by Jim Gormley | Oct 8, 2019 | Franchise Opportunities
There are many factors that can help new Canadians achieve franchisee success. One of the benefits of the franchise model is that it provides a proven system for success. If you’re a newcomer to Canada and looking to start a new business, this can be a smart way to start a successful business.
Following a franchisor’s system can often reduce the risk of starting a new business from scratch. While the franchise system can be a great model to follow, there are other factors that will help you to succeed.
3 Keys to Achieve Franchisee Success
Here are three ways that can help you to achieve franchise success:
1. Select a Franchise that “Fits” Your Personality
An important element of your success is to ensure that your personality is a fit for franchising. This comes from self-awareness of your strengths and interests.
The 3 critical elements of job fit include your:
- Knowledge and skills (gained through your training and education)
2. Experience (gained from past jobs, volunteering, and other activities)
3. Fit and compatibility (how your personality matches other successful franchisees)
When these three elements line up, there is a great chance that you would be a great fit for franchising. Consider the last job you held where there was a good fit between the job and your personality. Chances are that your performance was high, and you really loved what you were doing. That’s because what the job required nicely matched who you are as a person.
To see if you would be a great fit for franchising, complete our free Franchise Self-Assessment today!
2. Make Sure You Have Enough Money
As with any business, you need to know how much money you will need to make and how much of your own money you can commit to the franchise. This also applies to how much borrowed money you can commit to the franchise. Be sure to get as much financial information as you can about the franchise before you buy.
The Franchise Disclosure Document (FDD) includes information about how much you will have to pay for fees as well financial statements and other fiscal performance. It also makes sense to speak with an accountant to help you understand the financial statements.
An accountant can review your financial health and how it will be affected before you sign a contract. It will take time before you make a profit, so you need to know that you can cover business and personal expenses for an extended period of time.
Speak to other franchisees to find out if they are achieving their expected revenue and profit goals. You may also want to ask how long it took them before they made a profit.
3. Do Your Research
You can start your research by reading the FDD, but you will need to conduct your own research as well. Here are some research activities that can help you gather more information about the franchise:
- Speak to current and former franchisees (their names are provided in the FDD)
- Hire professionals to help you understand legal and financial documents
- Make sure you understand the types of cost you will have to cover (including hidden costs that may include: free products to give away for special promotions; or opening day expenses.)
- Conduct online research to investigate the brand’s reputation
- Conduct your own market research.
It will take you anywhere from three to six months to complete your research. This may seem like a lot of time but purchasing a franchise is a big decision. It involves a large investment of both your time and money, and you want to achieve franchisee success.
Take the time to do this research before you sign any contract so that you do not face unexpected or costly surprises. These keys to franchise success can help you make an important business decision that’s right for you.
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If you’re a newcomer to Canada and interested in exploring franchising as a business opportunity, we want to help you make an informed decision by providing you with:
Visit our Franchising for New Canadians Learning Center to view tools, resources, and information to help you make an informed franchising decision. Whatever your decision, we can help you decide if franchising is right for you!
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by Corinna Frattini | Oct 1, 2019 | Franchise Opportunities
Successful franchisees demonstrate common personality traits that make them a great fit for franchising. As many new Canadians achieve success in franchising, it’s interesting to look at how personality traits may contribute to their success.
And a 2016 Statistics Canada study revealed that immigrants to Canada are more likely to own businesses than Canadian-born citizens. As well, there is growing research that shows immigrant entrepreneurial success is greater than that of Canadian-born entrepreneurs. And franchise businesses are fueling small business growth in Canada.
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Corinna Frattini is the content marketing strategist at Prepare for Canada and contributes articles related to working in Canada. With a background in human resources and leadership development, her articles focus on what Canadian employers seek and how newcomers can continue their careers in Canada.
by Jim Gormley | Sep 29, 2019 | Franchise Opportunities
Are you a new Canadian thinking about franchise opportunities in Canada? Prepare for Canada, along with The Franchise X-Perts, can provide you with tools, resources, and information to help you understand the basics of franchising. Our program, Franchising for New Canadians is intended to help newcomers learn the essentials of franchising before making any big decision and commitment.
You’ll have access to leading experts in the franchise industry all at no cost to you through our:
- franchise self-assessment tool
- and other valuable resources.
If you’re thinking about self-employment options, there are three general options that are most likely suited to new Canadians:
- Start a new business from scratch
2. Buy an existing business
3. Own a franchise
Would you like to be your own boss?
Well, starting your own small business is a great way to start you on the road to being your own boss. And, any of these three options will help you to achieve that goal.
To find out what it takes to open a successful franchise in Canada,
download our free e-book!
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Have you considered franchising?
Franchising in Canada is an important and growing part of Canada’s economy and one of the many groups fueling this growth are new Canadians. If you’re a new Canadian eager to get into business for yourself, you may want to explore franchising as a less risky path to being your own boss.
Over the past nine years, Prepare for Canada has built a large domestic community of highly qualified and motivated newcomers to Canada. Recent research conducted by Prepare For Canada identified, among other things, that:
- Over 20% of our newcomer community would like to start their own small business
- Almost 80% of those are interested in franchising as their preferred route to start a small business
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What is a Franchise?
