The Pros and Cons of Canadian Franchise Opportunities

When researching Canadian franchise opportunities, it’s important to get both sides of the story. In today’s post, we share 6 pros and 3 cons to franchising in Canada.

Franchising Pros

  • Franchisors typically provide comprehensive marketing support.
  • Your franchise family is invested in your success and will always be available to provide support, advice, and additional training.
  • Franchise training equips newcomers with all the relevant skills and knowledge they need to succeed.
  • Many franchisors provide assistance securing loans and credit.
  • Many franchises offer territory exclusivity, which eliminates intersystem competition.
  • Franchising means walking into an established brand reputation, which makes it easier to build business relationships and attract new customers early on.

Franchising Cons

Not all Canadian franchise opportunities have low startup costs.

Whether you’re starting a business on your own or buying into a franchise system, you’re probably going to have to spend a significant amount of money. Some franchises are more expensive than others; you could spend thousands or millions depending on which brand you choose.

Most business owners need no reminders about the value of saving money, but mid to high-level startup costs aren’t all bad. The level of support, operational efficiency, and marketing muscle that the franchisor can offer is often directly proportionate to the startup price tag. It’s just simple math; franchisors who ask for greater “buy ins” have more working capital to fund support services. Of course, this isn’t always the case.

At the end of the day, the most important thing to remember is that there are hundreds of Canadian franchise opportunities out there, and they’re all priced differently. Do your research and consider working with a franchise adviser to find what works for your budget.

Franchisees often share their profits with brand owners.

Franchisees typically have to pay royalties to the franchisor. Though the percentages vary from one franchise to the next, franchise fees are quite common.

This can be jarring for newcomers, but it’s actually not all bad. Royalties don’t just fund the franchisor’s family tuition and vacations; they’re also used to maintain the brand’s infrastructure, paying for training, support, marketing, R&D, and more. Knowing this, most franchisees see royalties as an investment in their system rather than some crippling expense.

Furthermore, royalty fee systems encourage franchisors to care about the success of your individual location; the more you make, the better it is for the franchisor.

Importantly, not all franchises collect royalty fees. If this “franchise rental fee” doesn’t work for you, there are royalty-free opportunities that will!

Some franchisees don’t get a say in their brand’s decision-making.

Many franchises follow strict processes for startup, marketing, and day-to-day operations. In some cases, you’re simply a cog in the machine; you’re renting a railroaded system to make money, not to take the reins and innovate.

For many people, system rigidity is one of the great appeals of franchising because it eliminates the guesswork; you turn on cruise-control and set off down a clear path to profitability.

Not all franchises use rigid operational systems, though. One of the most common misconceptions about franchising is that owning one means living and dying by their daily playbook. If you’re fiercely independent, you’ll need to find a franchise that encourages that. Don’t worry, they’re out there! And we can help you find them.

Learn more about Canadian franchise opportunities

Visit to find educational resources and FAQs about franchising, or to book a meeting with a free franchise consultant.

About FranNet Canada

FranNet is a 29-year-old company with roots in the U.S. Its purpose being to nurture every entrepreneur’s dream of business ownership. We actively employ a specific profiling and consultation method. This method is geared to each investor with a specific business model and based on franchise trends typically found in TorontoOntarioVancouverBritish Columbia, or CalgaryAlberta. The most lucrative Canadian franchise opportunities are waiting for you. For more details visit –

Feb 15, 2017