Top Factors that Determine the Viability of a Canadian Franchisor as Applicable to Prospective Franchise Owners

For prospective Canadian franchise owners taking a concrete step into the world of business ownership for the first time, franchises in Canada open up lucrative income opportunities. Unlike start-ups, wherein a business needs to be built up from scratch, a franchise can best be defined as a replication of a successful business, in a new location to expand sales and service area.

Franchising in Canada works as it does anywhere else; a business model that allows independent businesspersons to collaborate with well-known brands and large corporations to sell products or services on their behalf, on a revenue sharing agreement. However, how does a potential franchise owner make the selection from a wide array of franchisors when in the process of buying a franchise in Canada that can meet the need for sustained self-employment and an independent source of income? Read further to know more about the various factors that determine the viability of a Canadian franchisor as applicable to potential franchise owners.

Brand Name Recognition

It’s impossible to downplay the importance of brand name recognition when analysing the viability of the top franchises in Canada. For example, to the consumer, the popular Kentucky Fried Chicken is always a more attractive proposition than a hypothetical Toronto Fried Chicken that no one knows of. Brand name recognition comes from years of meeting a market need for a product or service in keeping with the highest standards of customer service. Consumers are creatures of habit in many cases and brands that are an intrinsic part of consumer buying patterns benefit from this consumer trait. Ultimately, the brand name recognition that a franchisor enjoys drives sales revenues for all franchisees under the brand name umbrella of the said franchisor.

Territorial Exclusivity

Many franchisors roll out rapid and ill-conceived expansion plans that result in to many franchise outlets that may bode well for a franchisor, but does not work to the advantage of a franchisee. As such, franchisor viability for collaboration, as applicable to a potential franchise owner, also takes into consideration territorial exclusivity. When you choose to partner with a Canadian franchisor, be sure that the brand or corporate entity of your choice is willing to ensure exclusive sales or service rights to your franchise in a definitive area that is not encroached upon by other franchisees under the same brand in the near future.

Industry Vertical

The franchise system applies to all industry verticals and as such, franchisor viability as applicable to a prospective franchisee owner can also be dependent on the industry vertical the franchisor operates within. For example, a potential franchise owner with experience in the retail business is likely to find a retail franchisor to be significantly more viable as a source of income generation, in comparison to a franchisor that operates within the healthcare industry.

In conclusion and to know more about a viable franchisor in Canada, follow the latest franchise news at www.canadianfranchisemagazine.com, an invaluable source of franchise news and information.