Can foreign franchises set up shop in Canada?

Canada is a land of opportunity and one that is very attractive to many foreign entrepreneurs. Could somebody who has operated a franchise overseas establish a branch in Canada and continue their association with that brand?

Thankfully, the answer is yes! It has long been the case that for foreigners to get work in Canada, they must provide evidence of having worked in Canada. For many immigrants, it is almost impossible to get onto the career ladder at a level commensurate with their skills and experience, so the opportunity to continue running their own franchise business in the country is an immense opportunity for immediate earnings.

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There are risks to this strategy

Of course, not all foreign franchise brands will have the appetite to expand into Canadian territory, so anybody who is thinking about relocating from their home country to Canada with the intention of taking their brand with them must first investigate the legalities and practicalities of doing so. They should seek advice from their franchisor and enlist the services of a franchise attorney who can advise and guide them on how to proceed.

Entrepreneurs who are seeking to expand their territory, grow their role within the organization and enjoy the quality of life that Canada offers should be mindful of their motivation for doing so. They need to establish that a legal pathway to build the brand in Canada exists, that there is a need for the services or products that the business offers, that the individual has sufficient financial backing to set up shop, and that they have a clear business plan for growing the brand.

A desire to continue doing what you are used to is unlikely to deliver the outcomes that you are seeking, so always consider the risks versus the opportunities that a move could offer. There will be many of them, including securing accommodations without a job offer, leasing premises, complying with franchise law, trademark and IP protection, maintaining communications with the franchisor who is located overseas and potentially in a different time zone, and developing a customer base in Canada.

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Careful planning is essential

Detailed planning and comprehensive market research are essential to prove that a valid need exists for the business. Only with this planning and a strong financial backing is success likely. There are many franchisees for whom overseas experience has proven invaluable in bringing new brands to the country, so if this is the way you wish to proceed, we wish you the best of luck.