Franchising allows you to start a business using an already established brand name. It is a business agreement between you and the franchise owner where you adopt their model and requirement to keep up the brand standard. Franchising gives you the best of both worlds – it makes you an entrepreneur and a business owner at the same time. Imagine setting a KFC restaurant – it is an already a known brand and it has great chicken, loved by everyone! Automatically, you are tapping into a chicken loving market that is loyal to KFC.
Among the ten provinces in Canada, Alberta has really managed to set itself apart in the Franchising business. Legally speaking, Alberta was the first one to recognize the franchising business and was the only one to legally recognize the franchising business model till 2001. This means that Alberta has one of the most favourable legal environments to open a franchise. A walk through Alberta’s capital Edmonton will expose the large number of franchises. Jasper Avenue itself is host to Subway, Second Cup and home grown ones like Wok Box, Booster Juice, a Famoso Neapolitan Pizzeria and Boston Pizza.
Canadian Franchise Association’s 2013 Franchise Canada directory points out that 69 franchises of Canada are headquartered in Alberta itself which is 10% of all franchises in Canada. According to Statistics Canada survey in 2011, 50% of the operating revenues in Alberta’s retail trade sector can be attributed to chain stores (at least four locations). Along with the legal atmosphere, there is also the cultural and social one. Alberta has a growing culture of entrepreneurship growing among its residents. This is coupled with the median age of an Alberta resident being 36. This middle age means that the residents of Alberta don’t want to try something risky and would stick to tried and tested business models.
Here are a few things to know and consider before joining the business.
– Do you want join the Franchising business: Though you run your own stores, in many aspects you are answerable to the franchise owner. You have to follow the franchising rules and procedures. If you are a big foodie and which to experiment with recipes, you have to throw that wish out the window. You have to cook precisely as the franchise tells you without any deviation.
– Franchises Act: This is the law which deals with the franchising business. It protects both the franchiser and the franchisee. It states that every franchisor must give every prospective franchisee a copy of a disclosure document.
– Costs: Setting up your own business will cost a minimum of $100,000, so consider how much finance you can gather from your saving and financial agencies. The good news is that Alberta’s entrepreneurial environment makes financial institutions jump in to help with the financing of businesses and nothing spells as safe as a franchise.
– Reduced Costs in Alberta: The Alberta franchise legislation eliminates the need to file any documents or register with a government agency which results in reduced costs and allowing easier entry into the Alberta’s markets.
Alberta is a growing hot plate for food franchising. It is already home to plenty food franchises like Famoso Neapolitan Pizzeria and Boston Pizza, All Day Grills and Press’d Sandwich shop. If you love food and need the brand or the expertise, you gotta jump on to this bandwagon!