CANADA Global REPORT Franchise WIRE MASTER, REGIONAL AND INTERNATIONAL FRANCHISING

HOW TO FRANCHISE IN THE GREAT WHITE NORTH

CANADIAN FRANCHISING ROADMAP P. 14 | CANADA V U.S.A. P. 21 GLOBAL FRANCHISE 4_8 WIRE_GLOBAL FRANCHISE WIRE 06/12/2019 12:04 Page 2 CONTENTS IN THIS REPORT:

p5 IN THE NEWS p8 NEED TO KNOW: FACTS & STATS p11 ARE YOU READY, CANADA? p14 FIVE MUST-DOS FOR FRANCHISING IN THE GREAT WHITE NORTH p21 ARE CANADIANS AND AMERICANS REALLY THAT DIFFERENT? 11 FRANCHISE OPPORTUNITIES

p18 FASTSIGNS 14 p24 MARY BROWN'S CHICKEN & TATERS p26 SMOKE'S POUTINERIE

t has been an especially operation launches every two hours, 365 days standout year for food-related a year in the Great White North. I franchises in Canada. It's not So, for this edition of the Wire, we thought only the usual big name brands we would gather all those golden nuggets making waves here, but the country is of information and expert advice from those attracting new ventures, including the likes already franchising in this fascinating multi- of Burger Village and the beloved Filipino cultural country to assist those planning to potato franchise, Potato Corner. expand there. Although franchising is only the 12th A must-read article is franchise attorney biggest contributor to the Canadian Andrae Marrocco's checklist of must-dos economy, the industry is booming, with to prepare yourself for an adventure to the franchise101.net claiming a franchise “frozen hockey rink”, while Edward Levitt looks at the flip side: how ready are Canadian franchises to expand internationally? Follow us on Twitter:@globalfranmag Whatever your role in franchising, I

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IN THE NEWS Food, glorious food

CANADIANS NOW HAVE A GUILT-FREE BURGER OPTION Burger Village has begun its international growth with LISTEN UP, FAST-CASUAL an inaugural, Canadian franchise location. The new restaurant will have an eco-friendly build-out, aligned with the brand’s SNACK JUNKIES IN ALBERTA sustainable values. Popular throughout New York and California, Burger Village As part of an ongoing global takeover, Potato Corner is quickly becoming a staple of the organic burger scene. All has entered the Great White North with its inaugural of its menu is nutritious, free of preservatives and pesticides, Alberta location. and comes from humanely raised livestock. The brand recently Launching in the in 1992, Potato Corner is a beloved brand that fast-casual snack announced its Canadian location, which is set to open in the next junkies will instantly recognize. Delivering the few months. The restaurant itself will be built with reclaimed wood “world’s best flavored fries” to countless customers and biodegradable materials, and its beer selection will be sourced worldwide, its tasty selection of barbeque, cheese, from local breweries; supporting the nearby community. sour cream, or chilli barbeque fries can now be “Burger Village’s organic and exotic menu is new and fresh. enjoyed in yet another country. There’s nothing like it here,” said Yaman Yadav, the entrepreneur The new store located in West Edmonton opening the brand’s first Canadian location. “We feel strongly Mall in Alberta opened this September after that Burger Village will be a big much fanfare and a ribbon-cutting ceremony. hit in Edmonton.” The potato brand’s international growth began in 2006 and by 2019, it is available in the Philippines, Alongside the Canadian Panama, , , , , expansion, the Burger Village brand , , the U.S., and now Canada. has teamed with franchise industry Potato Corner has been franchised in Canada by expert, Gary Occhiogrosso, the Filipino-Canadian entrepreneur Nelson Rodriguez, founder of Franchise Growth who plans to open 15 stores throughout the Solutions, LLC, to expand the country within the next three years. brand to 25 locations by 2022. Cookies by Design inks multi-unit master franchise deal

Hot on the heels of its recent enjoyment for people around the multi-unit international master world,” said Jack Long, CEO and franchise agreement announcement, president of Cookies by Design. Cookies by Design launched its first “Now that we have established an custom dessert bakery in west incredible brand with a strong foothold Brampton this November. in the U.S., we see international Franchisee Kathleen Bhullar is expansion as one of the next major not new to the brand, having owned opportunities for our growth.” a Cookies by Design location in The cookie concept plans to open Woodstock, Georgia. She moved to more than 30 locations internationally Canada after getting married and over the next three years, through a enquired at the head office about not combination of territory and master finding any Canadian locations. As a development agreements. Cookies by result, she and her husband Dharminder Design has partnered with Fran Counsel became the master franchisees for the Group to help identify prospective Ontario market, and plan to open 10 international partners, specifically in stores within the next five years. the Canadian, GCC (Gulf Cooperative “Our vision has always been for Council) and MENA (Middle East and Cookies by Design to become a source of North Africa) markets.

