- Credibility the CFA membership provides
- Organizations that apply for membership have been determined that they meet the CFA definition of a franchise, that the franchisor has a satisfactory relationship with their franchisees and that they have proper documentation to support their membership application
- Exclusive access to advertising in CFA media
- This includes CFA magazines and newsletters, exhibiting at our Franchise Shows, sponsoring events and other opportunities
- Preferred rates to attend CFA events such as the CFA National Convention and other educational events
- Access thousands of prospective franchisees
- Assistance with investigating what franchising can offer through our various events, products and publications
- Our tradeshows bring in thousands of attendees annually. Our website receives over 28,000 unique visitors a month, generating almost 200 franchise requests per month
- FranchiseCanada Magazine and Directory have a combined circulation of over 20,000. That’s a lot of prospective franchisees.
- Networking and information sharing
- We provide opportunities for members to share ideas, best practices, tools and resources through our various events and member directories
- Through CFA newsletters and bulletins, members are provided with articles and updates on legal and legislative issues affecting the franchise industry from Canada’s top legal and business franchise professionals.
- Recognition for outstanding achievements
- CFA Awards programs, including the Franchisees’ Choice Designation, recognize outstanding achievements of our members and supports our Mission to promote excellence and growth in franchising while serving the interests of our members and stakeholders
Renewing your membership is a simple process. To renew your membership each year, you must fill out the declaration form appropriate to your business and submit the form and payment.
Franchising is a method of doing business in which one person, the franchisor, grants another, the franchisee, certain rights contained in the franchise agreement.
These rights govern the way in which the franchisee will conduct their business. The franchisee gains access to the franchisor’s proven business system, including the operations manuals which will outline the systems and processes used to operate the franchise.
As the success of a franchised business depends on all franchisees delivering the same positive customer experience, the operations manuals are one of the key ways a franchise system can ensure consistent delivery of its product or service. Deviating from this uniformity and consistency of experience can be confusing to customers and can undermine the entire system.
The relationship between the franchisor and the franchisees is symbiotic with the franchisor depending on the franchisees for revenue and the franchisees depending on the franchisor to grow the brand and create greater demand for the product/service which, in turn, leads to more customers. The franchisor, in addition to providing the standard operating system, typically offers its franchisees initial and ongoing training and support and assistance with marketing.
While many people may think of franchising as limited to ‘fast food,’ businesses that operate using the franchise business model can be found in all sectors and industries – automotive, travel, senior care, education, and health and fitness just to name a few. Franchising can help businesses expand by having franchisees invest in the concept and open and operate locations under the business’ brand.
A business that is suitable for franchising, no matter its product or service offering, has a history of success and a tried-and-true formula that will allow it to replicate that success in new location. Also, if it is your business that you will be franchising, you must consider your own leadership skills and style. Ask yourself if you are prepared to work with other entrepreneurs (your future franchisees) and to provide them with the time, advice and initial and ongoing support they’ll need.
While franchising allows a company to expand through franchisee investment instead of corporate investment, you will still need to be prepared to fund the upfront costs associated with becoming a franchised business. This includes (but is not limited to) developing training and operations manuals, disclosure documents, franchise agreements, franchisee recruitment kits, as well as registering trademarks and creating a financial model for your franchise. You’ll need to work with a team of franchise support services professionals, such as a franchise lawyer, consultant, marketer, banker and accountant, to help lead you through the process. Make sure that your team is made up of people who have experience and expertise in franchising. The Canadian Franchise Association’s franchise support services members offer professional assistance for new franchisors. Access company listings and contact information for these franchise professionals in our member directory.
