Canada offers enormous opportunity for franchisors seeking to grow beyond our U.S. border, according to a press release issued by Canadian law firm, Cassels, Brock & Blackwell. The release comes as franchise lawyers in the U.S. and Canada prepare for the American Bar Association’s 32nd annual Forum on Franchising conference in October.
The press release stated that well-known U.S. franchise Buffalo Wild Wings is expanding their operations in Canada.
This press release got me thinking, “Why all this fuss about Canada?” I did some high level research online and this is what I found:
- Canada has the second largest franchise industry in the world, led only by the U.S. One franchise operation exists for every 450 Canadians.
- Approximately one out of five consumer dollars are spent on franchise good and services.
- Of all the franchises that opened in Canada within the last five years, 86 percent are under the same ownership and 97 percent are still in business.
- The Franchise industry in Canada represents more than $100 billion in sales annually.
- Franchised businesses account for 40 percent of all retail sales.
- Franchising accounts for $90 billion per year in sales nationally, or 10 percent of Canada’s Gross Domestic Product (GDP).
Is your franchise facing expansion difficulties in the U.S.? Maybe it’s time to look at other markets. And, Canada seems to be the most viable option currently available to franchisors.
Have you considered expanding into a different country? Where? Why?