CFA.
“Franchising touches so many different business sectors. We like to say at the CFA that franchising is for everyone and a big reason for that is there are so many places where Canadians interact with franchising every day whether they know it or not,” said Picklyk. “So there’s no end of opportunity depending on what education a newcomer comes to Canada with or experience they have. There’s probably a franchising model that suits just about anybody in terms of that skill set that they bring.”
The CFA says franchise categories poised for growth include health and wellness, education, and B2B services. Canadians’ increasing health consciousness and the demand for supplemental education, especially in STEM/STEAM (science, technology, engineering, arts, math) fields, are driving these sectors. B2B franchises, offering digital marketing, IT support, business coaching, and property maintenance, continue to flourish, catering to ongoing business needs.
