Choosing a profitable franchise When thinking...
In the past, franchises have tended to focus on the restaurant industry with an emphasis on fast food and casual dining. The franchise model has been a good fit for these businesses and has produced a wealth of successful franchisor/franchisee relationships.
As Canada recovers from the recession, mid to high level executives displaced by corporate downsizing have looked to the franchise industry as an alternative to reentering the corporate world. What does this mean for Canadian Franchises? There are some exciting franchise trends that are emerging:
1) There was a shift in demographics as individuals previously employed in stable positions found themselves back on the job market. This has proven fruitful for Canadian franchises. This group of prospects have work experience, are business savvy, and possess the connections to be successful.
2) There is a strong trend towards other sectors that has been previously untapped. The Canadian Franchise Association has identified the following hot sectors:
Commercial and Residential Services- this represents an array of services ranging from carpet cleaning to fire and water restoration. These companies market themselves by offering specialized expertise that helps Canadians save time. This sector grew 47% from 2010 to 2011.
Advertising/Marketing/Promotional Products and Services- this canadian franchises category provides marketing and promotional services to other businesses, and grew 45% from 2010-2011.
Children's Products and Services- due to Canada's emphasis on family this category posted a 37% growth from 2010-2011.
Business Consulting/Services/Training- With so many people entering into Canadian Franchises, there is a large demand for assistance from people who can provide training and industry expertise. This sector posted a 29% growth.
Seniors/Home Health Care and Services- Canada's aging population is creating strong demand for affordable products and services that will allow seniors needing assistance the opportunity to stay in their home as long as possible. The listing in this canadian franchises category increased 29% from 2010-2011.
3) Increased use of Social Media for advertising and marketing. Facebook, You Tube, Google, Twitter, etc. are increasingly popular venues of advertising for Canadian franchises. Using real-time applications like Twitter is an efficient way to market and grow your business by creating excitement and word of mouth.
4) Entrepreneurial Spirit is on the rise. Canadians have this in abundance. Combined with the high number of professionals entering franchising, people are tapping this quality at an unprecedented rate. Currently, Canada ranks #2 in number of franchises, second only to the United States. It is the intangible trend that is creating the excitement and growth Canada is experiencing.