- Franchising is an attractive and powerful way for Canadians to achieve success as small business owners
- Franchisees are able to be in business for themselves but with the support and assistance of the franchisor, the advantage of the franchise system’s past success, and access to the knowledge and experience of a network of franchisee peers
- When you invest in a franchise, you align yourself with a brand that may already enjoy established consumer awareness and loyalty in the Canadian marketplace
- By joining an already established system, you do not have to invent the business from the ground up like you would as an independent business
- A tried-and-true system and an operations manual fully explains how to replicate the franchise’s system at your location
- The franchise system’s proven branding, trademarks, and proprietary products, services, recipes, etc reduces the risk of business failure and increases your likelihood of success
- Through the franchisor, you can stay on top of things
- Franchisors research business trends, research and development, new marketing initiatives, and changes in consumer tastes or behaviours
- This access to shared knowledge allows you to focus on the day-to-day operations of your location
- Joining a franchise system gives you a network of peers upon whose knowledge and experience you can draw
- Your franchise system colleagues are just a phone call or e-mail away
- In many systems, there are opportunities for franchisees to come together and share ideas and experiences as part of a franchisee advisory group or at a franchisee convention
While system-specific responsibilities required of the franchisee will be outlined in the franchise agreement, there are a few key responsibilities that are generally required of the majority of franchisees.
The franchisee should:
- follow the franchisor’s standards, methods, procedures, techniques and specifications to ensure consistency;
- pay a fee (typically an initial franchisee fee and ongoing royalties) to the franchisor for the right to use the franchisor’s trademarks (brand) and business system;
- take care of accounting, local marketing, staffing and the other administrative aspects of operating a business;
- invest their time, particularly during the start-up phase, by working hands-on in their business to fully understand the operational side of the franchise;
- work in partnership with the franchisor, allowing for effective two-way communication between the two parties and a mutually beneficial relationship.
While there are many important responsibilities that must be shouldered by the franchisee, an important benefit of investing in a franchise is the ability to rely on the support, guidance and assistance of the franchisor. That said, a franchisee must be prepared to work hard and take initiative, as no franchisor will do everything for you.
While the franchise agreement will outline the specific responsibilities and obligations of the franchisor, there are a few key responsibilities of the franchisor that generally apply in most scenarios.
The franchisor should:
- undertake to provide franchisees with operating systems and support services to help their businesses grow in ways that are effective, efficient and profitable;
- continue to evolve the franchise system through, for example, research and development of new products and services;
- handle all brand advertising and (usually) provide franchisees with assistance for their local marketing activities;
- protect and manage the brand and its trademarks while ensuring consistency and quality standards are maintained by all franchisees in the system;
- provide initial and ongoing training and support.
It is important to note that though most franchisors are ready and willing to offer assistance and guidance, each franchise system is different and may provide different levels of support.
Regardless of the degree of assistance provided, however, a franchisee must be prepared to work hard and take initiative, as no franchisor will do everything for you.
CFA’s Franchise Canada online directory is a great place to start your franchise search.
The listings provided on those pages will give you an overview of the company and brand, as well as a convenient form so you may request more detailed information from individual franchise brands. The listings are reserved exclusively for Canadian Franchise Association (CFA) members in good standing. The information contained therein is to be referred to only as a guide. As the information within company listings is provided by individual companies, the Canadian Franchise Association does not guarantee the accuracy of the information contained in the listings and recommends you contact the franchise system(s) of interest directly for further details.
Learn more attending the Franchise Canada Show and reading Franchise Canada articles
If you have a dispute with your franchisor, your first step is to voice your concerns to your franchisor, either directly or via the franchisee advisory council (if one exists within your franchise system). Ensure you are clear on the rights, responsibilities and obligations of you, the franchisee, and your franchisor as outlined in your franchise agreement to make certain that the issue does not stem from a misunderstanding of an aspect therein.
If speaking to the franchisor and negotiating the issue directly does not resolve it to your satisfaction, the next step would be mediation. In mediation, a mutually agreed upon and neutral third party works with you and the franchisor to reach a mutually acceptable resolution.
The Canadian Franchise Association’s Ombudsman program may be a useful first step in this process. This confidential free service can help facilitate discussion of issues, assist both parties in finding a satisfactory solution and, where applicable, refer unresolved complaints to alternate methods of dispute resolution.
Litigation should be considered only as a last resort in cases where direct discussion and mediation have not been successful.
Expanding into unchartered territory can be nerve-wracking—which is why the CFA has several programs in place to support franchise systems and suppliers to help international franchisees settle into the thriving Canadian business landscape.
