Representing the 12th largest sector of the Canadian economy, with over 66,000 franchise establishments projected across the country in 2024, the Canadian Franchise Association (CFA) has estimated that a new franchise opens every two hours, 365 days a year, in Canada and that one franchise operation exists for every 450 Canadians.
That translates into a $120bn+ contribution to the Canadian economy annually. Or nearly $30 billion in the federal and provincial tax take.
As a jobs creator the CFA has estimated that Canadian franchises create nearly two million jobs for Canadians, paying almost $62 billion in wages, up nearly $2 billion from 2023.
Leading the way has been the hospitality industry – comprising nearly 40% of franchised brand names. Additionally, the wellness industry is gaining popularity, with 70% of Canadians reporting increased health consciousness in 2023, up from 56% in 2021.
The numbers make for positive reading and yet franchise business owners still face significant obstacles, including navigating a complex web of regulations – what the CFA refers to as ‘death by 1,000 cuts.’
Or to put it another way, entrepreneurs are small business owners within their respective communities, have a unique set of challenges, and deserve to be treated as such, according to the lobbying body. “Ensuring that franchise owners receive fair treatment, comparable to other local small business owners who positively contribute to their communities, remains a critical issue,” it adds.
Key to addressing these challenges is increasing awareness and understanding of the franchise business model, including among elected officials. Moreover, as new policies are introduced and existing ones amended, it is crucial that the impact on the franchise sector is considered to avoid harming these vital businesses, says the CFA.
While the number of franchise establishments will continue to rise, further solidifying the industry’s position as a key contributor to the Canadian economy, that doesn’t necessarily mean existing problems, such as educating politicians, will necessarily go away in the short term.
More information https://cfa.ca/
