For years, franchise expansion in Canada has been treated as a big-city game. If your growth strategy didn’t include Toronto, Vancouver, Calgary, or Montréal, it was often seen as second best. Those markets were assumed to be the engines of demand because they had the population numbers and economic support.
That logic is being turned on its head. A powerful demographic, economic, and cultural shift is reshaping where Canadians live, work, and spend – and with it, where the smartest franchise opportunities are found. Increasingly, the real action is happening well beyond the major metropolitan core, in the very communities where “buy local” and “buy Canadian” are becoming rallying cries.
The quiet migration redrawing the map
Since the pandemic, Canadians have been rethinking what a “good life” looks like. Remote and hybrid work are now normal for many professions. At the same time, surging urban housing costs have forced people to ask whether staying in the biggest cities still makes sense.
The result is a sustained migration into mid-sized cities, suburban regions, and small-town communities. People aren’t simply fleeing big cities – they’re choosing places that offer more balance: more space, more affordability, shorter commutes (if any), and a stronger sense of community.
Where people go, demand follows. As populations rise in these so-called “secondary” markets, local economies become more vibrant. New housing developments appear. Retail corridors fill in. Households spend more locally. And increasingly, that spending is directed toward locally owned, Canadian-operated businesses because residents want their dollars to stay in the community – not disappear into distant head offices.
Why service brands win big outside the core
Not all franchises benefit equally from this shift. Service-based concepts – especially those that meet everyday needs where people live – are particularly well positioned to thrive.
In large cities, service franchises often face intense competition and saturated advertising channels. In smaller markets, the opposite is true. A strong operator can quickly become the recognized local brand because there are fewer direct competitors and more room to stand out.
Operating economics also look better. Lower commercial rents, reduced staffing costs, and less pressure on marketing budgets all improve the path to profitability. Franchise owners can scale with less financial strain and more flexibility, instead of being locked into expensive, high-pressure locations just to access population density.
Just as important is the cultural environment. Smaller communities are built on familiarity and trust. Residents like knowing who they are dealing with. A franchisee who coaches the local hockey team, sponsors community events, and shows up at neighbourhood fundraisers isn’t just running a business – they’re becoming part of the social fabric. In that context, a Canadian brand with a local owner fits perfectly with the “support your own” mindset.
Mind the service gaps
Many mid-sized cities and rural-adjacent regions still lack access to the range of modern services urban dwellers take for granted. Whether it’s home services, property-related solutions, personal care, pet care, or mobile professional services, gaps are everywhere once you start looking.
For franchisors and franchise buyers, that’s not a problem – it’s an opportunity. Entering a market as the first or only provider in a category allows a brand to capture early market share and build deep loyalty before others arrive. Instead of fighting for a sliver of a crowded market, franchisees are often creating the market.
This can translate into more predictable, recurring revenue. Even when the broader economy is choppy, a well-embedded service provider in a smaller community often maintains a steady base of repeat customers, referrals, and word-of-mouth growth – especially when the business is proudly local and Canadian.
Rethinking how you choose a territory
At PropertyGuys.com, we’ve been able to build a national footprint, coast to coast, by embracing smaller urban and rural areas as primary expansion markets, not afterthoughts.
Traditional territory selection has long focused on metrics like population density, foot traffic, and existing commercial hubs. Those numbers still matter – but they no longer tell the whole story.
Today’s savviest franchise buyers are also asking:
- Is this region gaining people or losing them?
- Are new housing developments and infrastructure projects underway?
- Is the lifestyle attractive enough to keep families and professionals rooted?
- How strong is the sense of community – and how easy will it be to plug into it as a local owner?
- Is there a visible “buy local / buy Canadian” culture we can align with?
Secondary markets often score exceptionally well on these fronts. They combine population growth with more affordable overhead and a grounded, stable local culture. That combination is particularly appealing to franchisees who want to build a durable asset rather than chase short-term volume.
These markets also reward brands that allow for local personality. Consumers want modern, convenient services – but they also want to feel like they are dealing with real people, not anonymous corporate machines. Franchise systems that encourage owners to localize their marketing, highlight their Canadian roots, give back to the community, and adapt service delivery to local habits are at a distinct advantage.
Small-town Canada, big-time results
The idea that “real success” must be found in the biggest cities is increasingly outdated. Some of Canada’s most compelling franchise stories are now being written in places that would once have been dismissed as too small or too remote.
In these communities, franchise owners are achieving rapid brand awareness, strong customer loyalty, and impressive market penetration. Affordable housing is drawing in new families. Remote professionals are choosing lifestyle over congestion. Service gaps are opening clear lanes for ambitious entrepreneurs who are proud to fly the Canadian flag in their local market.
Put simply, small-town and mid-market Canada are no longer the consolation prize. For many operators, they are the main event.
The opportunity between now and 2026
Looking ahead to 2026, all signs suggest that growth in suburban regions, secondary markets, and mid-sized cities will continue. What began as a pandemic-era adjustment has evolved into a structural change in how Canadians think about where they live, work – and who they choose to buy from.
For franchisors, this means re-evaluating territory planning and support strategies so these rising markets aren’t treated as second tier. For existing and aspiring franchisees, it means asking a different question: not “How close can I get to the biggest city?” but “Where are the strongest foundations for a sustainable, community-rooted, proudly Canadian business?”
Secondary markets are no longer the supporting cast of the franchise world. They are stepping confidently into the spotlight – and they’re ready for brands and owners who are prepared to grow with them.
