For a Canadian Franchise Brand entering the American Market
- Find a U.S.-based master franchisee, an individual who will recruit and train franchisees
- Set up a U.S. office to exert more control
- Partner with a U.S. based company to get you started
- Get informed & Seek Assistance from ExpertsKnow the Facts before entering the U.S.
Full Answer
Can you franchise internationally?
The simplest structure for expanding a franchise overseas is by Master Franchising. In this situation, the franchisor awards Master Franchise Rights to a suitable indigenous individual or organisation (Master Franchisee) in the target country, often in return for a significant investment.
Can a foreigner open a franchise in USA?
Foreign nationals can invest a minimum of $1,000,000 in a U.S. franchise or they can invest a minimum of $500,000 in a “targeted employment area” (TEA).
Can you advertise a franchise?
Franchise advertising is the marketing strategy a franchisor and franchisee use to increase brand awareness or drive sales. In some cases, the franchisor and franchisee collaborate to create a cohesive advertising strategy that resonates with the main brand and local audience in different locations.
Where can I advertise my franchise?
Ways to Market Your Franchise OnlineSearch Engines. ... Social Media Channels. ... Local Websites and Travel Sites. ... Pay Per Click and Display Campaigns. ... Email Campaigns. ... PR and Influencer Marketing. ... Your Own Websites. ... Remarketing Campaigns.
Can a foreign company do business in the US?
A foreign corporation may establish a branch within the US to conduct its business activities even though most foreign corporations choose to form subsidiary companies for tax and non-tax reasons.
How do you register a business in the US as a foreigner?
What Is the Process for Registering a Company in the US as a Non-Resident?Choose a unique name for your LLC or C Corp.Hire a registered agent service.File for incorporation with the state.Get an employer identification number (EIN)Obtain a physical U.S. mailing address.Set up a U.S. bank account.
How do you announce a franchise?
Add an announcement about your franchise option on your letterhead, on business cards and on your standard business advertisements. Consider including an announcement on your door if you have a physical presence, on product packaging or on service items like cups.
What are the forms of marketing in franchising?
Franchise marketing is any activity that a franchise does in order to grow, these activities can include pay-per-click advertising, email marketing, SEO, trade shows, content marketing, commercials and more.
How can a franchise increase sales?
5 Ways to Increase Franchise SalesWhat if I told you the key to increasing franchise sales was simply to build relationships? ... Establish a strong brand reputation. ... Build a successful business track record. ... Create excitement with your promotions. ... Relationship-building social media and marketing strategies.More items...•
How do you attract franchise owners?
What We'll Cover:How to attract franchisees.Identify your ideal franchisee.Build a strong brand identity.Use a location-based strategy.Create a great website.Use LinkedIn.Additional recommendations.Get them in your sales funnel.More items...•
How do you grow a franchise?
Smart Tips for Growing Your FranchiseGrowing and adding more units. Some of the most successful business owners are multi-unit franchise owners. ... Strive to become the "top producer" ... Help your franchisor grow. ... Become a great validator. ... Join the owner's advisory committee. ... Take advantage of leadership opportunities.
How do you invite a franchise?
9 Ways to Effectively Market Your Franchise ConventionMessaging. It starts with messaging. ... Event Branding. ... Digital Media. ... Social Media. ... Convention Microsite. ... Digital Invitation. ... Convention App. ... Directly Involve Your Franchisees.More items...•
How can I get franchise in USA?
How to buy a franchise, step by stepBe sure about your reasoning. ... Research which franchises you may want to own. ... Begin the application process. ... Set up your “discovery day” meeting. ... Apply for financing. ... Review and return your franchise paperwork very carefully. ... Buy or rent a location. ... Get training and support.
Can I own a franchise on H1B?
Yes, if you are on an H-1B visa status, you are allowed to start your own business. However, the process is not as straightforward as you think, and while on an H1B visa, you can only operate your business in limited scope as permitted by your visa.
Why do franchisors have to be in Quebec?
Special consideration must be given to franchising in Quebec, in part because of the Civil Code. First, the Civil Code includes the duty of good faith between parties to all contracts. Franchisors should therefore exercise a degree of restraint in competing with their franchisees, so that the benefits and advantages of the franchisee are not denied. Second, a franchise agreement might be classified under the Civil Code as an “adhesion contract,” where essential, non-negotiable provisions are imposed by one of the parties. If any provisions of this type of agreement are incomprehensible or unreadable for a reasonable person, abusive, or considered to be “external clauses,” they may be nullified or changed by a court. Lastly, business dealings in Quebec are mainly in French, and customers and employees may insist (and have a right to insist) that they be permitted to conduct their daily business in French. If this is problematic, franchisors could make use of master franchising or area developers to expand to Quebec.
What provinces have franchise laws?
