Newcomers are playing a significant role in Canada’s entrepreneurial landscape, accounting for 32% of all business owners with paid staff.
As Canada continues to welcome newcomers from around the world, a growing number are choosing entrepreneurship, not just as a career path, but as a way to build long-term financial security and contribute to their communities. Many are turning to franchising as a practical and proven route to business ownership, offering support, training, and established systems that can help reduce the challenges of starting a business in a new country, says the Canadian Franchise Association (CFA.
It says newcomers are making a significant impact on Canada’s entrepreneurial landscape:
• One in four new businesses in Canada is started by an immigrant.
• There are more than 800,000 self-employed newcomers across Canada.
• Over 250,000 newcomer entrepreneurs employ staff, creating jobs and supporting local economies.
• Newcomer entrepreneurs are contributing across a wide range of industries, including restaurants (53%), grocery stores (52%), truck transportation (56%), and computer systems design and services (49%).
Why more newcomers are choosing franchising:
- A proven business model that reduces many of the risks associated with starting a business from scratch.
- Comprehensive training, operational support, marketing expertise, and ongoing mentorship.
- Access to established brands with existing customer recognition and trusted business systems.
- Opportunities in more than 60 industries, allowing entrepreneurs to find businesses that match their skills, experience, and investment goals.
- A network of franchisors and fellow franchisees, who provide guidance, collaboration, and share best practices.
- The opportunity to build wealth while creating jobs and investing back in local communities.
For many newcomers, franchising provides more than a business opportunity—it offers a pathway to economic participation, community connection, and long-term success in Canada, says the CFA.
In an interview with Retail Insider, Sherry McNeil, President and CEO of the CFA, discusses the trend.
Question: The data show that newcomers account for a growing share of business ownership in Canada. What is driving more newcomers to choose franchising over starting an independent business?
Answer: For many newcomers, franchising can provide a practical and proven pathway to business ownership, particularly when they are navigating a new country and an unfamiliar business environment.
One of the key advantages is access to an established business model and support system. Rather than having to build every aspect of a business from the ground up, franchisees benefit from training, operational support, marketing expertise, established processes, and the experience of a franchisor and broader franchise network.
An established brand can also provide customer recognition and a foundation on which to build. With franchise opportunities available across more than 60 industries, newcomers can explore businesses that align with their skills, experience, interests, and investment goals.
There is also an important community aspect to franchising. Franchisees have the opportunity to connect with franchisors and other franchise owners, share experiences and learn from people who understand the challenges and opportunities of running a business in Canada. For someone who is building both a business and a professional network in a new country, that can be particularly valuable.
Ultimately, franchising can help newcomers turn their entrepreneurial ambitions into business ownership while creating jobs in their communities, building financial independence, and contributing to the communities where they live and operate.
Q: What are the biggest misconceptions newcomers have about franchise ownership, and what realities should prospective franchisees understand before investing?
A: One common misconception is that franchisees have very little room to bring their own ideas or creativity to the business because the franchisor establishes the operating model. In reality, franchising provides a framework and proven systems, but franchisees are still responsible for running their businesses, leading their teams, engaging with customers, and marketing their products or services within the parameters of the brand.
The best franchise relationships bring together the strength of the system with the experience, energy, and entrepreneurial mindset of the franchisee.
Another misconception is that franchising is too expensive or out of reach for many aspiring business owners. There are franchise opportunities across a wide range of industries and investment levels, so prospective franchisees can explore opportunities that align with their financial resources, experience, and goals.
At the same time, prospective franchisees need to understand that franchising is not a guarantee of success, and it is not a passive investment. Choosing a franchise should be about much more than selecting a recognizable brand name.
People should take the time to understand what the day-to-day business will look like, how much time and involvement will be required, the total investment and ongoing costs, staffing requirements, hours of operation, customer acquisition, and the potential timeline for achieving a return on their investment. Most importantly, they need to determine whether the business is the right fit for their skills, lifestyle and long-term goals.
Doing that due diligence is critical. The right franchise opportunity, combined with the right franchisee, is ultimately what creates the strongest foundation for success.
Q: Where are you seeing the strongest growth opportunities for newcomer franchisees—in terms of industries, regions, or business models—and why?
