November/December 2018 – Franchise Canada https://cfa.ca/franchisecanada Produced by the Canadian Franchise Association Mon, 02 Mar 2020 18:08:59 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 https://cfa.ca/franchisecanada/wp-content/uploads/sites/16/2020/03/cropped-cropped-favicon-32x32.png November/December 2018 – Franchise Canada https://cfa.ca/franchisecanada 32 32 The Vertical $10: A New Direction for Canada’s Bank Notes https://cfa.ca/franchisecanada/the-vertical-10-a-new-direction-for-canadas-bank-notes/ Mon, 07 Jan 2019 20:42:49 +0000 https://cfa-ca.flywheelsites.com/franchisecanada-2/?p=4272 On March 8, 2018, International Women’s Day, bank note history was made as the design of Canada’s upcoming $10 bill, featuring social justice defender Viola Desmond, was unveiled to Canadians. In an emotional ceremony at the Halifax Central Library, Finance Minister Bill Morneau and Bank of Can­ada Governor Stephen S....

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On March 8, 2018, International Women’s Day, bank note history was made as the design of Canada’s upcoming $10 bill, featuring social justice defender Viola Desmond, was unveiled to Canadians.

In an emotional ceremony at the Halifax Central Library, Finance Minister Bill Morneau and Bank of Can­ada Governor Stephen S. Poloz, accompanied by Viola Desmond’s sister, Wanda Robson, revealed the first regu­larly circulating note to feature a Canadian woman as the portrait subject. It’s also the first vertically oriented note to be issued by the Bank of Canada.

This new note will be issued gradually, starting late this year, and will circulate along with the existing $10 notes. As the new regular $10 note, it will be produced by the Bank of Canada for years to come.

Inspiring images

The vertical orientation reflects the Bank’s innovative approach to bank note design, and allows for a larger portrait of Viola Desmond, a successful Black Nova Sco­tia businesswoman and one of the first women to fight racial segregation in Canada.

“As we strive for equality across our economy and in every facet of our country, we hope this constant reminder of Viola’s story will help inspire a new genera­tion of women, men, girls and boys to fight for what they believe, take their place and create a better future for themselves and all Canadians,” said Minister Morneau during the unveiling ceremony.

The back of the bank note brings Viola Desmond’s story into the present, with images and symbols that represent Canada’s ongoing pursuit of rights and freedoms.

Canadians had their say

Unveiling the note’s design was the culmination of a journey that began in 2016, when the public was asked to nominate an iconic Canadian woman to appear on the next bank note.

During this comprehensive consultation process, Viola Desmond was one of the many iconic women nomi­nated by Canadians, and was ultimately chosen by the Minister of Finance.

With the release of this new $10 note, the Bank of Can­ada’s approach to issuing bank notes is changing. Rather than issuing all five denominations within a short time frame, a new note will be released every few years. This will allow the Bank to integrate the latest security features each time a new bank note is issued, ensuring that Canadi­ans can continue to use their bank notes with confidence.

Beautiful and secure

Meanwhile, the upcoming $10 note has some enhanced security features compared with the notes in the cur­rent series, and is supported by a suite of accessibility features to help blind and partially-sighted Canadians determine the denomination with confidence.

“Our bank notes are designed not only to be a secure and durable means of payment, but also to be works of art that tell the stories of Canada. This new $10 fits that bill,” said Governor Poloz.

“I’m immensely proud of all the innovation that went into this note—from the public consultation process that encouraged a national conversation on the impor­tant contributions of women in Canadian history, to the note’s beautiful vertical design, to its cutting-edge secu­rity features. Canadians can use this note with both con­fidence and pride.”

Canada’s Vertical $10 at a glance

Secure, Durable and Easy to Use

The Bank of Canada issues new bank notes to stay ahead of counterfeiting threats and to keep pace with advances in technology. The new $10 note includes some enhanced security features to make it hard to counterfeit yet easy to use, thereby ensuring that Canadians maintain trust in their money.

For free, downloadable materials to help your business train staff to recognize genuine Canadian bank notes and avoid counterfeits, visit www.bankofcanada.ca/retailers.

Collaboration with the Cash- Handling Industry

The Bank is working with financial institutions and bank note equipment manufacturers to minimize the impact of this note on the cash-handling industry. The new $10 note maintains the same suite of machine-readable features as the current polymer notes: it is made from the same polymer material, the large transparent window is in the same position, and it retains an opaque border around the window.

Business owners of bank note handling equipment should contact their equipment suppliers with questions about machine compatibility.

If you would like to learn more about how the Bank works with the cash-handling machine industry, visit: www. bankofcanada.ca/cash-handling-machine-industry.

The Portrait: Courage and Dignity

A successful Black Nova Scotia businesswoman, Viola Desmond defiantly refused to leave a whites-only area of a movie theatre in 1946 and was subsequently jailed, convicted and fined. Her court case is one of the first known legal challenges against racial segregation brought forth by a Black woman in Canada.

Viola Desmond was selected as the portrait subject for this new note by Finance Minister Bill Morneau following an open call to Canadians to nominate iconic Canadian women who could appear on the redesigned $10 bank note.

