Your guide to ethical franchising
The Canadian Franchise Association (CFA) has been a pillar of the franchise community in Canada since 1967. Acting as the voice of franchising in Canada, its membership includes nearly 600 franchise brands across the country. CFA member brands sign on to a Code of Ethics, signifying a commitment to ethical franchising and franchisee success.
As an aspiring entrepreneur, you’ve worked hard to raise the capital to start your own small business. As you search for the perfect business investment, it’s important to protect yourself by looking at credible, ethical business opportunities.
The Government of Canada’s Anti-Fraud Centre has warned consumers of increased fraudulent business opportunities promising high returns. Sometimes these frauds may even be incorrectly labelled as franchise opportunities.
What to avoid:
- Pyramid or ponzi schemes that require investors to recruit other investors to make their money back
- “Business opportunities” promising high returns but requiring high upfront costs, including the purchase of specialized equipment (ATM machines, vending machines, POS machines, etc) that may not be delivered as promised
What to do:
- Use LookforaFranchise.ca and the Franchise Canada Directory. Start your franchise search on LookforaFranchise.ca, the Canadian Franchise Association’s (CFA) online directory of franchise opportunities, or by purchasing a copy of the Franchise Canada Directory, your complete guide to businesses franchising in Canada.
- Invest in a CFA member. CFA member brands commit to ethical franchising by signing the CFA’s Code of Ethics. Look for the Logo to find a CFA member brand offering a credible franchise opportunity and commitment to excellent, ethical franchising
- Do your due diligence. A franchise lawyer can help as you navigate your franchise investment. Always contact previous and current franchisees of the brand and have your lawyer look through the Franchise Disclosure Document with you.