Canada Franchising Market

Franchising is the 12th largest industry in Canada and the sector ranks fifth in the world in terms of attractiveness according to the Rosenberg International Franchise Center. Roughly 65% of all operating franchise units are in Ontario and the province dominates the franchise economy. There is also space for expansion in the Prairies, Atlantic, and West Coast areas. According to the Canadian Franchise Association, British Columbia is predicted to experience the biggest growth, with the number of franchise locations increasing by 1.16% whereas Atlantic Canada is expected to grow more slowly than the rest of Canada at 0.46%.

Due to federal and provincial legislation, franchise law in Canada differs from that in the United States. There are different corporate tax rates depending on the sector and type of corporation. However, there are a number of financial support tools available to burgeoning entrepreneurs. The Business Development Bank of Canada (BDC) offers companies highly specialised financing, venture capital, and advisory services, including loans and grants in order to boost entrepreneurship in the market. Businesses that have been in operation for at least a year can get loans of up to USD 185,333.75 whereas aspiring entrepreneurs can get up to USD 44,480.10 in collateral free loans. Additionally, the Canadian Small Business Financing Program (CSBFP), encourages banks to lend to small businesses by sharing the risk with them. This increases the number of loans available to small firms. The most that can be borrowed under this program is USD 852,535.25 in total. This aligns with the growing demand among millennials to invest in franchises and become entrepreneurs. According to the Canadian Franchise Association, 30% of millennials reported interest to invest in franchises. 

For more information about opportunities for U.S. companies in the franchising industry in Canada, and how the U.S. Commercial Service in Canada assists U.S. franchisors, visit www.trade.gov/canada.

For further information, contact Commercial Specialist Abedin Kader