Canada’s largest franchise association has signed a trilateral agreement with its U.S. and Mexican counterparts aimed at increasing co-operation, information sharing and support for businesses operating across North America.
The Canadian Franchise Association, International Franchise Association of the United States and Mexican Franchise Association signed the agreement recently in Mexico City, establishing a permanent framework for collaboration on education and training, research, best practices and international expansion.
The agreement is intended to help franchise businesses better understand and enter each other’s markets, including through greater information sharing on regulations, intellectual property, costs, supply chains, consumers and market-entry strategies.
“This agreement represents an important milestone for franchising in Canada and across North America,” said Sherry McNeil, president and CEO of the Canadian Franchise Association.
“While each of our markets has its own unique characteristics, we share many of the same opportunities and challenges. By working together, we can exchange knowledge, share best practices, and create stronger connections that will benefit franchise businesses, franchisees, and the broader franchise community across all three countries.”
The three countries collectively account for more than one million franchised establishments, more than 6,600 franchise concepts and more than nine million people employed by franchising, according to the associations.
In Canada, the sector includes more than 1,100 franchise brands and employs about two million people. The industry is projected to be worth nearly $150 billion by 2027, according to the association.
The agreement also calls for joint internationalization projects, which the organizations say will give franchise companies opportunities to learn more about conditions in the other two markets and identify potential growth opportunities.
“This historic agreement is a major milestone for IFA and the entire North American franchise community,” said Alan Catlett, IFA senior vice-president of programs and operations, who attended the signing in Mexico City.
“By joining forces to share best practices and accelerate brand expansion across borders, we are opening powerful new opportunities for the more than 6,000 brands across North America. This collaboration empowers business leaders with better insights and creates meaningful pathways to ownership and upward mobility for the next generation of entrepreneurs.”
The organizations will also exchange information intended to help companies anticipate and respond to changing market conditions. The agreement identifies potential advantages of the franchise model, including consolidated purchasing, volume negotiations and opportunities to develop supplier networks.
“Canadian franchising has a strong history of innovation, professionalization, and expansion, and we are pleased to bring that experience to this trilateral partnership,” said McNeil. “At the same time, there is tremendous value in learning from the scale and experience of our U.S. colleagues and from the creativity, adaptability, and growing strength of the Mexican franchise sector. Together, we can help create a more connected and informed North American franchise ecosystem.”
Betsy Eslava Altamirano, president of the Mexican Franchise Association, said the agreement is intended to make it easier for companies in each country to learn about and enter the other markets.
“This agreement began with a very simple question: Why not work together? Today, that conversation becomes a historic milestone. Mexico, the United States, and Canada have different markets, but we have so much to learn from one another. We want this alliance to open doors and make it easier for our companies to learn about, understand, and enter each other’s markets,” she said.
The agreement is between the three business associations and does not constitute an international treaty. It does not create legal obligations for governments or change existing legislation.
A permanent work agenda will now begin following the signing. The associations said the collaboration is expected to support continued development of the franchise sector in the three countries, including entrepreneurship, investment, employment and economic opportunity.
“The signing of this agreement is just the beginning,” added McNeil. “The real measure of its success will be the opportunities we create for our members and the broader franchise community. Whether that means helping a Canadian brand better understand opportunities in Mexico, connecting an international brand with the Canadian market, or sharing knowledge that strengthens franchising across North America, there is tremendous potential in working together.”
The Canadian Franchise Association represents approximately 650 members and more than 40,000 franchisees from Canadian and international franchise brands.
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