Updated February 2025
“Franchising is the 12th largest industry in Canada and the second largest franchise industry in the world.” (Canadian Franchise Association – CFA)
There is no doubt that franchising plays a significant role in the Canadian economy. While the industry has a stronger presence in certain provinces, its economic influence extends across the entire country. Understanding the economic impact and current trends in Canada is key for prospective franchisees.
Economic Impact of Franchising
Franchising drives job creation, business growth, and economic stability in Canada. Here are a few statistics highlighting its economic impact:
- Franchising contributes over $120 billion CAD to Canada’s GDP, which is approximately 5% of the nation’s GDP.
- The industry employs approximately 2 million Canadians, accounting for nearly 10% of the workforce.
- There are around 1,200-1,300 franchise companies doing business in more than 76,000 individual franchise locations, with an estimated 4,300 new franchise outlets established each year.
- There has been a 35% increase in female-owned franchises in the last decade with women now representing 37% of all franchises in Canada.
Top Franchise Industries in Canada
The franchise locations in Canada cover “50 different categories including retail, hospitality, food service, automotive, education, business services, and health care” (CFA). A few of the top industries include:
- Food & Beverage – This is a leading sector as 40% of the franchise systems in Canada are in the food industry (CFA). It includes businesses such as quick-service, fast casual, and full service restaurants as well as coffee shops, bakeries, food trucks, grocery and food retail, and more.
- Retail – Franchises play a significant role in Canada’s retail landscape as “45% of all retail sales in Canada are generated by franchised businesses” (Franchise101.inc).
- Health & Wellness – This sector includes fitness centers, massage therapy clinics, chiropractic services, and beauty and spa locations, and more. In fact, the market size of the fitness industry alone is projected to be $4.5 million in 2025 (IBISWorld).
Franchise Distribution Across Provinces
Franchise regulations are left up to the individual provinces in Canada. Out of the ten provinces, the following six require franchisors to provide a Franchise Disclosure Document (FDD):
Out of the six provinces with franchising legislation, Ontario is the franchising hub with “56% of franchises headquartered in Ontario (primarily in the Greater Toronto Area), and 65% of all franchise outlets operating in Ontario” (Franchise101.inc).
Other key provinces include British Columbia and Alberta with 62.6% of Canadian Franchise Association (CFA) members operating in these locations.
Emerging Trends in Franchising
A few trends impacting the franchising industry in Canada include:
- Health & Wellness Franchises – This is such a large sector because of the growing consumer focus on health. Not only does an aging population need support to enjoy their lifestyle choices, but overall there is a “growing societal interest in well-being and the desire for healthier living options” (CFA).
- Education & B2B Services – These sectors are gaining traction due to evolving market needs. The supplemental education sector is growing because our kids need to be “better prepared to use the evolving technology of the future” and B2B businesses “that solve ongoing business needs will continue to flourish” (CFA).
- Technological Integration – It’s important that franchises keep up with the ever growing technologies so they can utilize the ones that will enhance their operations and customer experience.
Ready to Join the Franchise Industry in Canada?
Franchising is a pillar of the Canadian economy, offering entrepreneurs an exciting opportunity to pursue a viable and rewarding business opportunity. If you’re interested in owning a franchise in Canada, reach out to FranNet for expert guidance. Our franchise consultants will answer all of your questions and match you with the right franchise brand. Schedule your free consultation today to get started!
For further reading:
The Future of Canadian Franchising: What to Expect in 2024
Top 6 Reasons to Buy a Franchise in Canada