GlobalFranchise GLOBALFRANCHISEMAGAZINE.COM CANADA FOCUS HOW TO FRANCHISE IN THE GREAT WHITE NORTH
FLOURISHING SECTORS | EXPERT LEGAL ADVICE | FRANCHISOR INSIGHT | INVESTMENT OPPORTUNITIES GLOBAL FRANCHISE CANADA master_GLOBAL FRANCHISE 28/02/2020 15:12 Page 2 hen interviewing a U.S.-based franchisor about W their brand's international journey, it is more often than not that Canada comes up. As a first export destination, heading to Canada makes complete sense CONTENts for American franchises – the country is similar to the U.S. in so many ways. However, those that think a cut-and-paste approach to Canadian expansion is the way to go, from our research, will find it's 4 FRANCHISING IN CANADA 41 FIVE MUST-DOS FOR An essential overview of the FRANCHISING IN CANADA anything but. Canadian franchise industry Andrae Marrocco prepares you From Canadian withholding tax to language labelling, for an adventure to the “frozen there are myriad factors to be aware of when weighing 8 THE GATEWAY TO hockey rink” up whether to take your brand to the Great White North. NORTH AMERICA But done correctly, you reap the benefits of a market that's Farrah Rose and Ned Levitt summarize receptive to international brands, extremely vibrant and need-to-know expansion details 51 MUST-ATTEND culturally rich. FRANCISE EXPOS In this special Canada report of Global Franchise, A preview of the best shows, 19 DEMYSTIFYING THE we have interviewed and featured the opinions of the DIFFERENCES conferences and expositions country's foremost franchising experts, as well as included Angela Coté breaks down the borders the country has to offer editorial from writers who represent franchises that have successfully made their stamp in the country. 22 MEET CANADA'S NEW 52 THE RECIPE FOR SUCCESS TOP DOG Lori Karpman provides a guide for To your Canadian success, We talk to Camp Bow Wow's VP of non-Canadian franchisors franchise sales about its Canadian expansion efforts James Fell 60 HOW TO BRING YOUR Editor, Global Franchise BRAND TO CANADA 28 LITTLE KICKERS: GLOBAL [email protected] FRANCHISE CHAMPION 2020 Craig Sherwood of Gold's Gym A profile of the award-winning runs us through what worked – children's soccer concept – a brand and what didn't – when first taking with a growing presence in Canada the brand across the border @globalfranmag
32 CANADA: YOUR NEXT Global Global Franchise FRANCHISE DESTINATION? 64 FOSTERING A STRONG A deep dive into the country's RELATIONSHIP Franchise Global Franchise franchising landscape, including Stefania Sigurdson Forbes explains magazine an interview with the Canadian why emotional intelligence is the Franchise Association's Sherry McNeil key to cracking Canada globalfranchisemagazine.com
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The next decade in HR Global The trends reshaping Richard Davies 44 (0)1323 471291 | [email protected] the workplace Kieran McLoone | [email protected] Entering the GCC? Franchise Here’s how to get it right globalfranchisemagazine.com Recruit and retain Make your franchisee MASTER, REGIONAL AND INTERNATIONAL FRANCHISING network flourish SENIOR ACCOUNT MANAGER THINGS TO LOOK FOR 9 IN AN INVESTOR EMERGING BRANDS CONTENT MARKETING EXECUTIVE 10 YOU NEED TO KNOW Neil Phillips 44 (0)1323 471291 | [email protected] FRANCHISE SHOWS 19 PREVIEWED Amanda Peters | [email protected] ARTIFICIAL SENIOR ACCOUNT MANAGER INTELLIGENCE: HOW FRANCHISORS CAN BENEFIT Craig Bartlett 44 (0)1323 471291 | [email protected] DESIGNER Luke Rogers Published by Aceville Publications Ltd SCHOOL OF ROCK: PROPERTY & HOME SENIOR ACCOUNT MANAGER The Boatshed, Sovereign Harbour, MAINTENANCE SPECIAL: THE FRANCHISE PLAYING BUILD A BRAND IN ALL THE RIGHT NOTES A LUCRATIVE SECTOR Rachael Wenham 44 (0) 1323 471291 | [email protected] CREDIT CONTROL Sue Carr 44 (0)1206 505903 Eastbourne, East Sussex, BN23 6JH. PAGE FARRAH PAGE RITESH PAGE SHELLY 24 ROSE 38 AGARWAL 58 SUN How to grow your On disrupting the Providing premium brand in Europe global hotel market care worldwide Printed in England HEAD OF CONTENT (FRANCHISING)
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Master Franchising You can build the UK’s next big brand What Age Is No Barrier Why olderpreneurs make first-rate franchisees
Lost Your Job? Franchise How to secure your £3.99 | VOLUME 15 ISSUE 8 what-franchise.com future with a franchise
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Huge market growth in flex space Appropriate independent advice should be obtained before making any such decision, such as from a qualified financial adviser. Any agreements, transactions or other arrangements made between you opens new franchise opportunities and any third party named on (or linked to from) Global Franchise website are at your own responsibility and entered into at your own risk. Any information that you receive via Global Franchise Website, PAGE PAGE PAGE 2020 HOT SET UP 12 VISION 60 PROPERTY 92 FOR SUCCESS whether or not it is classified as “real time”, may have stopped being current by the time it reaches you. The views and opinions expressed in Global Franchise magazine are those of the author(s) and do Don’t defer your dream 6 reasons to buy a Structure your business of business ownership premises-based franchise for maximum benefit not necessarily reflect the views and opinions of Global Franchise magazine or staff. 4 GLOBAL FRANCHISE | ISSUE 4.4 Franchising in Canada Your essentials for finding success in The North
Your next franchise location? IN THIS ISSUE: 32 Canada’s market is rife with opportunity, but make sure to look before you leap
Demystifying the 19 differences Are Canadians and Americans really that different? 41 Five must-dos Andrae Marrocco prepares Key franchise you for an adventure events 51 Make sure you attend the biggest expos of the year
The Canadian recipe 52 for success The main considerations for non-Canadian franchisors
4 GLOBALFRANCHISE | CANADA FOCUS EXPERT INSIGHT ON…
Regional differences “We quickly learned through our first attempt at international expansion that the Canadian consumer is not just a carbon copy of the American consumer, as there were in fact cultural differences beyond the surface-level commonalities. We had to build from the ground up, starting with a clean slate instead of just making Canada an extension of our proven U.S. system”
CRAIG SHERWOOD, GOLD’S GYM, P.60
The generational divide “In Canada, the franchisees are getting younger, while the consumer population is getting older. Franchisors will have to find a way to bridge this growing divide. In general, there is a widening age gap right across the population, so franchises that focus on either children or seniors are set to do particularly well in the future”
EDWARD (NED) LEVITT, DICKINSON WRIGHT LLP, P.8
Balancing priorities “In international markets, we tread a fine line between ensuring the core processes and procedures which form the basis of our franchise model are followed as closely as possible, and respecting key social and cultural differences in these markets. This is always much easier when we’re working with people who have the same values.”
CHRISTINE KELLY, LITTLE KICKERS, P.28
GLOBALFRANCHISEMAGAZINE.COM 5 The stats and figures YOU NEED TO KNOW STATS FROM IFA
STATS FROM CFA
Canada has the The average purchasing power of a Canadian second largest consumer is franchise industry in the world $44,051
Franchising contributes There are roughly $100.6bn per year to the Canadian economy 1,300 franchise The industry creates more than brands 1.9 million jobs operating in Canada for Canadians
of Canada’s total GDP is generated 5% by franchises
There are over 76,000 units from franchises situated across Canada
Approximately 1 out of 10 Canadians is directly or indirectly employed by the franchise industry
6 GLOBALFRANCHISE | CANADA FOCUS STATS FROM IFA Canada has a population of
34.5m 55% and a total GDP of of the country’s imports come from the U.S. $1.5tr
STATS FROM BUSINESS EXCHANGE
Around 45% of all sales in the retail sector come from franchise operations
56% of franchises are headquartered in Ontario
STATS FROM SOTOS LLP
Minimum wage is regulated 75% provincially, from of Canada’s population 70% lives within of Canadian $10.25 100 miles of franchisees in Newfoundland, to are male the U.S. border $15.00 in Alberta
GLOBALFRANCHISEMAGAZINE.COM 7 INSIGHT
Canada: The franchise gateway to North America
Canada has one of the most seasoned, vibrant and rapidly expanding franchise sectors in the world, one which is growing and changing every day
WORDS BY FARRAH ROSE & EDWARD (NED) LEVITT
ow does the world see then, that so many overseas investors challenging, a franchisor can Canada? A country with are seeing it as the perfect proving more easily target just a handful H breathtaking scenery ground for their franchises. of Canadian cities and then populated by extremely So, it is well worth taking your time expand across the border into the polite people? For sure. A tolerant to understand how the Canadian rich and dense U.S. markets with country? Absolutely. An honest broker franchising market works, and how to relative ease. THE AUTHOR among other countries? Definitely. get the most out of it. As with many Farrah Rose is head However, that’s just the start of what large and complex markets, working Human resources of international Canada has to offer. It is also an with international consultants that In Canada, we celebrate our diversity development at The exciting franchise hub between the have knowledge and expertise of the and tolerance and use them to great Franchising Centre, vast North American market and the region can give you a huge advantage, advantage in attracting and growing and is a long-term member of the British rest of the world, full of ambitious and and help you avoid many of the pitfalls successful businesses. Our working Franchise Association. innovative franchisors and talented, of expanding into a new territory. population is highly educated, with thefranchising eager franchise investors. rich backgrounds from around the centre.com Canada’s proximity to the U.S. Geography world. Increasingly, potential investors has made it the most common Even though Canada is vast are choosing Canada as their first destination for international geographically, its population is preferred place to invest, expansion by U.S. franchisors, who concentrated in and around just work and raise find a lot that is familiar in Canada, a few major cities, many of which their families. but with sufficient challenges to allow are in close proximity to even them to build their international larger U.S. population centers. So, resources and expertise. Many other while expanding throughout THE AUTHOR international franchises, especially the entirety of Canada is Edward (Ned) Levitt is from Europe, also find it a much more a Certified Franchise familiar and compatible place to enter Executive (CFE), a the North American market and partner at Dickinson come to terms with its unique Wright LLP, in Toronto, Canada, and provides identity. Prospective investors legal services to Cana- and franchisees from dian and international the U.S. also clients on all aspects of respond Canadian franchise law. He can be reached at especially well nlevitt@dickinson- to franchises wright.com that have already succeeded in Canada. No wonder,
8 GLOBAL FRANCHISE | CANADA FOCUS Financing franchising (including single and Industries that focus on recreation, fitness Canada is dominated by a few multi-unit), master franchising and and education are proving to be very sound national banks, with offices joint ventures are commonly used by financial investments. throughout Canada. While these foreign franchisors in Canada. As the cultural diversity of Canada's banks tend to be on the conservative population continues to increase, the market side, each has national franchise Changing trends is also responding well to any company that departments and competes for In Canada, the franchisees are can cater to a greater variety of ethnic tastes franchise business in all of its getting younger, while the consumer and preferences. forms. There are also a number of population is getting older. Franchisors government programs to assist in the will have to find a way to bridge this “In Canada, the financing of small business start-ups, growing divide. In general, there is including the purchase of franchises. a widening age gap right across the franchisees are getting population, so franchises that focus on Regulation either children or seniors are set to do younger, while the While franchise legislation can vary particularly well in the future. across Canada’s 10 provinces, their Aging baby boomers are rapidly consumer population statutes and regulations are fairly approaching their most medically similar, allowing for the creation and challenging years and desperately is getting older” use of a single franchise disclosure want to avoid spending them in an document. Moreover, these institution. As a result, there is a huge In recent years, there has also been a trend statutes contain little in the way of and growing demand for high-quality away from unit franchising to multi-unit, the regulation of the franchisor/ homecare services. With budget cuts area development and master franchising. franchisee relationship and there is to school programs, and an increasing This is expected to accelerate in the future, no need to register the franchise, or desire from parents for their children as more and more franchisors realize that its disclosure document, with any to achieve their full potential through there are significant advantages in dealing government body. innovative learning and play methods, with fewer, more sophisticated and better child-centered businesses have begun resourced franchisees. This is working Structuring the franchise to sprout all over North America. the other way too, of course: investors How the franchisor holds its are increasingly seeking franchisors that interests in Canada depends upon demonstrate a deeper commitment and various factors and the use of a knowledge of the local markets. Canadian subsidiary, or a local New industries are discovering just how branch or division, can be very effective franchising can be as a model beneficial. It can establish a physical for sustainable and profitable growth, presence locally and it publicly and societal changes are challenging the indicates a commitment to the traditional beliefs about how to expand a local market, as well as providing business. Canada, for so many reasons, is for segregation of liability and uniquely positioned to benefit from these accounting. As for the contractual changes. As more and more franchisors are structure with the franchisee, direct coming to see Canada's potential, the use of international consultants and local experts is becoming an increasingly effective way of making the most lucrative opportunities stand out from the crowd.