GLOBALFRANCHISEMAGAZINE.COM 5 GLOBAL FRANCHISE 4_8 WIRE_GLOBAL FRANCHISE WIRE 06/12/2019 12:04 Page 6 Athletes, clubs and tournament organizers can now visit Li-Ning showrooms

distribution and licensing agreement immigration has come from Asia with official partner and distributor, since the turn of the millennium, LN Distribution Inc. with the majority coming from Now, athletes, clubs and tournament China. In China, Li-Ning is the organizers can visit Li-Ning official brand of many Olympic showrooms in Burlington, Ontario near teams and athletes making the Toronto and inside Ottawa’s RA Centre. Li-Ning brand a household name Len Carter, president of LN for many new Canadians. Distribution Inc. said: “We’ve Carter also said that he expects been working with the Li-Ning every major city in Canada to soon headquarters in Beijing, have Li-Ning showrooms. A national China for about eight years corporate store and franchise and it has been offering are currently in the works. an extremely China’s premier positive sports brand, experience. Li-Ning, has announced Li-Ning is that its extensive collection of racket a leader as a sport equipment, shoes and apparel company and brand is now available via its standalone because the people are progressive retail showrooms in Ottawa and the and easy to work with and in the wake Great Toronto Area. of global political divergences – we Prior to this retail showroom are merging cultures and countries expansion, Li-Ning sports products through the cooperation of sport.” were available online and through According to the Asia Pacific a limited network of specialty Foundation of Canada, approximately dealers throughout Canada via a 50 per cent of Canada’s world

City Wide Franchise dips its toes in Canadian waters

Opening its first location maintenance industry. We in Ontario, another in Fort look forward to continuing Myers and two more signed this legacy within the agreements in the pipeline, the Ontario community.” brand marks the beginning City Wide has made a of its initiative to expand its name for itself in the U.S. presence in the Canadian and by streamlining commercial U.S. markets. facilities and maintenance Jeff Oddo, president and CEO management, bringing together of City Wide Franchise said: more than 20 services including “We’re thrilled to introduce janitorial, handyman services City Wide to Canada. When and parking lot maintenance. we announced at the start of Taking the onus from the year that we were targeting building owners and property Canada for our next growth management businesses that phase, we were eager to find the typically have to choose separate perfect partner early on. companies for each task, City “It is a testament to the brand Wide eases the selection and our team has worked hard to management processes. build, to establish ourselves The franchise generated more as leaders and innovators than $250m in system-wide in the United States and revenue in 2018 and is on track Canadian commercial building to have another record year.

GLOBALFRANCHISEMAGAZINE.COM 7 FACTS & STATS

NEED TO KNOW 2nd LARGEST FRANCHISE INDUSTRY IN THE WORLD

FRANCHISING IS THE 12th LARGEST CONTRIBUTOR TO THE ECONOMY

TOTAL FRANCHISE-RELATED GDP CONTRIBUTION TO BE $100.6bn

FRANCHISE GROWTH

Franchising is estimated to grow by 2.59% (+$2.5bn), increasing the total franchise-related GDP contribution to $100.6bn

FRANCHISING BY NUMBERS Franchise growth in Atlantic Canada is still slow, with the number of franchise locations • 1.9 million Canadians are projected to be in the region estimated to grow by only employed by the franchise industry • Approximately $1 of every $5 is spent on 0.46% goods or services at a franchise • Within the last five years, 86 per cent of all franchises opened in the country are under the same ownership and 97 per cent are still in business

8 GLOBAL FRANCHISE | WIRE FRANCHISE UNITS 1,300 franchise brands are estimated to operate over 76,000 franchise units by the end of the year

Around 4,300 new franchise outlets open in Canada each year, LEADING THE WAY which means that a new franchise Ontario is estimated to have the largest number of franchise opens every two hours, locations, with 56 per cent of franchises headquartered 365 days a year here, primarily in the Greater Toronto Area. However, on a percentage basis, the largest growth is estimated to occur in British Columbia, where the number of franchise locations is expected to grow by 1.16 per cent

THE TYPICAL CANADIAN FRANCHISOR HAS:

• 12 CORPORATE UNITS AND 63 FRANCHISED UNITS FOR A TOTAL OF 75 UNITS

• BEEN IN BUSINESS OVER 17 YEARS

• AN ANNUAL GROWTH OF 4.4 UNITS PER YEAR

THRIVING SECTORS • The hospitality industry is the largest single sector, accounting for almost 40 per cent of franchised brands • In the restaurant sector, 35 per cent of all sales are from franchise operations • 45 per cent of all retail sales are generated by franchised businesses

*Source: All research, data, and stats provided from Canadian Franchise Association (CFA) Report: Franchise Forecast 2019 Canadian Franchise Industry Economic Outlook and franchise101.net

GLOBALFRANCHISEMAGAZINE.COM 9 GLOBAL FRANCHISE 4_8 WIRE_GLOBAL FRANCHISE WIRE 06/12/2019 12:04 Page 10 ARE YOU READY, CANADA? The focus of this issue is franchising in the Great White North and finding out how ready Canadian franchises are to expand internationally ADVICEFEATURE

THE AUTHOR Edward (Ned) Levitt is a Certified Franchise Executive, a partner at Dickinson Wright LLP, Toronto, Canada, and provides legal services to Canadian and international clients on all aspects of Canadian franchise law

WORDS BY EDWARD (NED) LEVITT

istorically, Canadian To be successful in Canada, given Also, international expansion franchisors have not the diversity of the Quebec market of Canadian franchise systems is H ventured into foreign and the immense geography, being facilitated by some of the markets in great numbers. a Canadian franchisor has to same forces affecting franchisors When they have, it has mostly been to develop many of the skills and everywhere. The increase the massive, franchise savvy, U.S. resources common to international in global travel, exposure to market, and with very mixed results. expansions. Additionally, Canada is international media and the ability However, times have changed. Today, seen by the rest of the world as very to communicate instantly on the we see more international expansions similar to the U.S. and as reflecting internet are raising awareness of the from Canadian franchisors, and more American know-how, when it products and services of Canadian are expected in the future. So what's comes to business and franchising franchises and allowing Canadian causing this change? in particular. franchisors to understand and Many factors may explain this Another factor is the immigration connect with customers in foreign shift in strategy. I believe the most laws of Canada, which have resulted in markets more than every before. important are increased franchise Canada becoming a very multi-cultural Of course, expanding a knowledge among Canadian country with many strong bonds with, franchise system internationally franchisors; the growth of successful and connections to, foreign markets. is challenging. The risk of failure franchise systems, both in number This also boosts Canadian franchisors' is high and the risk of surviving and size, and the steady increase in access to personnel who understand without really thriving is even demand around the world for North the language and culture of higher. Some of the most common American franchises. foreign markets. reasons for failure are choosing

12 GLOBAL FRANCHISE | WIRE specific legislation, so registration and creation of franchise disclosure documents is not required. This saves time and money.

Branding and supply chains With the importance of a brand in franchising, comes the need to ensure that the franchisor can legally secure and license its trademarks in the target market. Supply chains need to be established in the new market, as well, which may require local suppliers or be import-based ones, all of which are determined or influenced by local laws.

Adapt documents to adhere to local laws Documentation, such as the franchise agreement and the franchise disclosure document, if required, will have to be adapted to comply with local laws. Even the operating manual needs a legal review and possible translation and the local tax laws, including such things as withholding taxes, should be evaluated. As a final caution, a Canadian franchisor will want to know that it can protect its system in the target market effectively and within manageable budgets. The franchisor’s Canadian legal counsel can and should have input into many of these and other areas at the earliest stage possible and before major decisions the wrong master or multi-unit franchise expansion. Some of these are made and strategies created. franchisee, not having enough include: which markets to expand to Finally, on the implementation financial resources to support the first and when; deciding on capital side, Canadian counsel can be more master or multi-unit franchisee and human resources requirements; helpful and effective for the franchisor properly and poor adaption of the and what adaptions should be made if they have a solid and extensive network of international legal firms business concept for the to the concept. The list goes on. who are experienced and capable in local market. Importantly, many of these franchise expansions. For a franchisor to be successful business decisions are impacted by The future is bright and full of in an international expansion, it the legal system of the target country. promise for Canadian franchisors is necessary to navigate and plan As such, they should be considered wishing to expand outside of Canada. effectively. Below are some of my at the planning stage, not just at the Success will breed success, as more thoughts on the key legal and time of implementation. For example, Canadian franchisors take the business considerations for an when expanding into the U.S., less plunge into foreign markets. While international franchise expansion. capital is needed if the first states caution, adequate resources and good selected do not require registration planning are essential for success, Plan early and take into or do not have franchise-specific the old adage of “nothing ventured; account the local laws legislation. Franchisors have similar nothing gained” is so very apt for Not surprisingly, franchisors are considerations when deciding Canadian franchisors who have the faced with many business decisions which countries to enter first. For ambition and smarts to establish when embarking on an international example, the U.K. has no franchise- themselves in the world.

GLOBALFRANCHISEMAGAZINE.COM 13 LEGAL

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 international expansion into overlooked (particularly at the heralded as a frozen Canada and robustly protect each strategy stage). Franchisors need C hockey rink, has category of intellectual property to address the following two turned out to be a under Canadian law. structuring considerations. hot market for franchisors. Canada’s trademark registration The first is selecting one or more Canada has a highly skilled and system recently underwent a strategically advantageous franchise educated workforce and a similar significant transformation as part structures for the expansion (e.g., THE AUTHOR Andrae J. Marrocco is spending pattern to the United of an initiative to modernize the master franchise, area development, an international fran- States. It has the second largest national intellectual property and direct franchising) and the chise lawyer who spe- franchise industry in the world, framework. In addition to particular regions for which those cializes in franchise & behind the U.S., with an estimated substantial amendments to the structures will be utilized. More distribution arrange- ments and corporate 1,300 franchise brands and more Trademarks Act (Canada), the often than not, this involves blending M&A transactions. than 76,000 franchised business regulations, and Trademark structures and crafting customized He is a partner in the units. It is also a proudly multi- Office practices, Canada is joining terms that fit the specific franchise Business Law Group cultural country, making it a good three international trademark system and expansion mandate. It and Co-Chair of the ‘first expansion’ venue to test your treaties. Not only is Canada finally also requires conducting research Franchise and Distri- bution Law Group in franchise system among a variety of acceding to the Madrid Protocol, on the demand for your products the Toronto office of cultural demographics. the international system for or services in various regions while McMillan LLP However, franchise expansion obtaining trademark registrations also considering other economic, andraejmarrocco.com to the Great White North requires for multiple jurisdictions through demographic and cultural guidance and careful decision- the use of a single application, but variables. By way of example, making. Here are five things to Canada is also joining the Nice you may determine that direct consider before expanding your Agreement, which establishes franchising is the structure of franchise system into Canada. an international classification choice for major regions like system for goods and services in Toronto or Ontario, but a Protect your trademark registrations, as well master arrangement is more intellectual property as the Singapore Treaty, which suitable for the province of 1 A franchise system's seeks to harmonize administrative Quebec (which has a civil intellectual property is often the procedures pertaining to the law system and French most important asset crossing trademark registration process. language requirements). the border on any international The second structuring expansion, and the same holds Structure your consideration is selecting the most true when venturing into Canada. franchise expansion efficient Canadian corporate/ This includes trademarks, know- 2 Determining the right tax structure to achieve your how, trade secrets, copyright, and structure for your franchise business objectives. patents, as well as non-traditional expansion into Canada is a critical types of intellectual property like part of early planning domain names – both existing and, unfortunately, and contemplated (e.g. “.ca” too frequently domain extensions). Franchisors should take the time to identify the intellectual property that is actually necessary for their