There are many benefits to franchising your business such as expanding through franchisee investment instead of corporate investment. By increasing the company’s points of distribution (its units) through franchising, the company can grow, expand, and gain market share.
Franchising also permits expansion into new regions and markets using the local knowledge and connections of franchisees in those communities. Franchisees, because of their investment and involvement in the franchise, are generally motivated to achieve even greater success because they are in business for themselves (with the support and assistance of the franchisor) and therefore benefit directly from the success of their franchise.
Conducting proper due diligence and research is your first step in becoming a successful franchisee.
Step 1
The franchise system listings on CFA’s online franchise directory are a good place to start the process. Each listing will give a brief overview of the system and provide you with ways to request additional information from the individual companies. All companies listed on the website are Canadian Franchise Association members in good standing and voluntarily agree to adhere to the CFA Code of Ethics.
Step 2
It is recommended that you contact the franchise brands in which you are interested directly for further details and more specific information.
Some questions you may want to ask as part of your due diligence include:
- Is the franchisor a member of the Canadian Franchise Association?
- How many years has the franchisor been operating?
- How many franchisees does the franchisor have?
- Can the franchisor provide a list of all franchisees?
- How does the franchisor choose its franchisees?
- How much is the initial franchise fee?
- What are the franchisor’s plans for future development?
- What is the competition for the product?
- What kind of support does the franchisor provide to franchisees?
- Will you be provided with a disclosure document? Does it comply with provincial laws or CFA’s minimum disclosure requirements?
After directly contacting the franchise brand, additional information will usually be sent to you by your franchise systems of interest in the form of a franchise information package, which may include (but is not limited to) the following:
- a history of the company;
- summary of the support and systems provided;
- news articles and/or press releases about the system;
- company mission statements and/or core values;
- common questions and answers (FAQ);
- an outline of estimated start-up costs;
- industry statistics and information;
- and an overview of the franchise application process.
Step 3
Meet with company representatives to develop a shortlist of franchises. These meetings will serve as mutual interviews, where both you and the franchisor can ask questions, get more information and better determine if you will be a good fit with the system.
From there, you will usually receive the company’s disclosure document. While some Canadian provinces mandate the provision of disclosure documents through legislation, all CFA members are required under the CFA Code of Ethics to provide disclosure documents in all Canadian provinces and territories.
Step 4
Review the company disclosure document with your lawyer (preferably a franchise specialist, see the list of CFA member directory for law firms) before you sign any contracts or agreements.
This comprehensive summary of information will provide you with background on the company, including its officers, on topics including (but not limited to) estimated working capital and annual operating costs for franchisees, training and support provided, litigation, and, typically, financial statements of the franchisor.
The disclosure document should also give you contact information for current and former franchisees of the system. It is recommended that you speak with former franchisees as they can give you essential firsthand knowledge of the day-to-day reality of operating that particular franchise.
Expanding into unchartered territory can be nerve-wracking—which is why the CFA has several programs in place to support franchise systems and suppliers to help international franchisees settle into the thriving Canadian business landscape.
The Canadian Franchise Association (CFA) has partnered with the International Franchise Association (IFA) to proudly bring you the Certified Franchise Executive (CFE) Certification Program in Canada.
The CFE Program sets the highest education standards for individuals and organizations, empowering franchise executives, managers, and small business owners to accelerate growth. CFE certification signifies a commitment to elevated professionalism, setting new industry standards for franchise training.
Members can also upgrade their skills from the convenience of their home, office, or on the go every Wednesday with Learn & Grow webinars! Register for a Webinar today!
The CFA strives to provide our members with key opportunities that can help drive the success of their business through education, networking, and lead generation.
The CFA puts on annual events such as:
- CFA National Convention
- Franchise Canada Show
- Franchise Your Business
- Franchise Development Day
- Franchise Law Day
- Franchising Meets the Money
To learn more about when CFA offers their events, visit our event page.
The CFA also provides Learn & Grow educational webinars every Wednesday to enrich franchising knowledge and skills from the convenience of your home, office, or on the go.