Map: The Historic North End of Halifax

Adjacent to the portrait, an artistic rendering shows a map of Halifax as it appeared in 1951 when Viola Desmond lived and worked in the North End of the city. Members of this community were a great support to her as she challenged her criminal conviction.

National Symbols

Canadian national symbols, namely the Canadian flag, maple leaves and the Coat of Arms, are presented as metallic elements in and around the large transparent window on the note. The main element in the large window is based on the vaulted dome ceiling of the Library of Parliament.

A Window into Human Rights

The back of the note carries Viola Desmond’s story into the present, with images and symbols that represent Canada’s ongoing pursuit of rights and freedoms, including The Canadian Museum for Human Rights, which opened in Winnipeg, Manitoba, in 2014. It’s the first museum in the world solely dedicated to the evolution, celebration and future of human rights.

The Eagle Feather: Truth, Power and Freedom

For many First Nations peoples in Canada, the eagle is believed to fly higher and see further than any other bird, and an eagle feather symbolizes ideals such as truth, power and freedom. It is intended to represent the ongoing journey towards recognizing rights and freedoms for Indigenous Peoples in Canada.

Visit www.bankofcanada.ca/vertical10 to learn more about the security features and design of Canada’s new $10 bank note.

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Do You Have What it Takes to Succeed as a Franchisee? https://cfa.ca/franchisecanada/do-you-have-what-it-takes-to-succeed-as-a-franchisee/ Tue, 30 Oct 2018 15:03:58 +0000 https://cfa-ca.flywheelsites.com/franchisecanada-2/?p=4357 [pro_ad_display_adzone id=”4489″] [pro_ad_display_adzone id=”5114″] You’re ready to start a business, and have decided that the franchise business model is the right fit for you: you want to operate your own business, while having the support of an established system behind you. But before you get started and take that giant...

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You’re ready to start a business, and have decided that the franchise business model is the right fit for you: you want to operate your own business, while having the support of an established system behind you.

But before you get started and take that giant leap into franchise ownership, it’s essential to remember that franchisees are small business owners, and it takes a special combination of skills and traits in order to own and operate a business that resonates with your community.

Here, we’ve compiled a list of 10 of the top attributes of Canada’s most successful franchisees. So read on, and get ready to undertake a serious self-assessment to ensure you have what it takes to join the ranks of elite franchisees across the country!

1. Hardworking

There’s no doubt about it: franchising is a lot of work. Above all else, in order to thrive, a franchisee needs to be able to put in the time and effort to make their business a success. This is especially true for the first three to six months you’re in business, when you’ll be spending long hours learning the system and laying the foundation for a strong business.

2. Focused

Based on the amount of work you’ll be putting into your franchise (see point #1), you need to be 100 per cent focused on franchising, as it’s a full-time career that requires full-time participation. Don’t entertain any notions of being able to balance franchising with another job or career; with most franchise businesses, there simply won’t be time for other employment endeavours. If you’re not ready or able to focus on your franchise full time, you may want to reconsider this path.

3. Business oriented

Most franchise systems don’t require you to have specific skills or experience in the category you’re entering (for example, you don’t need to have food experience to own a restaurant franchise), but almost all franchisors are looking for candidates with strong business acumen. Ideally, you have an education or work background in business, with general business skills and know-how that can be transferred to assist you in running your franchise of choice.

4. Able to lead

While you’ll be following the franchise system, as a franchise owner, you’re in charge of your operation, and are responsible for your staff, and your results. It’s up to you to encourage and motivate your team members, to provide guidance, and to solve any issues as they arise, so you need to be ready to heed this call. Do You Have What it Takes to Succeed as a Franchisee?

5. Enjoy working with people

Franchising is a people-focused business: you’ll not only be interacting with your team of employees, but also with the customers/ clients you serve in a public-facing capacity. You need to be able to work with people to resolve problems, and to put your customers and community first. On top of that, you also need to be able to work with the franchise head office team, who will be there to provide continuous support.

6. Able and eager to communicate

As you’ll be spending so much time on a daily basis with your team and your customers/clients, you need to be an effective communicator. You should be able to clearly articulate tasks and expected outcomes to employees so they can thrive, and strong communication skills will also be a major asset in developing relationships with members of your community, which is critical for local marketing efforts.

7. Ready to follow a system

While you need to have entrepreneurial skills to own and operate your own business, you also need to remember that in franchising, you’re not going it alone. While the day-to-day operation of your franchise falls on you, ultimately, you’ll be following the system of operations as set out by your franchisor. Franchises are replicable businesses that are consistent from one location to the next, so you need to follow the system to the letter to ensure that your business looks and operates the same as every other franchise in your system. While you may not enjoy the freedom and flexibility of setting all of your own rules as you see fit, don’t forget that you’ll have the support of your system when you need it most, which is something that often can’t be beat.

8. Adaptable

To meet changing consumer needs, franchises need to follow suit, and will undergo rebranding and renovations, and put new advertising/marketing programs in place to cater to these customers. This means changes will often be introduced by the franchisor, and you need to be prepared to incorporate these changes, and to make time for any ongoing learning/training. Franchise legislation and labour laws are also changing the way franchises operate, so you need to look to your franchisor to provide updates on any legislative changes, so you can ensure you’re meeting all legal requirements.

