Owning a franchise in Toronto can be a profitable business opportunity providing you do your research and choose a franchise that meets both your goals and your needs. “Franchising in Toronto has a much higher success rate than independent business owners,” said Shawn Saraga, president and founder of Mr. Franchise Inc. “On average, a franchisor has a proven track record of success, every store that opens, given the same relevant set of circumstances, can repeat the same success over and over again.”
Franchising in Toronto has had its challenges in the past three years, but Saraga said there are plenty of opportunities to acquire a franchise in Toronto and many are doing well. While 60 to 70 per cent of the franchises in Toronto are food based, there are about 1,200 franchise brands in more than 500 categories in Canada, offering a variety of options.
Lorraine McLachlan, president and CEO of the Canadian Franchise Association (CFA), said there is a wide range of people that could be great candidates to be a franchisee. You could be a student just out of school, of a retiree looking for a secondary career; you could be in mid-career and want to run your own business. This was particularly relevant during the recent recession.”Many thought, ‘I don’t want to be at the whim of my employer and be a part of the percentage of staff that are downsized,’ so people want greater control and are looking for options, and running your own business is certainly a viable option,” McLachlan said. However, she said a lot of research needs to be done before acquiring a franchise.
First, think about what you like to do; don’t acquire one just because you think it’ll do well. It has to be something you believe in. Also, while it’s not necessary to have years of experience, you should have some background in that area. Saraga said the franchisor will help to teach you the business, so what’s key to being a successful franchisee is having a passion and desire to succeed. “Invest in a franchise that you see has a successful track record and the one you’re passionate about, invest in one you have something in common with – if you don’t like sports don’t invest in a sports bar,” he said.
There is an abundance of resources available to help with the process. The CFA has an online directory of their members and non-members as well as a series of 24 tutorials. There are franchisor websites, franchise consultants and magazines dedicated to the world of franchising.
McLachlan advises people to talk to current franchisees, both new franchisees and those who’ve been in business awhile, and who are in businesses similar to what they’re considering. “The new franchisee is going to have a different experience because they’re going up a learning curve,” she said. “Five or 10 years later, you’ve got the systems, you’ve done it, you’ve been there, and you’re able to do things far more efficiently. “Like in all businesses there are trends in franchising.” McLachlan said. One of the huge growth areas include home and senior care due to the ever-growing senior population. Business to business is another growing category, such as printing companies PostNet and Kwik Copy, and children’s products and services are also experiencing a lot of growth.
With the changes that have occurred in the education system McLachlan said parents want to see their children succeed, so learning centres that provide additional tutoring are in demand.
Also, she said the popularity of commercial and residential services has gone up significantly for those who want cleaning services, grounds care, as well as industrial cleaning in the workplace. Saraga adds that Shoeless Joe’s and Druxy’s offer a lot of growth opportunity, and there are a lot of businesses from other provinces and countries opening franchises in Toronto.”Buffalo Wild Wings is here now and they’re opening up very aggressively, Cactus Club and Joey are in downtown Toronto. There are a lot of companies like that that are in Toronto, like Marshalls…all these companies from the U.S. are doing a massive invasion right now,” he said.
The CFA hosts two Franchise Shows annually. Visit www.cfa.ca for more information on their directory, the franchise show or to read Canadian Franchise magazine free online.