Despite economic uncertainty and COVID-19 pandemic-related shutdowns in the intervening years, Canada’s franchise industry has continued to grow. Projected to contribute $120 billion to the country’s GDP in 2024, it surpassed this in 2025, ending the year at $128 billion, according to the CFA (Canadian Franchise Association). In 2026 this is expected to increase to $133.3 billion.
While this growth and resilience shows the strength of the franchise model, also noteworthy is that more people than ever dream of owning their own business, according to a recent RBC poll.
Notable franchising trends in 2025 included:
- Franchising for flexibility: Canadians increasingly sought work-life balance and autonomy in 2025. Many turned to franchising as a structured path to business ownership that allows independence while reducing risk
- Job Uncertainty: Only 51.6% of Canadian businesses expect to maintain staffing levels in 2026 (Statistics Canada, Q3 2025). Throughout the year, this uncertainty has encouraged more individuals to explore franchise opportunities as a stable alternative, going into business for themselves rather than relying on an unpredictable job market
- Demographic shifts: A trend toward greater diversity in franchising continued in 2025, with new groups of entrepreneurs, including younger generations, women, and newcomers, entering the franchise market, bringing fresh perspectives and innovation
- Technology transformation: Digital tools reshaped marketing, operations, and customer engagement, helping franchisees improve efficiency and deliver consistent service
- Low-cost franchise concepts: Affordable, low-overhead models continued to attract entrepreneurs this year amid inflation and rising operational costs
Franchising has remained accessible to a wide range of aspiring entrepreneurs, many of whom have little or no prior business experience. With opportunities spanning more than 60 industries, there is a franchise for nearly every interest and skill set.