9. Patient

When you’re putting in the hard work and long hours, it can be hard to remember that successful businesses aren’t built overnight. While you’ll be off to a strong start with the help of an established system of operations from the franchisor, it will still take time to grow your franchise business into a successful operation. But if you can be patient and stick with it through the first development period, you’ll be through the hardest part, and on your way to success.

10. Passionate

As they say, when you’ve found the career that you’re truly passionate about, it doesn’t feel like work at all. While the other nine skills and traits listed above will definitely be key to your franchising success, having passion for what you do is absolutely essential. When you find the franchise category and business that you love, you’ll be more ready and willing to rise to any challenges that come your way as you take your business to new franchising heights!

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Recognizing Excellence: Meet the 2018 CFA Award Winners https://cfa.ca/franchisecanada/recognizing-excellence-meet-the-2018-cfa-award-winners/ Fri, 26 Oct 2018 19:48:26 +0000 https://cfa-ca.flywheelsites.com/franchisecanada-2/?p=4349 Awarded to those who received the highest scores from their franchisees, the Canadian Franchise Association (CFA) Awards of Excellence in Franchising are the pinnacle of franchise achievement in Canada. To reflect the wide range of franchise opportunities and to enable franchise systems to be rated against their peers, entries are...

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Awarded to those who received the highest scores from their franchisees, the Canadian Franchise Association (CFA) Awards of Excellence in Franchising are the pinnacle of franchise achievement in Canada. To reflect the wide range of franchise opportunities and to enable franchise systems to be rated against their peers, entries are separated into Traditional Franchises, such as those with brick-and-mortar locations, and Non-Traditional Franchises, such as those that are mobile or home-based. Within these categories, franchises are grouped based on the number of franchisees in the system. Each category has a gold, silver, and bronze winner.

Here are the 2018 winners in each category! 

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In This Issue: November/December 2018 https://cfa.ca/franchisecanada/in-this-issue-novemberdecember/ Mon, 22 Oct 2018 17:38:46 +0000 https://cfa-ca.flywheelsites.com/franchisecanada-2/?p=4311 Editorial: 3rd Degree Training A&W Alair Homes Amramp Arby’s Arcadia Academy of Music Bank of Montreal BioPed Boston Pizza BRIGHTSTAR CARE CIBC ComForCare Home Car Comfort Keepers Downsizing Diva DriverSeat Driving Miss Daisy Druxy’s Everline Coatings Fat Burger Firehouse Subs FranNet GEM Health Care Gorilla Property Services Heart to Home...

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Editorial:

3rd Degree Training
A&W
Alair Homes
Amramp
Arby’s
Arcadia Academy of Music
Bank of Montreal
BioPed
Boston Pizza
BRIGHTSTAR CARE
CIBC
ComForCare Home Car
Comfort Keepers
Downsizing Diva
DriverSeat
Driving Miss Daisy
Druxy’s
Everline Coatings
Fat Burger
Firehouse Subs
FranNet
GEM Health Care
Gorilla Property Services
Heart to Home Meals
Home Instead Senior Care
Inspiration Learning Center
Jones & Co.
Just Like Family Homecare
Kumon Canada Inc.
Lice Squad.com
Little Kickers
Living Assistance Services
Mister Transmission
Move Seniors Lovingly
Mr. Lube
Network Franchising International
Nurse Next Door Homecare Services
Once Upon a Child
Panago
Part-T-Perfect
Paul Davis Restoration Inc.
Pet Valu
Pizza Nova
Restoration 1
Rolltation
Scholars Education Centre
Speedpro Signs
SupperWorks
Symposium Café
The Lunch Lady
The Ten Spot
The Works
Triple O’s
Two Men and a Truck
UCMAS Mental Math Schools
Vin Bon
Wendy’s
White Spot Restaurants
Wise Cracks

Advertisers:

Amazing Jewelry
Arby’s
BMO Bank of Montreal
Booster Juice
COBS Bread
Comfort Keepers
Crunch Fitness Canada
Dairy Queen Canada
Driverseat
Fatburger
Firehouse Subs
International Franchise Association
Jani-King
La Prep
M&M Food Market
Mary Brown’s Chicken & Taters
McDonald’s Restaurants Canada
Meridian
Midas International
Moneris
Mr. Greek
Paul Davis Restoration
Pizza Nova
Pizza Pizza
PropertyGuys.com
Quesada Burritos & Tacos
Snap-on Tools
Spiritleaf
The UPS Store
Wild Wing

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Giving Back: Pet Valu https://cfa.ca/franchisecanada/giving-back-pet-valu/ Mon, 22 Oct 2018 16:12:24 +0000 https://cfa-ca.flywheelsites.com/franchisecanada-2/?p=4305 LET YOUR DOG CHEW ON THIS: Pet Valu and their customers have given nearly $22-million worth of cash and donations to benefit the well-being of pets across Canada and the United States. And they’re showing no signs of slowing down. “It’s a really big part of what we do. Every...

