Canadian Franchises: The Increasingly Attractive Retirement Investment


A growing number of retirement-minded Canadians are turning to alternative ways to financially prepare for life after work, and one method that is starting to become a popular choice is investing in a franchise. In fact, the Globe and Mail has reported that the Canadian Franchise Association has seen a significant increase in requests for franchise information over 2016, up an impressive 89 percent from 2015. Research from the association indicates that the top reason for going for a franchise is to own a business, but the second most popular reason is now to have direct control over an investment.

Franchising is a way to diversify wealth, something that is crucial to any well-rounded retirement plan. Of course, it's important to keep in mind that with a business, the returns won't come right away; the rule of thumb with franchises is to assume five years in business before seeing a profit, and a lot of upfront investment and hard work is required to make the business a success. While franchisees benefit greatly from the support of the franchiser and the ability to tap into a proven system, they still have to adhere to the rules of the franchiser, something that isn't always easy for a new business owner. Franchisees also need to find the right opportunity for their particular situation to have the best chance at success.

Naturally, being able to directly control an investment is worth the work for many franchisees who are going into business to help with their retirement funding. Many retirement vehicles, such as stocks and bonds, are entirely subject to the whims of the market. The success of a franchise, however, is generally linked to how much work the franchisee is willing to put in and the level of quality of that work. Other factors that come into play include the franchise concept and location, two things a franchisee will also have input into and control over.

Another lure of franchising for retirement savers is the associated feeling of accomplishment that comes with serving customers and building a business yourself. While traditional retirement investments are certainly smart, the feeling of pride and the satisfaction many people experience from the ability to help customers simply doesn't come from depositing money into an account. 

A Canadian franchise just might be a new, rewarding way to diversify your retirement holdings. As with any other investment, put the time necessary into research so you find your ideal vehicle.