Global Franchise Issue 10.1

anada is a lot of things: a land of opportunity for newcomers, a beautiful destination for visitors, and a strong community for its citizens and residents. But for entrepreneurs, it’s also a destination for success.With a highly educated base of potential franchisees and customers alike, continual growth in a variety of industries, and space for new leadership, Canada offers exciting business opportunities in a diverse market, especially when it comes to franchising. Boasting franchises across all sectors, an eager base of prospective franchisees looking for their next opportunity, and continued industry growth, there are many reasons why Canada is an ideal place to expand a franchise brand. Canada strong Franchising is the 12th largest industry in Canada – and the Canadian franchise industry is the second largest in the world. Last year, the total franchise-related GDP in Canada was expected to grow to $120 billion; instead, the industry surpassed expectations, contributing $128.4 billion to the GDP by 2025. This number is projected to increase by approximately 4% to more than $1.33.3 billion by 2026. Even through economic challenges, Canadian franchising has proved to be a stronghold of wealth generation and a shining example of resiliency. Canadian franchising is poised to expand even further with the potential for long-term, sustainable growth. In a country of 40million people, there are almost 68,000 franchise establishments from coast to coast to coast. The Canadian franchise industry is comprised of more than 1,100 brands that have at least one Canadian establishment. That makes franchising a constant presence in the life of the everyday Canadian, with one in 20 Canadians being employed, directly or indirectly, in a franchise system. Every day, the average Canadian interacts with three to five franchise locations. They stop in at their local franchised cafe for a morning coffee, grab lunch from a QSR brand, and drop their kids off for daycare, after-school extracurriculars, or even swimming lessons with a franchised business owner in their community. After work, they pick up pet food or take a fitness class with a franchised studio. Almost two million Canadians are projected to be employed by the franchise industry in 2025, and the industry is expected to pay those employees $69.9 billion in wages – a $2.5 billion increase from 2024. That’s why franchising in Canada is an essential industry, its presence felt in every facet of Canadian life. Since the introduction of the International Franchise Attractiveness Index in 2020, Canada has consistently ranked among the top six countries with attractive franchise markets for balanced growth. This means international franchise brands, from the U.S. and otherwise, have a strong chance of maintaining growth in Canadian sectors. Furthermore, an investment in Canadian franchising is a low-cost, low-risk option for expansion into an international market: it’s the second among G7 countries for political stability. The marginal effective tax rate has also been trending downward since 2000, and is now the lowest of all G7 countries. Seeking new partners or master franchisees? Canada boasts one of the C “Canada is home to a powerful franchise ecosystem – one that’s growing faster, reaching further, and welcoming international brands like never before” MADE IN CANADA Tim Hortons is Canada’s largest franchise, boasting 3,558 locations nationwide as of April 2025, with over half situated in Ontario, and 5100+ outlets worldwide. B U S I N E S S W I S E 68 GLOBAL FRANCHISE Issue 10.1