Economic conditions positive for 2025 with franchise industry positioned for growth

As 2025 unfolds the Canadian Franchise Association (CFA) is now highlighting how shifting economic conditions are creating new opportunities for franchise growth

Economic conditions positive for 2025 with franchise industry positioned for growth

Detailed in the recent ‘Canadian Economic Outlook for Franchise Owners’ report from CIBC, light is shed on several key factors set to influence franchising success this year.

Takeaways from the report include:

Inflation management

CIBC reports that Canada has effectively controlled inflation, with core inflation expected to remain around the two per cent target. This stabilization has allowed the Bank of Canada to pivot its focus from combating inflation to stimulating economic growth, creating opportunities for franchises to expand and thrive. This impact will be seen in the following types of franchise businesses:

  • Restaurant franchises may benefit from stable ingredient costs and menu prices
  • Retail franchises can maintain stable pricing without harming profit margins
  • Service franchises are expected to see an increased demand as consumer purchasing power returns to normal

Interest rate projections

CIBC forecasts that the Bank of Canada will significantly lower interest rates in 2025 to stimulate GDP growth. As a result, franchise owners will benefit from lower financing costs, enabling expansion and growth.

Labour market dynamics

Lower interest rates and a broader talent pool create ideal hiring conditions, allowing franchises to scale, enhance service quality, and boost revenue through efficiency and technology investments.

The forecast for 2025 presents a promising environment for Canadian franchise owners, with plenty of opportunities for growth, expansion, and more consumer spending. Plus, as people increasingly value supporting local businesses, it’s important to note that franchises are locally owned and play a key role in their communities.

For more information go to the Canadian Franchise Association: https://cfa.ca/

ABOUT THE AUTHOR
Martin Morris
Martin Morris
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