GLOBALFRANCHISEMAGAZINE.COM 9 GLOBAL FRANCHISE CANADA master_GLOBAL FRANCHISE 28/02/2020 12:03 Page 10 GLOBAL FRANCHISE CANADA master_GLOBAL FRANCHISE 28/02/2020 12:03 Page 11 BEHIND THE BRAND: PARTNER CONTENT Behind the Brand - Goldfish Swim School
AT A GLANCE GOLDFISH SWIM SCHOOL Business is going Established: 2006 Number of units: 100+ swimmingly Location of units: Canada and the U.S. Investment range: $1.4m USD - $3.2m USD Franchise fee: $50,000 USD Minimum required capital: $1.5m USD (net worth), $600,000 USD (liquid capital) Contact: [email protected] Goldfish Swim School is looking for active and engaged goldfishswimschool.com/franchise- entrepreneurs to join its journey of holistic success opportunities
School has grown from one recently ranked number one in corporately-owned swim the Swimming Lessons Category school to a robust franchise in Entrepreneur magazine’s network of over 100 schools prestigious Franchise 500 and throughout North America placing in the top 10 on Franchise in less than 10 years. Each Times’ Fast & Serious list. school offers swim lessons Finding success with the brand is and programs using a Dave McKay, managing partner of proprietary philosophy, five open locations (two in Canada The Science of SwimPlay, and three in the U.S.), with another to build life skills both in six in development in Canada. and out of the water using “The Goldfish franchise office team play-based learning in a fun is very engaged and supportive of its and safe environment. franchisees,” said McKay. “The future of the “It fosters a culture of partnership oldfish Swim School is a industry remains strong and vibrant, and collaboration to ensure success. premier learn-to-swim and our goal is to solidify our mark The team is also sensitive to the franchise concept providing as the industry leader in innovation, nuances between the U.S. and G Canada, and has been open to swim lessons and water member experience, and community safety instruction to infants and children goodwill. Our growth strategy has adapting certain elements of the ages four months to 12 years, teaching been centered on finding the right brand experience, facility design, more than 138,000 children each week franchise partners while continuing and operations as required.” how to be safer in and around the water. strong operations, and we look Goldfish Swim School is seeking forward to a momentous year ahead qualified, active and engaged A PREMIUM EXPERIENCE as we build on our notoriety and individuals who are hungry to The dedicated learn-to-swim facility grow our presence internationally,” dive into the world of franchising provides indoor, year-round swim said Chris McCuiston, CEO & co- and grow their entrepreneurial instruction in a family-friendly setting with founder of Goldfish Swim School. portfolios as the brand continues highly trained instructors, small class sizes to expand its global footprint. (max 4:1 student to teacher ratio), shiver- MAKING A SPLASH free 90-degree pools and a state-of-the-art Goldfish Swim School’s growth water purification system. trajectory shows no signs of In addition to swim lessons, Goldfish slowing down. In fact, the brand Swim School offers weekly family swims already has 130 additional open to members and non-members, schools in the pipeline, hit $150m along with party packages. Facility in system-wide revenue in highlights include an air-conditioned 2019, and plans to grow to 260 viewing gallery for parents to watch lessons locations with $385m in system- with complimentary Wi-Fi, private family wide revenue in five years. changing huts, a snack bar, retail shop and These staggering numbers, warm, tropical décor. paired with Goldfish Swim School’s commitment to water CONSISTENT QUALITY safety is why the brand remains Founded by husband-and-wife Chris one of the hottest franchise and Jenny McCuiston, Goldfish Swim opportunities on the market –
12 GLOBAL FRANCHISE | CANADA FOCUS BEHIND THE BRAND: PARTNER CONTENT Behind the Brand - Smokes Poutinerie International
AT A GLANCE SMOKE’S A smoking POUTINERIE INTERNATIONAL Established: 2008 Number of franchised outlets: success 150+ international sales of over 50 units so far Location of units: Canada, U.S.A., Qatar (SOLD – Opening Soon), Hungary (SOLD – Opening Soon), Partner with Smoke’s Poutinerie franchise, and Austria (SOLD), Czech Republic (SOLD). Heavy interest in UAE, Kingdom of Saudi along with a popular fast food business, you Arabia, Kuwait, India and throughout Europe and the United Kingdom get a licence to entertain Investment range: $200,000-$400,000 per unit, but all international deals are multi-unit/area- development deals with minimum five unit territories it’s entertainment! Minimum required capital: $400,000 per unit, but all international With a demographic deals are multi-unit/area development deals comprised primarily with minimum five unit territories, so $1m of young-adults, required to secure multi-unit territories Smoke’s Poutinerie is Contact: [email protected] highly motivated by or 416 358 2780 digital entertainment. [email protected]
Although the brand smokespoutinerie.com is inspired by the eighties, its presence extends through online engagement with “Be the next fans and keeps them coming back for more. rockstar to jump The franchise owes its on the Smoke’s success to the sheer power of the brand – the Poutinerie product is awesome, locations have a fun, gravy train” energetic atmosphere; moke’s Poutinerie is this business is nothin’ the world’s largest and but a good time. original poutinerie. S Founded in 2009 by GLOBAL DOMINATION! chief entertainment officer, Ryan You will find entertainment infused Smolkin, Smoke’s Poutinerie offers into everything the brand touches, a unique menu focused exclusively including the people behind the on Canada’s national iconic dish magic. Smoke’s Poutinerie is looking – poutine. The brand is known for franchisees who believe in the globally for its wow-sized portions of brand, who want to be a part of the fresh-cut fries, squeaky cheese curds family, and become an integral part and piping hot gravy, and adds fresh of sharing its unique brand and toppings to make over 30 variations culture with the world. With 150- of its famous dish. plus locations across North America LUMBERJACK CHIC and international expansion into the Beyond poutine, the brand is known Middle East, Europe and the U.K., for its eighties Canadiana culture, the brand is on course for global signature lumberjack plaid, and domination. Be the next rockstar glam rock music. Smoke’s Poutinerie to jump on the Smoke’s Poutinerie is more than fries, curd and gravy. gravy train and apply for a It’s a brand, it’s an experience… franchise today.
GLOBALFRANCHISEMAGAZINE.COM 13 GLOBAL FRANCHISE CANADA master_GLOBAL FRANCHISE 28/02/2020 12:03 Page 14 GLOBAL FRANCHISE CANADA master_GLOBAL FRANCHISE 28/02/2020 12:03 Page 15 BEHIND THE BRAND: PARTNER CONTENT
AT A GLANCE A business model FASTSIGNS Established: 1985 Number of franchised outlets: Over 725 Location of units: United States, Canada, Chile, England, Grand Cayman, Puerto proven to thrive Rico, the United Arab Emirates, Malta, and Australia (where centers operate as SIGNWAVE) Investment range: in Canada • Cobrand: $84,268 – $209,583 • Conversion: $95,897 –$212,648 • New center: $197,172 – $313,136 Minimum required capital: $80,000 FASTSIGNS International, Inc. anticipates Contact: [email protected] / +1 (888) 285-5935 continued Canadian growth fastsigns.com
ommunication serves in Canada this year and is actively about owning a business together, as the core component seeking prospective franchisees FASTSIGNS franchisees Donna of business success throughout the country, including Bilodeau and Jackie Raymond C worldwide for businesses a master franchisee to develop made the leap from friends to of all sizes. With more than 725 in Québec. business partners in 2000 independently-owned and operated “We pride ourselves on our when they opened a center in centers in nine countries, FASTSIGNS high level of franchisee satisfaction Windsor, Ontario. offers entrepreneurs and current in every country we operate in Neither Bilodeau nor Raymond business owners an opportunity to around the world and we’re honored had experience as business owners meet a growing demand for eye- to be recognized once again by the when they joined FASTSIGNS, catching graphics and marketing Canadian Franchise Association but they leveraged their unique through franchising. (CFA) for the 2019 Franchisees’ Choice backgrounds and experience to In 2020, FASTSIGNS celebrates Designation,” said Mark Jameson, EVP become successful franchisees. its 35th anniversary in business of franchise support and development, Bilodeau, the daughter of a as the leading sign and visual FASTSIGNS International, Inc. member of the Canadian Armed communications franchisor, priding “We continue to nurture our strong Forces, lived all over the world, its accomplishment on its ability franchisor-franchisee relationship, learning to adapt to new situations to adapt to markets across the which is so crucial to FASTSIGNS’ and make new friends easily. globe; specifically in Canada, where success in Canada.” Raymond was born to a French- FASTSIGNS is home to over 36 Canadian family and, after high centers with rapid growth on the EXTENSIVE TRAINING school, got a job at a local French horizon. FASTSIGNS expects AND SUPPORT newspaper where her interest in to sign two to three more agreements After years of dreaming and talking creative graphic design grew. “Everything was finalized in July 2000 and we drove down to Dallas for a three-week franchisee training program. We spent the entire month there, returned to Windsor, and opened the doors to our FASTSIGNS center on August 1,” Raymond told Canadian Business Franchise in 2017. “It was an intense few weeks, but training was great. It was split into units. I went through the graphic design modules and Donna focused on the sales and management ones. This way, we’d be able to come back and use everything we learned and implement it into the business. Plus, we were playing to our previous experience and strengths. It was a great decision.”
16 GLOBAL FRANCHISE | CANADA FOCUS Behind the Brand - XxxxxxxxxxxFASTSIGNS
Jackie Raymond Donna Bilodeau and FASTSIGNS franchisees franchisees FASTSIGNS GLOBALFRANCHISEMAGAZINE.COM 17 GLOBALFRANCHISEMAGAZINE.COM Communications & Signage Franchise Franchise & Signage Communications Global magazine’s in Global Franchise 2020. Awards Franchise “We pride ourselves on our high level of “We satisfaction in everyfranchisee country in around the world” operate we Additionally, Franchise Gator Gator Franchise Additionally, Review Business also Franchise only sign, graphics, and visual only sign, graphics, to be franchise communications in the top 100. recognized 100 to its Top named FASTSIGNS 2019, list. of 2020 In Franchises named FASTSIGNS Entrepreneur for Franchises one of the Top also was and the brand Veterans, Business in Franchise recognized for Franchises Top Review’s report.on was named It Veterans to Buy Best Franchises America’s magazine, and made list by Forbes list of the Top Direct’s Franchise 100 Franchises. as one of FASTSIGNS recognized the “Best of the Best” for franchisee satisfaction for the last 10 years, for 50 Franchises and for its Top Service Franchises Top and Women recently, Most lists in 2019. was named the Best FASTSIGNS
“Yes, it is our own business. We it is our own business. We “Yes, This Raymond year Bilodeau and FASTSIGNS touts its high FASTSIGNS that Gibbs, a franchisee Craig qualms about calling the corporatequalms about calling the office to ask questions. the final decision, but theymake if we need our sounding board are who said Raymond, something,” for another local worked previously in the print industry. franchise to the compared “Nothing help.” corporate FASTSIGNS celebrate 20 years in business, and 20 years in business, celebrate Windsor continues to FASTSIGNS no they have today, thrive. Even FASTSIGNS is consistently ranked is consistently ranked FASTSIGNS opportunity. as a top franchise magazine 2020, Entrepreneur In the number one named FASTSIGNS opportunityfranchise in its category on its annual and number 55 overall 500 list, making it the Franchise OUTSTANDING OUTSTANDING RECOGNITIONS I’ve received from the franchisor, I’ve from the franchisor, received aspects business, isin many of my direction strategic fantastic. From to marketing, along with vendor more, and technology, relations, Much of FASTSIGNS’ success in of FASTSIGNS’ Much to its highCanada can be attributed level satisfaction. of franchisee The by was once again recognized brand of the as a silver recipient the CFA Choice Designation. Franchisees’ 2019 This was the seventh consecutive year for its was recognized FASTSIGNS with Canadianstrong relationship as well as extensivefranchisees, supportfranchisee and training. supportsystemwide – the best of ratio As franchise. sign and graphics any the grows throughout Canada, itsbrand leadership team continues to allocate toresources a significant amount of access to have ensuring franchisees and support.top-notch training center in opened a FASTSIGNS Scarborough, Ontario, in 2007, “I’ve for the brand: is an advocate been than 13 for more with FASTSIGNS years, and the support providedthe tools and resources continuously contributed to myhave Gibbs said. growth,” ongoing center’s A FRANCHISEES’ CHOICE A FRANCHISEES’ CHOICE YEARS DESIGNEE – SEVEN AND COUNTING GLOBAL FRANCHISE CANADA master_GLOBAL FRANCHISE 28/02/2020 12:03 Page 18 INSIGHT Are Canadians and Americans really that different? Vancouver-based Angel Coté demystifies the cultural differences between the two countries
WORDS BY ANGELA COTÉ
n preparation for more willing to help others out “the adage of ‘Americans are sharing my insights (pronounced “oot”– our American more aggressive than Canadians’ I into the perceived neighbors love to laugh at how is certainly true when it comes cultural differences we say “out”, for some reason). On to business on a whole. I see between Canadians and Americans, that note, I would be remiss not this in our competition, in our I decided to do a little research. to mention how much I get a kick franchisees, and our partners. THE AUTHOR I asked a handful of my closest out of Americans trying to properly They are more aggressive when Angela Coté is a American friends and peers in make use of a very important word it comes to sales, they are much franchise growth the franchise community and I in the Canadian dictionary, “eh”. more likely to go all out to catalyst at Cultivate kept hearing, “I really don’t think Contact me for free lessons. dominate a market. They can also Advisors Canadians are that different,” and Regardless of who’s nicer and be much more cutthroat in how the most common response was, who correctly pronounces the word they do business. There can be “Canadians are just nicer”. I think “out”, it is probably worthwhile to a certain ‘edge’ to the American that’s a compliment, but when it dig even deeper on the cultural style versus what we have up comes to doing business, is it really differences between how Canadians here in our polite and ‘everyone a good thing? and Americans do business so we wins’ Canada.” As a franchise growth catalyst can optimize and leverage our That being said, differences who works with franchisors all relationships and opportunities. probably come down to being across North America, I mostly agree that we’re not really that different, but I have to admit, I “In Canada, the culture varies wasn’t exactly sure what people meant when they said we are “nicer”. significantly from Toronto to When I dug a little deeper, it seems that in general, Americans Halifax, just as it does from see Canadians as more polite, Columbus, Ohio to New York City” a little more empathetic, and
For the most more regional in nature part, we perceive within each country than they Americans as are dependent on what side a little more… of the 49th parallel you are (um) assertive on. In Canada, culture varies and self-assured significantly from Toronto to than their polite Halifax, just as it does from and slightly more Columbus, Ohio to New York City. cautious Canadian Travelers might find the Midwest counterparts. “friendly people” in certain parts According to of the U.S. to be warmer and John deHart, more approachable than the well-respected polite Canadians they find in a big co-founder of Canadian city like Toronto. Nurse Next On that note, Justin Livingston, Door and Live VP of global development for Well Exercise Coyote Ugly Saloons and One Clinics with Cannabis Franchise Systems, franchises in highly recommends taking the both countries, time to get know each individual
GLOBALFRANCHISEMAGAZINE.COM 19 INSIGHT
market and learn And keep in mind that while the buying habits Americans reap the benefits of of consumers as well cross-border brand awareness, it as the differences in doesn’t always work the other way business and franchise around. What I mean by this, is that law. From there, you probably mostly through media, can make a strategic we Canadians often get exposed to and intentional entry to American concepts, so by the time optimize the opportunity a U.S. franchise enters Canada, for success. there’s a good chance there has Dan Monaghan, founder of already been some brand awareness the Clear Summit Group, who built up. When a Canadian owns five franchise brands with franchise enters the U.S., we are over 1,000 franchisees across often starting from scratch. the globe, shared his thoughts: In light of the themes of “The biggest threat might be politeness, market size, respecting found in the competitive landscape market differences and a culture of the two countries. While the that is a little more ‘chill’, here great advantage of the U.S. is the are six key cultural differences magnitude and potential of the you should know about when market, in general, conditions are doing business with our American more competitive.” For a Canadian neighbors, based on my experience company, opening a corporate and conversations with various location in the U.S. market that is business and franchising peers. in a market you intend to target is a great way to test how Have a plan vs your unit economics will fare just do it south of the border. It’s also 1 When doing business in the a great way to work out some U.S., hold on to your hats, fellow of the kinks in your system and Canadians! Americans in business calibrate your business model are action-oriented. They typically so that you are prepared to scale have more tolerance for risk-taking, quickly when the time is right. enabling them to make decisions Another interesting observation more quickly. That means that in came forth when I was in a general, things move a lot faster and conversation with my franchisor require a firm eye on your ethics to client, David Cutillo, CEO of keep up. BeBalanced Hormone Weight Loss Centers, whose mandate is Open for business to help women across the U.S. Along with a higher tolerance reduce stress, sleep better and 2 for risk-taking, Americans are lose unwanted weight by helping generally more open-minded and them balance their hormones accepting of change. They are more with a proven natural approach. willing to spend money on third- David commented that Americans’ party services, like consultants with stress levels are at an all-time industry expertise, probably because high and that Americans perceive they are more tolerant risk-takers. Canadians to have more of a However, make sure you get it right, culture of stopping to enjoy life, because they have high expectations a little more like you would expect of what they get in return, which in Europe. leads to my next point.
“Along with a higher tolerance for risk- taking, Americans are generally more open-minded and accepting of change”
20 GLOBAL FRANCHISE | CANADA FOCUS Fail quickly an innovative technology company Given that Americans called Ecofit, which helps gym 3 typically have a gutsier owners and managers stay on top of gym equipment repairs, “With attitude about risk-taking than us Canadians, you may be able Americans there are no second to predict that they also have a chances. If you misstep, they will greater acceptance of failure and move on to your competition.” they understand that in order to Americans may have a higher progress, you often need to fail a tolerance for risk-taking and few times. Instead of seeing failure be more open-minded about as a negative, Americans look at investing in services, but they failure as an opportunity to learn. will be less forgiving if you steer Their attitude is closer to: Try it. them astray. Did it work? No? Okay, let’s move on and try something else. Overall, the similarities are more apparent than the Watch your back! differences. The cultural Americans are much more vibe in both countries is 4 litigious than we “nice” one of collaboration and fun, and the business Canadians. I’m not sure if it’s because they’ve been burned by exchanges are similar too much hot coffee or slipped to those I experience on too many wet floors, but here in Canada. regardless, it is a key difference, However, as a key especially when it comes trading partner to franchising. with the U.S., it Canadian franchisors often is important to overlook the significance of this in be aware of terms of time, money, and overall and respect resources when entering the U.S. the differences market. And it doesn’t stop there. in the business culture An American disatisfied franchisee in pursuit of optimizing is more likely to take the litigation market opportunity. route than Canadian franchisees when things go awry.
