Help with Tariffs Is Now Available for Franchises

Tariffs have come as a shock to our country and threaten significant harm to our economy. Many businesses have felt very uneasy, and plenty have been forthcoming in articulating the damage that tariffs could cause to their operations.

The Canadian government has recently issued an update, and some help with tariffs is now available for eligible businesses whose operations will be disrupted by tariffs:

Performance-based remission framework for automakers [1]

Recognizing the integrated nature of Canada and the U.S.'s automotive sector, remission from tariffs has been granted to automakers who will continue to invest in and produce vehicles in Canada for export to America.

6-month tariff relief plan [2]

A 6-month tariff relief plan has been launched to allow Canadian businesses providing services and products integral to Canadians' health and safety to modify their supply chains, establishing domestic supply chains where possible. The sectors eligible for temporary relief include the healthcare industry and businesses acting on behalf of public safety and national security.

Large Enterprise Tariff Loan Facility [3]

The government will facilitate funding for large businesses that are considered pivotal to Canada's food, energy, economic and national security. This funding will help viable businesses maintain operations, secure new supply chains and re-establish financial stability. Funding will not be issued to businesses that were already facing insolvency before tariffs were announced.

Deferral of remittances and corporate income tax payments [4]

The Canada Revenue Agency has confirmed that it will defer GST/HST remittances and corporate income tax payments from April 2 to June 30, 2025, waiving interest and providing interest relief on existing balances for the same period. This will be automatically applied to all eligible businesses, and interest will resume on July 1.

What this means for franchises

Many franchise organizations operating across the food and healthcare sectors may be eligible for support under the 6-month tariff relief plan. The franchisor should apply on behalf of all of their franchisees rather than individual business owners submitting separate claims for reasons of clarity and expediency.

Franchises with a significant Canadian workforce that turn over an annual revenue of at least $300 million will be eligible to apply for the Large Enterprise Tariff Loan Facility as long as they require a loan of at least $60 million, will protect their workforce against unemployment, and use the funding to establish a stronger financial end position, regardless of the future tariff situation.

All franchises must keep stringent financial records and account for the CRA's temporary deferrals and interest relief to ensure that their next quarterly return is accurate.

The help available is temporary and comes with strings attached, but for some, it will offer a valuable lifeline. As always, please discuss your individual circumstances with a trusted business advisor before applying for any of these schemes to ensure that you understand the full implications for your business and its people.

Resources:

[1] https://www.canada.ca/en/department-finance/news/2025/04/canada-announces-new-support-for-canadian-businesses-affected-by-us-tariffs.html

[2] https://www.canada.ca/en/department-finance/programs/international-trade-finance-policy/process-requesting-remission-tariffs-that-apply-on-certain-goods-us.html

[3] https://www.bennettjones.com/Blogs-Section/Canadian-Government-Financing-for-Large-Enterprises#:~:text=(CDEV)%20has%20announced%20the%20launch,challenges%20accessing%20traditional%20sources%20of

[4] https://www.canada.ca/en/revenue-agency/services/support-difficult-situations/tax-relief-businesses-tariffs.html