14 GLOBAL FRANCHISE | WIRE In Canada, there has been an “Though Canada is the second increased trend of franchise systems providing franchisees with limited largest country in the world, the flexibility on various activities that were historically more stringently vast majority of its population controlled. For example, an increasing number of Canadian lives within 300km of its franchisors are giving franchisees southern border” latitude to source local products and services. This benefits international franchisors in a number of ways Franchisors need tailored advice to those principles (and independent including saving them time and ensure that they identify a structure of them). Observing those principles effort on establishing supply chains, that satisfies the “line of best fit” and legal customs will go a long way as well as creating supply chain test. The analysis is typically based in protecting your franchise system options for other franchisees. on a number of considerations in Canada. From the franchisee’s perspective, including capitalization strategies, Certain key mechanisms in it engenders goodwill in the contemplated on-the-ground your franchise agreements such as community in which its franchised operations (employees and physical “protected” or “exclusive” territory business operates. premises), the intention vis-à-vis should be carefully reviewed for These are but a few illustrations of repatriation of funds, the interplay Canada. The manner in which the importance of “Canadianizing” between home jurisdiction tax laws you ultimately define and divide your franchise agreements (and the and Canadian tax laws, and Canadian territories here may be significantly underlying business terms) so that laws that may be applicable because different than other countries your franchise system is relevant for of your specific industry. in which your franchise systems the Canadian business community operate. Though Canada is the and complies with Canadian legal Craft your second largest country in the world, principles and customs. franchise agreement the vast majority of its population 3 Well-crafted franchise lives within 300km of its southern Comply with agreements underpin effective border. Carving up the 10 provinces Canadian laws expansion into Canada. Particularly and three territories into workable 4 Six of Canada’s provinces where you have an existing suite of franchise regions requires strategy (Alberta, British Columbia, franchise agreements and where and consideration. Importantly, Manitoba, New Brunswick, Ontario, you intend to utilize a number of franchisors are cautioned not to and Prince Edward Island) have franchise structures, the preparation give away too much territory franchise-specific legislation. While of a uniform and “Canadianized” without protective rights, such not identical, the provincial statutes set of franchise agreements is high as in circumstances of breach are substantially similar. One of the on the priority list. Canadian courts or underperformance. primary requirements mandated have provided guidance on many International franchisors should by each statute is that franchisors aspects of the franchise also observe current trends to ensure provide pre-sale disclosure with arrangement. The form their brand holds strong appeal respect to the franchise offering in and substance of drafting among prospective franchisees. the form of a franchise disclosure Canadian agreements document. The has been impacted in franchise disclosure a profound manner by document is intended the principles espoused to provide prospective by court decisions franchisees with together with Canadian sufficient information legal custom which has to make an informed developed from business decision about becoming a franchisee. Consequences for non- compliance with the

GLOBALFRANCHISEMAGAZINE.COM 15 LEGAL

that the franchisor will be found to “Canada has the second largest be a common employer. In addition to the degree of control exercised, franchise industry in the other factors suggesting a common employer relationship include: world, behind the U.S., with • the integration between the franchisor and franchisee, an estimated 1,300 franchise including common shareholders or directors brands and more than 76,000 • the payment of wages to the franchised business units” employee by the franchisor and/or franchisee • existence of an employment franchise statutes (whether as individual or individuals who are contract between the employee a result of omitting prescribed accountable for compliance and the franchisor and/or information, failing to follow the • security safeguards must protect franchisee execution and delivery obligations, personal information against loss • the employee’s relationship with or otherwise) can result in serious or theft, as well as unauthorized and service to the franchisor and/ pecuniary consequences for access, disclosure, copying, use, or franchisee. international franchisors. or modification, regardless of Unsurprisingly, there are other the format in which it is held (the On the other side of the spectrum, Canadian laws that international nature of the safeguards will vary a disinterested or neglectful franchisors should be mindful of in depending on the sensitivity of franchisor may wind up being liable expanding their franchise system to the information that has been on that count. One example comes Canada. Firstly, it is worth noting collected, the amount, distribution, from the Dunkin’ Donuts case heard that even provinces without specific and format of the information, by the Quebec Court of Appeal (2015 franchise legislation have laws that and the method of storage). QCCA 624). The worldwide donut significantly impact the expansion chain Dunkin’ Donuts faced a serious and operation of franchised In a landscape of ever-increasing intrusion into its stronghold over businesses, such as Quebec’s privacy law regulation and scrutiny the Quebec market by rival brand Civil Code and Charter of the in Canada, it is imperative that Tim Hortons. The court held that French Language (which includes international franchisors develop Dunkin’ Donuts failed to protect and requirements of ‘doing business’ in and implement adequate policies improve the brand’s image and value the French language). Depending and programs from the outset amidst this competition, resulting on your intentions with respect to ensure that their franchise in damages of approximately $11m. to scouting out and operating in operations in Canada safeguard Among other things, the court Canada, immigration laws will personal information in compliance held that Dunkin’ Donuts failed impact any personnel you plan on with applicable legal and to appropriately address poorly having visit or move to Canada. regulatory requirements. performing franchisees who were You may also need to consider harming the brand image. trade and custom laws for product Know when to be Prudent international franchisors and equipment importation, hands-on versus looking to expand their franchise taxes (including withholdings 5 hands-off systems into Canada should take time to plan, protect their brand, consider tax), employment laws (which As in many parts of the world, differ between the provinces), and franchisors operating in Canada the optimum structure, prepare best industry specific laws. are experiencing the expanding in class documentation and, in all Moreover, Canada has a complex boundaries of vicarious liability. things, ensure they comply with all framework with respect to privacy That includes the much publicized applicable Canadian laws. This will and data protection. Maintaining “joint employer” risks (“common put them on a strong footing for robust data protection and employer” in Canada). Accordingly, effective and efficient expansion. privacy protocols is critical to the franchisors must strike the right development and reputation of balance of protecting their brand international franchise systems and assisting their franchisees “Canada has entering Canada. At a high level, without crossing the line of being so Canadian laws require the following involved that they assume liability. a complex implicit and explicit accountability For the purposes of common framework and security obligations: employment, the fundamental question is where does “effective with respect • businesses are responsible control” over employees reside: for personal information in the franchisor, the franchisee, or to privacy and their possession or under their both? The more control exerted control and must designate an by the franchisor, the more likely data protection”