Circle of trust Once you “get it right” and 5 have proven yourself, you may well have made an American friend for life! Americans are keen on building relationships in business with people that they trust. It can actually prove to be a challenge when it comes to building a referral network. I have met many franchise vendors who already have their go-to people they refer clients to. It takes a lot of effort and relationship nurturing to really get on their radar, but it is worth it because once you do, the referral opportunities are gold.
You never get a second chance 6 to make a first impression According to a local business friend of mine, David Johnson, founder of
GLOBALFRANCHISEMAGAZINE.COM 21 INTERVIEW
MEET CANADA'S NEW TOP DOG
INTERVIEW BY JAMES FELL
Leading doggy day care and boarding franchise, Camp Bow Wow, has its sights locked on growing its presence in the Great White North in 2020. Todd Haavind, VP of franchise sales, talks key territories, growth strategy and how the brand keeps dog owners coming back for more
JF: Why a focus on Canada? Vancouver are higher cost markets, and (GTA). The GTA is an interesting place and TH: We've currently got one location in we'll probably be looking to partner with requires a different model; it's like Canada's Canada that has been there for around 10 someone from a franchise background – New York City, when it comes to franchising. years – it's run by a friend of the founder, and perhaps even a multi-unit background – We're looking for owners that want to by default became the sole licence holder for who wants to come in and open five or so own one or two units, as well as multi-unit the whole of Canada. It's one unit in Nova units and scale the brand. In the smaller owners. We're probably not looking for a Scotia, which is an unusual first location. and mid-level markets, we'll be looking to master franchise for the time being, though, However, this shows that we've gone to emulate what we did with our growth in as we're going to be running the operation Canada, done it and have been very well the U.S. out of the U.S., and until we have a critical received, but folks maybe didn't realize the With Toronto especially, we're finding mass, we won't have a franchisor in the brand was a franchise, so we haven't really the real estate is very expensive, so we're country. We have a successful track record grown in the region yet. looking for a well-capitalized partner – it and we believe we can mirror it in Canada. will help if they've already been involved The consumer habits are very similar, and JF: Where in the country are with franchise concepts in that area and while there are different cultural nuances, you looking to expand to? already figured out the ins and outs of we've done this for 20 years and we know TH: The larger markets like Toronto and franchising in the Greater Toronto Area it's a viable economic model.
22 GLOBAL FRANCHISE | CANADA FOCUS JF: Why should someone invest in a Camp Bow Wow franchise? TH: We've been franchising in the U.S. since 2003. We started in Boulder in Colorado and grew there, and we now have 172 units. We've grown thoughtfully and strategically; we haven't just put flags in the ground and opened a bunch of units. We map out where we want to be and we vet partners thoroughly. First and foremost, we want people who are passionate about dogs. We want well- capitalized people, too – it's not a small investment, and sits around the $1m mark. We've got a great, strong economic model and grown more internally than externally, meaning that owners will usually open a unit, and grow their portfolio from there. Any time a unit comes up for sale, it's usually one of our existing franchise owners that put up their hand to buy it. We keep evolving and innovating our model and we're always listening to franchisees.
JF: 2019 saw a record number of franchises sold with a 16 per cent increase in units purchased. What contributed to this? “We have a There's also a three-hour process which TH: We sold 32 new units in 2019. I've dogs must pass to be able to stay at Camp been in franchising since around 2001 successful track Bow Wow. It's pretty thorough and dogs do and worked with lots of different brands, get rejected, but it's all about the welfare but I think with the economy being so record and we of the animals. On average we probably strong right now, we get a lot of people welcome about 70 to 80 dogs per day – wanting to invest in a passion project. believe we can some camps have well above that, and Many prospective franchisees may have mirror it in Canada” we usually say 100 dogs is a good day for retired and made their money, and they camps. 60 per cent of our revenue is from come and search for us. We don't seem to dogs, so it's not like we have to go out and boarding, and we find that dog owners have to chase candidates; they find us. It's find dog owners. It's more about income, who have used our services enjoyed it so a great concept to be involved in if you're traffic patterns, rent, space – it's not a perfect much – sometimes the dog even has a passionate about dogs. science, but we've been doing it a long time better vacation than the owner! – that they and we're good at it. We know how to layout continue to bring the dog back for daycare. JF: What kind of premises does the area [once the site is selected] to get a We say that if you visit us four times, you're a franchisee require to run a great return on every square foot to make a lifelong Camp Bow Wow customer. Camp Bow Wow business? sure it flows operationally, rather than TH: We look for around 6,000-8,000 square haphazardly designing a premises. feet of space, so it's not your usual unit in a retail center. In fact, we don't want camps JF: What sets Camp Bow in retail centers at all, as for the space we Wow apart from other require, the rents will be very high. We prefer doggy day care franchises? to be a few blocks off main and main. We like TH: Over the years people have come to light industrial commercials, as we want the know us as a safe place to be – they know same demographics of the retail center. that their dogs are going to have a great We also need a landlord who's willing to time and come back clean and happy. Our create outdoor space. operational standards are extremely high Site selection is challenging but we have and safety is our number one priority. We've a real estate team that helps prospective got protocol around how many employees franchisees through that process and it's franchisees need to have to account for a included in the franchise fee. When you certain number of dogs. We have a dog sign up, you meet the retail estate team behavioural specialist that teaches our straight away and pre-map the markets by operations team to educate employees looking at the best trade areas and zip codes. to monitor dog behaviour, and they can Around 50 per cent of households own anticipate any situations before they escalate.
GLOBALFRANCHISEMAGAZINE.COM 23 BEHIND THE BRAND: PARTNER CONTENT
Be a part of AT A GLANCE CEX
Established: 1992 the retail Number of franchised outlets: 333 Location of units: U.K., Ireland, Spain, Canary Islands, India, Portugal, the Netherlands, Mexico, Poland, Australia, and Italy revolution Investment range: C$258,570 to C$430,951 Minimum required capital: C$68,952 Contact: webuy.com/franchise webuy.com/franchise CeX has surveyed the Canadian market, and is looking for master franchisees to help grow its second-hand success “CeX has provided
be made clear. Disrupting the new the structure goods market requires us to make a and support proposition to consumers that leave them with no reason to buy new. required for us to Second-hand, as an alternative to buying new, has some compelling reach our goals” arguments: The CeX mission statement is to be • It’s better value for money the world’s leading retailer of second- • A unique selling proposition: hand consumer entertainment, exchange what you don’t want, electronics, communications, and for something you do computer-related goods. • Customer care can be better than As a master franchisee, you’ll that of new retailers take on the mantle of the franchisor, • New items devalue instantly recruiting sub franchisees within when opened or soiled, but your designated territory. You will second-hand items can be be on hand to help them build their he best ideas are often sold again for a similar value. business, help them market the the simplest and most No quibble warranties can be brand, and ensure compliance. profitable. Complete offered with little effect to T Entertainment eXchange overall margin ADVANTAGES OF (CeX) takes the buy and sell concept • The range of stock can be BECOMING A CEX MASTER and updates it by trading in digital greater than that of new FRANCHISEE entertainment products. CeX shops buy, retailers, simply because we • 25-plus years’ experience sell and exchange mobile phones, games, have thousands of suppliers • 600-plus stores worldwide, with electronics, computers, movies and TV • It gives access to products new stores opening weekly shows directly from the public. that may have been discontinued • Successful master already operating What separates CeX from wider buy through normal retail channels • Globally successful in 10 countries and sell retailers is our execution. We trade in a focused, yet complementary THE RIGHT CANDIDATE product range, backed by over 25 years’ experience. 1 A track record in the management of medium to large national The CeX website provides customers retail businesses with live information, promoting our 2 A desire to grow the brand via multiple outlets and the financial stores by allowing them to see up to the means to do so minute stock levels and prices, so they 3 An existing business infrastructure that could support the development, or the experience and ability to create this know the value of their items. 4 A good local knowledge, relationships, and expertise in the areas THE CEX POTENTIAL of real estate, government, and labor regulations 5 Extensive marketing, sales and recruitment experience, To pinpoint why our market is so ripe knowledge of our key product lines, and willingness to complete six for further growth, the reasons for months training in the U.K. or Europe purchasing goods second-hand need to
24 GLOBAL FRANCHISE | CANADA FOCUS Behind the Brand - XxxxxxxxxxxCeX GLOBALFRANCHISEMAGAZINE.COM 25 GLOBALFRANCHISEMAGAZINE.COM PRIOR TO PRIOR TO OPENING program training – Comprehensive Training design and interior store design – Store Full your location to specific layout selection –Site location selection Store support – Expert network Global procurement supplies on business and branded guidance ONGOING AFTER OPENING local operations Field supportYour – and provide manager will support you evaluation performance ongoing operational dedicated support – CeX’s Franchisee main as your will serve team franchise ongoing business and provide contact support and on-site – Regular Ongoing training team’s support your to e-learning courses development manual –Operations An online manual, support the to updated which is constantly business We will share information information will share We to guide will be there We MODELS OF SUPPORT and ideas to keep your business your business and ideas to keep improving and evolving. Together, we will open up new revenue market and increase streams penetration and share. you through every By stage. systems and combining CeX’s industry local with your knowledge experience and connections, we to steer your will work together heights. business to great With our support, and training TEAMWORK LEADS TO TEAMWORK LEADS TO SUCCESS Through our local support and we will work online community, your that to ensure together business is successful. the opportunity to work in our existing This stores. will give you the opportunity to “try you before your will help us to judge It buy”. a in owning and operating suitability CeX franchise. established systems, we expectyou to build a customer base and to provide them with outstanding levels of return for your dedicationservice. In work, we will provide youand hard supportwith ongoing and advice to mutual success. ensure
“I was looking for a franchise to bring to bring to to a franchise looking for “I was growth. for potential that had real Mexico an area manager and later as a store working When I came across CeX, I knew that this that this I knew CeX, When I came across while to franchising first introduced “I was When I chain. franchise manager in a fast-food stores across Mexico since 2014) since Mexico across stores started researching for my own franchise, I felt franchise, own my for researching started was the business with the potential I was I was the business with the potential was the U.K.) across 23 stores (owns José Adame, master franchisee (owns 30 30 (owns franchisee master José Adame,
it important to consider the franchisor’s market market the franchisor’s consider it important to Gabriel Moreno, area developer developer area Gabriel Moreno, looking for. Like most of us, I have grown up up grown I have most of us, Like looking for. experience and that they had a well-established had a well-established and that they experience CeX brings an innovative franchise model directly involved with involved model directly franchise brings an innovative CeX an added bonus that It’s business grow. seeing my I most enjoy in an environment filled with technology, and today technology technology today and technology, filled with in an environment than ever.” faster our lives into is expanding 30 (owns franchisee master Juan Casanova, 2014) since Mexico across stores spending time analyzing the business “After with members of themodel and meeting the that this was convinced I was family, CeX and time spent in The training me. business for me further and Spain gave the businesses in the U.K. of our business. the success to insight and made all the difference us to for and support required the structure, has provided CeX seen substantial have we years, our goals. In the last two reach in our businesses and profitability.” growth risk and achieve to diminish the worthwhile This is definitely brand. investment. of your the success devices, electronic products; moving challenging and constantly the flexible Moreover, technology. films, games and entertainment involved. to get enough confident policy made me feel royalty in products try the opportunity out a host of technology to I have day.” of my the course CASE STUDY TESTIMONIALS CASE STUDY Huge market with a uniquely Huge competitionfocused model and little Best-in-class online presence support manager franchise Ongoing Expert location store selection support by expertsPricing on products that near-universal appeal have business support ongoing Full training,including operations, and marketing IT, EPOS and stockBespoke systems redistribution Global procurement network for supplies business and branded of your own stream Dual revenue stores and sub-franchise TRY BEFORE YOU BUY YOU BEFORE TRY As part of the joint decision- making process, we will provide • • • • • • • • • BEHIND THE BRAND: PARTNER CONTENT Behind the Brand - Lava Island
AT A GLANCE LAVA ISLAND
Established: Embark on 2018 Number of franchised outlets: 1 Locations of units: U.S.A. Investment range: $2.5m - $5m a franchise Minimum required capital: $750,000 Contact: [email protected] adventure franchise.lavaisland.com activities together, and bring friends to play too,” said Celeste Henderson, Lava Island’s COO. “Parents love the themed private party rooms because Lava Island is making a name for itself with they can host exciting memorable full-service family entertainment centers parties without the worry of set-up or clean-up.”
