Canada

Canada is located just north of the US and has a strategic location between Russia and the US. It is slightly larger than the US and covers an area of 9,984,670 sq. kilometers. Canada’s total population is 34.56 million with 90% of the population being concentrated within 160 km of the US border. The population is growing at a rate of 0.77% with 81% living in urban areas. The capital city of Ottawa has a population of 1.1 million with other main cities including Toronto (5.1 mil), Montreal (3.6 mil), Vancouver (2.1 mil), and Calgary (1.1 mil). The people are governed by a parliamentary democracy, a federation, and a Commonwealth realm. Canada has two official languages, English and French, with French speakers being concentrated in the regions of Quebec and Eastern Ontario. The currency used is the Canadian dollar.

Canada has developed parallel with the US since gaining independence and it has strong economic ties to the US. Canada’s involvement in the US-Canada Free Trade Agreement and NAFTA have even further integrated it with the US economy and about 80% of its exports and 55% of its imports come from the US. Other than the US, its main trade partners are China, UK, and Mexico. Its primary imports are machinery and equipment, motor vehicles and parts, crude oil, electricity, and durable consumer goods. Exports consist of motor vehicles and parts, industrial machinery, aircraft, telecommunications equipment, along with wood pulp, timber, crude petroleum, natural gas, and aluminum. Canada’s GDP (Purchasing Power Parity) is $1.513 trillion and is growing at a real rate of 1.8% with an inflation rate of 1.8%. Canada ranked 17th out of 185 countries in the World Bank Group’s Ease of Doing Business Ranking.

Disclosure laws:Franchising Laws Overview(Alberta, Ontario, Prince Edward Island)

• Disclosure must be provided at least fourteen days before the earlier of (1) the signing of any agreement or (2) the payment of any funds by the prospective franchisee to the franchisor.

Relationship laws:

• Impose a duty of fair dealing on each party.
• A franchisor may not restrict franchisees from forming an organization of franchisees.

Registration laws:

• None.

Click the links below for articles with more information on Franchising in Canada

Canada Franchise Market Report(2016)

Trademarks: Essential Differences Exist Between Canada and the United States

Franchising in Canada(2015)

Doing Business in Canada(2012)

Franchising Laws - Canada(2010)

Key Business Issues For U.S. Franchisors Expanding Into Canada(2009)

Motivations for Purchase of a Franchise in Canada(2009)

US Commercial Service Market Report Canada(2008)

News From Around the World: Canadian Developments(2008)

Canadian Franchise Legislation: Finding the Balance(2008)

* CPI Scoreis published by Transparency International and relates to the perceptions of the degree of corruption as seen by business people and country analysts and ranges between 100 (highly clean) and 0 (highly corrupt).

**Ease of Doing Business Rankingis determined by the World Bank Group and is ranked out of a possible 185 countries. www.doingbusiness.org

Most recent statistics have been taken from the CIA World Factbook unless noted otherwise.

International Franchising Opportunities

After you have finished researching the international markets, learning international expansion strategies and best practices, and understanding the basics of international franchising law, IFA provides numerous opportunities for franchising internationally.