Canada has the second-largest franchising industry in the world, and that’s why it’s good to know what is the best franchise to own in Canada. If you are a Canadian citizen, these franchising opportunities can help you choose the right business for you.
In Canada, a new franchise unit opens every 2 hours; this shows how widespread this business model is.
In addition, 5% of Canadian Gross Domestic Product (GDP) is connected with franchise business. Also, this business model has less failure risk than independent business, and that is why we have decided to present you the list of the best franchise to own in Canada.
Best Franchise To Own In Canada
Tim Hortons – Fast Food Brand
Since 1964, when former hockey player Tim Horton founded this brand, over 5,000 restaurants have been opened in Canada and other countries. This franchise currently exists in more than 14 countries, which speaks a lot about the success of this concept.
This is the largest and most popular Canadian quick-service chain, and that is why it must be mentioned when we talk about the best franchise to own in Canada. However, this is a franchise that requires a significant investment, and therefore it will not be available to entrepreneurs who do not have considerable start-up capital available.
The total cost of the Tim Hortons franchise in Canada is between Ca $ 871,000 to CA $ 2,440,000. In addition to these costs, future owners must also meet criteria related to past business experience.
So if you have previous managerial experience in similar outlets, it will increase your chances of being approved as a franchisee. If you pass these initial franchise requirements, you must be prepared for hard work because this type of facility needs a lot of commitment.
Although Tim Hortons starting costs are significant, many investors want to acquire this franchise because it is one of the top profitable franchises in Canada.
Investment in the Tim Hortons franchise will pay off many times over, so this will be the right choice for people who see themselves in the fast-food industry.
Tim Hortons franchise cost in Canada:
- Estimated total investment: Ca $ 871,000 – CA $ 2,440,000
- Initial fee: $ 35,000
- Royalty fee: 4.5 – 6% of the gross revenue
- Marketing fee: 4% of the gross revenue
- Franchise agreement duration: 10 years
Subway – Fast Food Brand
Subway is one of the most beloved fast-food brands in Canada. The first Subway in Canada was opened in 1986, and since then, they have arranged the opening of more than 3,000 outlets across the country.
This brand is currently looking for Canadian franchisees, so it’s worth considering this opportunity.
Although it would be expected that such a well-known brand requires enormous start-up costs, this is not the case. For a low investment, you can get a Subway trademark, training, and benefit from this brand’s loyal customer base.
If you choose to open a Subway in Canada, you will need to have funds between $ 102,000- $ 234,000. In addition to that, you will have to pay ongoing weekly fees (royalty and marketing fee) in the amount of 12.5 of the gross revenue.
The Subway initial fee is $ 15,000. By the way, franchises of this popularity and success cost much more, which is why this brand is on the list of the best franchise to own in Canada.
The Subway franchise package includes training and support in all segments of the business. This type of support will most help entrepreneurs who have not had the opportunity to run their businesses so far.
So, with cheap start-up costs, you have the opportunity to take advantage of all the privileges of working under the “umbrella” of a well-known brand.
Subway franchise cost in Canada:
- Estimated total investment: $ 102,000- $ 234,000
- Initial franchise fee: $ 15,000
- Royalty Fee: 8% of the weekly gross revenue
- Marketing fee: 4.5% of the gross revenue
- Duration of the franchise agreement: 20 years
McDonald’s – Fast Food Brand
McDonald’s Canada opened its first outlet in Richmond, B.C., in 1967. Today there are about 1,400 McDonald’s restaurants in Canada; this is a very small number when we know that this is the most famous franchise in the world.
Canadian investors prefer more Subway over McDonald’s because opening a single McDonald’s franchise unit requires funds in the range between $ 500,000 to $ 1,000,000. This is five times more expensive than Subway, which is why this brand is less widespread in Canadian territory.
To open a McDonald’s in Canada, you will need to have a minimum of $ 700,000 of non-borrowed assets. Also, potential franchisees must have business experience in managerial and supervisory positions.
This will be the best franchise to own in Canada for investors who meet all these franchisor requirements. Canadian investors rarely open new McDonald’s franchises; a more common option is buying an already established outlet directly from the franchisee.
A cheaper option is to buy an already well-established franchise unit, so you too can look in that direction if you consider opening McDonald’s in Canada. They are currently looking for new franchisees in Alberta, British Columbia, Manitoba, Northwest Territories, Ontario, Saskatchewan, and the Yukon area.
Mcdonalds franchise cost in Canada:
- Estimated total investment: $ 500,000 – $ 1,000,000
- Initial fee: $ 45,000
- Royalty fee: 4% of gross revenue
- Marketing fee: 4% of gross revenue
- Franchise agreement duration: 10 – 20 years
Circe K – Retail Brand
Circe K was founded in 1951 in the USA, but their beginning was not very promising, and at one point, they even went bankrupt. In 2003, they were purchased by the Canadian corporation Alimentation Couche-Tard, and their business has been booming ever since.
