Canada has always had an air of the pioneering spirit about it and data made available by the CFA confirms this is still alive and well.
Indeed, with the ever-evolving landscape of the Canadian economy, franchising has emerged as a vital sector, providing robust opportunities for immigrants seeking to establish themselves and contribute to their new communities.
Canada’s welcoming environment and strong economic framework make it an ideal destination for immigrants, with about one in four businesses (23.7%) owned by newcomers to Canada, showcasing their entrepreneurial inclination.
Meanwhile, the percentage of immigrant owners who are science, technology, engineering or mathematics (STEM) graduates is considerably higher among newcomers than those business owners from the second and third plus generations, suggesting that the immigrant entrepreneurs have undergone higher levels of education than their Canadian counterparts.
A perfect fit for immigrant entrepreneurs
Franchising offers a structured and supportive business model, which is particularly appealing to immigrant entrepreneurs. Franchising is about being in business for yourself but not by yourself. The support that franchisors provide — including systems, training, guidance, and ongoing support — helps franchisees successfully open and operate their local small businesses, making it an ideal pathway for immigrants looking to start their entrepreneurial journey with a strong foundation and support network in place.
Indeed, with the introduction of the International Franchise Attractiveness Index in 2020, Canada has consistently ranked among the top six countries with attractive franchise markets for balanced growth. The country’s political and economic stability further enhances its appeal, ranking 2nd among G7 countries for political stability and 3rd globally for economic stability, according to Invest Canada.
Breaking the numbers down
Breaking the numbers down, Ontario leads in franchise units, says the CFA, accounting for 48% of all operating franchises. However, there is significant potential for growth in other regions, such as the Prairies, the Atlantic, and West Coast markets. Newfoundland and Labrador and P.E.I. are expected to see the largest percentage growth in franchise locations through 2025.
From an economic standpoint the franchising industry is a cornerstone of the Canadian economy, being the 12th largest industry in the country and the 2nd largest franchise industry in the world. Income from franchising is projected to contribute $120 billion to Canada’s GDP by 2025, with one in 10 Canadians employed directly or indirectly in a franchise system.
The average Canadian interacts with three to five franchise locations daily, underscoring the pervasive presence and influence of franchises.
Sectors poised for growth
Franchise categories poised for growth include health and wellness, education, and B2B services. Canadians’ increasing health consciousness and the demand for supplemental education, especially in STEM/STEAM (science, technology, engineering, arts, math) fields, are driving these sectors. B2B franchises, offering digital marketing, IT support, business coaching, and property maintenance, continue to flourish, catering to ongoing business needs.
The CFA, for its part, advises on two key areas:
- Navigating the franchise business model and finding the right franchise. The key is to begin with thorough research and self-assessment to identify a franchise that matches an individual’s skills, interests, and budget
- Leverage resources such as educational programs, mentorship opportunities, and networking events for insights and advice. Understanding the franchise agreement, support system, and operational requirements is crucial.
By evaluating these factors, newcomers can then make informed decisions and set themselves up for long-term success.