16 GLOBAL FRANCHISE | WIRE GLOBAL FRANCHISE 4_8 WIRE_GLOBAL FRANCHISE WIRE 06/12/2019 12:04 Page 17 BEHIND THE BRAND: PARTNER CONTENT

AT A GLANCE FASTSIGNS INTERNATIONAL, Look out INC. Established: 1985 Number of franchised outlets: Over 700 Location of units: U.S., Canada, England, , UAE, Grand Cayman, Mexico, Canada, Chile, and Australia Investment range: New center: $197,172 - $313,136 Master franchisee: $250,000 and up (based on size of opportunity) here comes Minimum required capital: $80,000 Contact: [email protected] +1 (888) 285-5935 FASTSIGNS fastsigns.com Last year, FASTSIGNS opened a record number of centers in Canada FASTSIGNS International, Inc has already brought and recently signed two franchise development agreements to open its custom graphics business to Canada. It’s now new locations in Toronto in 2019. seeking dynamic franchisees and master to FASTSIGNS expects to sign two to three more agreements in Canada expand further into the country this year and is actively seeking prospective franchisees throughout the country, including a master s long as businesses need — offers entrepreneurs and current franchisee to develop in Quebec. to be seen, FASTSIGNS business owners an opportunity to “We see a huge opportunity to A International, Inc. and meet a growing demand for eye- develop FASTSIGNS throughout its franchisees will catching graphics and marketing Quebec, particularly in Montreal, be there to meet the demand by through franchising. Laval, and Quebec City,” said Mark businesses throughout Canada for Currently, Canada is home to Jameson, EVP of franchise support captivating, high-performing visuals. over 30 FASTSIGNS locations, and development, FASTSIGNS FASTSIGNS — the leading but the brand is growing rapidly International, Inc. “We’re seeking a sign and visual communications as entrepreneurs realize the savvy entrepreneur with deep ties to franchisor in North America and opportunity to feed the demand for Quebec and the expertise required the worldwide franchisor of more comprehensive signage and visual to not only operate a successful than 700 independently-owned and communications solutions business, but also to grow a brand operated centers in nine countries by joining FASTSIGNS. throughout the province.” THE FRANCHISEES’ CHOICE FOR SEVEN YEARS AND COUNTING Much of FASTSIGNS success in Canada can be attributed to its high level of franchisee satisfaction. This year the brand was once again recognized by the Canadian Franchise Association (CFA) as a silver recipient of the 2019 Franchisees’ Choice Designation. This was the seventh consecutive year FASTSIGNS has been recognized for its strong relationship with Canadian franchisees, as well as for providing extensive franchisee support and training. FASTSIGNS touts its high system-wide support ratio — the best of any sign and graphics

