Franchising-in-Canada

5 Things to Remember While Franchising Your Business in Canada

Franchising in Canada is an outstanding option because Canada is the second-largest franchise industry in the world, which annually represents $100 billion and is growing continuously.


The franchise business model is gaining popularity worldwide, with new franchises opening rapidly. If you also want to start a franchise business in Canada then you should know these 5 important things before initiating your franchise business which are discussed below.
So, Let’s move on!

You are Not Buying the System, You are Renting It:

One thing to keep in mind when you are franchising in Canada is that you are not actually buying the franchise system, but rather renting it. You are paying the fees to use the franchisor’s brand and system, and in return, you are receiving support and guidance from your franchise team.

It is essential to have a clear understanding of this concept before starting your franchise. Be mindful of the fact that you don’t have ownership of the brand. You can use their marketing system, and trademark for a period of 5 to 10 years, it depends on the renewal of your franchise agreement.

Renewal and Assignment Rights are Not in Your Hands:

Another point you must remember before beginning your franchise business is that the renewal and assignment rights are not in your hands. Usually, every franchise agreement offers a franchisee to renew its franchise agreement at least one time and allows assigning the contract.

There are some fees or conditions which vary with the process of renewing your franchising agreement, and you have to necessarily meet those conditions. If you do not meet them, then unfortunately, you will not be able to renew or assign the agreement.

So, you should have awareness of the terms and conditions of the agreement before signing it, as it can impact your ability to renew or assign the franchise agreement.

Consider Franchise Disclosure Document (FDD):

Considering FDD (Franchise Disclosure Document) is important when starting a franchise business. The Franchise Disclosure Document outlines all the necessary information that a potential franchisee needs to know before signing a franchise agreement.

In some provinces of Canada including Alberta, Ontario, Manitoba, Prince Edward Island, and New Brunswick franchisors must hand over the FDD to franchisees.

This FDD includes the background, the franchise system’s financial performance, the franchisee’s obligations and fees, and the legal terms and conditions of the agreement.

You are Legally Responsible for any Breaches or Violations of the Law:

When someone is opening a franchise, they are legally responsible for any breaches or violations of the franchise laws. It is essential to know that if any of the franchisees breaks the law, the franchisor could face legal consequences, even if they were not involved in the violation.

And, the liability can cause franchisors to pay penalties as well. Furthermore, you can work with a franchise lawyer who will provide you with legal advice.

Ensure your Selected Brand Has a Positive Image and Reputation:

Ensuring that your selected brand has a positive image and reputation is the most important point you should remember and consider before starting a franchise business.


Brand awareness is remarkably essential in any business because a positive brand image increases the overall value of a franchise, enhancing the importance of every franchise located at various locations.


It helps businesses to stand out, increase customer loyalty, and increase brand awareness. To increase the brand awareness of your franchise, you can do franchise marketing and can take the help of franchise consultants.


Wrapping Up:

Franchising a business is an effective way to expand your business, but it requires careful consideration and planning.

With these 5 important things discussed above, there are also some other important things you should know before starting your franchise business. So, doing your research is essential before beginning a franchise business.

However, If you want to initiate your franchise business with a low burden then hiring franchise consultants from the best franchise consulting company in Canada will be a good choice as they will support you establish your franchise business goals.