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LET YOUR DOG CHEW ON THIS: Pet Valu and their customers have given nearly $22-million worth of cash and donations to benefit the well-being of pets across Canada and the United States. And they’re showing no signs of slowing down.

“It’s a really big part of what we do. Every year we work with our franchisees to raise more money and think of new initiatives we can take part in to help,” says Kellie McCutch­eon, Senior Marketing Manager of Pet Valu. “Animals can’t speak for themselves.”

This is why Pet Valu has taken on the responsibility of being the voice of furry friends. Going back as far as 2010, it’s a role that speaks volumes about their commitment to the welfare of all animals, be it at a local level – “Are you a local char­ity out of kitten milk? Our stores say ‘yes’, we’re going to help raise money for that,” says McCutcheon, or at a national level.

And it’s a role that says a lot about their commitment to helping people too. In 2014, Pet Valu teamed up with the Lions Foundation of Canada Dog Guides, a national charity that pro­vides guide dogs to Canadians with disabilities.

“We were looking for a national charity partner that spreads across the country and we loved the spe­cial work Lions Foundation is doing,” explains McCutcheon.

Pet Valu supports six guide dog programs that meet the needs of Canadians who are blind, visually impaired, deaf, or hard of hearing. Guide dogs are also critical tools for individuals with other disabilities, such as epilepsy, type 1 diabetes, and children with autism.

Throughout the year, Pet Valu franchisees raise funds for the Lions Foundation through their biggest fundraiser of the year: the Pet Valu Walk for Dog Guides. Held in 300 communities across Canada, Pet Valu proudly sponsors 96 teams to walk in support of Pet Valu fundrais­ing initiatives. Some of Pet Valu’s inti­atives include “Give-What-You-Can” Calendars featuring adorable pets, and bandana programs. Some of their franchisees even go above and beyond these initiatives by sponsor­ing their own dog guide teams.

Giving Canadians “a new leash on life and the gift of independence”, 100 per cent of the funds generated by this pet-friendly and all-inclusive walk go towards the training and placement of guide dogs. To date, the event has raised $15-million in dona­tions to facilitate the training of guide dogs for thousands of people. It’s a remarkable feat considering that to train, raise, and place just one guide dog for a person in need racks up a bill of about $25,000 in expenses.

And all of this wouldn’t be pos­sible without the support of Pet Valu customers.

“Our franchisees and employees do an amazing job of talking to cus­tomers about the fundraising initia­tive and educating customers about our work with Dog Guides,” says McCutcheon. “It just goes to show that every dollar counts.”

In fact, by stores simply asking shoppers to give any amount they wish, Pet Valu stores coast to coast have raised over $200,000 in 2018 alone.

On top of this, more and more franchisees support their own res­cues, local charities, and host fund­raising drives (like Pet Appreciation Month in April and Thanks for Giving in October), giving customers even more opportunities to help pets and people year-round.

“It’s been amazing. Our custom­ers truly believe in our mission. They’ve been, and continue to be, so lovely and generous,” she says.

From sponsored walks to pet food bank donations to adoption events throughout the year, Pet Valu’s commitment to supporting animal-centric charities has helped benefit both pets and their human compan­ions in many ways.

But there are still gaps in the care pets receive. Recognizing this, Pet Valu will soon be launching a new service in partnership with the North Bay and District Humane Society. The Pet Valu Animal Res­cue Express, starting this fall, will drive into communities, move pets around, and get them the services they desperately need.

What is sure to be an exciting project, it’s clear that Pet Valu is born and bred to give back. For the animals and people who benefit from their continued efforts, hav­ing a store like Pet Valu around (and local operators who care about giv­ing back to local pets in need), is enough to get any tail wagging.


By Trisha Utomi 

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Q: How do I prepare for ALL phases of franchise ownership? https://cfa.ca/franchisecanada/q-what-should-i-expect-from-working-with-a-franchising-consultant-2-2/ Mon, 22 Oct 2018 16:08:09 +0000 https://cfa-ca.flywheelsites.com/franchisecanada-2/?p=4301 IF YOU WANT TO START YOUR OWN BUSINESS, a franchise can be a great way to increase your chances of success. As a franchisee in a major network, you can expect to benefit from professional marketing, national advertising, specialized training, and centralized pur­chasing. As well, you are statistically more likely...

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IF YOU WANT TO START YOUR OWN BUSINESS, a franchise can be a great way to increase your chances of success. As a franchisee in a major network, you can expect to benefit from professional marketing, national advertising, specialized training, and centralized pur­chasing. As well, you are statistically more likely to suc­ceed with a well-established franchise than with a non-franchised independent business.

To get started, it’s important to have a holistic view of the franchise experience – including what you need to know at the beginning all the way to what is needed to sell.

Where to start

At the beginning, you will need to have a strong handle on your credit score history. Almost anyone starting a business will need to borrow in some way, so under­standing this element of starting a franchise is a vital step. Ensure there are no discrepancies; if there are any issues, work as best as you can to resolve them.

You will also need to make sure your personal finances are in order; consider that you may not be able to rely on the business for income in the first few years of operation. Being prepared is essential.

