We experienced a global pandemic that fundamentally shifted how we do business. The economic and political landscape feels like it swings in a different direction every day. Technology has made massive leaps forward. The way Canadians live, work, and play is shifting, and these shifts have a tremendous impact on our economy.
Although rapid change and uncertainty might make some fearful of pursuing their entrepreneurial dreams, others are leaning into the possibilities. History tells us that periods of economic uncertainty are often the most strategic times to start a new business. If you’re considering a franchise purchase in 2026, here’s a few things to take into consideration:
Non-traditional franchises
Gone are the days when the word “franchise” was synonymous with fast-food. Among the innovative QSR brands and legacy food service players, service-based franchises are on the rise. Home services, co-working and business services, health and senior care, pet services, beauty services: many of these sectors offer non-traditional franchise models that are growing in popularity and consumer demand. Rapid technological advancements are making it easier and more natural for customers to engage with businesses outside of a brick-and-mortar setting.
For prospective franchisees, mobile and service-based businesses often have a much lower cost-of-entry than traditional brick-and-mortar, making these franchise opportunities more accessible to a greater number of hopeful entrepreneurs. For consumers, convenience is king. We order everything from groceries to furniture with a few easy clicks. The need to visit a physical location is fading in many sectors, and a lot of franchise brands are embracing new ways to engage with their customers from afar. Consider how both traditional and non-traditional franchise models might evolve over the coming years, and how these different models align with your business goals.
AI and tech advancements
When implemented thoughtfully, AI solutions offer opportunities to work more efficiently. AI can be a powerful tool, but it’s not necessarily a fix-all that can be applied universally.
When evaluating a franchise purchase, consider the franchisor’s approach to technological change. Are they plowing ahead blindly or embracing change effectively? Do your due diligence to ensure your chosen franchisor is thinking strategically about how technological change may disrupt their current business processes. Regardless of the offering, all franchise models should be looking for smart ways to employ new technology or they’ll get left behind.
Consumer demand
Conscientious consumers are looking for higher quality, personalized service, and greater community impact. Simply offering a great product doesn’t cut it anymore. As you explore franchise options, consider how the brand appeals to today’s consumers and how they’re positioned to adapt to changing consumer trends.
Quality and accessibility continue to be major drivers, especially in food categories. QSR brands that embrace wholesome ingredients and thoughtful indulgences as part of their brand identity are resonating with consumers. Think elevated breakfast concepts, innovative fusion menus, and QSR brands that put freshness and quality center stage.
Public perception
Political and economic upheaval in the United States has had profound impacts on the Canadian economy and Canadian sentiments. This trend is likely to continue through 2026 and beyond. As a result, homegrown Canadian brands are leaning into their heritage. Many brands are attempting to distance themselves from the noise south of the border by showcasing their Canadian ownership, Canadian franchisees, Canadian supply chains, and overall Canadian pride.
Furthermore, the growing divide between the perceived “haves” and the “have-nots” is steering how and where people are choosing to spend their money. Public sentiment toward business monopolies and the ultra-rich is increasingly negative. While the benefits of an internationally recognized banner are powerful, this can also contribute to negative associations with “big business.” Consumers want to support local, and franchisees will need to take every opportunity to educate their communities about their locally owned business.
Purpose & impact
Just as consumers are looking for more out of the businesses they support, so are entrepreneurs. Financial freedom, flexibility, and (relative) autonomy remain major considerations, but prospective franchise owners are also craving a sense of purpose from their business endeavours. Now, more than ever, people are seeking business opportunities that are personally meaningful to them, and aligned with their values and interests. Hobbyists are seeking opportunities to merge their passion projects with entrepreneurial pursuits. Rather than empire-building, many hopeful entrepreneurs are prioritizing the ability to do something they love while living life on their own terms.
Before you start doing any serious research into any particular franchise brands, look inward. Get to know your real priorities: your wants, your needs, your strengths and weaknesses, your deal-breakers. Clearly define what your goals are, and then work to find a franchise system that will help you meet those goals.
