Franchisees are independent small business owners who live, work, and create jobs in local communities across Canada. While many franchise brands are widely recognized, each location is typically owned and operated by a local franchise small-business owner who has invested their own savings and taken on the financial risk to build their business in their community.
Franchised small businesses operate in more than 60 sectors of the Canadian economy, including restaurants, retail, automotive services, education, home services, health and fitness, and senior care. Across Canada, franchised small businesses employ nearly 2 million Canadians and are projected to contribute nearly $150 billion to Canada’s GDP by the end of 2026. These businesses represent a significant share of the Canadian small business economy and play an important role in job creation, workforce development, and local economic growth.
Despite these contributions, franchised small businesses are sometimes treated differently from other Canadian small businesses in government policy and regulatory frameworks. Some programs, grants, and regulations are designed in ways that treat franchisees as if they are part of large corporations. In reality, most franchise locations are independently owned small businesses and face the same economic pressures as any other entrepreneurs.
Franchise small business owners operate their businesses independently, yet public policy does not always reflect this reality. In some cases, franchised small businesses are excluded from small business grants or support programs because they operate under a recognized brand. In other cases, regulatory frameworks treat franchisors and franchisees as a single entity even though franchisees manage their own operations, employ local workers, and assume the financial risks of running their businesses.
These policies can create unintended consequences for franchise small business owners, including:
- Exclusion from small business grants and support programs
- Additional regulatory burdens not faced by other Canadian small businesses
- Policies that misunderstand the franchisor and franchisee relationship
Ensuring that franchised small businesses are recognized and treated fairly in public policy will support entrepreneurship, strengthen local economies, and allow franchise small business owners to continue creating jobs in communities across Canada.
Our Ask
To support franchised small businesses in Canada, governments should ensure that franchise small business owners are treated fairly in public policy and regulatory frameworks.
The Canadian Franchise Association encourages governments to:
- Ensure franchised small businesses are eligible for small business programs and grants
- Avoid regulatory frameworks that treat franchisors and franchisees as a single entity
- Recognize franchise small business owners as independent small businesses in legislation and policy design
- Engage with the franchise community when developing policies that affect Canadian small businesses
Fair treatment of franchised small businesses will strengthen entrepreneurship, support local job creation, and ensure that government policies reflect the realities of today’s Canadian small business economy.