Franchising in Canada is seeing steady and significant growth, with younger generations playing an increasingly vital role in the sector’s future.
“Franchising continues to grow in Canada,” said Sherry McNeil, President and CEO of the Canadian Franchise Association (CFA), in an interview with Retail Insider. “In 2019, it was an industry that generated $96 billion annually to the national GDP. And in 2025, the CFA is projecting that we will reach $133 billion. That’s quite an increase from 96 to 133 even during the time of the pandemic.”
According to McNeil, franchising remained resilient throughout economic uncertainty. “Coming out of the pandemic, it was $120 billion to the GDP. So franchising continues to grow in this country and be a strong economic driver. Well, small business is the backbone of Canada, and franchisees are small business owners. So it’s very strong and it’s continuing to grow.”
When asked why franchising is on the rise, McNeil pointed to several trends: “Online search is up every time there’s an economic downturn. we saw online search increase fpr ‘own your own business,’ ‘own a franchise business,’ etc. during the pandemic. Every time there’s a recession or the thought of a recession or layoffs, we see people turn to wanting to change their life and have more control over their life in the future.”
That pursuit of control has driven more people to consider entrepreneurship.
“One of the opportunities that is available to them is to open a small business,” said McNeil. “So then they come to the decision, well, do I want to open my own small business or do I want to open a franchise business where I get the support of the franchisor? There’s a network of other franchisees who can support me, and then I’m in business for myself, but not by myself.”
That desire for support and structure is increasingly attractive to younger Canadians. “We are seeing that trend with Gen Z and millennials. We did a survey and they made up 52% of potential franchisees,” said McNeil. “Those groups or those categories of individuals (are) wanting to own their own business, but wanting the support of an existing system and a proven system to help them on their entrepreneurial journey.”
Community engagement is also central to the franchise model, according to McNeil. “There is a misconception often about franchisees. Franchisees are individual small business owners who live, work and contribute into their local economy. They’re not corporate employees,” she said. “They hire local people, they pay all the taxes, municipal, provincial, federal, but they also give back to their community and create those relationships.”
McNeil pointed to several examples: “M&M Meat franchisees have raised more than $450,000 to support BGC Canada, which is funding essential programs for children and youth. That’s raised at the franchisee level, in those local communities.”
Another standout example is Dairy Queen. “That brand has built a long-standing tradition of charitable giving, and they’ve raised over $52 million for Children’s Hospitals in Canada,” said McNeil. “They raised approximately $3 million one day every year called Miracle Treat Day. And so the proceeds from Blizzard sales actually are donated to the local Children’s Hospitals in that Children’s Miracle Network.”
Has becoming a franchisee become easier?
“I’m not sure that it’s become easier to become a franchisee, because brands all have their criteria for who they will award a franchise to,” said McNeil. “However, I would say that the profile of franchising has been raised a lot over the last number of years, and more and more people are becoming familiar with the franchise business model as an opportunity.”
That increasing awareness is supported by an expanding scope of franchise opportunities. “Franchising used to be in 50 segments or industry segments. It’s now over 60,” she said. “We’ve seen a big growth in fitness, health, and wellness. We’ve seen big growth in home services like landscaping, deck building, home inspection services, senior care services.”
When asked whether information and support are more accessible now, McNeil agreed: “Absolutely. So anybody who is looking or researching to buy a franchise, they can go on our website www.cfa.ca. They can look by investment level, by area, etc. I think there’s a greater ability to access resources than there was previously.”
She added, “More information is available to the public, also more information just in general that’s available through the internet and through AI.”
McNeil emphasized the importance of trust and ethics in franchising. “ I think it’s a great opportunity for people if they do want to open their own business. And the support system that the franchisors provide is amazing.”
Her parting advice? “Everybody should look for the logo. CFA members have signed our code of ethics and they do promise to practice ethical and best practice franchising. So that would just be something that I would mention to anybody who is looking and doing research on a franchise. Do your due diligence, make sure you like the brand, it’s a reputable brand, and that you look for the logo.”
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