Interesting Franchising Statistics

Franchising has an enormous impact on the Canadian economy, with approximately 45% of retail sales in the country being attributed to a franchised business [1]. This equates to around $585 billion per year, $1 of every $5 spent, or 5% of Canada's Gross Domestic Product, which is comparable to the annual franchise sales that are achieved in America.

Joining a franchise should not be seen as a cheap option, with initial franchise fees often costing upwards of $25,000 and total investment often exceeding $150,000, but these costs are balanced against the excellent success statistics of franchises in Canada, the support available, and the reduced marketing burden of an established brand. In fact, with more than 4,000 new franchise outlets opening every year in the country, it is clear that the initial joining fees are no deterrent to determined business owners.


Corporate membership

The Canadian Franchise Association boasts approximately 500 corporate members who own approximately 1250 companies between them. With all outlets accounted for, this equates to nearly 76,000 franchised outlets operating in Canada, or one franchised operation for every 450 members of the population.


Supported and successful

Canadian franchises have a tendency to be successful, with 97% of the franchises opened in Canada in the last 5 years still operating and 86% of them still under the same ownership as when they first opened. This is great news and points to the support and advice that is available in the country to support franchisees in their endeavors.


Franchise distribution in the country

Ontario is the franchising focal point of the country, with 56% of franchises in the country having their headquarters in the province. It is further reported that 65% of the country's franchise outlets are based in Ontario [2].

Ontario leads the rest of the nation in franchising, as 56% of franchises are headquartered in Ontario (mainly in the Greater Toronto Area) and 65% of franchise outlets operate in Ontario.


Employment by franchises

Franchising is vital to the Canadian economy, employing more than 1.5 million people across more than 30 retail and service sectors and franchise business types in the country. Canada's amazing culture and tourism opportunities help explain why the hospitality sector accounts for almost 40% of the franchised businesses in the country, with 35% of all restaurant sales in the past year being made with franchises.



It is clear that franchising is essential to Canada's economy, offering a raft of opportunities to business owners and employees alike. The trend of success shows no signs of waning, making franchising a great choice for investors this year.