A: One of the strengths of franchising is the breadth of opportunities available. Newcomer entrepreneurs are already making a significant impact across industries including restaurants, grocery, transportation, technology, and professional services. Government of Canada data reinforces this, highlighting the significant participation of newcomers across these sectors.
From a franchising perspective, we see opportunities in areas where there is strong consumer demand and a clear, scalable business model. Food and hospitality, health and wellness, home and commercial services, retail and professional services all offer a range of franchise opportunities.
We are also seeing opportunities in communities experiencing population growth, not just in Canada’s major urban centres but in emerging markets across the country. For newcomers, the opportunity is really about finding the right fit—an industry and business model that aligns with their skills, experience, interests, financial capacity and long-term goals.
Newcomers bring valuable perspectives, international experience and an entrepreneurial mindset to the Canadian business landscape. Franchising can provide the framework and support to turn those strengths into successful businesses.
Q: What barriers do newcomers still face when trying to buy or build a franchise business in Canada, and what changes would make the biggest difference?
A: While franchising can help reduce some of the challenges associated with starting a business from scratch, newcomers can still face barriers when looking to become franchise owners. Financing is one, particularly for entrepreneurs who may not yet have an established financial or credit history in Canada. Other challenges can include navigating Canadian regulations, understanding franchise agreements and financial commitments, finding the right location and becoming familiar with the business environment and requirements of a particular industry.
Access to good information and trusted resources can make a significant difference. For someone building a business in a new country, having a clear understanding of the financial commitment, legal considerations, operational requirements and expectations of the franchise relationship is essential.
Like every industry, franchising has also seen a rise in fraudulent activity. Canadian banks have reported instances of fraudsters posing as legitimate business opportunity in order to secure franchisee investments or bank loans.
This is an area where organizations like the Canadian Franchise Association can play an important role. Through education, resources, and networking, we can help prospective franchisees better understand the franchise model and make informed decisions before they invest. The CFA promotes ethical franchising and is a strong community of franchise brands as well as the banks, law firms, and other services that support the franchise industry.
It’s important to Look for the Logo—the CFA member logo, displayed on franchisors’ websites, tradeshow booths, and marketing materials, tells you a brand is a member of the CFA and has signed on to the CFA’s Code of Ethics.
Anyone who is interested in purchasing a franchise should start at the CFA’s directory site, LookforaFranchise.ca, where they can search for franchise opportunities by industry, investment level, and more. You can also visit FranchiseCanada.Online to learn more about franchising in general and read success stories from CFA member brands.
If we can make the pathway to business ownership easier to navigate, we can help more newcomers turn their entrepreneurial ambitions into sustainable businesses that create jobs, generate economic activity and contribute to communities across Canada.
Q: Can you share a specific example of a newcomer franchisee whose experience illustrates both the challenges and the broader economic impact that franchising can have on local communities?
A: Yogi Patel is a great example of how franchising can help a newcomer build a successful business while making a broader contribution to the communities he serves.
Yogi moved to Canada from India at the age of 13 and began exploring entrepreneurship and franchise opportunities later in life. He opened his first Booster Juice location in Toronto in 2012. Like many entrepreneurs, he faced challenges early on, including sales that were initially below expectations. With hands-on support from the Booster Juice team, including Founder, President and CEO Dale Wishewan, he was able to work through those challenges and build a stronger business.
Today, Yogi now owns more than 20 Booster Juice locations across the Greater Toronto Area, Durham Region, and Nova Scotia. Along the way, he has created employment opportunities and helped develop team members into managers and future leaders.
What I find particularly compelling about Yogi’s story is that his impact extends beyond the growth of his business. Through his business he is deeply involved in the local communities he serves, supporting schools, sports programs, community events, and charitable initiatives. He has also been involved in food drives, blood donation campaigns, health awareness programs, and other community outreach through BAPS Charities in Canada.
His story illustrates what can happen when entrepreneurial ambition is combined with the support of a franchise system. The result isn’t just a successful business. It can mean jobs, leadership opportunities, community investment and a lasting contribution to the local economy.
That is one of the reasons franchising can be such a powerful pathway for newcomers.
It gives entrepreneurs the opportunity to build something of their own while becoming an important part of the communities they serve.
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