ervices for families and bodies and minds in an engaging, children are among the fun, welcoming environment CONSISTENT fastest-growing segments that delights both children QUALITY ASSURANCE S Lava Island’s corporate team in franchising, particularly and parents. children’s play spaces. Lava Island, a “Customers regularly tell us that designs and builds each site to children’s entertainment/play center they prefer Lava Island because we exacting sanitary and safety standards. company, already has had a positive provide a wide variety of active- These sites can be designed for either impact in this sector. The international play solutions and fun activities horizontal or vertical (multi-level) response to this young company has for children of all ages and their buildings, which are particularly been very positive. families,” said Boyd Henderson, important in dense city locations Lava Island’s CEO. “My background and anywhere that inclement or “We provide a wide variety is in indoor trampoline park hot weather would adversely designing and installation, and I felt affect outdoor events. Accordingly, of active- play solutions that children and families deserved the company offers a unique better than what was available.” financing package to qualified and fun activities for investors worldwide. A COLLABORATIVE Parents invest in their children children of all ages and EXPERIENCE regardless of the general economy. their families” Lava Island locations have on- Lava Island provides parents, children, site restaurants that offer a and their families with fun, welcoming, NON-STOP FUN delicious, family-focused menu and convenient environments where Lava Island combines a trampoline and co-branded items such as they can celebrate and play together. park, an indoor play facility, Starbucks coffee. The restaurants Lava Island franchisees proudly do climbing walls, a ninja course, also support on-location party important, meaningful work that themed private party rooms, centers, which host daily themed children and their families enjoy. an in-house restaurant, and a private parties. ‘volcano’ slide. The company’s Lava Island’s multiple mission is to stimulate children’s entertainment options provide franchisees with multiple revenue streams that maximize the use of the physical facility, such as timed admission, mandatory specialized socks, branded merchandise, food and beverages, private party rooms, and events areas for schools, teams and community groups. “I’m a working mom, and Lava Island is a convenient way for families to participate in phyisical
26 GLOBAL FRANCHISE | CANADA FOCUS GLOBAL FRANCHISE CANADA master_GLOBAL FRANCHISE 28/02/2020 12:03 Page 27 FEATURE
LITTLE KICKERS: GLOBAL FRANCHISE CHAMPION 2020
More than 330 franchisees operating in 34 countries. Classes attended by over 70,000 children a week. When it comes to franchising, soccer concept Little Kickers is in a league of its own
WORDS BY JAMES FELL
28 GLOBAL FRANCHISE | CANADA FOCUS hen it comes to franchising awards, it W could be said that the Global Franchise Champion accolade is akin to the World Cup, so it's only fitting that an educational soccer program took the top prize at this year's Global Franchise Awards 2020 ceremony held at the International Franchise Association 2020 conference in Orlando, Florida. Little Kickers is an educational soccer – or 'football', depending on where you're based – program which was designed to provide children aged one-and-a-half to seven years old a fun and positive introduction to sport while promoting the development of fundamental early learning skills such as color and number recognition, sharing and taking turns. Founded in London, England in 2002, Little Kickers was established footballers. We saw a niche in franchising the business – by 2005 because Lukas, founder Christine helping children to develop early there were 25 franchisees signed Kelly's son, adored football, learning skills – for instance: color up in the U.K. “From there, we however, at the age of two, there and number recognition; sharing; continued to develop in the U.K., was nowhere for him to go to taking turns; following instructions and also sold masters and units learn how to play it. “The brand – through our classes, and the into a variety of countries,” says evolved through a 'play not push' business has evolved from there.” Christine. “In 2013, we developed philosophy,” explains Christine, who an English language progam for the is now chair of the operation. “Kids World-class brand Brazilian market, where we use the who participated in the program And Little Kickers has well and Little Kickers program to also teach were encouraged to have fun truly kicked on since. In 2004, kids English. We now operate in rather than be overly competitive the decision was made to start over 40 cities in Brazil and the Little Kickers program has grown into multiple other non-Anglophone markets, including Spain, Chile, China, Germany, Italy and the Netherlands.” “This award gives us the confidence to continue to take bold steps to move the business forward”
For Christine, the relationships with franchisees are absolutely critical. The brand goes to great lengths to take on franchisees who share the organization's core values – this helps to establish a vision to work together on a long term basis. “In international markets, we tread a fine line between ensuring the core processes and procedures which form the basis of our
GLOBALFRANCHISEMAGAZINE.COM 29 FEATURE
uniforms, they will then be delivered to six orphanages in South Africa, together with kit and equipment, by teams of Little Kickers coaches who will train up local people on how to deliver our program.” “We're happy to take risks and constantly push the envelope with what we do”
Bold ambitions, but if there's any organization that has shown time and time again that it can achieve incredible things, it's Little Kickers. As well as the eco-friendly focus, the brand has a lot of other exciting plans for 2020. “We're also launching a new online shop in the U.K., Australia and Canada, with a wider franchise model are followed award, but claiming the Best range of merchandise,” says Christine. “In as closely as possible, and Children's & Education Franchise 2019, we donated a franchise to Aston respecting key social and cultural title, too. “We have never aspired University in Birmingham, England, differences in these markets. This to be a small brand and have where two placement students now run is always much easier when we're always invested heavily in world their own franchise – we plan to roll this working with people who have the class infrastructure that supports out to other universities. Franchising as a same values.” the growth we would like to see,” business model is not incorporated into she says. “We have very clear and many business management programs Franchising all-stars strong values and only take on at universities, which is strange given When it comes to winning the franchisees and coaches who its huge impact on the overall economy. coveted title of Global Franchise share these, which means We're also exploring how we can Champion, Christine is a true team everyone within the business is make proprietary technology we have player, and dedicates the win to very aligned when it comes to developed to facilitate monthly recurring everyone involved with the brand. objectives. We're happy to take customer payments across multiple “We're absolutely delighted to risks and constantly push the markets available to other franchisors have won – it's Little Kickers' 18th envelope with what we do.” who are investing in moving to this birthday in April, and so many One of those objectives is for business model.” of the team have been with the Little Kickers to become company for many years now – it's the most eco-friendly fantastic to see everyone's hard kids soccer club in the work being recognized this year. world by the end of It's also very positive for the head 2020. Just like with most office team. We have taken many of her entrepreneurial bold decisions in the past, which career thus far, Christine have changed the direction of the relishes the challenge. business – fortunately, most of “This will involve us these have worked out very well. shifting our current This award gives us the confidence production of over to continue to take bold steps to 100,000 football kits and move the business forward and other merchandise away differentiate ourselves rather than from petrochemical- playing it safe!” based fabrics – which is And not playing it safe is what the norm in the industry has set Little Kickers apart in a – to using fabrics made saturated children's activities, out of recycled plastic tutoring and education market, from the ocean. Once with the brand not only winning our Little Kickers have the Global Franchise Champion finished with their
30 GLOBAL FRANCHISE | CANADA FOCUS GLOBAL FRANCHISE CANADA master_GLOBAL FRANCHISE 28/02/2020 15:40 Page 31 FEATURE
CANADA YOUR NEXT FRANCHISE LOCATION?
The Great White North can seem like a natural next step for entrepreneurs – particularly those from the States. But it’s important to look before you leap
WORDS BY KIERAN MCLOONE
32 GLOBAL FRANCHISE | CANADA FOCUS s the second-largest franchise brands, as Canadians can franchise market in the be approached with a pre-existing ANATOMY OF A A world, it would be easy familiarity in mind. CANADIAN FRANCHISEE to assume that Canada “Canada has been a great can be approached similarly to its stepping stone for American 70% MALE pioneering neighbor, America. franchisors expanding The thing is, if entrepreneurs internationally, since the 35 TO 54 YEARS OLD do adopt the same approach that Canadian market is so close,” has worked for them in the States, says Wayne Maillet, president of 57% LIVE IN ONTARIO the Canadian franchise market Franchise Specialists and author HAS $50,000 TO $300,000 could prove an inhospitable, of Franchising Demystified: The TO INVEST convoluted beast. Definitive Franchise Handbook. “For American franchisors, there’s MOST IMPORTANT Taking a step back often a brand presence and FRANCHISE FACTOR: Like with any market, perhaps knowledge in the market already, BRAND RECOGNITION the most important stage in the where we’re so close in the media international franchising process and TV. Overall, consumers are PRINCIPAL MOTIVATION: is background research. This is familiar with American brands.” “BE MY OWN BOSS” especially true for Canada, where This has certainly been the case disparate provincial laws and for the giants of the American HAS POST-SECONDARY SCHOOL EDUCATION ununified regulations can prove franchising world – the likes of tricky for investors who haven’t Subway, McDonald’s, KFC, or Dairy done their homework. Queen – which have all found CEO of Burger Village. “Things worked Let’s look at the big picture: great success within the country. out and here we are with our very first according to the Canadian McDonald’s, specifically, benefitted opening in Canada.” Franchise Association (CFA), from Canadian expansion as it However, as with any story of a Canada has approximately 1,300 was a Canuck franchisee who brand venturing into Canada, Burger franchise brands, with over 76,000 introduced the now-iconic Village faced some initial teething individual units peppered across its McFlurry to the brand’s renowned pains. As Yadav explained: “We had lush, frosty landscape. The province menu in 1995. to face a challenge related to cooking with the largest franchise market But you don’t necessarily have temperatures as per Board of Health, is Ontario ($49bn), followed by to be a huge, established brand Edmonton. We had to serve burgers Quebec ($15bn), and then British to make it big in Canada. Burger cooked well done only, whereas, in all of Columbia ($13bn). Village, a modest, eco-friendly our locations in the U.S.A., we can serve U.S. burger franchise announced anywhere from rare to well done as per The more things change... its first Edmonton location late the customer’s choice.” Of the country’s 34.6 million last year: “Burger Village was population, 90 per cent live within looking to expand internationally Provincial polarity 100 miles of the U.S. border. This has and opportunity knocked from Unlike the U.S., there are no federal proven beneficial to large American Edmonton in the form of a laws governing franchise businesses in franchise inquiry,” said Nick Yadav, Canada; the responsibility lies within
GLOBALFRANCHISEMAGAZINE.COM 33 FEATURE
the provincial government. And management consultancy. laws require that all signage for as of writing, the only Canadian “Typically, the brands that do come a brand is predominantly in provinces that legislate franchise either start in Western Canada, French, and cultural preferences laws or agreements are Alberta, Ontario, or Quebec.” could prove jarring for concepts Ontario, Manitoba, Prince Edward that have otherwise worked Island, New Brunswick, and Francophiles anonymous perfectly elsewhere. British Columbia. Furthermore, Quebec is perhaps the epitome “Here’s a perfect example: Pizza these agreements don’t necessarily of Canadian individuality, as the Hut came into Quebec many years correlate across provincial borders. province could almost be a sub- ago,” explains Karpman. “There’s a “A lot of brands come to Canada market within Canada itself. big difference in Quebec with how and what they don’t realize is that “A lot of European brands will we make our pizza. The rest of the come and start in Quebec,” says Lori world puts their cheese and then "Canada has been a Karpman, “because they already toppings on, but in Quebec, we put have all of their documentation in the toppings on first, then the cheese. great stepping stone for French so there’s no language barrier. Sounds like a minor distinction, It’s the closest market [in Canada] right? But it’s not. When Pizza Hut American franchisors to a European-style market.” expanding internationally" However, even for a European the country is quite fragmented, in franchisor, Quebec terms of franchise development,” isn’t a surefire says Lori Karpman, CEO of Lori ticket to success. Karpman & Company, a franchise Protective language
THREE QUESTIONS WITH...
Giorgio Minardi, executive VP of global development and franchise operations, California Pizza Kitchen California Pizza Kitchen (CPK), the globe- spanning pizza franchisor operating in 10 countries and U.S. territories, is soon extending its footprint to Canadian shores. We spoke with Giorgio Minardi about the brand’s ambition plans.
KM: What are the brand’s development plans for Canada? GM: We intend to open our first Canada location in Edmonton, Alberta, then expand to approximately five locations throughout the province. We see room to grow our brand considerably into additional provinces throughout the country as well. Following our entry into Alberta, we also plan to expand to Vancouver, Toronto and Montreal as our next focus markets.
KM: What made Canada the natural next step for the brand? GM: We’ve had our sights set on expanding to Canada for many years. As we’ve grown CPK over the last 35 years, we’ve been pleased to host so many Canadian guests in our restaurants across the U.S. and around the world, who’ve visited us on vacation or business travel.
KM: What aspects of the brand will appeal to Canadian foodies? GM: We believe the CPK experience will resonate with local guests looking for creativity, quality in the foods they consume, and a varied menu.
34 GLOBAL FRANCHISE | CANADA FOCUS came to Quebec for that first time, Trailblazing opportunity This has been in part due to it didn’t do too well and ended up It would be remiss to discuss the those pesky provincial laws making leaving. It didn’t offer French fries, Canadian franchise landscape and it difficult for consumers to even which we eat with pizza, and it didn’t not at least touch on the recently get access to cannabis; in Ontario, butter the crust like we prefer here.” introduced market of recreational Canada’s most populous province, But Pizza Hut’s story didn’t end cannabis: “This is an entirely new retail licenses were initially there: “It subsequently came back business sector that didn’t even awarded as part of a lottery. 24 were and became very successful,” says exist two years ago,” says Wayne distributed in total, which were meant Karpman, “because they partnered Maillet. “Any American brand that’s to service a population of 14.5 million. with a Quebec development group in the recreational cannabis retail That’s 604,166 visitors per location. – a group of people who understood industry would be wise to look into The market could soon be set to the needs of the market.” the Canadian market.” change, however, as in December Legalized nationwide in October 2019, Ontario announced it would 2018, the recreational cannabis lift the cap on the number of private industry has been tumultuous, to stores that could operate. For say the least. It’s currently valued pioneering U.S. marijuana retail at around $6.5bn, but it’s not franchises like Unity Rd., 2020 always easy for businesses to could be the year to cash in on achieve high profits. Canadian cannabis.
FIVE MISTAKES TO AVOID WHEN FRANCHISING IN CANADA
Wayne Maillet, president of Franchise Specialists, a Canadian franchise consultancy, notes five pitfalls that incoming franchisors would do well to avoid:
Go in blind. “Ideally, strong franchisors will open up a corporate location in Canada and make modifications before starting to franchise. The alternative is finding a master franchisee that will do the franchising in Canada.”
Under-prepare. “The franchise needs to be perfected. Ideally, you want to validate the business model by opening a corporate-owned pilot location. Fully document the system through operation manuals, create support systems, and structure everything to add value to the franchisee.”
Ignore financials. “Businesses come into franchising undercapitalized. That’s often why they’re not providing a support system, and they underestimate cost.”
Overcharge. “Sometimes, a common mistake franchisors make is to offset costs by charging additional fees which are too much for franchisees. They take away from profitability. There needs to be a balance, and that’s defined through financial modeling.”
Sell franchises. “Another common mistake is that franchisors are not selective about who they partner with. Often I see them selling franchises, instead of awarding franchises. The successful franchisor is selective as to who they grant a franchise to; they evaluate a particular franchisee, to make sure they have the appropriate skillsets and attitude.”
GLOBALFRANCHISEMAGAZINE.COM 35 FEATURE
the franchise community in Canada. If any franchisor is planning on franchising into Canada, it is important that they become members of the CFA. While the franchise business model is similar around the world, each country has its own nuances and legalities. By joining the CFA, franchisors can learn Canadian best practices, connect with Canadian franchise experts and suppliers to help them grow, and network and learn from other franchisors operating in the country.
As the second-largest Q franchise industry in the world, why do you believe franchisors are turning to Canada when taking their concepts international? Canada is an attractive A market for franchise expansion. According to the University of New Hampshire’s 2019 RIFC International Franchise Attractiveness Index, Canada was ranked the third most attractive country for balanced growth due to reasonable market potential at very low market risks. This INTERVIEW is particularly true for U.S.- based franchisors, due to low geographic and cultural distance Sherry McNeil explains why the Canadian risks, where Canada leads Franchise Association should be an compared to other countries. We are also the most educated incoming entrepreneur’s first port of call country, with over 55 per cent of Canadians aged 25 to 54 having graduated from post-secondary As the president and CEO of the for the franchise community. We institutions, according to the Canadian Franchise Association, are committed to helping everyday OECD. Canada has the soundest Sherry McNeil is the inarguable Canadians realize the dream banking system among G7 countries expert on conducting business in of building their own business and ranks second in the world. the country. While she promotes through franchising. We work on Canada also ranks second among carefully considered expansion, behalf of our member community G20 countries in terms of political she’s confident the CFA can help to amplify the understanding and stability. We have the lowest overall any business achieve their goals. power of franchising in Canada, by tax rate on new business investment advocating on issues that impact and lowest business costs in this dream; connecting people corporate services among with opportunities, and delivering G7 nations. Thank you for speaking learning opportunities that make Our country’s identity as a cultural Q with us, Sherry. As the franchises stronger. mosaic also makes us uniquely head of the CFA, could you give One of the most important things appealing. Immigration has been me an idea of how you support we do is government relations a key part in Canadian society’s both international and domestic and advocacy. From protecting growth and our nation’s cultural franchisors? the franchise business model to mosaic reflects a cultural, ethnic, The Canadian Franchise advancing our members’ interests, and linguistic mix that is unique in A Association (CFA) is the hub the CFA is committed to protecting the world. Our multiculturalism is
36 GLOBAL FRANCHISE | CANADA FOCUS based on the belief that all citizens spans language, gender, religious However, as a general best are equal and that diversity makes affiliations, sexual orientation, practice, piloting a concept us stronger as a country. This mix abilities, and economic status. through a corporate-owned store of diversity and cultures creates a This diversity creates some is typically recommended before rich customer market for foreign challenges; however, it also franchising. This allows the franchise brands looking to expand creates enormous opportunities franchisor to be able to test and in Canada. that prospective franchisors must adapt their concept, marketing, take into account as they roll and operations, if required. Canada has been described out their concept. Q as an extension of the Franchising in Canada is regulated Finally, what do you U.S. market, due to customer at the provincial level with six Q foresee for the future of priorities and market trends – provinces (British Columbia, Alberta, Canadian franchising, in terms what are your thoughts on this? Manitoba, Ontario, New Brunswick, of trends to watch? While Canada shares many and Prince Edward Island) that have The future of franchising A similarities with the U.S. franchise disclosure legislation in A in Canada is bright! We due to our proximity, there are place. Foreign franchisors looking to expect continued growth to lead many differences in culture, laws, do business in Canada should ensure franchising to become the and market sensibilities. Canada their franchise agreements have been seventh largest industry in is definitely its own entity and the adapted to Canadian laws. This may the next few years. Trends assumption that it is an extension require changes in their business to watch are continued of the U.S. market is often model due to Canadian withholdings growth of women in one of the reasons why some tax, language requirements, and franchising; cannabis franchisors face challenges disclosure legislation that is in place franchises; the rise of Gen in expanding in Canada. in some provinces. Z in franchising; and private An important difference that equity investments franchisors need to know is that Some experts suggest into the industry. franchise law is different in Canada Q opening a corporate- compared to the U.S. We also have owned pilot location, prior to distinctive federal and provincial franchising in the country. Do tax requirements. It is important you believe this is the way to go? for franchisors to join the CFA and Every brand has its engage in educational offerings A own strategic plan for on Canadian best practices and international expansion. connect with Canadian industry experts and suppliers to ensure they are properly practicing franchising in Canada.