18 GLOBALFRANCHISE | WIRE Behind the Brand - FASTSIGNS International, Inc.

franchise. As the brand grows throughout Canada, it continues to allocate significant resources to ensuring franchisees have access to top-notch training and support. “We pride ourselves on our high level of franchisee satisfaction in every country we operate in around the world and were honored to be recognized once again by the Canadian Franchise Association for this prestigious designation,” said Jameson. “We continue to nurture the strong franchisor-franchisee relationship that is so crucial to FASTSIGNS’ success in Canada.” Craig Gibbs, a franchisee that opened a FASTSIGNS center in Scarborough, Ontario, in 2007, is an advocate for the brand. “I’ve been with FASTSIGNS for of the Canadian Armed Forces, lived something,” said Raymond, who more than 12 years, and the support all over the world, learning to adapt previously worked for another I’ve received from the franchisor, to new situations and make new local franchise in the print in many aspects of my business, is friends easily. Raymond was born to industry. “Nothing compares to fantastic. From strategic direction a French-Canadian family and, the FASTSIGNS corporate help.” to marketing, along with vendor after high school, got a job at a relations, technology, and more, the local French newspaper where CONTINUED her interest in creative DEVELOPMENT “As the brand grows graphic design grew. WORLDWIDE “Everything was FASTSIGNS has signed several throughout Canada, it finalized in July 2000 master franchisee agreements in and we drove down to recent years, including in Spain continues to allocate Dallas for a three-week where existing FASTSIGNS significant resources to franchisee training franchisee Chris Kirby plans program. We spent the to develop a minimum of 10 ensuring franchisees entire month there, locations, specifically targeting returned to Windsor initial development in Barcelona, have access to top-notch and opened the doors Madrid, Valencia, and Malaga, training and support” to our FASTSIGNS while new master franchisee, center on August. 1,” the Famalco Group will open 16 tools and resources provided have Raymond told Canadian Business centers throughout Malta, Italy, continuously contributed to my Franchise in 2017. “It was an and Greece. center’s ongoing growth,” Gibbs said. intense few weeks, but training FASTSIGNS is continuing to was great. It was split into units. I grow worldwide with a focus on EXTENSIVE TRAINING went through the graphic design finding master franchisees for & SUPPORT modules and Donna focused on Quebec, New Zealand, Brazil, After years of dreaming and the sales and management ones. North Africa, Southeast Asia, talking about owning a business This way, we’d be able to come back Europe, and Latin America. together, FASTSIGNS franchisees and use everything we learned and “FASTSIGNS’ business model Donna Bilodeau and Jackie implement it into the business. is focused on providing custom Raymond made the leap from Plus, we were playing to our marketing and graphics solutions friends to business partners in 2000 previous experience and strengths. for local businesses, so franchisees when they opened a center It was a great decision.” that operate centers anywhere in in Windsor, Ontario. After nearly 20 years in business, the world are well-positioned to Neither Bilodeau nor Raymond FASTSIGNS Windsor continues serve the countless organizations had experience as business owners to thrive. Even today, they have right in their backyard,” Jameson when they joined FASTSIGNS, no qualms about calling the added. “Whether a new center, but they leveraged their unique corporate office to ask questions. conversion, or co-brand, backgrounds and experience to “Yes, it is our own business. We FASTSIGNS franchisees become successful franchisees. make the final decision, but they continue to experience Bilodeau, the daughter of a member are our sounding board if we need strong sales and growth.”

GLOBALFRANCHISEMAGAZINE.COM 19 GLOBAL FRANCHISE 4_8 WIRE_GLOBAL FRANCHISE WIRE 06/12/2019 12:04 Page 20 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 more sharing my insights (pronounced “oot” - our American aggressive than Canadians’ is I into the perceived neighbors love to laugh at how we certainly true when it comes to cultural differences say “out”, for some reason). On business on a whole. And 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 further 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 Cannibis Franchise Systems, franchises in highly recommends taking the both countries, time to get know each individual

GLOBALFRANCHISEMAGAZINE.COM 21 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”

22 GLOBAL FRANCHISE | WIRE 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 23

Same store sales growth for 15 15 for sales growth Same store Best one of Canada’s Awarded and modern rebranding Recent success of proven 50 years Store count has doubled in the has doubled in the count Store consecutive years. consecutive Managed Companies in 2019. attract to design continue store audiences key last decade – currently at 160-plus at 160-plus last decade – currently in Canada with plans stores 2022. 300 by reach to � � � � MARY BROWN’S BROWN’S MARY SUCCESS STATISTICS � Mary Brown’s is seeking master/area is seeking master/area Mary Brown’s be part of to ready you Are franchisees. story? this success contact learn more, To Kingdom: United [email protected] American: Latin [email protected] Middle East: [email protected] All Other: [email protected] “As global global “As demand for quick service chicken restaurants continues to increase, Mary Brown’s is looking to capitalize on international opportunities” AT A GLANCE AT BROWN’S MARY & CHICKEN TATERS THE FUTURE LOOKING TO TO LOOKING will the next What 50 years growth and more bring? “More Chahin says, for sure,” innovation “but lose sight of what we won’t special. A Mary Brown’s makes delicious handcrafted menu and will always hospitality genuine define our brand.”

