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Franchise Statistics

Canadian Franchise Statistics and Information
• Canada has the second largest franchise industry in the world, led only by the U.S. One franchise operation exists for every 450 Canadians
• The Franchise industry in Canada represents over $100 billion in sales annually and continues to grow.
• Approximately 1 out of 5 consumer dollars are spent on good and services at a franchise
• Approximately 76,000 individual franchise operations do business in Canada under 900 different brand names.
• Franchising employs over 1 million people in Canada or 1 out of every 14 working Canadians is employed by a Franchise.
• A Canadian franchise opens every 2 hours 365 days a year.
• Average franchise fee: $23,000
• Average franchisee investment: $160,000
• Of all the franchises opened in Canada within the last 5 years, 86% are under the same ownership and 97% are still in business
• Ontario leads the rest of the country in franchising with 56 per cent of franchises headquartered in Ontario, mostly in the Greater Toronto Area, and 65 per cent of franchise outlets operating in Ontario.
• Although the hospitality industry continues to be the largest single sector, comprising almost 40 per cent of franchised brand names, the franchise industry is active in over 30 business, service and retail sectors.
• Franchising is the preferred Canadian small business expansion model
• Extremely popular among Canadian consumers
• Canadian marketplace comprised primarily of American and domestically developed franchise businesses
• Over 40 different sectors with active franchise businesses, from florists to dry-cleaners to automotive shops
• Hospitality sector largest sector comprising 40% of the franchise marketplace
• In recent years, lower cost home-based and mobile type franchises have enjoyed most growth
• All Canadian banks have established national franchise departments
• Canadian Franchise Association - Established in 1967 as a trade association representing the shared interests of franchisors in Canada . All CFA members voluntarily undergo due diligence process before acceptance and agree to be bound by the CFA Code of Ethics. The CFA is also one of the founding member of the World Franchise Council
Canada: A Growing Economy
Government of Canada
http://www.canadianeconomy.gc.ca/english/economy/#top
• Population: 31 million
• Projected to grow by 2 million in 10 years, and 5 million in 20 years
• Largest demographic are 40-55 year old, (24%) followed by 25-40 (22.5%)
• 90% of Canadians live within 200 km of the U.S. border
About Consumers in Canada
• Baby Boomers - Ages 40 to retirement, huge numbers equals large influence on consumer trends, aging population, generally at high end of earning curve
• Generation X - Ages 26 to 39, highly educated and skilled workers, entering middle management, earning more disposable income
• Generation Echo - 25 and under, children of baby boomers, large numbers, benefit from wealth of parents
Canada International
• Group of Eight Industrialized Nations (G8) member
• Founding member of the North American Free Trade Agreement (NAFTA)
• Designated by United Nations as the country with the highest standard of living seven straight years, 1994-2000
Canada National Character
• Regional - Georaphically Canada is the World's second largest nation, with 10 provinces, 3 territories and several distinct regional characteristics
• Diverse - Canada is a multi-cultural nation shaped by its history of welcoming immigrant communities
• Strong American Influence- proximity to the U.S. has caused Canadian culture to be inextricably tied to American culture