Are there any particular Q adaptations that franchisors need to be mindful of when entering the country, and are there adaptations that vary from province to province? Canada is one of the most A diverse countries on earth. Canada boasts the highest percentage of foreign-born citizens than any other G8 country. On average, Canada welcomes over 250,000 newcomers per year and visible minorities account for over 60 per cent of the population of Toronto and Vancouver, and 31 per cent of Montreal. Diversity in Canada extends beyond race and ethnicity but
GLOBALFRANCHISEMAGAZINE.COM 37 BEHIND THE BRAND: PARTNER CONTENT
AT A GLANCE SUMMA Specialists FRANCHISE CONSULTING
Main HQ: Arizona, U.S.A. in franchise Contact: [email protected] consulting summafranchise.com STRATEGIZED SUCCESS Summa is well-known for working with start-up or younger franchise companies and maintaining those Propel your business with the assistance of relationships. Summa Franchise Consulting “Working with companies at the beginning of their respective journeys is advantageous for them and their franchisees,” said Chrissy umma Franchise Eblin, Summa’s vice president of Consulting (“Summa”) marketing, “because Summa will S is an award-winning help establish clear, solid, and company that enduring policies, procedures, and specializes in advising franchising manuals. We also help our clients’ companies at every step along the branding, operational, strategic, process, from concept to and marketing plans begin sustainable success. harmoniously.” ADAPTED FOR “We help our YOUR NEEDS Summa, based in Arizona, has clients select an enviable list of marquee clients. Robert Stidham, superior Summa’s founder and CEO, said: “We enjoy working franchisee with clients of all sizes and partners so industries. We are active in the franchising community, and our that they all can professionals have significant direct experience working in achieve superior franchise businesses.” results” Mr. Stidham is an accomplished franchise industry leader and executive Ms. Eblin has extensive with a proven track record direct experience in domestic of improving franchise and international franchise company performance. He has marketing, sales, and operations. held a variety of leadership She has overseen the design and positions in the franchise production of hundreds of major industry for development, digital, video, print, and direct operations, consulting, and mail marketing and advertising also as a franchise company campaigns, and created and president. Additionally, he developed comprehensive is active in the International marketing plans, marketing Franchise Association and presentations, market research Robert Stidham, founder and CEO serves as an International reports, and sales/marketing Committee member. reporting tools. She also has
38 GLOBAL FRANCHISE | CANADA FOCUS Behind the Brand - XxxxxxxxxxxSumma Franchise Consulting GLOBALFRANCHISEMAGAZINE.COM 39 GLOBALFRANCHISEMAGAZINE.COM “We enjoy enjoy “We working with clients of all sizes and industries” The service is unique in format on complex or master multiple-unit license transactions. Summa provides clients with a full-cycle developmentfranchise solution, its activities with its coordinating clients’ marketing and operations executives and teams for proper execution.program the fulfillment model is shared- that risk oriented and neither Summa a portion takes of nor its affiliate from its royalties nor direct equity sales services.clients for franchise All in all, Summa Franchise Consulting is a top-level company would be a formidable ally for that company. franchising any
Clients rely on Summa’s on Summa’s Clients rely Summa, through its affiliate, acquisitions or spin-offs to food acquisitionsspin-offs to food or safety and risk management,” said. Rocca substantial experience in sales and franchise franchise marketing to inform their decision-making when it comes marketing to choosing franchise networks, developing budgets, constructing best-of-class messaging, and selecting the during the right franchisees sales process. “We franchise help our clients select superior partnersfranchisee so that they all can achieve superior which ultimately results, benefits the individual said Stidham. customers,” sales provides franchise (FSO)outsourcing services, of the franchisors relieving difficulty with and costs associated units, particularlyselling franchise
Mr. Rocca has over 30 years’ has over 30 years’ Rocca Mr. A FULL-PACKAGE DEAL A FULL-PACKAGE Summa is equally well-known for providing comprehensive to assist companies in packages their development, growth, and of where regardless operations, be in their respective they may chief Rocca, Tom life-cycles, says experience and officer executive vice president. experience in customer/user experience and marketing. created, edited, and translated edited, and translated created, franchise numerous corporate manuals. training and operations in has unique knowledge He business process outsourcing with has worked (BPO). He companies in all franchise segments, including restaurant “Summa advises our brands. challenging clients on various from improving issues ranging to profit drivers to leverage GLOBAL FRANCHISE CANADA master_GLOBAL FRANCHISE 28/02/2020 12:37 Page 40 Five must-dos for franchising in Canada Canada is becoming increasingly attractive for brands looking for an English (and French) speaking market. Franchise attorney Andrae Marrocco prepares you for an adventure to the "frozen hockey rink"
WORDS BY ANDRAE J. MARROCCO
anada, much heralded on any international expansion, international system for obtaining as a frozen hockey and the same holds true when trademark registrations for multiple C rink, has turned venturing into Canada. This jurisdictions through the use of a out to be a hot includes trademarks, know-how, single application, but Canada is market for franchisors. trade secrets, copyright, and also joining the Nice Agreement, Canada has a highly skilled and patents, as well as non-traditional which establishes an international THE AUTHOR educated workforce and a similar types of intellectual property like classification system for goods and Andrae J. Marrocco spending pattern to the United States. domain names – both existing and services in trademark registrations, is an international It has the second largest franchise contemplated (e.g. “.ca” domain as well as the Singapore Treaty, franchise lawyer industry in the world, behind the extensions). Franchisors should take which seeks to harmonize who specializes in U.S., with an estimated 1,300 the time to identify the intellectual administrative procedures franchise and distribution franchise brands and more than property that is actually necessary pertaining to the trademark arrangements and 76,000 franchised business units. for their international expansion registration process. corporate M&A It is also a proudly multi-cultural into Canada and robustly protect transactions. He is country, making it a good ‘first each category of intellectual Structure your a partner in the Business Law Group expansion’ venue to test your property under Canadian law. franchise expansion and co-chair of franchise system among a variety Canada’s trademark registration 2 Determining the right the Franchise and of cultural demographics. system recently underwent a structure for your franchise expansion Distribution Law However, franchise expansion significant transformation as part into Canada is a critical part of early Group in the Toronto to the Great White North of an initiative to modernize the planning and, unfortunately, too office of McMillan LLP andraejmarrocco.com requires guidance and careful national intellectual property frequently overlooked (particularly decision-making. Here are five things framework. In addition to at the strategy stage). Franchisors to consider before expanding your substantial amendments to the need to address the following two franchise system into Canada. Trademarks Act (Canada), the structuring considerations. regulations, and Trademark Office The first is selecting one or more Protect your practices, Canada is joining three strategically advantageous franchise intellectual international trademark treaties. structures for the expansion (e.g., 1 property Not only is Canada finally acceding master franchise, area development, A franchise system's to the Madrid Protocol, the and direct franchising) and the intellectual property particular regions for which those is often the most structures will be utilized. More important asset often than not, this involves blending crossing the border structures and crafting customized terms that fit the specific franchise system and expansion mandate. It also requires conducting research on
GLOBALFRANCHISEMAGAZINE.COM 41 LEGAL
the demand for your products or services independent of them). Observing Manitoba, New Brunswick, Ontario, in various regions while also considering those principles and legal customs and Prince Edward Island) have other economic, demographic and will go a long way in protecting your franchise-specific legislation. While cultural variables. By way of example, franchise system in Canada. not identical, the provincial statutes you may determine that direct franchising Certain key mechanisms in are substantially similar. One of the is the structure of choice for major your franchise agreements such as primary requirements mandated regions like Toronto or Ontario, but “protected” or “exclusive” territory by each statute is that franchisors a master arrangement is more suitable should be carefully reviewed for provide pre-sale disclosure with for the province of Quebec (which Canada. The manner in which you respect to the franchise offering in has a civil law system and French ultimately define and divide territories the form of a franchise disclosure language requirements). here may be significantly different document. The franchise disclosure The second structuring consideration than other countries in which your document is intended to provide is selecting the most efficient Canadian franchise systems operate. Though prospective franchisees with sufficient corporate/tax structure to achieve your Canada is the second largest country information to make an informed business objectives. Franchisors need in the world, the vast majority of its business decision about becoming a tailored advice to ensure that they identify population lives within 300km of franchisee. Consequences for non- a structure that satisfies the “line of best its southern border. Carving up the compliance with the franchise statutes fit” test. The analysis is typically based 10 provinces and three territories (whether as a result of omitting into workable franchise regions prescribed information, failing to requires strategy and consideration. follow the execution and delivery “Though Canada is the Importantly, franchisors are cautioned obligations, or otherwise) can result not to give away too much territory in serious pecuniary consequences for second largest country without protective rights, such international franchisors. as in circumstances of breach Unsurprisingly, there are other in the world, the vast or underperformance. Canadian laws that international majority of its population International franchisors should franchisors should be mindful of in also observe current trends to ensure expanding their franchise system to lives within 300km of its their brand holds strong appeal Canada. Firstly, it is worth noting among prospective franchisees. that even provinces without specific southern border” In Canada, there has been an franchise legislation have laws that increased trend of franchise systems significantly impact the expansion and on a number of considerations including providing franchisees with limited operation of franchised businesses, capitalization strategies, contemplated flexibility on various activities that such as Quebec’s Civil Code and on-the-ground operations (employees were historically more stringently Charter of the French Language and physical premises), the intention controlled. For example, an increasing (which includes requirements of ‘doing vis-à-vis repatriation of funds, the number of Canadian franchisors are business’ in the French language). interplay between home jurisdiction tax giving franchisees latitude to source Depending on your intentions with laws and Canadian tax laws, and Canadian local products and services. This respect to scouting out and operating laws that may be applicable because of benefits international franchisors in a in Canada, immigration laws will your specific industry. number of ways including saving them impact any personnel you plan on time and effort on establishing supply having visit or move to Canada. Craft your chains, as well as creating supply chain You may also need to consider franchise agreement options for other franchisees. From the trade and custom laws for product 3 Well-crafted franchise agreements franchisee’s perspective, it engenders and equipment importation, taxes underpin effective expansion into goodwill in the community in which its (including withholdings tax), Canada. Particularly where you have an franchised business operates. employment laws (which differ existing suite of franchise agreements These are but a few illustrations of between the provinces), and and where you intend to utilize a number the importance of “Canadianizing” industry specific laws. of franchise structures, the preparation your franchise agreements (and the Moreover, Canada has of a uniform and “Canadianized” set underlying business terms) so that a complex framework of franchise agreements is high on the your franchise system is relevant for with respect to privacy priority list. Canadian courts have provided the Canadian business community and data protection. guidance on many aspects of the franchise and complies with Canadian legal Maintaining robust data arrangement. The form and substance of principles and customs. protection and privacy drafting Canadian agreements has been protocols is critical to the impacted in a profound manner by the Comply with development and reputation principles espoused by court decisions Canadian laws of international franchise together with Canadian legal custom which 4 Six of Canada’s provinces systems entering Canada. has developed from those principles (and (Alberta, British Columbia, At a high level, Canadian laws
42 GLOBAL FRANCHISE | CANADA FOCUS require the following implicit in Canada, it is imperative that fundamental question is where does “effective and explicit accountability and international franchisors develop control” over employees reside: the franchisor, security obligations: and implement adequate policies the franchisee, or both? The more control and programs from the outset to exerted by the franchisor, the more likely that • businesses are responsible for ensure that their franchise operations the franchisor will be found to be a common personal information in their in Canada safeguard personal employer. In addition to the degree of control possession or under their control information in compliance with exercised, other factors suggesting a common and must designate an individual applicable legal and regulatory employer relationship include: or individuals who are accountable requirements. for compliance • the integration between the franchisor and • security safeguards must protect Know when to be franchisee, including common shareholders personal information against loss hands-on versus or directors or theft, as well as unauthorized 5 hands-off • the payment of wages to the employee access, disclosure, copying, use, As in many parts of the world, by the franchisor and/or franchisee or modification, regardless of the franchisors operating in Canada • existence of an employment contract format in which it is held (the are experiencing the expanding between the employee and the franchisor nature of the safeguards will vary boundaries of vicarious liability. and/or franchisee depending on the sensitivity of the That includes the much publicized • the employee’s relationship with information that has been collected, “joint employer” risks (“common and service to the franchisor and/ the amount, distribution, and employer” in Canada). Accordingly, or franchisee. format of the information, and the franchisors must strike the right method of storage). balance of protecting their brand and On the other side of the spectrum, assisting their franchisees without a disinterested or neglectful franchisor In a landscape of ever-increasing crossing the line of being so involved may wind up being liable on that count. privacy law regulation and scrutiny that they assume liability. For the One example comes from the Dunkin’ purposes of common employment, the Donuts case heard by the Quebec Court of Appeal (2015 QCCA 624). The worldwide donut chain Dunkin’ Donuts faced a serious intrusion into its stronghold over the Quebec market by rival brand Tim Hortons. The court held that Dunkin’ Donuts failed to protect and improve the brand’s image and value amidst this competition, resulting in damages of approximately $11m. Among other things, the court held that Dunkin’ Donuts failed to appropriately address poorly performing franchisees who were harming the brand image. Prudent international franchisors looking to expand their franchise systems into Canada should take time to plan, protect their brand, consider the optimum structure, prepare best in class documentation and, in all things, ensure they comply with all applicable Canadian laws. This will put them on a strong footing for effective and efficient expansion.
