Over the past few years, franchising in Canada has increased in popularity and business owners are experiencing the benefits of a franchise business. Across the country, franchises are growing in a variety of sectors, each of which is accessible to new and experienced business owners. Below is an overview of three different franchise areas that have demonstrated growth throughout the past few years.
Quick service restaurants
According to the 2019 Franchise Canada Franchising Trends Report, there has been a 34% growth in quick service restaurant franchise listings over the past five years. An emerging popular niche within the quick service restaurant sector is ethnic casual foods. Throughout Canada, more people are looking for flavourful, healthy, and unique dining experiences both inside restaurants and to have on the go.
One of the benefits of quick service restaurant franchises is that many of the established brands within this sector have been quick to recognize and react to customer preferences, enhancing the customer experience and promoting repeat business. One key preference that quick service restaurants have responded to is facilitating access to food quickly without having to leave home or even make a phone call through the implementation of online ordering and meal delivery services. Through embracing online ordering and delivery services, quick service restaurants are consistently and successfully reaching customers who would have been unlikely to visit a brick and mortar location. These franchises are serving a larger customer base without the hassle of expansion, both in staff numbers and physical space.
Educational products and services
Franchise Canada reports an astounding 91% growth in educational products and services franchise listings throughout the past five years. These franchises include businesses such as learning centres, programs, and educational products geared to learners from preschool through to University-aged. This robust sector meets the needs of learners who are looking for a solid foundation in general skills and academics as well as those who want to experience a focused approach in a single area of interest. Educational service franchises are multi-dimensional and offer a variety of revenue generating options such as tutoring, learning materials, monthly memberships, camps, afterschool care, and parties. This gives owners a diversified income stream.
Health and fitness
Health and fitness franchise listings over the past five years have experienced 35% growth. A long-standing player in the franchise game, health and fitness options continue to be in demand. From mobile fitness consulting to specialized workouts and full-service gyms, there are a variety of successful franchise models operating across Canada. One of the benefits of many health and fitness franchises is recurring memberships that help owners to accurately predict baseline monthly revenues.
These are only three of the sectors that have proven successful for franchise models over the past five years in Canada. While diverse in their offerings and target customers, they share several things in common such as
- Established business processes and procedures,
- Brand recognition,
- Marketing support, and
- Expert analysis and response to emerging customer trends and preferences.
Owning and operating a franchise in Canada is an option available to new and experienced business owners. Franchising takes some of the uncertainty out of business ownership and provides owners with the opportunity to grow through the acquisition of additional franchise locations. Despite the many advantages of this business model, it should be treated with the same due diligence as opening a brand new business. The right team of advisors, including a qualified Business Broker with franchise experience, is essential for success. Working together, advisors and business owners can ensure the owner has the required funds to purchase and operate the business and that the franchisor is offering demonstrated value in exchange for franchise fees. If you are ready to buy or sell a franchise location, give Acuity Business Group a call to learn more about how we can make the process easier and more successful.