While some prospective franchise owners are seeking to open a business in their hometown, others are looking to start a franchise business in the most friendly business environment. After all, selecting the right city can significantly impact the success of a franchise business. Of course, the desired brand will need to be available in a given territory. A few other factors to consider include: economic viability, market saturation, costs of living, as well as tax laws and other regulations that protect franchisees.
With that in mind, the following cities in Canada offer unique characteristics and advantages for starting a franchise business.
5 Best Cities in Canada to Start a Franchise Business
#1 – Grande Prairie, AB
Grande Prairie offers small town living with a solid foundation for businesses to thrive. Reasons to consider this Alberta city for a franchise business include:
- Growing Economy – This city has a diverse economy made up of agriculture, oil and gas, forestry, and services.
- Strategic Location – It may be a small town, but the city draws in people from nearby small towns, making it a hub for trade and commerce. Its proximity to major transportation routes, such as highways and railways, also facilitates easy access to markets and suppliers.
- Growing Population – Factors contributing to the steady increase of population in Grande Prairie include: job opportunities, affordable housing, and quality of life. A growing population means an expanding consumer base for businesses.
- Supportive Business Environment – Alberta was also one of the first provinces to have a franchise-specific law in place, which helps protect franchise business owners. Additionally, the city offers various incentives for entrepreneurs and small businesses, as well as, networking opportunities and resources for business development. The Chamber of Commerce and Community Futures are two organizations that support business development in Grande Prairie.
- Limited Competition – While this will depend on the industry, a smaller town like Grande Prairie might have fewer business competitors compared to large urban centers.
- Strong Community Spirit – Small towns are typically known for their strong sense of community and support for local businesses. Grande Prairie isn’t any different. Franchise business owners will benefit from this supportive environment if they engage with their community and build customer loyalty.
- Lifestyle Benefits – This city is appealing to potential employees and franchise owners who are looking for a balanced lifestyle. People who live in Grande Prairie have access to recreational activities, cultural events, and plenty of outdoor adventures.
#2 – Saskatoon, SK
- Growing Economy – The city is driven by industries such as agriculture, mining, energy, manufacturing, and technology, which results in a diverse and robust economy. This provides stability and opportunities for various types of franchises.
- Strong Population Growth – Factors such as job opportunities, immigration, and a high quality of life have led to steady population growth, thus expanding the consumer base in the city.
- Strategic Location – Saskatoon is located along major highways that connect it to Saskatchewan’s capital of Regina to the south and the rest of the country via the Yellowhead Highway. It’s a transportation and logistics hub because it’s located in the heart of the Canadian Prairies. Its proximity to major transportation routes also facilitates the movement of goods and services, making it an attractive location for businesses.
- Supportive Business Environment – This city also has a supportive business environment, offering various resources and incentives to entrepreneurs and small businesses.
- Innovation and Entrepreneurship – The city has plenty of opportunities for collaboration and growth due to its strong culture of innovation and creativity. Organizations such as Innovation Saskatchewan and Saskatchewan Technology Startup Incentive support this culture.
- Quality of Life – Saskatoon offers affordable housing, excellent healthcare, recreational amenities, and culture attractions. Such an environment attracts both skilled workers and potential customers.
#3 – Winnipeg, MB
- Central Location – Located near the middle of North America along the Trans-Canada Highway, Winnipeg bills itself as the heart of the continent. This makes it a strategic hub for businesses looking to serve both national and international markets. Additionally, because it’s at the junction of major transportation routes, the city facilitates the movement of goods and services.
- Diverse Economy – Winnipeg offers a diverse and stable economy with sectors such as manufacturing, agriculture, finance, aerospace, technology, and healthcare.
- Strong Consumer Base – Winnipeg is a metropolitan area with a population of nearly 800,000. This population size comes with a diverse consumer market and is characterized by mixed demographics that include young professionals, families, and retirees.
- Supportive Business Environment – Any city that offers resources and incentives to entrepreneurs and small businesses is worth looking into further. Organizations such as the World Trade Centre Winnipeg, the Winnipeg Chamber of Commerce, and the Manitoba government provide various support services, networking opportunities, and funding programs to business owners in the city. The province also has specific franchise laws in place.
- Affordability – Business costs and the cost of living are relatively affordable compared to other Canadian cities. A few of these lower costs that can contribute to higher margins for business owners include: overhead costs, real estate, labor, and utilities.
- Skilled Workforce – Winnipeg boasts of a well-educated and skilled workforce. The city is home to world-class educational institutions and training programs, which provides access to a pool of talented employees.
- Cultural Diversity and Vibrancy – The city hosts several festivals and events throughout the year making it known for rich cultural diversity and a vibrant arts scene. These features draw both tourists and locals to the city.
#4 – Vaughan, ON
- Proximity to Toronto – Vaughan is located just north of Toronto, which is one of Canada’s largest and most economically vibrant cities. Its proximity to Toronto means access to a large consumer market with diverse demographics and extensive business networks.
- Economic Growth – The city has a robust economy and has seen significant economic growth in sectors such as manufacturing, retail, healthcare, technology, and finance.
- Infrastructure and Accessibility – Another perk is how easy it is for customers, employees, and suppliers to access businesses in Vaughan due to its transportation infrastructure. This includes major highways, public transit, and proximity to Pearson International Airport.
- Business-Friendly Environment – The city also has business-friendly policies, efficient permitting processes, and support for business initiatives. Additionally, the Vaughan Business Enterprise Centre (VBEC) provides resources, workshops, and advisory services to entrepreneurs as they start, grow, and manage their businesses. Ontario’s Arthur Wishart Act was also put in place to protect franchisees.
- Affluent Population – Vaughan has a growing population of affluent residents. High disposable incomes provide more opportunities in sectors such as retail, dining, entertainment, and luxury services.
- Lifestyle Amenities – Living spaces in the city tend to have large yards and an uncramped feeling that you don’t get in major metropolises. Residents also experience a high quality of life with excellent schools, parks, recreational facilities, shopping centers, and cultural attractions.
#5 – Joliette, QC
- Growing Economy – Like the other cities mentioned, Joliette also has a diverse and growing economy. Its key industries include manufacturing, agriculture, retail, and services.
- Strategic Location: Joliette is a neighbor to Montreal, a major metropolis. Although it is a small city, the Joliette acts as a regional economic hub, attracting businesses and consumers from surrounding areas. It also has access to major transportation routes such as highways and railways.
- Supportive Business Environment – Organizations such as the Chambre de commerce de la MRC de Joliette and the Centre local de développement (CLD) de Joliette offer support for entrepreneurs and small business. The city also provides resources, networking opportunities, and assistance with business development and financing.
- Growing Population – The city’s population is steadily growing. One contributing factor is migration from other regions. This means an increased demand for goods and services.
- Cultural and Tourist Attractions – Joliette has a rich cultural heritage and ample tourist attractions such as historic sites, museums, festivals, and outdoor recreational activities. This benefits sectors such as hospitality, tourism, and entertainment.
- Francophone Market – Joliette is a part of Quebec and primarily serves a french-speaking population. This is an important element to consider for franchise businesses looking to open in this city.
- Quality of Life – Joliette offers a high quality of life with access to parks, schools, healthcare facilities, and community services. Business owners and employees can enjoy a comfortable lifestyle in the city.
Ready to Start a Franchise Business in Canada?
No matter where you decide to start a business, franchising is a great opportunity for aspiring entrepreneurs. If you want to open a franchise business in Canada, these five cities are great options. However, a FranNet franchise consultant can evaluate your skills and goals and help you find the right opportunity. Schedule your free consultation today to get started!