What You Need To Know About Canada Being An International Franchising Option
The land of the True North has one of the world’s strongest economies, a thriving, diverse population, and a scenic natural landscape. Because of these, Canada has been consistently ranked as one of the best places globally to live and work. It’s why people from all over the world choose Canada as their place of business and new home.
Are you looking for a viable investment opportunity? More than building a business from the ground-up, buying a franchise in Canada is a great way to take your business here, enter a competitive and rewarding market that’s closely tied to the US, and succeed. Thanks to a strong economy and support for businesses, franchises can easily tap into the North American market and enjoy global recognition.
So, are you ready to open one of the cheapest and most successful franchises in Canada? Let’s find out about opening a growing international franchise here.
Get to Know Canada’s Economy and Strong Market
With 10 provinces and 3 territories that span one of the largest landmasses globally, there’s certainly a place for everyone in the True North. And as Canada’s 37 million-strong population continues to grow, there are also more opportunities to invest and build a successful life here.
In fact, as Canada actively looks to grow its increasingly diverse population, the country is also creating more economic investment opportunities. One of the federal and provincial nominee immigration pathways is the entrepreneur stream, allowing business owners to invest in the country and get on track to earn permanent residency.
Here some areas that Canada has been consistently ranked in:
- Quality of life
- Liberty and democracy
- Low corruption
- World Happiness Report
- Global competitiveness
- Home to 4 of the top 72 universities globally.
Strong Ties to the US Economy
Historically, Canada and the US have always been closely linked, particularly in political, social, and economic areas. Both countries have enjoyed a long friendship, particularly over sharing one of the most active global borders where both people and goods regularly pass through. In fact, 75% of Canada’s population lives just 100 miles from the border, allowing exchanges to take place easily.
As a result, the Canadian and US economies are closely tied, with the most renowned brands operating in both countries. To effectively serve consumer demand, global and highly popular brands offer franchising terms. This means, entry into the Canadian market is often a good predictor of success in the US, and vice-versa. So if you’re an internationally based franchisor looking to enter the North American market, Canada would be a good place to start.
Restrictions for Foreign National Investors
As a non-Canadian business owner, there are some legal factors to consider before you can buy a franchise. Foreign-owned franchises are subject to some checks and balances before licenses are granted, and the business is registered.
For instance, the transaction involving buying a franchise will be reviewed by the government. Depending on the industry, they may be notified of the payment of the franchise fee, as well as who the business owner is and the value of the transaction.
The government will assess whether the franchise is of “net benefit” to Canada before it’s approved. However, with the sheer volume of successful franchises across the country, just remember that this is standard procedure.
Canada’s Franchising Industry
Did you know that there are approximately 1,200 brands with franchise locations across Canada? As a result, there are over 76,000 franchises in operation across a wide range of sectors. With 1.9 million Canadians in 2019 alone employed in franchises, the entire industry has contributed over US $100 billion.
Franchise Sectors to Invest In
Clearly, franchises—and the people who have smartly invested in them—are thriving in Canada. If you’re looking to buy a franchise, the first step is to learn about the industries that rely on many franchise locations to grow.
Franchising is a common business practice in almost every major retail industry. The most globally renowned brands offer franchising options across hotels and resorts, real estate, gasoline sales, home services, food and drink, fashion, grocery stores, automotive sales and services, fashion, and waste removal services like Gorilla Bins. With so many essential goods and services provided through franchises, it’s no surprise that buying into a franchise guarantees success.
Legislation on Franchises in Canada
Another major factor to consider when buying a franchise in Canada is the laws surrounding it. Canada’s levels of government, federal and provincial or territorial, have their own legislation that govern franchises. However, there are several major, common laws to consider, such as:
- Taxation: Foreign franchise owners will need Canadian tax experts to learn about filing income taxes, fees, and royalties, as well as provincial sales taxes. Most crucially, if you are receiving profits from outside the country, you will need to remit federal withholding tax, generally at 25%. If you are in Canada at least 182 days a year, you are considered a Canadian resident and subject to income tax.
- Basic healthcare: Canada is renowned for its basic healthcare coverage available to residents coast-to-coast. If you hire employees to run your franchise store, you will need to pay an employer health tax to contribute to healthcare coverage.
- Intellectual property: Canada has a number of intellectual property regimes designed to protect trademark and copyright holders. Trademark and copyright registrations help protect your business from competition and infringement. If you are buying into a Canadian franchise, the brand will be responsible for protecting the trademark and copyright. As a franchisor, you don’t need to register for copyright yourself, although it’s important to consider that the business is protected throughout your activities.
- Financing: When you buy a franchise in Canada, you may require financing provided by banks. You will need to apply for a federal government small business loan (SBL), for up to $350,000 and carry a limited personal risk of 25% of the loan amount. An SBL allows you to provide proof of funds to the brand, get your franchise application approved, and afford other startup costs like equipment and leasing.
Learn About the Cheapest Canadian Franchise from Gorilla Bins
With all the information presented earlier about franchises in Canada, it’s clear that they’re one of the most stable and rewarding investments you can make. They’re even more stable and rewarding when you choose to franchise a reliable and essential business, such as junk removal and disposal from Gorilla Bins.
At Gorilla Bins, we provide the cheapest franchise opportunities for aspiring business owners across Canada. Now, you can be a business owner with a solid business plan, guaranteed to succeed in one of the world’s strongest economies.
As a Gorilla Bins franchise owner, you can take part in the successes of Canada’s franchise industry and reap the rewards of making a smart investment in one of the most essential industries. For our part, we’ll provide a cheap and complete franchising solution, from the information session to setup and ongoing support. Our guarantee is a cheap, low-risk franchise investment that sets you up for success.
Looking to invest in Canada’s franchise industry? Discover cheap and rewarding franchise opportunities with Gorilla Bins.