How to succeed

When choosing a franchise, prospective franchisees often consider growth potential. Fundamental to this choice is an understanding that a franchise will always, at least in part, be dependent on the franchise brand. Look for a franchise that’s a good fit for you. Do your research! See what the media is writing about the fran­chise, speak with customers, and visit existing loca­tions. Make sure you find a business model that you’re eager to commit to.

Longevity represents another vital trait to consider for a franchise. Some franchises pop up based on the lat­est consumer trends; they may well have excellent busi­ness models, but they won’t succeed without a sustained consumer appetite. Do your market research to ensure you are becoming a franchisee in a business with a long-term future.

You also need to consider the implications of hiring staff; this requires an understanding of human resources and payroll practices. When you set up your franchise business, you can make use of the payroll services that many banks provide to accommodate small enterprises and start-ups. As your company grows, you can transi­tion to a payroll company – doing so provides the benefit of freeing up time for you and your staff to concentrate on actual business operations.

You also need to consider ways of keeping your staff happy. Talent retention can be a challenge, especially for a new and growing business. Do what you can to keep your team engaged; this leads to staff who are more loyal and invested in the company, which helps keep turnover to a minimum.

Closing the door on your franchise

Finally, you need to consider the end of your ownership. While it’s understandable that selling your franchise is the last thing on your mind when you’re setting it up, see­ing the whole journey of ownership – including its end – must be an integral part of your business plan.

As part of your search for a franchise network, you should ask about succession – get an understanding of what is permissible and how the process works. There may be restrictions on a sale; a franchisor may insist you can sell only to them at a pre-determined formula, while another may allow you to sell to the open market with its approval and final say. Succession might be another option; if your franchise is meant to be a family business, you need to be aware of how your business decisions affect the value of your asset over a longer time horizon. Speaking to a wealth manager or estate planner will help you get your affairs in order.

Canada’s franchise industry is demonstrating an excel­lent level of growth. We have seen increased interest as more and more Canadians turn to franchising as their career and way of life. Done right, you can make a success of an exciting opportunity for business ownership.

Joseph Pisani
Director North American Industry Sectors, Franchise Finance
BMO Bank of Montreal 
www.bmo.com/franchising

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Q: What should I expect from working with a franchising consultant? https://cfa.ca/franchisecanada/q-what-should-i-expect-from-working-with-a-franchising-consultant-3/ Mon, 22 Oct 2018 16:01:22 +0000 https://cfa-ca.flywheelsites.com/franchisecanada-2/?p=4298 THANKS TO THE INTERNET, folks searching for fran­chise opportunities have a virtually unlimited amount of information available at their fingertips. Franchisors are more creatively targeting online marketing and advertis­ing too. And, of course, there are still traditional options like trade shows. There is however a downside to this accessibility: information...

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THANKS TO THE INTERNET, folks searching for fran­chise opportunities have a virtually unlimited amount of information available at their fingertips. Franchisors are more creatively targeting online marketing and advertis­ing too. And, of course, there are still traditional options like trade shows. There is however a downside to this accessibility: information overload! With such breadth of information out there in the digital space, users run the risk of frequently running into questionable content propagating potentially incorrect or biased information. One can easily get in over their head and float rudderless towards a bad decision.

This is where working with a trusted franchise con­sultant comes in.

Let’s start by clarifying “Franchise Consultant.” Many franchise consultants specialize in helping companies start franchising; or established franchises with a spe­cific need or challenge. My business card also reads “franchise consultant”, but my role is different in that I help prospective franchisees navigate the sometimes overwhelming arena of finding and researching possible franchises to invest in.

When it comes to the question of what to expect from working with a franchising consultant, one thing should be on the top of your mind: that your needs come first.

In my role, I work for you. Regardless of the fact that I am compensated by the franchisor (when clients move ahead with a franchise), my duty to the franchisor is to help them find the most suitable franchisee. At the same time, it is to help you find and research the ideal franchise for you. There is a lot at stake here. My ethics and reputation are on the line while you, by choosing to enter the world of franchising, are making a life-changing financial investment. In order for you to achieve the best outcome, I need to put your needs first.

The first step when we team up is to formalize your game plan, or business model. By taking the time and effort up front to explore the many aspects of what the ideal business looks like for you, we eliminate guess work and I can make solid franchise recommendations. It becomes immediately apparent that I have a great deal of questions in a number of areas for you to help me fully understand what you are looking to do. Because my recommendations of which franchises you might want to consider exploring are a direct result of this step, it is important to not rush through it or pass over critical subject areas with potentially major outcomes.

When we talk about money, my aim is to understand how much you are comfortable investing; where the funds are coming from, and if you plan on borrowing. It is not my place to suggest how much capital you should invest, or to encourage you to bump the number up. I should, however, point out that I may directly question your fig­ure if it appears to be overly aggressive or unrealistic. If needed, I will encourage you to take a more conservative approach to the financial aspect of the franchise. By buff­ering the amount of investment required; for example: factoring in higher-than-anticipated start-up costs or longer-than-usual period to positive cashflow, I can help us stay the course. Here, I am putting your needs first to ensure you do not risk your investment by running out of start-up capital in the early days. It is also worth noting that your fit, enjoyment, and success in franchising is not directly tied to the investment you make.