GLOBALFRANCHISEMAGAZINE.COM 43 GLOBAL FRANCHISE CANADA master_GLOBAL FRANCHISE 28/02/2020 12:03 Page 44 GLOBAL FRANCHISE CANADA master_GLOBAL FRANCHISE 28/02/2020 16:22 Page 45 BEHIND THE BRAND: PARTNER CONTENT
AT A GLANCE Brewing up PJ’S COFFEE OF NEW ORLEANS
Established: 1978 Number of franchised outlets: success Now open: 110 In development: 36 Location of units: Over 100 national and international locations PJ’s Coffee of New Orleans is serving up a host Investment range: Average: $425,000; Specific ranges: $170,775-$578,000. of piping hot franchise opportunities An initial franchise fee of $35,000 is included in investment range. Minimum financial requirements: industry, PJ’s Coffee has found $100,000 cash and a net worth of J’s Coffee of New $300,000 or greater. International Orleans, a New Orleans- its niche providing a superior investment is based on country size based coffeehouse product and a uniquely fresh, and population P pjsfranchise.com that demonstrates a farm-to-cup customer experience. “southern hospitality” experience, This year, the company hit the the freshest products, and beans ground running with signed with superior roasting technique, agreements and multi-unit SOUTHERN is strengthening its focus on deals in Louisiana, Mississippi, HOSPITALITY ON nationwide franchise expansion, Alabama, California, Georgia, A GLOBAL SCALE developing beyond the southeastern New Jersey, Nevada and Texas. On the heels of an impressive United States. Following initial PJ’s Coffee was also named one 2018 – which included PJ’s success with over 100 national of Franchise Business Review’s Coffee celebrating its 100th and international locations, the ‘Top 200 Franchises of 2019’, and store opening – the brand looks brand is continuing its momentum has continued to create excitement to continue suit with over 120 by building a solid foundation of and drive business with its proven locations in operation by the smart franchise partnerships in system that leads to year-over- end of 2019. Additionally, it metropolitan cities across year sales growth. In 2018 alone, will continue to break into new the country. franchisee recruitment grew by 66 markets nationwide through Making its mark in the per cent, a number that is projected franchise development. $100-billion-a-year coffee to continue to rise. In 2019, PJ’s Coffee awarded 25
46 GLOBAL FRANCHISE | CANADA FOCUS Behind the Brand - XxxxxxxxxxxPJ’s Coffee of New Orleans WHAT-FRANCHISE.COM 47 WHAT-FRANCHISE.COM PJ’s Coffee was acquired by Coffee was acquired PJ’s WHAT’S BREWING? WHAT’S As celebrated recently the company its 40th year as a leader in the it continues aggressive industry, with eyesgrowth strategies, set by 2021. on 200 locations seeking franchisees Prospective to be part of the company’s exponential growth can expect an and between $170,775 investment with both traditional $578,000 units available. and nontraditional The model and menu operating environment is adaptable to any options including with different locations kiosks and free-standing and with a drive-thru. Multi-unit master agreement international PJ’s opportunities also available. are franchise Coffee offers a high-touch corporate model with strategic support, assisting every step of the design with site evaluation, way and construction, and training producteducation, distribution, and consulting, operations on-going marketing and promotion. in 2008, which is Brands Ballard Scott spearheaded by brothers Paul, Theand Steve company’s Ballard. portfoliorestaurant includes retail PJ’s American Eats, WOW brands New Orleans, The Original Coffee of and Boardhouse Diner, City Serious Sandwiches. These brands collectively in exceed 165 locations and nontraditional both traditional models and continue to grow. the winner. The launched initiative the winner. with the first franchise in 2017, to marine awarded license giveaway Overall, Hately. corp veteran, Jeff works alongside its the brand and is excitedveteran to franchisees see the group of selfless individuals continue to expand.
Over the years, the brand hasOver the years, the brand franchising As part of the brand’s FROM FARM TO CUP TO FROM FARM Coffee servesvariety of a wide PJ’s and iced, frozen, hot, cold brew, nitro-infused coffees using only the top one per cent of Arabica beans, as well as organic tea and famous pastries. PJ’s breakfast fresh daily using brewed iced coffees are a special cold-drip process that of its and strength protects the flavor beans, while producing a coffee that is less acidic – a process pioneered Jordan. by founder Phyllis developed strong partnerships with farms in all parts of the world the highest and source to identify It has adopted the El coffee. quality which in Honduras, Farm Terrerito is owned by Al Lopez and supported by 26 families who work on the farm and harvest coffee plants. Arabic output is 100 per cent of the farm’s Coffee. by PJ’s purchased efforts involvement, and community years it has spent the last three Franchise establishing the Veteran the 2018 In License Giveaway. to Marine was awarded giveaway Bobby Mounts. Corp Veteran, After the announcement of the on license giveaway franchise free Coffee PJ’s in 2018, Day Veterans numerous applications received from veterans around the United PJ’s nominations, those From States. go Coffee chose the top applicants to interviewthrough a comprehensive as selectingprocess before Mounts
new countries by the end of 2020” “PJ’s Coffee has already expanded Coffee has already expanded “PJ’s with Kuwait and into Vietnam in two additional plans to grow The southeast has long been a the into a new year, Heading 30 licenses. The year brought franchises representing over over representing franchises 25 new openings, one of store Coffee’s which launched PJ’s Alabama, a neighbor of in presence flagship state. The Louisiana, PJ’s multi-unit deal will bring coffee and Baldwin shops to the Mobile counties, and has set the brand’s expansion franchise for plans rapid in motion. Thethe state multi-unit deal was signed by an Alabama the Dodichs – a father family, found sons who have and his two industrysuccess in the franchising for the past 15 years. Kick-starting development,franchise the first in Alabama is projectedlocation to open in Mobile early 2020 early 2020 to open in Mobile state-wide with aggressive growth to follow. due to its of the franchise target Orleans and the to New proximity has the region economic prosperity the seen – from Alabama to Texas, least 100 at hopes to have franchise states between those two stores open in the next years. five markets in is targeting brand N.C.; Florida; Charlotte, Miami, TN; AL; Knoxville, Tuscaloosa, TX; Dallas, TX and Worth, Fort CA. Internationally, San Francisco, expanded Coffee has already PJ’s with into Vietnam and Kuwait, additional plans to grow in two new end of 2020. countries by the BEHIND THE BRAND: PARTNER CONTENT
AT A GLANCE SUGARMOON Look good, SALON Established: 2002 Number of locations: 3 feel good Locations of units: Canada Franchise fee: $30,000 Investment range: $114,000 - $252,000 Contact: [email protected] Paola Girotti, the founder and CEO of Sugarmoon Salon, sugarmoonsalon.com details this sweet, successful self-care brand
ugaring is making waves THE METHOD BEHIND “We’re looking in the beauty and self- THE SUCCESS care markets as of late. But what is sugaring? As Paola for somebody S The sweet alternative Girotti, founder and CEO of who’s really to waxing is springing up in salons Sugarmoon Salon, explains: everywhere, as consumers look for “Sugaring is all-natural. It’s made of passionate an alternative when maintaining sugar, lemon, and water – that’s it. about the beauty their skin’s natural beauty. It’s a lot more gentle on the skin as opposed to traditional waxes, which That’s why Sugarmoon Salon, contain resins and you often get a industry, first the Toronto-based beauty salon lot of scarring and bruising. Sugar named after this effective method of and foremost” doesn’t adhere to the skin like wax, hair removal, has seen tremendous and it’s actually a very old method when growing up in St. Catharines, success across its multiple locations, of removing hair.” Canada. As the parent of a teen and is now looking for international Girotti’s history with sugaring struggling with confidence, Paola’s partners to help worldwide clients goes well beyond business. She first mom was eager to find a hair “be beautiful and feel good about it”. came across the concept in 1985, removal solution that worked with her daughter’s sensitive skin. Paola Girotti, founder and CEO After a trip to a sugarist, Girotti fell in love with the concept. It provided an innovative way to deal with the previous stigma and pressure of body and facial hair removal. This was an undoubtedly personal topic that needed to be handled with intimacy and care, and with Sugarmoon Salon, Girotti wanted to provide exactly that to the countless other individuals who are looking for something that works for and is catered to them and their needs.
WAXING LYRICAL As well as being an all-natural, holistically positive business, Girotti is confident that Sugarmoon Salon can thrive in all markets and all economic climates. “It’s a great brand! Sugaring is very unique within the beauty industry itself,” she says. “There are articles from the Great Depression about how there was still a line at the beauty salon, so the industry
48 GLOBAL FRANCHISE | CANADA FOCUS Behind the Brand - Sugarmoon Salon
GLOBALFRANCHISEMAGAZINE.COM 49 GLOBALFRANCHISEMAGAZINE.COM Paola Girotti and Cailey Ward, director of marketing director Ward, and Cailey Girotti Paola Ultimately, as long as you’ve Ultimately, owned Sugarmoon locations in in owned Sugarmoon locations on and instead relies Toronto, her strong team of franchise been professionals, who have than with the business for more a decade. a passion for helping got people feel and look good, then Sugarmoon Salon is the opportunity for you. The brand’s of revenue multiple streams experience in the and lengthy perks, but its industry great are lives holistic impact in people’s “Whether unmatched. remains or Dubai, or the in Toronto you’re women and men or U.S., U.K. to come in to feel good. going are we do best.” what That’s “Whether you’re in Toronto or Dubai, or Dubai, in Toronto “Whether you’re are and men women or U.S., or the U.K. to come in to feel good” going “I don’t think that [franchisees] [franchisees] think that “I don’t Paola Girotti proudly displaying her Sugarmoon products displaying proudly Girotti Paola FLEXIBLE OWNERSHIP need to be an expert don’t You in a to invest in hair removal and Sugarmoon Salon franchise, you also don’t even need to manage first-hand to take the operation of this exponentially advantage growing model. explains need to be operators,” directly who no longer Girotti, corporate- the three manages examination. Sugarmoon Salon’s examination. Sugarmoon Salon’s certification is a testament to its alternatives to green adherence methods, beauty to standard and is a big partGirotti of why believes the salon stands out in the market. hair removal international “[We want] somebody who’s want] somebody who’s “[We is just one part ofInclusivity CertifiedGreenCircle is a third- As well as sugaring, Sugarmoon eyebrow designs, eyebrow Facials, INCLUSIVITY IS A MUST selection of Sugarmoon Salon’s services is almost the as as vast visit the brand’s kinds of people that looking to everylocations day, routine maintain their hair removal This is diversity and feel great. offering, to the franchise’s integral and is something Girotti that prioritizes when looking for new business partners. guests,” all to treating committed very “Somebodyshe says. who’s open-minded and inclusive as Somebody a person in general. who wants to work with a great 18 and be successful. In company years, I think we’ve found a great very model for success, and we’re about both people and passionate We look afteras our staff profits. well as our clients.” the ideal Sugarmoon franchisee The perfect however. make-up, partner needs to be personally too. As and green-minded, invested looking for explains: “We’re Girotti passionate really somebody who’s first and industry, about the beauty Also somebody concernedforemost. I thinkabout the environment; job being Sugarmoon does a great certified salon. We’re a GreenCircle in Canada, which would happen here is also, as GreenCircle internationally a global organization.” party certification that organization environmental- analyzes a brand’s friendliness and provides it with a it passes rigorous of honor if badge is very times, to tough resilient a service-based business and we’re our people you can’t replace where with technology.” variety of servicesSalon offers a only allow customers not that to but needs, fulfill all of their self-care can also benefit from franchisees for revenue. multiple avenues and eyelash tinting, eyelash all tanning are perming, and spray part of the Sugarmoon portfolio, carried out by and these are experienced professionals with a for self-care. appreciation real BEHIND THE BRAND: PARTNER CONTENT Behind the Brand - BrewDog
AT A GLANCE BREWDOG
Established: BrewDog: 2010 Number of units: 101 (10 franchised) Expansion markets: U.S.A., Europe, craft beer for Asia, Australia and Russia Required capital: $1m +liquid funds Contact: [email protected] brewdog.com/uk/locations/bar- the people partnerships
awesome pizza, stacked burgers and hearty weekend brunch. With From garage-brewing to the largest craft brewery over half the options being plant- in Europe, BrewDog has changed the face of based, BrewDog is a fiercely proud champion of inclusivity. beer in a decade GROWING IN 80 COUNTRIES accessible, more open, and more fun. BrewDog supplies its craft beer, That’s because in a BrewDog bar, it’s including flagship Punk IPA – OK to be a novice. Asking questions Europe’s number one craft beer is encouraged. brand – to over 80 countries around From first-timers to seasoned the world. The brand is looking experts, whether veteran or virgin; to work with proven, multi-site with free tasters, beer flights and operators to bring BrewDog to your educational beer schools, BrewDog country and to open iconic bars in encourages all customers to try and the best locations. After all, no-one to love better beer. knows your backyard better. Since opening its first bar in its home city of Aberdeen in 2010, JOIN THE PACK BrewDog has a single aim – that every As a company, the things BrewDog customer has an awesome time, no cares most about are its beer, its matter the stage of their craft beer people and its mission. The brand journey. You don’t need a PhD in is proud to work hand-in-hand brewing to order (although if you have with amazingly committed and one, more power to you). efying convention at every knowledgeable F&B operators to turn, BrewDog bars have run bars where people have an CRAFT BEER NIRVANA been a cornerstone of amazing time. If those are the kind D Every BrewDog bar around the brand’s phenomenal of things you value too, then you’re the world has an ever-changing line growth. More than places to drink beer; the perfect BrewDog franchisee. these are bars that build communities. up of amazing craft beer With this maverick attitude, from its brewery and BrewDog has created a completely others, stored and served new type of business model. With over perfectly. And with 130,000 ‘Equity Punk’ shareholders, games areas featuring its community-driven approach prides shuffleboard and retro itself on giving back, being open and arcade machines, Desk transparent, and looking after its Dog flexible working people. BrewDog’s mission is to show spaces and even hosted that craft beer can be a force for good dog parties – everyone in the world. is welcome. Food is also a huge BREWDOG IS part of the BrewDog FOR EVERYONE experience. With 30 per In pursuit of this mission, in the past cent of sales in the bar 10 years BrewDog has opened over 100 coming from food, its locations around the globe. These bars high-quality junk food- are designed to make craft beer more inspired menus feature
50 GLOBAL FRANCHISE | CANADA FOCUS exposure The what, when, and where for your franchising calendar UPCOMING EXPOS MONTREAL WHAT: CFA NATIONAL CONVENTION WHEN: APRIL 5-7, 2020 WHERE: LE WESTIN MONTREAL, MONTREAL Hosted by the Canadian Franchise Association, the CFA National Convention is Canada’s leading franchise event. It’s viewed as the largest and most prestigious Canadian exhibition of its kind, with more than 500 franchise leaders expected to attend.
As well as all the networking opportunities on offer throughout the event, attendees should be sure not to miss the Awards of Excellence, which cap off the long weekend by celebrating the best and brightest of Canada’s effervescent franchise landscape. TORONTO VANCOUVER
WHAT: GROWTH & EXIT brands grow. Panels STRATEGIES SEMINAR include talks on selling WHEN: MAY 13, 2020 your business to strategic WHERE: COMMERCE investors, going public and COURT WEST, TORONTO more. This networking and This is a go-to event if information-filled event is you’re looking to learn from designed so that the franchise industry-leading professionals and finance community can and peers who have expert learn from each other experience in helping and work together.
WHAT: FRANCHISE YOUR BUSINESS SEMINAR WHEN: NOVEMBER, 2020 WHERE: LOCATION TBC, VANCOUVER This educational seminar – one part of a series ran by the Canadian Franchise Association that also takes place in Toronto and Montreal during the year – helps attendees to grasp the basics on whether they should convert their business into a franchise concept. As well as the business model conversion aspect, visitors also receive information on the legal and financial side of franchising, hear about real life franchising experiences, and gain insight on the trends and developments of the Canadian franchising industry.