Mary Brown’s has developed Brown’s Mary COMMITMENT COMMITMENT FRANCHISEES TO 50-year history Brown’s Mary is as a Canadian franchise defined by its commitment to Mary Brown’s its franchisees. has won the Canadian Franchise Choice Franchisees’ Association’s This nine years in a row. Award is an honour only a handful of can claim. Chahin franchises franchise Brown’s Mary credits longevity. owners with the brand’s “They says, the heart at He are and they of our brand bring the to life in communities brand across Canada – and going forward – across the globe.” tasting chicken ever,” said Hadi said Hadi ever,” tasting chicken and COO. Chahin, president in every standards stringent facet – cooking, cleanliness, of operations service, product taste, appearance, – and beyond. Each presentation assessed and is frequently store to standards for adherence graded by internal and independent parties. are All franchisees to complete a rigorous required which program training encompasses all aspects of running a successful business.

ary Brown’s Chicken ary Brown’s is a well-known & Taters in and beloved brand Canada with a 50-year

As global demand for quick M takes wing PREMIUM QUALITY PREMIUM QUALITY “Our product is made from ingredients. fresh with scratch are and potatoes Our chicken and hand cut, breaded marinated, each and every at cooked We store. using our cook in small batches proprietary throughout the cookers and superior quality to ensure day is It taste, and of course, freshness. absolutely the most delicious, best history of success and hundreds of thousands of fans across the country. service restaurants chicken Mary continues to increase, is looking to capitalize Brown’s opportunities.on international Europe, Latin America and the been identified for East have Middle expansion.international Following analysis of population careful competition, demographics, density, economics and ease of assimilation, offer significant these regions growth potential for this iconic Canadian brand. Canada’s largest quick serve chicken chicken serve quick largest Canada’s restaurant is launching internationally restaurant WIRE

| Canadian brand brand Canadian BEHIND THE BRAND: PARTNER CONTENT PARTNER BRAND: THE BEHIND

Behind the Brand - Mary Brown’s Chicken & Taters 24 GLOBALFRANCHISE GLOBAL FRANCHISE 4_8 WIRE_GLOBAL FRANCHISE WIRE 06/12/2019 12:04 Page 25

AT A GLANCE AT SMOKE’S POUTINERIE INTERNATIONAL Established: 2008 outlets: Number of franchised 50 sales of over 150+ international units so far of units: Location Qatar (SOLD – Opening Canada, U.S.A., Soon), Hungary (SOLD – Opening Soon), (SOLD). Republic (SOLD), Czech Austria Kingdom of Saudi in UAE, interest Heavy India and throughout , Arabia, Kingdom and the United Europe range: Investment per unit, but all $200,000-$400,000 multi-unit/area- deals are international deals with minimum five development unit territories capital: Minimum required per unit, but all international$400,000 deals development multi-unit/area deals are so $1mterritories, unit with minimum five multi-unit territories secure to required Contact: [email protected] or 416 358 2780 [email protected] smokespoutinerie.com “Be the next “Be the next rockstar to jump on the Smoke’s Poutinerie gravy train” gravy

Although the brand Although the brand it’s entertainment! it’s With a demographic comprised primarily of young-adults, is Poutinerie Smoke’s by highly motivated digital entertainment. the by is inspired eighties, its presence extends through online with fans and engagement them coming back keeps The franchise for more. owes its success to the sheer power of the brand – the product is awesome, a fun, have locations this atmosphere; energetic but a business is nothin’ time. good GLOBAL DOMINATION! GLOBAL entertainment will find You infused into everything the touches, including the brand people behind the magic. is looking Poutinerie Smoke’s who believefor franchisees in who want to be a partthe brand, and become an of the family, partintegral of sharing its unique and culture with the world. brand across With 150-plus locations America and international North expansion Middle into the the East, Europe and the U.K., is on course for global brand Be the nextdomination. rockstar Poutinerie to jump on the Smoke’s and apply for a train gravy today. franchise

moke’s Poutinerie is Poutinerie moke’s and largest the world’s original poutinerie! in 2009 by Founded get a license to entertain to a license get success S

WIRE A smokingA | LUMBERJACK CHIC LUMBERJACK Beyond is known poutine, the brand for its eighties Canadiana culture, lumberjack plaid, and signature Poutinerie glam rock music. Smoke’s than fries, curd & gravy. is more an experience… it’s a brand, It’s chief entertainment officer, Ryan chief entertainment officer, offers Poutinerie Smolkin, Smoke’s a unique menu focused exclusively iconic dish national on Canada’s – poutine. The is known brand globally for its wow-sized portions of cheese curds fresh-cut fries, squeaky and adds fresh and piping hot gravy, 30 variations over toppings to make of its famous dish. along with a popular fast food business, you business, you food popular fast along with a Partner with Smoke’s Poutinerie franchise, and franchise, Poutinerie with Smoke’s Partner BEHIND THE BRAND: PARTNER CONTENT PARTNER BRAND: THE BEHIND

Behind the Brand - Smokes Poutinerie International FRANCHISE 26 GLOBAL GLOBAL FRANCHISE 4_8 WIRE_GLOBAL FRANCHISE WIRE 06/12/2019 12:04 Page 27