Once the game plan has been set, it is time to get introduced to franchise concepts that come closest to bullseye on the priority factors laid out. There shouldn’t be any bias towards franchises that other people have opted for (unless it is a solid match for you too), or pref­erence towards “new” or “hot” franchises, or ones that are fastest growing for reasons that don’t line up with your agenda.

One thing I will reiterate at this point is the expected volume of work about to begin. Earlier conversations clarifying your available bandwidth may influence how many franchises we explore at one time. And at no time will we suggest watering down your research efforts by looking at too many at once.

The research agenda we follow is purely yours and I will endorse the client’s needs when it comes to time­line over those of the franchisors. In the past I have seen franchisors keenly invite candidates to discovery days prematurely – The goal will be to time your head office visit when you are ready. Accountability is one thing you can count on me to provide – keeping you on task with following proven processes. Without adhering to one, you are left to make up your own and run the risk of get­ting it wrong.

While the intention is never to unnecessarily slow your progress, I am guilty of asking clients “have you talked to enough franchisees” or spending time focusing on aspects of the business that might be less appealing or more challenging to you. At no point am I there to wave you to a decision like a 3rd base coach when there is still work to be done. This will always include advocat­ing working with a bonified franchise lawyer to review the FDD and your franchise agreements.

And just when you think it is decision time, it’s time to jump in the hot seat. Your job is to demonstrate that you have done your homework to the full extent and coming to the end with your eyes wide open. Ulti­mately you have to convince me that you are making a smart decision.

No one else’s agenda is ever at the forefront when working with a franchise consultant. If you feel other­wise – pressured, being sold or rushed – then it is not a good fit and time to part ways and consider another consultant.

Jania Bailey
CEO
FranNet
jbailey@frannet.com

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Q: What do I need to know about buying a U.S. based franchise? https://cfa.ca/franchisecanada/q-what-do-i-need-to-know-about-buying-a-u-s-based-franchise-2/ Mon, 22 Oct 2018 15:55:58 +0000 https://cfa-ca.flywheelsites.com/franchisecanada-2/?p=4295 THERE IS NO SHORTAGE of new and promising fran­chise concepts in the United States. Many of these fran­chisors haven’t yet opened franchises in Canada, but are keen to expand north of the border. As a franchisee, you may be tempted to buy an American franchise concept to be the first...

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THERE IS NO SHORTAGE of new and promising fran­chise concepts in the United States. Many of these fran­chisors haven’t yet opened franchises in Canada, but are keen to expand north of the border. As a franchisee, you may be tempted to buy an American franchise concept to be the first to implement it in Canada, or perhaps the price of such opportunity appears more attractive than what more established franchisors in Canada are offer­ing. In any case, you should be paying close attention to issues specific to international franchising:

Withholding Taxes

If you are paying royalties to a non-resident of Canada, you must remit a certain percentage of the payment (10 per cent, if the franchisor is a U.S. resident) to the Canada Revenue Agency on account of withholding taxes. With­holding tax is basically a tax on a foreign franchisor’s income generated in Canada, but the burden is on you as a “source” of income to withhold it and remit to the govern­ment. Aside from withholding tax on royalties, payments you make to the American franchisor for the services they provide to you may be subject to 15 per cent tax.

Not only are you liable to the CRA if you fail to pay the tax, some franchisors will try to shift this tax burden on you by including a “gross up clause” in the franchise agreement. A gross-up clause will require you make up the payment so that the franchisor receives the same net amount as if no withholding tax has been withheld. This will significantly increase your royalty payments.

Advertising

Canada may be considered a 51st state, but it doesn’t mean that American advertising can be used “as is” in Canada. If the American franchisor requires you to con­tribute to the national advertising fund, ask them what kind of advertising the fund is paying for. Some materials (website content, social media campaigns, brochures) are easily adapted for use in Canada. For other materi­als, including catalogues, menus and labels, additional costs may be required to bring them in line with local laws (French language requirements in particular) and tastes. The cost of tweaking American promotional materials will generally be on you. U.S. ad funds will not usually cover the cost of buying spot packages to air a TV ad on a Canadian network.

Supplies, Labour and Investment Costs

Financial viability of a business depends, to a large extent, on containing the costs of supplies and labour. Again, the Canadian and American markets are similar, but not identical, and you may run into additional expenses or higher costs when running a similar business in Canada. Minimum wages are higher in many Canadian provinces than south of the border; if you are required to purchase supplies from the franchisor or their approved supplier in the U.S., you may face currency fluctuations, customs duties, shipping charges and even import restrictions (think of the Canadian supply management system for dairy and poultry products).

Consider the effect of trade tensions with the U.S., including whether any of the products you need for the franchise business are now subject to tariffs.

If you are dealing with a franchisor not experienced in international franchising, the estimates of investment costs they provide are likely derived solely from the U.S. operations and may not account for Canadian realities. You need to do your own research to fully understand the costs involved in establishing and running the busi­ness in Canada.