GLOBALFRANCHISEMAGAZINE.COM 51 INSIGHT
The Canadian recipe for success A guide on franchising in Canada for non-Canadian franchisors
WORDS BY LORI KARPMAN
anada is a vibrant, Quebec residents make up one- geographically third of the entire population of proximate market, and Canada and are a target market not C a natural choice for the to be overlooked. Quebecers are the expansion of international franchise most loyal and least price-sensitive concepts. Franchises operate consumers in Canada. THE AUTHOR in more than 40 sectors of the As an Anglo-born Quebecer with Lori Karpman is the economy and account for one an international franchise practice, CEO of the multi- out of every five consumer I can say with all honesty award-winning Lori dollars spent. that the French language Karpman & Company, and is considered one fears are unfounded. Quebec of Canada’s leading Planning ahead professionals provide all the experts on national Expanding to Canada is an services, including translation, and international investment that must be to ensure proper and easy entry. franchising well reasoned, capitalized, Traditionally, people with high lorikarpman.com and thoroughly organized. We have relationship. Unlike in capital are bilingual and most seen many international brands some countries, there is no often Quebec is sold via a master achieve enormous success in Canada, federal franchise legislation nor franchise agreement. It is also but we have also seen others fail. any requirement to register the good to know that Quebecers love The successful ones acknowledge disclosure document either federally anything European or exotic, so these two factors: you must engage or provincially. Given that an this is a market well worth the Canadian professionals, and you international franchisor disclosure price of admission. must recognize that Canadians document varies greatly from that are not “just like Americans”. of any Canadian province, Canadian A model market Canada, as well as each counsel will likely start from The two most popular expansion province, has its own culture, scratch and create a new Canadian models in Canada are master customs, and laws that need document since this is much cheaper franchising and area development to be respected. These than revising the international agreements. In the former, the two recognitions version. The new Canadian version is master franchisee buys the rights to separate the then easily modified per province. operate and sell franchises in Canada. winners from Quebec, in particular, offers The master also assumes the out the losers. international franchisors the of country franchisor’s obligations
Start from scratch “As a general rule, Canada is very Only six provinces have franchise welcoming to international brands” legislation requiring disclosure documents; opportunity to simulate entry to provide Canadian support and namely, Ontario, Alberta, British into European markets. Many enforcement, in return for receiving a Columbia, Manitoba, New Brunswick, international and especially percentage of the Canadian royalties and Prince Edward Island, and they European concepts enter Canada via and other fees. are all slightly different. Quebec because it’s a natural fit with Many make the mistake of In Quebec, the Civil Code of their culture and language. Not to sharing the initial and royalty fees Quebec governs the franchise be overlooked for direct expansion, 50/50 between the master and the
52 GLOBAL FRANCHISE | CANADA FOCUS franchisor; however, this leaves little money on the table for the master developer to expand its business and provide a high level of service. A better ratio is 80 per cent for the master and 20 per cent for the franchisor. Area developers are sold a geographic territory for certain time periods within which they must open a number of franchises on a pre-set schedule. They must develop these locations themselves – they cannot Reap what you sow TOP FIVE FACTORS franchise, and they are effectively This article is an extremely TO CONSIDER multi-unit operators. concise version of the considerations The biggest mistake by far is to be taken in expanding to the 1. Intellectual property. The franchisor must ensure that all international trademarks, trade names and to sell “onesies”: single-unit Canadian market. Those brands locations to individual franchisees patents can be registered and used in Canada without that do not take the time to contestation. in different parts of the country. understand the market properly These franchisees cannot receive have failed miserably and often go 2. Financing. Franchise financing is very different and much harder in Canada than in the U.S. For example, proper support or pricing and back home, leaving Canada in an are doomed to fail. Canadian banks require an investment of a higher economic mess of lost revenue percentage of the total initial investment, which I do highly recommend that and a loss of jobs in the hundreds makes the prospect pool smaller. the franchisor develops one single of thousands. location as a corporate test center As a general rule, Canada is very 3. Supply chain. Can franchisees get materials, inventory, or supplies and have the same margins as allowing it to operate a franchise, welcoming to international brands make its mistakes, and get all their international counterparts? Do products need to and we look forward to seeing more be sourced in Canada and if so, what is the effect on the kinks out before opening a of you “somewhere up here”. the product cost, taste profile, and quality? public unit. The franchisor will also learn 4. Currency. What currency will both the about the market, its culture franchisor and franchisee operate in? And what about market fluctuations? What currency will and consumer behavior, and initial fees and royalties be paid in? It’s my belief can sell the corporate store that the franchisee is earning income and paying as a means of financing the expenses in Canadian dollars, so these fees building of a second store should be in Canadian, too. or they can keep it as 5. Marketing and advertising. More often than a training center. I not, new franchise and marketing materials need recommend the latter. to be created; what resonated with Canadians People like to see, isn’t the same as the U.S., or any other country feel and touch what for that matter. This is why local, Canadian representation is so important, as a good they are buying, and franchise consultant corporate stores will have a deep provide that understanding of the experience. particulars and nuances of each province.
GLOBALFRANCHISEMAGAZINE.COM 53
BEHIND THE BRAND: PARTNER CONTENT
AT A GLANCE NATHAN’S Nathan’s Famous FAMOUS Year established: 1916 Number of franchised restaurants open worldwide: 250 takes the flavor of Location of units: 13 countries Investment range: Multiple investment ranges Minimum required capital: New York overseas Varies by market size Contact: [email protected] franchise.nathansfamous.com
Become a part of this world-famous franchise
athan’s Famous, the opportunity to take the flavors much more, including best-in-class American tradition of New York to markets with an fresh burgers, cheesesteaks, and N serving “The Flavor appreciation of American cuisine,” heroes, as well as chicken classics. of New York” for said James Walker, senior vice Its compelling menu can be more than 100 years, is focusing president, restaurants. “I’ve had customized to suit any taste franchise efforts domestically, the opportunity to travel the preference in every country. but importantly, globally. Two world and work in over 65 The brand also offers versatile new Nathan’s Famous restaurants countries, and I understand that restaurant designs to accommodate opened recently in England, potential franchisees look for best- a variety of locations, from free- with potential master franchise in-class training, support, high standing units with drive-thrus, to discussions happening currently profits, and low costs – all of food trucks, and everything with operators from the United which our 100-year-old global in between. Arab Emirates and Hungary, to brand can offer.” Brazil and Canada. MENU EVOLUTION “Nathan’s Famous is currently BUILT FOR ANY COUNTRY For the past six months, Walker in 13 countries worldwide, with While known for its world-famous and his restaurant team have many more countries all over the beef hot dogs and golden crinkle- accomplished a lot, but much of the globe offering us an incredible cut French fries, Nathan’s offers focus has been on menu innovation
54 GLOBAL FRANCHISE | CANADA FOCUS Behind the Brand - Nathan’s Famous
GLOBALFRANCHISEMAGAZINE.COM 55 GLOBALFRANCHISEMAGAZINE.COM Nathan’s has also launched has also launched Nathan’s B2C and B2B public relations has a considerable “Nathan’s GETTING THE WORD THE GETTING WORD OUT a lot of very are There positive Nathan’s at things happening is and the company Famous, focusing on marketing efforts for the all-important younger fans. The of future generation has improved its social brand and is spending media presence off the ad dollars to show targeted menu evolution. That effort also influencer includes social media valued events, generating and engagement impressions from the top foodie influencers York. in New Famous phase one of the Nathan’s is custom app, and Nathan’s proudly served on the top mobile delivery including platforms, DoorDash and UberEats, guest for the ultimate Postmates is Famous Nathan’s convenience. currently developing a catering will complement the that program business and expand on restaurant its success. the efforts also garnered have in the exposure tremendous brand and worldwide. States United and amount of consumer loyalty, known around the is a brand excited “We’re said Walker. world,” to continue to introduce new menu items and a fully revamped design to new potential restaurant know the opportunity partners. We New of the flavor to franchise business a great will be York all opportunity for entrepreneurs over the world.” • Nathan’s has stood the test of time as of time as the test has stood • Nathan’s and continues brand, a legacy restaurant York’ of New as ‘The Flavor evolve to domestically and worldwide restaurants 250 Nathan’s over are There • points of and 70,000 the world all over and 14,000 at retail distribution – 56,000 service in food is unique concept Famous The Nathan’s • as its menu, industry, in the foodservice flexible designs are and restaurant million hot 700 sold over • Nathan’s dogs in 2018 FAST FACTS FAST
“We know the opportunity know the opportunity “We of the flavor to franchise will be a great York New business opportunity” fantastic sandwich is made up of black fantastic sandwich is made up of black Angus ribeye, onions, caramelized Butcher Reserve Steak LaFrieda’s Pat American quality Sauce, premium cheese, served Balthazar baguette. on a hero sandwiches Other Nathan’s currently being served include a three- parmesan hero, cheese meatball and pastrami and a premium hero. sauerkraut hand- Pillar 3 – Nathan’s battered program battered This is currently in program development, and should be in testing in early 2020. The will feature program proprietary developed batter Nathan’s and more. onion rings for chicken, world Pillar 4 – Nathan’s famous all-beef hot dogs and crinkle-cut fries This hasn’t is a food pillar that in over 100 years! Nathan’s changed made today hot dogs are signature with the same secret spice recipe back in 1916. Nathan’s as they were has hot dog that boasts the ultimate fans for by countless been craved unique And the Nathan’s generations. and crispy- creamy-on-the-inside crinkle- golden-brown-on-the-outside cut second to none. fries are
Nathan’s has even developed its Nathan’s – Nathan’s premium heroes Pillar 2 – Nathan’s Heroes, Specialty York New Authentic York New including the Nathan’s Nathan’s LaFrieda. Cheesesteak by Pat and this partnered with LaFrieda – Nathan’s best-in-class Pillar 1 – Nathan’s you New to prepare pledge We finest.” York’s and menu evolution. “There are to be able to apply I like words three to our menu items – I want them and crave-able, to be memorable, our food to I want Instagrammable. with our guests on many truly resonate team The Nathan’s said Walker. levels,” has been working on securing the “four menu. food pillars” of the restaurant’s fresh Angus burger program fresh Angus burger is in the process of rolling Nathan’s state-of-the-art clamshell grills, of the program and early results been very sales have positive. Burger up dramatically. are our take “We Pledge’: ‘Best Burger Nathan’s food fame seriously at our you have which is why Famous, commitment to giving every one of everything our burgers we’ve got. only the highest will use quality We of fresh ½ lb (240g) ingredients: American premium Angus beef; real, cheese; thick-cut applewood smoked locally sourced bacon; the freshest, produce; artisan buns, and flavorful proprietary seasonings and sauces. out a fresh burger program offering offering program burger out a fresh Angus of fresh guests ½ lb (240g) to upgrading are Operators beef. BEHIND THE BRAND: PARTNER CONTENT Behind the Brand - THRIVE + HCAN
AT A GLANCE THRIVE + HCAN Established: 2020 THRIVE + HCAN Number of franchise locations: 1 Investment range: C$150,000 - C$300,000 Minimum required capital: C$75,000 is ready to serve Contact: [email protected] homecareadvocacynetwork.com Canadian seniors thriveinhomeservices.com “The team is highly experienced, and Be a part of this rapidly growing sector the franchise business model Bob Sonntag is a Canadian entrepreneur and investor who is impressive” personally experienced these difficulties and frustrations because and/or nursing home facilities. This he was the primary caretaker to his flexibility provides a continuum of terminally-ill wife for seven years in care that is optimized for the benefit Cochrane, a town in Alberta, Canada. of seniors, their families, and their Last year Bob learned about THRIVE caregivers and facilities. THRIVE + + HCAN franchise opportunities HCAN focuses on individual seniors and made a significant investment and their caregivers, because that in the company. “I understand these relationship becomes one of the most challenges in a real way,” Bob said. significant in senior patients’ lives. “It made sense for me to support a The THRIVE + HCAN business business that solves these problems is based on five values: Elevating in a smart and practical manner. the privilege of caregiving; treating The team is highly experienced, each other with dignity and respect; and the franchise business model pursuing the genuine success of ractically all of us will deal is impressive.” others; embracing innovation; and with aging loved ones who will prioritizing relationships over tasks. need senior and/or home care FLEXIBLE CARE The company’s goal is to be the P foremost provider of meaningful services. THRIVE In-Home THRIVE + HCAN is unique Services + HomeCare Advocacy Network because its franchisees provide and results-oriented in-home care (THRIVE + HCAN) is a forward-thinking direct, in-home care services and for seniors and their loved ones. The company in the franchised senior care simultaneously its franchise services company is seeking qualified area category, and is redefining expectations for can be embedded into assisted living developers throughout Canada. that market sector, especially in Canada.
GUARANTEED DEMAND According to the Canadian government, more than 6.5 million Canadians are aged 65 years or older, which is approximately 16 per cent of Canada’s population, and by 2030 that number is expected to increase to more than 9.5 million, approximately 23 per cent of Canada’s expected population. A significant percentage of these Canadian seniors will likely need in-home care services, also known as aging-in-place services. Additionally, as they grow older, they may need assisted living or nursing home care services. Seniors and their families often find it difficult, frustrating, and time-consuming to deal with the multiple entities that provide the different types of needed care.
56 GLOBAL FRANCHISE | CANADA FOCUS BEHIND THE BRAND: PARTNER CONTENT Behind the Brand - The UPS Store
AT A GLANCE A proven business THE UPS STORE Established: 1998 in Canada; 1980 in U.S. Number of units: 345 opportunity with Locations of units: Canada Investment range: C$174,000 to C$198,500, plus working capital Contact: [email protected] / 905-338-9754 X 246/ 1-800-661-6232 a track record X 246 for success theupsstore.ca From operating systems to office supplies, our team has over 30 years With over 30 years of franchising experience in Canada, of experience in helping franchisees acquire and implement the tools The UPS Store has been able to offer hundreds of they need to serve their customers. people the opportunity to become their own boss Our support teams are never more than a phone call away. When you have questions, need troubleshooting continuing to grow) and we have a help, or want expert advice for your proven track record of success. business, we’re here for you. With over 30 years of franchising The UPS Store is there at every experience in Canada, we’ve been stage of your franchising journey. We able to offer hundreds of people the believe in investing in your success opportunity to become their own by providing you with support and boss, everyone from entrepreneurs guidance every step of the way. As a to corporate executives, from all walks The UPS Store franchisee you will of life. enjoy an established system to get The UPS Store has simplified your business started off on the right logistics for small businesses by track; in-depth training programs providing a network of services in a and ongoing support to make sure single location. At The UPS Store, you continue to succeed; and an customers can take care of shipping, internationally recognized brand to mailbox services, printing, and other help you build instant credibility in business services in one trip, often your community. Best of all, we have right in their neighbourhood. And numerous franchise opportunities while many places may offer available throughout the country. similar services, it’s our dedication Yours may be in a neighbourhood to convenience and world-class near you. personalized service that keep The Though each location of The UPS Store at the top of the business UPS Store is locally owned and services industry. As a network of operated, you’re never in business small business owners, with the alone. When you become part of wning a franchise is a lot variety of convenient products and The UPS Store, you’re more than different than starting a services we have in store, we’re a franchisee. You’re family. O business from the ground committed to providing only the up. By joining The UPS best solutions to our customers when Store franchise network you can count and where they need them. on the support from our experienced home office and our in-field teams to get BECOME PART OF you to your grand opening and beyond. THE FAMILY We have over 345 franchise locations When you decide to open a The UPS in neighborhoods across Canada (and Store franchise, we provide everything you need to open for business. We’ll “When you become part of assist with helping you find and secure a retail location, plan and build out The UPS Store, you’re your store, work with local contractors to procure permits and bids, and order more than a franchisee” and install equipment and computers.
GLOBALFRANCHISEMAGAZINE.COM 57 BEHIND THE BRAND: PARTNER CONTENT
AT A GLANCE SCHOOL OF ROCK Rockin’ around Established: 1998 Number of franchised outlets: 260+ Location of units: North, Central & South the clock America, Africa, and Asia Pacific Investment range: $192,150 - $422,100 Minimum required capital: $100,000 (liquid) / $300,000 (net worth) As School of Rock comes hot off the heels of a Contact: franchisingopportunities@schoolofrock. record-breaking year, the musical franchise favorite com or +1 866-840-2179 sets its sights on further success franchising.schoolofrock.com
about those countries is that all four agreements were signed with existing master franchisees,” explains Padulo. “To work with an existing franchisee who already understands the business, opportunities, and challenges of the franchise – and is still willing to expand with us? For me, that’s the best validation you can get.” Existing franchisees make up a big part of School of Rock’s steadily growing portfolio, as across the last two years, an estimated 25 to 30 per cent of new franchises have been awarded to entrepreneurs already a part of this melodic family.