Circe K began operations in the Canadian market in 2008; all All Western Canada Mac’s stores began operating under the Circle K trademark.
Alimentation Couche-Tard partner company of Circe K is one of the most successful convenience store chains; they currently have more than 15,000 units across the whole globe.
If you are considering opening a Circe K franchise in Canada, you will need an investment in the range of $ 170,000 to $ 1.9 million. These convenience stores are not the cheapest franchises, but if you have the investment funds, this investment will pay off many times.
This franchisor has one of the best training for future franchisees. The training lasts two weeks in the classroom and two weeks at the store location. In addition, the franchisor’s support in all business segments’ continues throughout the ten-year franchise agreement duration.
If you want to invest money, but you don’t want to be a branch manager, then Circe K is the best franchise to own in Canada for you.
The franchisor does not require that franchisee be the franchise manager personally; it is possible to appoint a manager who will perform tasks related to day-to-day operations. The only condition is that the future manager must undergo complete Circe K management training.
Circe K franchise cost in Canada:
- Estimated total investment: $ 171,000 – $ 1.9 million
- Initial fee: $ 25,000
- Royalty fee: 4.5% of gross revenue
- Marketing fee: 1.5% of gross revenue
- Franchise agreement duration: 10 years
Jan Pro Canada – Cleaning Brand
Jan Pro is the best cleaning franchise in Canada. Since Jacques Lapointe founded this company in 1991, they have experienced global success. They are currently present in the Canadian and U.S. markets with over 10,000 franchise units.
To start a Jan Pro franchise, you will need an investment of about $ 50,000. The majority of these costs will go to purchasing equipment, which is not as cheap as it seems at first. In addition, you will have to pay ongoing costs such as Royalty (10%), Support (5%), and Administrative fee (10%).
The cost of these fees may seem too much, but you need to be aware that the cleaning business is in the top 10 most profitable business types, operating costs are very low, and cleaning machines serve for many years.
In exchange for paying these fees, Jan Pro will provide you with support in all business segments.
Cleaning services are in high demand, and when you pay your obligations to the franchisor and the workers, a large part of the profit will remain in your pocket. Because of high profitability, this is one of the best franchises to own in Canada.
Jan Pro franchise cost in Canada:
- Estimated total investment: $ 50,000
- Initial fee: $ 3,000
- Royalty fee: 10% of the gross revenue
- Support Fee: 5% of the gross revenue
- Administrative Fee: 10% of the gross revenue
- Franchise agreement duration: 10 years
Shell Canada Ltd – Retail Brand
Shell Canada started its business operations in 1911, and currently, they have more than 1,800 shops across the whole of Canada. Shell is one of the leader brands in the oil industry, and its products are well known to all customers who own any kind of vehicle.
If you decide to start a Shell Canada franchise, you will need investment funds in the range between $ 150,000 and $ 600,000. The investment itself will depend on whether you are starting a new business venture or you want to upgrade the gas station you already run.
This franchise is also unique because there are no ongoing fees that franchisees must pay on a monthly basis.
The franchisee pays its obligations to the franchisor by purchasing the product directly from Shell. Shell offers a business model with a low failure rate, and that is why we have to mention it when we talk about the best franchise to own in Canada.
Shell will cover utilities and insurance for its franchisees and provide them with training and coaching in all areas of the business operations. Each franchise is in contact with the Territory Manager on a daily basis, so if any issues arise, support will be available in record time.
Shell franchise cost in Canada:
- Estimated total investment: $ 150,000 – $ 600,000
- Initial fee: 0%
- Royalty fee: 0%
- Franchisor support: during the entire duration of the agreement
A&W – Fast Food Brand
A&W opened its first restaurant in Canada in 1956; today, they have more than 1,000 franchise units across Canada. This fact puts this brand in Canada’s top 5 fast-food chains by a franchise’s unit number.
A&W is currently the fastest-growing fast-food brand, and that is why it is one of the best franchises to own in Canada.
If you are a rookie entrepreneur or an experienced businessman who wants to make a career turn, this is one of the options for starting a new business venture.
To start an A&W franchise in Canada, you will need to meet the condition of having $ 450,000 non-loan savings available. The total investment in this franchise ranges between $ 400,000 and $ 1,000,000. The cost depends on the location, size of the facility, etc.
The support that A&W provides to its franchisees takes place through initial onsite training and assistance in all business segments throughout the duration of the franchise agreement.