Dispute Resolution

If you operate a franchise in Alberta, British Columbia, Manitoba, New Brunswick, Ontario or PEI, disputes related to disclosure, rescission, duty of fair dealing, and the right to associate must be litigated or arbitrated in your province. However, your franchise agreement is a com­plex commercial contract covering, usually, many other aspects of your relationship, including confidentiality and non-compete obligations, system standards, termination and renewal, advertising, financial audits etc. If the fran­chisor insists on litigating or arbitrating these issues in the franchisor’s home state, it may be cost prohibitive for you to pursue a claim against the franchisor in the U.S.

There are, of course, other considerations when buy­ing a foreign-based franchise, including the franchisor’s ability to provide on-the-ground support, adaptability of the franchise concept to the Canadian market, and avail­ability of trademark protection for the brand in Canada. Study the opportunity as carefully (if not more carefully) as you would assess a domestic offering, and don’t hesi­tate to obtain professional advice before committing the time and expense of developing the business.

Katya Logunov
International Franchise Lawyer
Jones & Co. 
katya.logunov@jonesco-law.ca
647.748.1749

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Franchise Fun: Don Fox, Firehouse Subs https://cfa.ca/franchisecanada/franchise-fun-don-fox-firehouse-subs/ Mon, 22 Oct 2018 15:46:50 +0000 https://cfa-ca.flywheelsites.com/franchisecanada-2/?p=4292 Firehouse Subs CEO Don Fox is a 44-year veteran of the food service industry. Describing himself as curious, empathetic, and committed, he and the Firehouse Subs brand saw fertile ground in Canada and the nation’s lucrative and growing QSR sector. That’s why in 2015, Firehouse Subs opened their first series...

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Firehouse Subs CEO Don Fox is a 44-year veteran of the food service industry. Describing himself as curious, empathetic, and committed, he and the Firehouse Subs brand saw fertile ground in Canada and the nation’s lucrative and growing QSR sector. That’s why in 2015, Firehouse Subs opened their first series of Canadian franchise locations throughout Ontario. Firehouse Subs specializes in hearty and flavourful hot sub sandwiches, served by committed team members who have a flair for heartfelt service. The brand was founded by two firefighter brothers, Chris Sorensen and Robin Sorensen; inspired by the selflessness of first responders, their greatest source of pride is the manner in which the brand gives back to their communities by donating life-saving equipment to public safety entities. Read on to learn more about Fox, who’s looking to open doors for Canadian entrepreneurs across the country with the Firehouse Subs brand.

The most interesting thing I’ve done recently is…

Examining the generational use of the Firehouse Subs brand, to better understand how our business will evolve over the next five to ten years.

In its best form, work is…

Fun, interesting, fruitful, and enhances personal development.

A good franchisee…

Recognizes the unique nature of the franchise business model, and is as committed to the success of the brand as they are their own personal success. They understand that they cannot be successful if their franchisor is not successful.

My top advice for prospective franchisees and new franchisors is… To understand what is TRULY required in order to achieve success within a brand. If you are not willing to embrace the culture of the brand, and be committed to the “playbook”, then franchising is not for you.

My top advice for new franchisors is to make sure your business model is actually well suited for franchising; this should be done predominately by operating company units yourself, and thus developing and demonstrating operational expertise while demonstrating a thorough understanding of unit economics.

The most important thing in life is… Adding value. Even if in the smallest ways, leave a positive imprint on the world and those you come in contact with on your journey.

One of the most enjoyable things to do is…

See those whom you have coached and trained succeed in their own endeavors.

The hardest thing for me to do is…

To say “no”.

My favourite drink is…

Ice-cold water after working up a good sweat! My favourite drink I like to see others enjoy is any one of the 120+ brands available in our Coca-Cola Freestyle machines.

If I could change one thing…

It would be to drink a lot more ice-cold water.

If I could meet anyone…

It would be Major General John S. Wood, commanding officer of the United States Army Fourth Armored Division.

The person who has had the most positive influence on me as a businessperson is…

Ed Jarnagin, who was a district manager I reported to as a young general manager with Burger King. Ed taught me the value of supporting your team, especially when it requires selflessness.

Canadian franchising is…

A great opportunity, and fertile ground for bringing exciting new brands to the country.

My franchise system began because…

Our founders felt that the best way to grow the Firehouse Subs brand was by unleashing the power of entrepreneurship.

The most positive influence on my life as a person is…

My children. They serve as a constant reminder to be a positive role model.

The key to success is…

Being passionate about what you do.

I’d like my friends to describe me as…

A genuinely nice person, who always treats people with fairness and generosity.

The accomplishment I look forward to the most is…

Being an empty nester and already seeing my children become independent and successful in their own right, the accomplishment I look forward to the most is growing the Firehouse brand into a $1B+ system.

My personal motto is…

We will be judged by our deeds alone.

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Emerging System: Driven by Principles https://cfa.ca/franchisecanada/emerging-system-driven-by-principles/ Mon, 22 Oct 2018 15:40:49 +0000 https://cfa-ca.flywheelsites.com/franchisecanada-2/?p=4289 Sometimes a great business idea is right under your nose. Or, in the case of line painting and parking lot maintenance company EverLine Coatings and Services, right under your feet. Company president John Evans became familiar with the franchise model while running a painting company while pursuing his university degree....

