Canadian Franchise Statistics
Most people don’t understand the impact that franchising has on an economy and would be surprised to learn that around 45% of all retail sales in Canada are generated by franchised businesses. This is comparable to the United States where approximately 50% of retail and service revenue is generated by franchised businesses.
- Canada has the 2nd largest franchise industry in the world, led only by the U.S.A.
- There are between 1,200 and 1,300 franchise companies operating approximately 76,000 franchised outlets in Canada.
- Around 4,300 new franchise outlets open in Canada each year.
- It is estimated that a new franchise in Canada opens every 2 hours 365 days a year.
- One franchise operation exists for every 450 Canadians.
- Approximately $1 of every $5 is spent on goods or services at franchise.
- The Canadian Franchise Association has almost 500 corporate members nation-wide.
- The hospitality industry is the largest single sector, accounting for almost 40% of franchised brand names.
- Approximately 500 of the largest U.S. franchisors have introduced their franchise systems to Canada.
- The franchise business in Canada represents over $100 billion in sales annually and continues to grow.
- Franchising employs over 1.5 million people in Canada or expressed in a different way 1 out of every 22 people is employed in a franchised business.
- Ontario leads the rest of the country in franchising with 56% of franchises headquartered in Ontario (primarily in the Greater Toronto Area), and 65% of all franchise outlets operating in Ontario.
- The average initial franchise fee is $25,000 and the average total initial investment required by a franchisee is between $150,000 and $200,000.
- Of all the franchises opened in Canada within the last 5 years, 86% are under the same ownership and 97% are still in business.
- In the restaurant sector, 35% of all sales are from franchise operations.
- In the retail sector, 45% of all sales are from franchise operations.
- Franchising is active in over 30 businesses, retail and service sectors.
The typical Canadian franchisor has:
- 12 corporate units and 63 franchised units for a total of 75 units
- Been in business over 17 years
- An annual growth of 4.4 units per year