A&W franchise cost in Canada:
- Estimated total investment: $ 400,000 – $ 1,000,000
- Initial fee: $ 30,000
- Royalty fee: 5% of the gross revenue
- Marketing fee: 3% of the gross revenue
- Franchise agreement duration: 10 years
Canada Bread – Food Brand
Canada Bread is a brand that has been on the market since 1911. Since 2014 the owner of this brand has become Bimbo Group; although you may not have heard of this company, you have almost certainly tried some of their products because they have more than 5000 associates in all parts of Canada.
Canada Bread offers a distribution type of franchise, which means that the franchisor is in charge of production, and the franchisees conduct the product distribution. Because of this, this franchise will be ideal for people who like to drive.
If you want to start this franchise, you will need to possess $ 30,000 in non-borrowed funds. The total investment in the Canada Bread franchise ranges between 25,000 and $ 375,000.
Buying a truck to distribute Canada Bread products will be the highest cost to start this franchise. Also, the starting cost will depend on which part of Canada you want to start this business.
The initial Canada Bread fee is $ 5,000 in the Atlantic area and $ 12,500 in the West & Ontario area. The royalty fee is not charged; the franchisor pays the franchisee according to the route on which the franchisor conducts distribution operations.
In addition to funding, each franchisee must have a Class 5 driver’s license. If you meet all the requirements and see your career in the trucking business, this will be your best franchise in Canada.
Canada Bread franchise cost for one route:
- Estimated total investment: 25,000 – $ 375,000
- Initial fee: Atlantic area – $ 5,000, West & Ontario area – $ 12,500
- Franchise agreement duration: 5 years
Re/Max – Real Estate Brand
If you are interested in the real estate business, you have undoubtedly heard about the Re/Max company. This company is the Canada-leading Real Estate brand that Entrepreneur Magazine has outlined as one of the best 7 Real Estate franchises in the world.
Re/Max was founded in 1973 in the United States, and in 1977 they opened their first office in Ontario. Since then, they have spread throughout Canada, and today almost all the better-known real estate agents are operating under the ”umbrella” of this globally known brand.
To open this franchise and start a partnership with the Re/Max brand in Canada, you will need total investment funds in the range between $ 40,000 – $ 220,000.
The cash requirement that every franchisee must meet is $35,000 from non-borrowed funds. Once you get approved as a franchisee, Re/Max will provide you with complete training and support in all business segments.
Re/Max will be the best franchise for all Canadian entrepreneurs who want to open a successful Real Estate agency under the mentorship of development agents who have the knowledge and good reputation in this business.
Re/Max franchise cost in Canada:
- Estimated total investment: $ 40,000 – $ 220,000
- Initial fee: $ 17,500 – $ 37,500
- Cash requirment: $ 35,000
- Franchise agreement duration: 5 years
Pizza Pizza – Fast Food Brand
Michael Overs has opened its first Pizza Pizza restaurant in Toronto in 1967. Pizza Pizza started its expansion in the 1970s; today, they have more than 750 locations across Canada.
This chain is one of the most popular Canadian pizza brands, and because of that, we had to mention it when we talk about the best franchise to own in Canada. If you are interested in opening a pizzeria, then this could be an ideal option for you.
The total investment for opening a Pizza Pizza franchise ranges between $ 275,000 and $ 350,000. The initial fee that each new investor must pay to use Pizza Pizza trademarks is $ 30,000.
Pizza Pizza’s franchisees’ support applies to everything from site selection to legal matters that new businesses must fulfill in Canada. This will be an ideal investment for rookie entrepreneurs who are prepared to work inside the successful business concept that brings excellent profitability.
Pizza Pizza franchise cost in Canada:
- Estimated total investment: $ 275,000- $ 350,000
- Initial fee: $ 30,000
- Royalty fee: 6% of the gross revenue
- Marketing fee: 6% of the gross revenue
- Franchise agreement duration: 5-10 years
What Is The Most Profitable Franchise to Own in Canada
Boston Pizza is the most profitable franchise to own in Canada. This company’s franchised locations, on average, produce $2.8 million per year to their owners with a 10%+ profit margin.
In practice, this means that the owner of the Boston Pizza franchise that makes average Gross Sales can expect to earn 280,000 per year by owning this restaurant.
Also, this brand charges 0% of the Royalty Fee for alcoholic drinks, which is a one-of-a-kind offer on the Canadian franchise market.
Currently, Boston Pizza has almost 400 locations across Canada, and they are searching for new franchisees. This company’s outlets has been in business since 1964, which places them on the list of oldest Canadian casual dining brands.
Summary
If you want to own a franchise in Canada, you need to research all the options available in the market. Franchising is a business model that carries certain risks, but it is also and business model that has less failure rate than an independent business.
In Canada, franchising is widespread, so there are available a lot of franchise opportunities. By signing a franchise agreement, you commit to a partnership with the franchisor, and that is why you must choose a franchise that satisfies all your business and personal ambitions.