Given that contracts fall within provincial jurisdiction, as of the date of writing, five provinces, Alberta, Ontario, New Brunswick, Prince Edward Island, and Manitoba have enacted franchise legislation. All have come into force with the exception of Manitoba, which is expected to do so within the next year. The Ontario, Manitoba, Prince Edward Island, and New Brunswick statutes are wide-reaching in that they apply to any franchise to be operated in whole or in part in their respective provinces, whereas a franchisee must have some connection to Alberta, such as residency, in order to fall within the purview of the Alberta legislation. As of the date of writing, the five provinces without a franchise law are British Columbia, Saskatchewan, Quebec, Nova Scotia, and Newfoundland. So, unlike most countries in the world with franchise laws, there is franchise law in only some parts of Canada, and not other parts.
Why Choose Canada?
Canada has undeveloped land, natural resources, extensive infrastructure of highways, railways, shipping lines, and telecommunications, all features that support and enable successful business operations. Canada is also generally receptive to foreign investment, with business practices and legislative trends that tend to follow those in the U.S. In short, while Canada is technically an “international market” for U.S. franchisors, it is also close enough to the U.S. market in so many ways that it would often make sense to choose Canada as the first foray into international franchising.
What is the power of the federal government in Canada?
Like the United States, governmental power in Canada is rooted in a system of federalism where powers are divided between federal and provincial levels of government. Even though the federal government has expressed no interest in regulating franchising, there is federal legislation related to franchising about which franchisors should be mindful. For instance, franchisors should be aware of federal legislation regarding intellectual property, such as trademarks, since a franchise relationship is essentially one where the franchisee licenses its trademarks from the franchisor. Further, federal regulation of competition, the equivalent to American antitrust law, is relevant to various activities in franchising, including price fixing, mergers, abuse of dominant position, tied selling, refusal to deal, exclusive dealing, market restriction, delivered pricing, and advertising practices.
How long does it take to get a franchise disclosure?
The disclosure document must be delivered at least fourteen days prior to the earlier of the parties’ entry into any agreement relating to the franchise or the prospective franchisee’s payment of any consideration.
What is the purpose of confidentiality in franchise agreements?
Franchisors should ensure that techniques, formulas, recipes, processes and compilations of technical information are not revealed to competitors. The common law protects trade secrets if the information disclosed has the necessary quality of confidence, was disclosed in circumstances where the recipient knew or ought to have known that the information was disclosed for a limited purpose, and was used for a purpose other than that for which it was disclosed. Generally, confidentiality provisions are essential terms for any franchise agreement.
How to protect a trademark in Canada?
A trademark can be used in connection with logos, wares, trade dress, and trade name, among others. Registration is the best way to protect trademarks, and franchisors should file an application in Canada as early as possible to preclude another party from registering or using those marks. An application may be filed on the basis of intent to use, or if the trademark is used and registered in a country that is a treaty partner with Canada. Canada is a relatively inexpensive country when it comes to protection of trademarks, and that cost is certainly minimal compared to the costs of recovering a trademark that has fallen into the wrong hands.
How much money does Canada make in advertising?
Canada has the tenth largest advertising and marketing industry in the world. The Canadian advertising and marketing industry is estimated to generate $10 billion in yearly revenue, with projections showing that Canadian ad expenditure will grow to $13.56 billion in 2021.
Which region invests the most in advertising and marketing?
North America as a whole region invests the most in the advertising and marketing sector. 2. The advertising and marketing industry covers a variety of advertising forms, such as television, radio, print magazines and newspapers, outdoor billboards and posters, digital advertising, and mobile internet advertising.
What is the advertising and marketing industry?
The advertising and marketing industry covers a variety of advertising forms, such as television, radio, print magazines and newspapers, outdoor billboards and posters, digital advertising, and mobile internet advertising. Franchises in this sector are varied, but many focus on businesses that provide digital and mobile advertising support as well as a number of print and sign advertisers.
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The Difference between Canadian & American Franchise Laws
Unlike our neighbour down South, the Canadian federal government does not have laws for franchise business, as a result, this responsibility lies within the provincial government. The first province to adopt a law for practicing franchise operation was Alberta.
For a USA Franchise Brand entering the Canadian Market
Engage Canadian legal counsels for advice on Trademark availability and to apply for Trademark immediately
For a Canadian Franchise Brand entering the American Market
Find a U.S.-based master franchisee, an individual who will recruit and train franchisees
Why buy a franchise resale?
There are many benefits to buying a franchise resale including having existing cash flow, customers in place, staff (if appropriate to the business) and a brand presence. There are literally hundreds of thousands of franchise resales available in the US.
Is a franchise a freestanding business?
The enterprise may be a freestanding operation or a franchise. Franchises are looked upon more favorably by United States consuls as they are “businesses in a box“ and therefore have a higher degree of success probability. It is recommended that applicants or investors acquire an enterprise with which they already have a familiarity.
Federal Legislation
Provincial Legislation
Common Law and The Civil Code
Trademarks
Passing Off
Copyright
Patents
Trade Secrets: Confidential Information
Registering Domain Names
- Aside from “.com”, Canada has the “.ca” top-level domain name in extensive use. These domain names must be registered with the Canadian Internet Registration Authority and are handled on a first-come, first-served basis. It is advisable for American franchisors to protect their principal names through early registration of Canadian domain names.
Direct Franchising from The U.S. Into Canada