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4 Canadian Franchising Trends for 2019

By Barbara Beauregard   |    February 13, 2019   |    9:01 PM

Franchising is Alive and Well in Canada, & Here’s What 2019 Has in Store

In early 2019, Franchise Canada released its 2019 Trends Report, and it’s a must-read for anyone interested in opening up a franchise business in Canada. 2018 was a good year for franchises, and 2019 looks equally promising.

If you’ve ever thought about opening up a franchise business, this is the rundown you need to get started on your franchising journey — here are four of the top franchising trends to watch for this year.

1. Franchises that provide maid and cleaning services will thrive

To put together 2019’s report on trends, listings data collected from the 2019 Fran­chise Canada Directory was examined. Promising growth amongst several franchise sectors stood out, most notably maid and cleaning services. The industries with the most impressive rates of five-year growth were:

  • Maid/Cleaning Services (129%)
  • Real Estate (111%)
  • Educational Prod­ucts and Services (91%)
  • Accounting/Tax Services (60%)
  • Health & Fitness/Nutrition (35%)
  • Quick Service Res­taurants (34%)

Would-be franchisees have a number of sectors to choose from, which is great news for any Canadian looking to build a franchise empire around an industry they enjoy.

2. Franchises that provide more convenience to consumers will remain popular

Gary Prenevost is the President of FranNet, and an expert on franchise consulting. He has noticed that, “macro trends of convenience” are on the rise. This means franchisees are investing in systems which, “proactively [conform] to changing consumer needs and habits.”

This trend plays out in a variety of ways, from consumers who want help keeping their home clean to folks who want to file their taxes quickly and easily. These types of franchise businesses also have another benefit: Many of them are low investment, high reward.

3. Franchise growth in Canada will continue

The Trends Report also shares some interesting numbers about the economic impact of franchising in Canada. In 2018, the Canadian Franchise Association (CFA) released its inaugural Economic Impact Study. According to their data:

  • Approximately 520 new franchises were opened across the country, bringing the total number of national franchise businesses to 75,765 units.
  • Growth was seen coast to coast, with new units opening in every Canadian province and territory.
  • Business owners in Ontario were concerned about how a minimum wage increase might impact business growth, but an additional 263 franchise units ultimately opened up in the province in 2018.

If you decide to start a franchise business, you’ll be in good company.

4. The legalization of cannabis will create entirely new franchising opportunities

When the federal legalization of cannabis occurred in October 2018, applications for cannabis retailer licenses soared. Market saturation is one concern with such an intense interest in cannabis businesses, and franchising could be a great way to minimize risk in a new and uncertain industry.

Wayne Maillet is a franchise consultant and Presi­dent of Franchise Specialists, and he has some interesting insights on the potential upsides of cannabis franchises:

“With all of these factors, a franchise is the best way to minimize the risk. A franchise provides group buying power to maintain margins … The franchisor can monitor the changing landscape as it relates to cannabis as well as focus on finding the right locations. It can assist in the paperwork required to apply for a license. Overall, it can be much easier for a franchisee, as opposed to an individual trying to do it themselves.”

No matter what type of franchise business you decide to explore, 2019 could be a good year to do it. As you research, don’t miss these helpful resources: