One of the main objectives of franchising is business expansion. When you compare franchising growth strategies with other business expansion methods, franchising generally carries less risks compared to other types of business ownership. Of course, owning any kind of business always carries some level of risk, but the risks are generally lower in franchising when compared to starting a small business from the ground up.
On the other hand, while franchising does mean less risk for franchisees, this type of business ownership also offers less degree of business control. Although the franchisee is the owner of the business, he operates under a franchise contract and is therefore required to observe the terms, conditions, standards and procedures of the franchise contract.
But if you’re looking to minimize your risks and don’t mind giving up a certain level of business control that comes with following an established set of systems and procedures as developed by the franchisor, then franchising might be right for you.
Find the Right Opportunities
Once you’ve decided that franchising is right for you, start by browsing Canadian Franchise Magazine and get the latest updates on the to franchises for sale across Canada.
However, with so many franchises for sale in Canada, finding the right one for you can be a difficult and confusing process. That’s why Canadian Franchise Magazine provides a comprehensive directory of franchises for sale, including all the information you need to decide which franchise would be best for you.
Our directory contains the top franchise opportunities, including some of the fastest growing franchises in Canada.
Things to Consider when Buying a Franchise
When buying a franchise in Canada, you want to make sure that it will be a profitable venture. While there are many factors that play a role in estimating the potential profits of any business, the first step when doing your due diligence is to look for opportunities with the most profitable franchise in Canada.
In franchising, there are often significant differences in profitability between different business concepts and industries, and many other factors including location, market, operating experience, and the economy come into play. This is why doing your research before you make the decision to buy a business is key to ensuring your success.
There are some important areas to consider before you dive into buying a franchise in Canada.
- Start-Up Costs and Royalty Fees – Start-up costs and royalty fees can impact the amount of your take-home pay. For example, when opening a typical fast-food franchise, the franchisee must pay money toward the location, in addition to a franchise fee that gives them the right to operate the business for a determined period of time. Should the contract be extended once the initial time period is over, the franchisee will need to pay the franchise fee in order to extend their right to continue operating the business.
- Raw Material Costs – In order to maintain consistency among their offerings, most franchises require that franchisees purchase any needed raw materials directly from them or from an approved supplier. This might not be an issue if you’re looking to buy into a service-oriented business, but for most franchise opportunities, these extra costs do come into play and should therefore be considered.
- Financing – Most franchises don’t provide financing, which means that franchisees need to dip into their own savings or look into securing other sources of financing, the most common source being a small business loan. However, some of the most profitable franchises in Canada will help their franchisee franchisees get started by financing their franchise fees, start-up costs, inventories and equipment. These opportunities are particularly attractive because while franchisees will usually still need to put up a portion of their personal assets as collateral for the loan, they don’t have to pull from their own savings or investments in order to get their business up and running.
3 Steps to Finding a Franchise:
STEP 1: Explore our directory of top franchise opportunities until you find one that might interest you.
STEP 2: Identify the franchises you would like more information about.
STEP 3: Contact the business to learn more. We provide full contact information for our franchise opportunities, so you can contact them directly and get connected right away.
Find your franchise today!