The franchise industry is poised for growth in 2026. Where will you find your franchise opportunity?
By Joelle Kidd
Each issue of Franchise Canada highlights the success stories of everyday Canadians who made the leap into starting their own business with the help and support of a franchise system. We also tell the stories of those systems, the exciting opportunities that give hopeful business owners an outlet for their entrepreneurial ambitions. But with the new year comes new change and new growth in an always-exciting industry.
That’s why we’ve turned to the experts! Franchise Canada spoke with franchise consultants Gary Prenevost, CFE of FranNet Canada and Mackenzie Allsop of Cadence Franchising to find out which industries are on the rise, what’s trending in 2026, where prospective franchisees should look for their next franchise opportunity, and what questions to ask to get started.
In high demand
“Probably the single biggest trend I’ve seen in 2025 that I expect to continue in 2026 is a movement from impulse-based businesses to demand-based businesses,” says Prenevost. By that, he means a shift toward products and services that consumers see as necessities. “There’s a lot of uncertainty in the economy right now, so a demand-based business caters to what is a priority in the consumer’s budget, regardless of economic uncertainties.”
Some of the industries that fall into this category that Prenevost has seen become more popular investments for franchisees are children’s education, pet products and services, and senior services, outside of healthcare. He’s also seeing a rising interest in the home improvement sector, despite a soft real estate market. “Less people are selling their homes, and they’re staying in them longer,” Prenevost notes, adding that many consumers are choosing to renovate rather than upsize in hopes of increasing market value. He also notes that B2B (business-to-business) services are increasingly popular, particularly business professional services like coaching, marketing, and AI utilization, services that help companies stay on top of an ever-more competitive marketplace.
Allsop agrees. “Service-based franchises are on the rise, many in industries that might surprise you,” she says. “Home services, coworking and business services, health and senior care, pet services, beauty services—many of these offer non-traditional franchise models that are growing in popularity and consumer demand.”
Another trend that continues to grow is the appeal of mobile businesses. These businesses “often come with a much lower cost of entry than traditional brick-and-mortar, making these franchise opportunities more accessible to a greater number of hopeful entrepreneurs,” Allsop says.
Part of this trend has to do with advances in technology that make mobile ordering seamless for consumers. “Convenience is king,” says Allsop. “Consumers are online. We order everything, from take-out and groceries to clothing and furniture, with a few easy clicks. The need to visit a physical location is fading in many sectors, and a lot of franchise brands are capitalizing on this.”
That said, for certain products or services, “engaging physically with the product or experiencing exceptional in-person service is more important than ever,” she adds. “There’s a need for both traditional and non-traditional business models.”
The way to work
When it comes to trends in how business owners view their work, and what kinds of lifestyle factors weigh into franchisees’ investment decisions, both Allsop and Prenevost see greater importance placed on self-reflection, flexibility, and autonomy.
“What I’m seeing from people looking for franchises is a stronger desire for work-life integration,” says Prenevost. “They know it takes a lot of work to get a business off the ground, but they’re not looking for that 60, 70-hour [per week] grind anymore.” The first year of business ownership is always a “sacrifice year,” Prenevost notes, and prospective franchisees know that—but after the business is up and running, he’s seen more interest in opportunities that allow greater flexibility in terms of hours and a stronger work-life balance.
Allsop identifies the rise of Multi-Unit Multi-Brand Owners (MUMBOs) as a driver of significant growth for both emerging and legacy franchise brands in 2026. “MUMBOs often excel operationally and deliver strong financial results thanks to ample experience and powerful pre-existing organizational infrastructure.”
But not all prospective small business owners are looking to “build an empire,” she notes. “Many are simply looking for the opportunity to live life more on their own terms.” Simple and flexible service businesses with low overhead will be popular picks for entrepreneurs seeking this kind of autonomous lifestyle.
Prenevost says the economic landscape is also driving more people to look at franchising as an option. “More people are coming to franchising because of return to office policies, AI disruption in the workplace, things like that. They’re losing confidence in their corporate careers and saying, ‘Is franchising an option for me?’”
Authentic eats
Despite the rise in interest toward service-based sectors, both Prenevost and Allsop note that interest in the food sector continues to be a strong force in franchising. Foodservice brands, including Quick Service Restaurant (QSR) concepts, cafés and bakeries, and full-service dining, continue to draw interest from potential investors. But within the food space, trends toward thoughtful sourcing and authentic ingredients are predicted to be huge in 2026.
“QSR brands that embrace wholesome ingredients and thoughtful indulgences as part of their brand identities are resonating with consumers,” says Allsop. “Think elevated breakfast concepts, innovative fusion menus, and QSR brands that put freshness and quality center stage.”
Prenevost considers the major differentiator between a flash-in-the-pan trend and a solid concept to be a strong foundation of experience. “Watch for emerging flavour profiles that are backed by franchisors with strong experience,” he advises. That’s a major advantage of choosing to franchise with a foodservice brand, he adds: that industry segment is full of strong, proven franchisors who are able to apply their expertise to new concepts, additional brands, or expanded networks.
2025 saw major political and economic upheavals, particularly in the U.S., and Allsop notes these shifting tides “had profound impacts on the Canadian economy and Canadian sentiments.”
“This trend is likely to continue through 2026 and beyond,” she notes. “Many brands are attempting to distance themselves from the noise south of the border by showcasing their Canadian ownership, Canadian franchisees, Canadian supply chains, and overall Canadian pride.”
The strength of the franchise model is that each franchisee is a small business owner who lives locally and contributes to their community. Allsop says this messaging is crucial to meeting consumer preferences for 2026. “Consumers want to support local, and franchisees need to take every opportunity to educate their communities about their locally owned business.”
Tips for ‘26
So, if you, armed with this knowledge, want to go forth and open your own franchised small business in 2026, what do you need to know?
Allsop says, first and foremost, “Know yourself.” Start by looking inward, she advises: “Get to know your real priorities—your wants, your needs, your strengths and weaknesses, your deal-breakers. Clearly define what your goals are, and then work to find a franchise system that will help you meet those goals.”
Prenevost notes that it’s also important to understand the learning curve of opening a new business. “People are going from being an expert or highly proficient in their corporate roles to beginner status running their new business,” he says.
Allsop agrees. “Leave yourself room to build, and enough cash in reserve to support your business and your home life for several months as you build your customer base.”
It’s important to “know your why,” Prenevost adds; the reason behind your business and what you want it to be. Ask yourself, “What are you building towards?” he suggests. “Year one and two are about building a foundation. Year three and on is about growing and scaling. If you don’t build a strong foundation, you’ll never be able to scale.”
Finally, he says, “Get expert help. A franchise consultant to help you understand your best options and guide your research so you’re not missing things. Accountants and business planning experts for financial advice, help building a three-year business plan and getting financing. And a franchise lawyer to help you understand your rights and obligations.”
Going into 2026, new business owners are facing “some natural headwinds,” Prenevost says, including increased labour costs, supply chain disruptions, and the uncertainty of trade causing lower consumer confidence. But, he says, “Forewarned is forearmed.”
“I think franchising is going to out-compete non-franchised businesses in 2026 and beyond,” he says, “because of the collective amount of money and talent that franchisors and franchisees are investing in AI to optimize their business. The vast majority of non-franchised businesses simply cannot come close to matching this.”
He adds that, perhaps unexpectedly, a recession may just be “the best time to start a business.”
“It’s not going to be the easiest; it’ll take longer to get success than if they were in a strong market. But they’re going to be more careful—more careful with every customer, more careful with every dollar. They’re building a really strong foundation, so that when the market turns around, they’re going to be first in line at the very beginning of that increase, to take advantage of the full wave.”