A franchise is a type of business that is owned and operated by individuals (franchisees) but, with the support and guidance of a larger organization (franchisor). It is a legal agreement between two parties where:
- The franchisor allows a person or a group of people, the right to sell a product or service using the trademark or trade name of their brand
- The franchisee is given the right to use the franchisor’s marketing, business tools, and knowledge.
Based on this Franchise Agreement, the franchisee pays the franchisor for these rights, and the franchisor provides the trade name rights and support.
What is a Franchise Category?
Many stores and restaurants that you see every day are franchises. While many of the well-known franchises such as McDonald’s; Subway; and 7-11, dominate the franchise landscape there are thousands of franchises of different sizes and types.
People often think of fast food when it comes to franchising however, there are many more categories to choose from based on your interests and experience.
Here are just a few examples of franchise categories:
As you can see, there are many different categories for you to choose from.
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Why does Franchising in Canada Make Sense?
Franchises have a higher rate of success than start-up businesses. It is estimated that of all the franchises opened in Canada within the last 5 years, 86% are under the same ownership and 97% are still in business. Conversely, Statistics Canada reports that 75% of all small business startups fail in the first 18 months.
Franchising in Canada makes sense! The franchise industry has seen double-digit growth in the past few years, with the number of new franchise brands and outlets increasing steadily. Roughly 4,300 new franchise outlets open in Canada each year.
There is a common phrase in franchising: “Be in business for yourself, but not by yourself”. This speaks to the level of support, training, and success you can achieve with a strong franchisor and brand. However, you still have to apply good management principles to achieve franchise success such as:
- time and financial management
Be sure to visit our Franchising for New Canadians Learning Center to view tools, resources, and information to help you make an informed franchising decision.
by Corinna Frattini | Sep 26, 2019 | Franchise Opportunities
One of the reasons that new Canadians decide to buy a franchise is because of the type of franchisor support that they can expect to help achieve success. So, this is often a key point when deciding between becoming a franchisee or starting a new independent business. Many people will conclude that their chances of success will increase with the systems and support that a franchisor provides.
If you think that franchising makes sense, you may have decided it makes sense to pay for the right to use the franchisor’s brand, standards, and knowledge. In addition, a strong franchisor can often provide expertise in specific business functions, such as marketing or finance, that you may not have. However, it’s important to recognize that:
1. The level of franchisor support can vary.
2. Franchisor support will be clearly defined in the Franchise Disclosure Document and Franchise Agreement.
3. You need to do your own research to understand what support you’ll receive.
To learn more about franchising in Canada, download our free e-book today, and visit our Franchise Learning Center:
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Types of Franchisor Support that You can Expect
Now, let’s explore four common types of franchisor support:
1. Initial Training:
You can expect to perform well when you select a franchisor to help you master the basics. And, training that is provided in your initial stages will help you achieve franchise success.
Your initial training will provide you with a broad overview of operations, marketing, sales, service, and general management. And, this may include:
- Operations training to develop skills and knowledge to run your franchise
- Financial and business systems training
- Employee selection and retention training (if applicable)
- Operations manuals and standard operating procedures
Your training begins after you sign your Franchise Agreement, and continues for as long as you own the franchise. And, your franchisor wants you to succeed! So, that means providing you with tools, resources, and knowledge right from the start.
2. Marketing and Advertising Support:
All franchisees are required to pay an Advertising Fee (usually 1 – 4% of gross sales). So, paying an advertising fee means that you do not have to create an advertising plan or marketing materials all on your own. In return for this fee, you can expect to receive:
- A marketing plan that extends past the grand opening of your franchise
- Tools to support brand building and promotional campaigns
- Guidance in local and regional marketing activities
- Professional marketing materials such as posters, brochures, banners, and other items.
3. Site Selection:
Not all franchisors will assist with site selection and site location is critical to your business success. But, if your franchisor doesn’t provide site selection support, you can usually get guidance related to:
- preferred business square footage
So, be sure to read what site selection support you can expect in the Franchise Agreement. And, discuss how you can work with the franchisor to select a great site.
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4. Ongoing Franchisor Support:
After you have completed your initial training, the ongoing support that you receive is essential. This support is generally provided by the franchisor to:
- Help you to improve the performance of your franchise
- Ensure you’re operating your business to brand standards
- Help you to grow your business
Other ongoing support can be related to supply chain; management training; and new products and services. This support can be a huge benefit. Your franchise team is likely working with other franchisees who have dealt with similar issues that you will face so, this knowledge may help you to reduce, if not avoid mistakes.
So, franchisor support can be a large benefit and critical to your success. You may even make your franchise selection decision based on the support you’ll receive to start your business on the right foot. The ultimate goal is your franchise success and ability to benefit from the franchisor’s proven systems and support.
Visit our Franchising for New Canadians Learner Center to view tools, resources, and information to help you make an informed franchising decision.
Corinna Frattini is the content marketing strategist at Prepare for Canada and contributes articles related to working in Canada. With a background in human resources and leadership development, her articles focus on what Canadian employers seek and how newcomers can continue their careers in Canada.
by prepareforcanada.com | Nov 13, 2018 | Franchise Opportunities
What it means to open a franchise in Canada