In Canada, the truth is: small business is big business.
According to the Government of Canada, small businesses – defined as an enterprise that has between one and 99 paid employees – make up 98.2 per cent of all employer businesses in Canada. Without small businesses, there would be almost no businesses left in this country!
Despite their prevalence, small businesses still face a range of challenges. That is why every October we celebrate Small Business Month.
At the Canadian Franchise Association (CFA), the plight of small businesses is very close to our heart. Each unit of a franchise brand is an independent small business, operated by a franchisee who lives, works, and gives back to their community.
As the national non-profit association of franchises, the CFA is the voice of franchising in Canada and the only organization advocating on all levels of government on behalf of the franchise industry.
Making franchisees a priority
Franchising in Canada employs nearly 2 million people, and the number of franchised small businesses is projected to reach nearly 70,500 by 2027. Franchised small businesses operate in more than 60 sectors of the Canadian economy, including restaurants, retail, automotive services, education, home services, health and fitness, senior care, and more.
Even with all these contributions, franchised small businesses are sometimes treated differently from other Canadian small businesses when it comes to government policy and regulation. Some programs, grants, and regulations are designed in ways that treat franchisees as if they were employees of larger corporations – in reality franchisees are independent small business owners, with 93 per cent of franchise units locally owned.
Some policies, even if well-meaning, can create unintended consequences for franchisees, including exclusion from small business grants and support programs, regulatory burdens that other Canadian small businesses do not face, and policies that misunderstand the franchisee-franchisor relationship.
In its advocacy work, the CFA educates government at all levels on the franchise business model, helping policymakers realize that franchisees are small business owners. As part of the CFA’s advocacy priorities, we encourage governments to:
- Ensure franchised small businesses are eligible for small business programs and grants,
- Avoid regulatory frameworks that treat franchisors and franchisees as a single entity,
- Recognize franchised small business owners as independent small businesses in legislation and policy design, and
- Engage with the franchise community when developing policies that affect Canadian small businesses.
A month to celebrate
Throughout October, the CFA will be showcasing our support for franchised small business owners through social media, public relations campaigns, and government outreach.
These campaigns build on our recent Advocacy wins, including a record-breaking Franchise Awareness Day in April, held on Parliament Hill in Ottawa. More than 40 CFA members participated in 27 meetings with MPs and staff from all political parties, including the Secretary of State for Rural Development, several opposition critics, advisors in the Leader of the Opposition’s office, and advisors from the Ministers of Internal Economy, Foreign Affairs, Finance, and the Jobs & Family offices. These meetings were highly positive, a chance for the CFA and its members to connect directly with the country’s decision-makers.
World Franchise Day, which took place on June 10, also provided opportunities for connection, as the CFA facilitated visits from government officials to franchisee locations, helping the country’s decision-makers hear directly from the local business owners that make up their constituencies.
In fact, the CFA coordinated more than 30 visits between government and local franchised business owners on that one day, a record-breaking total for the organization! Throughout the month of September, in honour of Franchisee Appreciation Month, more than two dozen visits were also coordinated.
Key takeaways
- Small businesses – defined as having 1 to 99 paid employees – represent 98.1% of all employer businesses in Canada and account for 67.7% of private sector jobs.
- Franchised small businesses contribute significantly to Canada’s economy yet are sometimes treated differently from other small businesses in government policy and programs.
- The CFA advocates for franchised small businesses to be eligible for small business programs and grants, and for government to recognise franchisees as independent small business owners in legislation.
- During Small Business Month in October, the CFA runs social media campaigns and hosts government visits to franchise locations to demonstrate the impact of franchised businesses in local communities.
- A record-breaking Franchise Awareness Day in April 2026 and World Franchise Day in June 2026 – where the CFA coordinated more than 30 government visits to franchise locations – underscore the association’s growing advocacy momentum.