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Sometimes a great business idea is right under your nose. Or, in the case of line painting and parking lot maintenance company EverLine Coatings and Services, right under your feet. Company president John Evans became familiar with the franchise model while running a painting company while pursuing his university degree. He was very successful in this venture.

“I was at the top of the province and second in Canada for revenue,” he says. As he was contemplating what he wanted to do when he graduated, he happened to attend a franchise show. One of the companies present was licensing a durable paint product that could be used for traffic markings. This gave Evans an idea. “It got me thinking about how the paint could give a standalone company here in Calgary an advantage with a unique more durable product than what is out there on the mar­ket,” he recalls. So, he went for a weekend of training with the company, where he learned how to perform parking lot line painting. From there, he started EverLine in 2012.

“It’s really fun and exciting to see this business grow, and to give this business model to other people and see what they can do with it,” he says, adding how his expec­tations were exceeded by the franchisees he’s brought on board. “Never in my wildest dreams did I think I’d see a franchisee in his third year match our revenue when I’ve been in the business for seven years. Seeing how this model works in different markets has been very inter­ esting. I wasn’t sure how the EverLine business model would work in smaller areas like say Saskatoon or Sud­bury, and they are absolutely killing it.”

Evans has a really clear idea of what an ideal EverLine Coatings franchisee looks like as the organization eyes a youth movement. Having ran a painting business as a student himself, he knows first-hand what younger fran­chisees can bring to the table.

“We are really focused on having millennials as fran­chisees. At EverLine, we are harnessing the energy of the millennial generation,” he explains. Specifically, he wants millennials who have run a student painting busi­ness in the past, adding how the benefit of this experi­ence is that the EverLine business is familiar to them, but is still different enough to remain interesting.

“It’s a new opportunity working business to business instead of business to consumer,” he adds. “We found that it’s an excellent transition for those who have had a painting franchise, because all of our franchisees have that [background].” Above all, he wants to attract “People who understand the challenges, sacrifices and rewards of being an entrepreneur.”

EverLine company policy is to recruit and retain fran­chisees and employees using the company values, which they refer to as the ‘DRIVEN Principles’: Dedicated, resourceful, integrity focused, value based, excelling, and nourishing. “They are a powerful tool not only for the franchise owners that they bring on, but the people that they hire,” Evans says of the company credo.

One of the benefits of a small, emerging system is that franchisees get to be more involved with how the system develops. “They get a chance to make their mark,” he says, pointing out how McDonalds’ iconic Big Mac was invented by a franchisee. “Millennials want to make an impact, wherever they end up. This is a unique opportu­nity where they are getting in at the ground floor and are part of the story and the history of the company.”

Another benefit of the EverLine franchise system is that the company stretches across the country. “There’s a lot of power in national collaboration as a company,” he states. EverLine also has the exclusive rights to a propri­etary paint called TBL Durables. “It lasts 2-3 times lon­ger than what is out there on the market, so it gives us an edge working with malls and municipalities,” he says. Shared marketing insights, shared best practices, and a pricing software to keep everything consistent are more of the system’s benefits, according to Evans.

Evans says that alongside all of the positive aspects of the franchise system, there are still challenges. “As with any franchise, people have different personalities running the same business, and they prioritize different things,” he points out. “But it’s all about just working through that and coming up with the solutions that work for everyone.”

After a franchisee is brought on board, they attend three separate training weekends in either Calgary or Toronto. This first training session is focused on effec­tively building and running the business, with introduc­tory training in how to paint parking lot lines. “They learn how to sell and how to establish the administrative side of the business,” says Evans. “In the second session, we apply more advanced tactics to the individual parts of the market to make sure that the franchisees are max­imizing their success for their first summer out of the business.” The third and final training session is focused on the line painting itself. “We get them and some of their line painters on the machines so that they are learning their trade and ready to roll as soon as the snow melts,” describes Evans. “We give franchisees relevant informa­tion in small bites; this leads to greater retention and better training. We do it all over a few months so that learning is less like drinking out of a firehose.”

The franchisor also provides ongoing biweekly sup­port meetings where all the franchisees have the oppor­tunity to collaborate. “That actually gives us an advan­tage coming up with good ideas,” Evans points out. Beyond that, franchisees also have one-on-one meetings where they go over the financials, and make sure that they are hitting their targets and reaching their goals.

Resources are also available whenever a franchisee needs them through an internal communications plat­form in the cloud.

Since EverLine services national clients like Home Depot, 7-11 and Walmart, Evans wants to have a strong national network of franchisees who are able to service and support these contracts. He says that being able to service those companies is a huge benefit of being one connected system across the country, and it gives his franchisees a real competitive edge.

“I’m looking at a very large market and to be every­where across Canada in some way, shape or form,” describes Evans. “That may even mean developing a micro franchise model for all those tiny areas. For the last couple years it’s been all about controlled growth; testing the systems, testing different markets. We are looking to expand in British Columbia, particularly Van­couver and the island. We are planning on going to the United States as well within the next two years.”


By Karen Stevens

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