Ellie Horvath
In August, BusinessesForSale.com conducted a survey to discover what Canadian franchise buyers think of the market, including other observations that franchisors and aspiring franchisees will find valuable.
This data is informed by 122 respondents, demonstrating fundamental insights from real business owners and entrepreneurs.
Most importantly, the survey asked if franchisees are fully committed to buying a franchise. Most respondents said yes (56%), while 44% said no.
This hesitation is mainly attributed to:
- Finding the right opportunity
- Funding
- Territory availability
- Economic conditions
However, these hesitations are counteracted by the enticing qualities that buying a franchise can offer. Respondents are most attracted to the following elements:
- Access to an established customer base and brand
- The freedom to run your own business
- Support and training
- Buying a franchise can be cost-effective, with a high investment to return ratio
Majority of respondents are aged between 46-60 (57%), with the most popular locations being Alberta (with an emphasis on Calgary), British Columbia (with an emphasis on Vancouver), and the Greater Toronto Area.
There is a strong interest in food-related businesses and retail services.
Investment levels are high, with most respondents planning to invest upward of CAD$50,000 in the right franchise. Nearly 6% of respondents are planning to invest CAD$1 million or more.
Asked what elements make up a strong and resilient franchise, respondents emphasized the following qualities:
- Brand strength
- An effective marketing strategy
- A future-proof business model
- Ongoing training and support
“Franchising has always represented a way into business for aspiring entrepreneurs, and we have seen a spike in interest following the pandemic as more people look to take control of their lives through sustainable business ownership,” says Bruce Hakutizwi, North America Director for BusinessesForSale.com. “We are excited to expand our franchising recruitment across Canada to take advantage of this increasing interest and passion for business ownership,” he adds.
Other valuable information:
- BusinessesForSale.com is owned by Dynamis Ltd, a privately owned company based in London.
- BusinessesForSale.com was established in 1996 and is the world’s largest platform for businesses for sale, with over 61,000 opportunities.
- The site sees over 1.3 million visitors every month, including 75,000 monthly enquiries.
