Policy Issues - Canadian Franchise Association

Advocacy Priorities

The Canadian Franchise Association (CFA) advances a focused, outcomes-driven advocacy agenda to support franchised small businesses across Canada. Through targeted policy development, government engagement, and strategic submissions, the CFA works to ensure decision-makers understand the franchise business model and the critical role it plays in driving entrepreneurship, job creation, and local economic growth.

The priorities below reflect the CFA’s core advocacy focus areas—where sustained engagement is delivering meaningful progress on regulatory clarity, economic competitiveness, and a fair operating environment for franchise systems and their independent small business owners.

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Common/Joint Employer

Common employer rules can create uncertainty in franchising by potentially treating franchisors and franchisees as one employer, which may expose franchisors to employment-related liability even when franchisees independently run and staff their businesses. The CFA is advocating for clearer provincial employment laws that protect franchisees’ status as independent business owners—while still allowing franchisors to enforce brand standards—through a practical four-factor test to determine when a true joint-employer relationship exists.

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Access to Capital

Access to capital remains a key issue for franchise and small business growth in Canada, especially for entrepreneurs trying to launch, buy, or stabilize a business. The CFA is advocating for stronger financing tools by pushing for improvements to the Canada Small Business Financing Program, proposing a tax-deferred RRSP/RESP withdrawal option (similar to a home buyer model) to help fund business purchases, and calling for a higher small business deduction threshold indexed to inflation so smaller operators aren’t squeezed by bracket creep.

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Access to Labour

Labour access remains a major challenge for franchise businesses across Canada, with employers struggling to fill roles across wage and skill levels while demand for workers stays high. The CFA is calling for practical, small-business-focused solutions—such as reducing barriers to employment, supporting skilled trades pathways, and creating balanced rules for gig and independent contract work, so businesses can keep serving customers and contributing to the economy.

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Respect For Franchised Small Businesses

Small business taxes play a major role in whether franchise owners can grow, hire, and stay competitive, especially during periods of economic recovery. The CFA is advocating for a stable, entrepreneur-friendly tax environment in Ontario by supporting low corporate tax rates and stronger tax credits or incentives that help small business owners—particularly franchisees—open locations, invest, and continue driving local economic activity.

Extended Producer Responsibility Regulations

Environmental legislation should support sustainability goals without placing disproportionate costs and compliance burdens on franchise businesses compared with other small businesses. The CFA is advocating for fair, practical implementation of stewardship rules, especially around thresholds and how franchisor/franchisee materials are counted—so franchised operators can compete on a level playing field while governments advance environmental objectives through better consultation and rollout planning.

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Employment Standards

Employment standards rules need to be practical and easier for small businesses to navigate, especially for franchisees who often manage operations without dedicated HR support. The CFA is advocating for simpler, more coordinated compliance requirements, clear plain-language guidance, sufficient lead time before changes take effect, and better tools to help business owners understand how employment rules apply in real-world situations, including newer work models.

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Minimum Wage

Minimum wage policy is a major pressure point for franchise and small businesses because wage increases affect operating costs immediately and can influence hiring, hours, and pricing. CFA supports fair wages, but is advocating for a predictable, transparent approach with stakeholder consultation, phased increases, and enough advance notice for business owners to plan and adapt without destabilizing their operations.