Build a Business: How to Franchise a Business in Canada
Business Franchising in Canada: This is typically a long-term goal for your business. You first need to build your business into something investors will want to buy into. If you own a little run down store in a small city – franchising just isn’t for you yet. You need to build your business into a brand. Once your business is successful and profitable – then you can contact a corporate lawyer to start putting together franchise documents for you.
The following are major steps you’ll be taking when you develop your franchise offering:
- Franchise Disclosure Document
- Operations Manual
- Register Your Trademarks (*Very Important)
- Establish Your New Franchising Company
- Register Your FDD in Franchise Registration Provinces
- Create Your Sales Strategy
- Set a Realistic Plan and Budget
- Alter your Business Plan for New Goals
To get this done and, depending on who you work with and if you prepare your own operations manual, I’ve seen the cost of franchising a business range from $20,000 to $100,000 depending on the law firm you choose to work with in Canada.
However, don’t just choose the cheapest option out there, it can end up doing more harm then good. Lower-cost options ($5,000 – $10,000 range) will end up costing you more in lost opportunity and future franchise violations. On the opposite end, higher-cost options ($80,000+) oftentimes deliver a lot of “paper and forms” but really not much value.