Global Franchise Issue 10.1

with a wealth of information and according to the country’s franchising best practices. Industry support from financial institutions and government organizations is also there to offer guidance to new franchisors and systems along the way. All the major Canadian banks have established head office franchise departments, providing customized programs and financial solutions to assist franchise systems with all their funding needs. (World Franchise Council Country Report, Canada). Investment support can be sought from the following organizations: The Business Development Bank of Canada (BDC) promotes entrepreneurship by providing highly tailored financing, venture capital, and consulting services, including loans and grants, to entrepreneurs. The Canada Small Business Financing Program (CSBFP) is a government program that increases the availability of loans for small businesses by encouraging banks to lend to small businesses by co- owning the risk with the banks. The Categories to watch The following categories have experienced growth over the past year, making them strong options for those looking to purchase a franchise in Canada. * Children’s products & services: +10% As a new generation grows and parents increasingly opt for extracurricular educational opportunities, children’s products – including tutoring services, STEM education, and swimming lessons – have grown in popularity. Quick service restaurants (QSR): +6% QSR remains one of the largest industry segments for franchise growth, with creative new concepts finding newways to bring convenience to Canadian customers, and longstanding favourites expanding into new territories to reach eager diners. Beauty, health, and spa services: +9% Through challenging economic times, the average Canadian has increasingly turned to affordable luxuries like beauty, hair salon, and spa services as a spending line that won’t break the bank. Studies show consumer spending trending upward in personal care and self- care products and services. Spas and salons are seeing increased growth in the Canadian market in 2025 and beyond. Full-service restaurants: +7% It’s not just QSR brands seeing growth. Full-service restaurants and dining rooms are also growing in popularity. On the path to recovery from the pandemic-era challenges facing this sector, restaurants are seeing an increase in eager diners. Franchising has also proved an effective method for small restaurant businesses to scale and launch new locations across the country. **Based on the comparison of FranchiseCanada Directory listings between 2024 and 2025. population, which is the largest in Canada. This makes Ontario an attractive market for franchisors looking to enter Canada. Overall, about 48% of all the country’s franchise units are in Ontario, but that also means there’s room to grow in the Prairies, the Atlantic, and in West Coast markets. Slower projected growth in parts of Atlantic Canada and Quebec means there’s more space for international franchises to initiate expansion and develop an audience in these markets. Solid foundation Franchise law in Canada is distinct from other countries due to the presence of franchising legislation, which is provincially regulated. Corporate tax rates vary, depending on the industry and type of corporation. The Canadian Franchise Association (CFA) offers a myriad of educational resources to help ensure new systems in Canada are operating most highly skilled talent markets in the world. The country ranks number one for most educated workforce in the world, with 67.1% of the workforce holding a post-secondary certificate, diploma, or degree, and is the top global destination for people with masters’ and doctorate degrees. Regional breakdown The Canadian franchise industry is projected to continue to grow in the coming year, with more franchise establishments expected to open in all provinces. Across the country, Ontario is expected to have the largest number of franchise establishments added, bringing its projected total to almost 32,800 establishments, while Alberta is projected to have the highest percentage of growth, expected to reach 8,015 establishments by 2026. Ontario dominates the franchise economy with the sheer number of locations, representing the province’s 70 GLOBAL FRANCHISE Issue 10.1