“Franchising is also an established business model: the majority (62 per cent) of franchises are established brands that have been operating in Canada for at least 11 years, and 30 percent of franchises have been operating for more than 25 years. Franchisees also have a record of success, with 50 per cent of franchisees having a tenure of more than 10 years with the same franchise brand.” Canadian Franchise Association’s Advocacy Survey, 2017.
According to the National Automotive Dealer’s Association (NADA), a record 17.5 million new vehicles were purchased by customers through 16,708 authorized dealerships in 2016. In Canada, new vehicle sales reached record numbers for the fifth consecutive year in 2017, and Canada saw its first 2 million vehicle year.
These numbers are staggering and demonstrate the health, and growth potential, of the automotive sector in North America.
“The auto sector is experiencing immense growth, as evidenced by dealer revenues exceeding $120 billion last year alone,” said John white, President and Chief Executive Office of CADA (Canadian Automotive Dealer’s Association).
Franchising is becoming a big part of Canada’s small business environment. Many entrepreneurs are either buying a franchise or franchising their own ideas or businesses. There are many advantages of being a franchisee, and perhaps the biggest one would be working in a business that already has a recognized brand.
It is estimated by the Canadian Franchise Association that the Canadian franchise industry generates approximately $68 billion every year, and this industry will keep growing. When deciding to franchise your business, it is important to know that you need to protect your brand at all times. Finding the right franchisee is more difficult than you think, and when picking the right candidate, it is crucial to always think of protecting and developing good will for your brand.