HITTING THE RIGHT NOTE So what’s the secret behind School of Rock’s consistent success? “I think the reason we’re doing so well is that music has such a universal appeal,” says Padulo. “Unlike a food business where ast year was months since we began franchising you may have to adapt the concept instrumental in the around 13 years ago.” for local taste, we don’t have that development of School That’s much more than just a issue. Whether you’re in the U.K. or L of Rock. The worldwide bold claim; School of Rock signed South Africa or Brazil, there might music phenomenon, which 35 new franchise agreements in be variations of local rock, but the specializes in teaching kids of all the U.S. in 2019, which is a huge basic premise of English-sung rock ages how to play like their favorite milestone, as the brand would music is universally accepted.” rock stars, has been on the up for traditionally cap off at around 25. And while local flair is certainly over two decades now... and shows This number is further bolstered included in the School of Rock no signs of stopping. by School of Rock’s overseas curriculum, some legends transcend “Both on the domestic and on achievements, as it signed up borders: The Beatles, David Bowie, the international scales, we feel four entirely new country license and Bruce Springsteen are heard at like we’ve had a very successful agreements – taking the toe- every location, taught by veterans year in development,” says Anthony tapping concept to young rockers of the industry. Not just heard, Padulo, chief development officer in Columbia, Paraguay, Spain, mind you, but thunderously echoed for the franchise. “This has been, and Portugal. through the hallways: “We’re historically, our most successful 12 “The thing that makes me happy definitely looking for somebody
58 GLOBALFRANCHISE | CANADA FOCUS Behind the Brand - School of Rock
who doesn’t mind the noise,” laughs Padulo. “That’s always our first criteria, because while it’s music, it is noisy!”
TWIST AND SHOUT If tolerance of noise is one of the primary criteria for a School of Rock franchisee, what else is important when joining one of the most successful and exciting education franchises in the world? “Because 85 per cent of our business is children, you want somebody that enjoys being around children,” says Padulo. “Of course, you also look for people who are financially well qualified, and who can put together the required infrastructure for the model.” When looking for international master franchisees, as opposed to domestic franchise partners in the U.S., School of Rock favors individuals with prior experience. Not just with music, but with business development as a whole. This is something ingrained in the franchise’s culture, as Anthony THE ONLY WAY IS UP or compromise on the level of School of Rock may be flying high, quality and support that we’ve been but it’s far from done. In 2020 providing over the last few years.” “This has been, alone, the brand predicts an even For Padulo, the message is clear: historically, our stronger year that will see 35 new “We have plans to be responsibly domestic openings, and around 20 aggressive. We’re very bullish, but most successful international locations. we plan on growing at a reasonable These overseas schools are set rate that we can sustain.” 12 months to take the brand to entirely new shores, as School of Rock targets since we began Ireland, the U.K., Italy, Germany, franchising and South Africa. The latter has a single unit in the country, but the around 13 others are completely new ventures for the globetrotting franchise. years ago” Looking beyond that, School of Rock plans to grow from between Padulo has been in franchising 35 and 50 new schools every year, for almost four decades; working in domestically, and at a rate of two numerous industries and mastering to three new countries. Ambitious? the art of taking a concept overseas. Sure. But it’s got the track record to “You might say, ‘Why do you back it up. want an existing master franchisee?’” says Padulo. “In “RESPONSIBLY my experience, having an existing AGGRESSIVE” master of another business is The franchise is far from foolhardy, very helpful, because that person however. “We’re not the kind of or group already understands franchisor that comes out, says franchising. It’s all about creating we’re going to do 150 locations trust, creating relationships, and a year, and then five years later understanding the differences and they all start closing,” says Padulo. intricacies of working between a “We’re looking for sustainable, franchisee, master franchisee, solid growth; growth at a rate and franchisor.” which allows us to not jeopardize
GLOBALFRANCHISEMAGAZINE.COM 59 INSIGHT
HOW TO BRING YOUR BRAND TO CANADA While sharing many similarities, it would be remiss for American franchisors to expect that their concept will be quickly and easily replicated and adopted in Canada
WORDS BY CRAIG SHERWOOD
60 GLOBAL FRANCHISE | CANADA FOCUS or American franchisors, F international franchising is a tactical way to build and develop our brands around the world. Operating outside of the U.S. not only allows brands to expand their products and services to consumers across the globe, but it helps create additional profit outside of their home market. When franchisors based in the U.S. make the strategic decision to begin franchising internationally, the most common country to begin those efforts in is Canada due to obvious similarities between the two countries in terms of geography and language. While Gold’s Gym began in If your brand is considering 1965 with the opening of our expanding its franchise presence iconic location in Venice Beach, into Canada, be sure to keep in California, it wasn’t until 1980 mind the following tips to help our business in the country had that we began our international ensure a smooth transition that we been unwilling to adjust to franchising efforts. Naturally, will lead to future international its different cultural norms. For we started in Canada, at first success: instance, we found over time that assuming we’d find success by our Canadian consumers desired simply replicating exactly what Recognize and respect more flexibility than what our we’d mastered in the U.S. cultural differences standard big box model offered. To We quickly learned through Despite the obvious similarities accommodate this regional trend, this first attempt at international between Canada and the U.S., we developed a smaller concept expansion that the Canadian you must be careful not to within the big box model that consumer is not just a carbon oversimplify these parallels. is open 24 hours a day. The risk copy of the American consumer, Canadian consumers do not of straying from what we knew as there were in fact cultural differences beyond the surface- level commonalities. We had to “We quickly learned through this build from the ground up, starting with a clean slate instead of just first attempt at international making Canada an extension of expansion that the Canadian our proven U.S. system. consumer is not just a carbon copy of the American consumer”
want U.S. brands to take best paid off, as we now have two their business and loyalty for of these facilities operating in granted, so it’s important for Canada where they’re a bit hit you as the franchisor to respect with members still to this day. Canadian culture just like you would for any other country. Partner with people who In Gold’s Gym’s case, we came know the country into Canada wanting to maintain When Gold’s Gym first expanded a uniform system as much as into Canada, we would have been possible, but we soon realized it totally lost were it not for our would compromise the success of franchisees there who helped us
GLOBALFRANCHISEMAGAZINE.COM 61 INSIGHT
“We found over time that our Canadian consumers desired more flexibility than what our standard big box model offered”
realize that British Columbia is as geographic different from Calgary which is proximity different from Montreal and so does not on. They taught us about how guarantee Gold’s Gym Calgary members cultural prefer heavy strength training, uniformity, the whereas our members in same can be said for British Columbia prefer a government regulations. wide variety of training areas The franchise disclosure for a membership that reflects document (FDD) is one of more fitness-style diversity. the most important legal Getting the “inside scoop” documents in franchising. Both from our franchisees with local the U.S. and Canada require knowledge really informed our a franchisor to have an FDD Canadian development decisions, in place, but Canada’s specific as we otherwise would have expectations for everything an never known the demands of FDD must address is not entirely each Canadian province. This the same as in the U.S. Because reinforces that Canada is no of this, you need to make sure image can be maintained to the exception to the fact that to update your brand’s FDD in level you expect. cultural differences go beyond order to comply with Canadian International expansion, one country to the next, but law if you want to begin whether it’s just north of the even extend to individual regions franchising in the country. border or overseas, is not and communities. Aside from making sure your something to pursue without brand’s FDD is compliant with full and complete confidence Understand the law Canadian law, you also need in your brand’s ability to Of course, having the right to make sure you’ll have the continue thriving in one country people on your team will be law’s protection when it comes while simultaneously starting pointless if your brand to your intellectual property. from square one in another. won’t be conducive Just because your brand is Canada should not be a simple to Canada’s legal trademarked in the U.S., that reproduction of the system you environment. Just does not mean it is in Canada. have in the U.S., so keep these tips Your brand’s licensing team in mind when the time comes for THE AUTHOR Craig Sherwood is chief will need to look into taking the your franchise brand to make its appropriate steps to ensure development officer of presence known in the “Great Gold's Gym the integrity of your brand White North.”
62 GLOBAL FRANCHISE | CANADA FOCUS BEHIND THE BRAND: PARTNER CONTENT Behind the Brand - Dickinson Wright
AT A GLANCE DICKINSON WRIGHT
Trust in legacy Established: 1878 Headquarters: Detroit, Michigan Contact: [email protected] With over a century of experience, Dickinson Wright is representation. Ultimately, we able to support your franchise in a multitude of ways remain committed to delivering cost-effective and comprehensive services to our clients. noodle soup, or digital transactions, Canada-U.S. trade includes goods and INTERNATIONAL services that cross the border up to a FRANCHISING dozen times during the assembly and Modern franchising touches virtually production processes. every area of business. From fast- Our Canada-U.S. platform is at the food restaurants to fashion stores to forefront of matters such as artificial education and entertainment, more intelligence, autonomous vehicles, than ever, companies are seeking life science, cannabis, and trade, to expand their branding, products helping to positively shape the future and services internationally. In fact, for businesses on both sides of the franchise businesses account for border. We closely monitor legislation almost half of all retail sales in Canada and advocate for our clients’ interests, and the United States. assisting them in understanding With extensive experience acting how new regulations impact their on behalf of clients in a wide range operations. Most recently, we have of industries, we work with Canadian rom a two-person firm worked closely with officials making and American franchisors taking serving Detroit-based key changes to NAFTA, and have their systems across the border or clients over 140 years ago, F played a role in the United States- overseas and foreign franchisors Dickinson Wright has Mexico-Canada Agreement (USMCA). seeking to expand their systems evolved into a leading global into North America. law firm by maintaining a focus on each We provide advice and assistance individual client and serving their needs. SEAMLESS LEGAL with respect to all required As one of a few law firms with full- REPRESENTATION Our Canada-U.S. platform documentation, regulatory compliance, service offices operating in both Canada provides seamless legal services and protection of intellectual property. and the United States, the firm extends to meet the cross-border needs Our clients range from start-up beyond a traditional one-off Canada- of our clients, their networks, systems to regional franchises, to vast U.S. practice by drawing all of our firm’s and suppliers. We draw from our franchises and distribution systems practice departments and client service deep knowledge and experience operating internationally. We are teams into one cross-border team. All of core industries, leveraging the dedicated to obtaining positive that our clients need to do is plug-in. most advanced technologies and results for our clients in a way that “We are dedicated to communication strategies to bring is cost-effective and tailored to meet obtaining positive results a depth of resources to our client each of their particular needs. for our clients in a way that is cost-effective and tailored to meet each of their particular needs” CANADA-U.S. PLATFORM Canada and the United States enjoy the world’s largest two-way trading relationship with more than $1tr in goods, services, and investments traversing the border each year. Whether it’s automobiles, cans of chicken
GLOBALFRANCHISEMAGAZINE.COM 63 INSIGHT How strong franchisee relationships bolster franchise development
Advocating collaboration and creativity across your franchise network can not only produce results, but a more productive environment among your organization
WORDS BY STEFANIA SIGURDSON FORBES
raditionally, franchise • More powerful informal discord, and its presence may development and validations: The informal raise serious doubts about the T franchise operations validation process of potential desirability of joining that system. had a certain degree franchisees reaching out to locals of separation between them. There nearby has been a reality for Emotional Intelligence was a permeable wall between the decades. If your average franchisee (EI) as a relationship THE AUTHOR two, ensuring that they could both is happy, then this informal process building block Stefania Sigurdson do business without getting in each will be an asset, not a liability. Some things in life will surprise Forbes is senior other’s way. you. While skills, dedication and • Franchisee case studies: marketing director at However, more and more people a lot of “sweat equity” can get you Canada-based Fran- Franchise marketing has become demand transparency when buying promoted, the further you chiseBlast. She is an more grassroots, with franchisors things, including those purchasing move up the hierarchy in award-winning market- featuring stories in local media as a ing professional who businesses. Prospective franchisees are way to grow a brand within a region. has been recognized looking to reviews as a more credible Having great relationships paves the by Google in terms source of information rather than of best practices for way to make this happen. franchisor marketing relying on the information that brands claim on their websites • Enriched community of or printed materials. franchisees: Does your convention A recent survey commissioned by the feel like a family reunion? Do your franchisor Canadian Tire shows that franchisees spend their vacation online ratings and reviews influence time together? A prospective 80 per cent of Canadians' purchasing franchisee would see that decisions. 80 per cent are looking for enriched community as a truthful product reviews written by real major plus – and current people and 70 per cent of respondents owners would be noted that they have confidence and more open belief in such reviews. to inviting As a result, franchisors are looking friends and to enhance the franchisee experience family into as a way of aiding franchise the fold. development. The benefits of this include the following: In the world of instant global • Stronger validation process: As communications, an important step before awarding prospective franchisees are a franchise, the more authentic investigating franchise systems positive stories you can create the before investing in them. A better, since it can make or break a prospective franchisee will quickly final decision after a long runway. become aware of any significant
64 GLOBAL FRANCHISE | CANADA FOCUS business, the more EI matters. This is see their performance on reviews, projects more successfully, but when skilfully true in all business contexts, and is well wait-times and financial measures, done, it will also help you build stronger and documented in management literature. bench-marked against the system as more effective relationships. But in franchising, it is not possible a whole. Other franchisors in Canada Creative franchisors have been involving to succeed without outstanding EI are seeing a difference when it comes franchisees in traditional pain points. For skills, including communication, to reporting. example, having a convention committee, active listening and the ability to “With technology, we have run by franchisees to ensure that convention “read the room”. streamlined our reporting,” explains content is relevant to the network at large. Pino Di Iola, CEO of Beavertails, an Communication iconic Canadian snack brand with “Great communication is key in 100 locations coast-to-coast. “Now “Online ratings and every franchisee and franchisor our reporting is engaging instead of reviews influence relationship,” explains Darcy Curtis, confrontational. Franchisees are now director of operations at Tommy Gun’s bench-marked, not low-marked!” 80% of Canadians' Barbershop, a system of 70 franchised Beavertails leverages reporting locations across Canada. in an open yet fair way. Bench- purchasing decisions” “Bringing value to franchisees in marking franchisees against the every interaction is vital to building system as a whole means that gaps Franchise development stars and maintaining a strong relationship. in performance can be conversation Having members of the franchise development Franchisees need to trust that the starters. This helps prevent team connect with your franchisees can be a franchisor has their best interests confrontation in terms of “I think great first step towards creating a more in mind at all times and that the this” vs “you think that”. Instead, collaborative atmosphere. Directors from the franchisor's system is truly the best a number shown in black and franchise development team sharing their and most profitable in the industry.” white is an obstacle for you to expertise in the format of a convention can overcome together. be of great benefit. For example, a session on Forward-thinking succession plans or exit plans for the business reporting Franchisee co-creation in terms of preparing it for resale will build As part of that communication, Co-creating projects with franchisees upon expertise while benefiting the franchisee. Tommy Gun’s has a is the single best way to build franchisee scorecard where genuine collaboration. Not only is From cop to coach individual units can it possible for you to roll out your The franchise consultant role is evolving beyond simply being a “cop” who maintains standards. It is also a “coach” who helps the franchisee achieve their goals. As a result, audit questionnaires at the heart of the franchise audit reflect this change. Having a “coaching” section in the audit is a fantastic first step towards creating a coaching culture. Franchisors create consistent operations on their audits, where a coach runs a high-tech checklist of compliance items such as food safety, quality, service and more. In the spirit of collaboration, the brands have a two-way action plan after the audit, creating the solution together with the franchisee. This method embraces the best of both worlds. An audit is necessary for legislative requirements. However, when working collaboratively to build solutions, it can create that “next-level” relationship. Powerful franchisee relationships are not only a business case for franchise development, but they also foster a stronger glue that holds the company together. This glue can go beyond work, and can build across generations.
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