Why Canada Is an Ideal Development Market for Brands Pursuing International Expansion

Whether a franchise brand is emerging or well known, it can be difficult to successfully break outside of the U.S. and pursue international expansion. Between language barriers and cultural differences, there are a lot of roadblocks that can pop up and prevent a concept from catching on among consumers in a new country. But establishing a strong international presence isn’t impossible.

FranNet, the industry’s go-to source for local franchise consultants and information on business opportunities across the globe, recommends staying closer to home when first considering growth on an international level. Canada offers franchisors the unique opportunity to open up units outside of the U.S. in a territory that’s incredibly familiar.

“It’s easy for brands to make the jump from the U.S. to Canada. The fact that we speak the same language, have similar cultures and are physically close to one another makes the transition from domestic to international expansion go much smoother,” said Grant Bullington, a franchise specialist with FranNet Canada.

That leap from domestic to international expansion is even more seamless for franchise brands. Canada is a strong franchising country, which enables brands to hit the ground running when they ink a deal with their first Canadian franchisee.

“Canada is favorable to franchising—the number of franchises that we have per capita is right up there with the U.S. But because Canada has a much smaller population, there’s a lot less competition when prospective owners are cutting through the noise to find their ideal business opportunity,” said Bullington. “The majority of consumers are also concentrated in a handful of specific areas. That makes it easier for franchisors when they’re targeting new consumers and trying to establish a loyal customer base.”

For franchise brands that make the decision to pursue international expansion in Canada, FranNet is then an invaluable tool at their disposal. It becomes the gateway for their success—FranNet helps streamline the entire franchising process. For starters, the brand helps franchisors position themselves in a positive light to prospective owners who most likely have never heard of their concept. FranNet consultants ultimately act as third party ambassadors who can back and explain why a brand that’s new to Canada is a sure success.

FranNet also helps franchisors cut down on the number of candidates that they need to interview. The brand’s consultants are skilled in finding ideal prospective owners who are worth spending time and energy on. And from an operational perspective, FranNet’s familiarity with the Canadian market gives it the feedback and information necessary to tweak a U.S. business concept for the slightly different market.

“Some people view expanding into Canada like moving into another American state, but that’s simply not the case. We have the dialogue down at FranNet, and we’re able to share our insights and feedback in order to help brands emerge in the Canadian marketplace,” said Bullington. “We lay out the challenges our clients may face—as well as how to get around them—in order to properly prepare brands for international growth and set them up for success.”