This document provides an overview of franchising and licensing opportunities. It discusses what franchising is, common misconceptions, how franchising drives business growth. It identifies potential franchisees such as immigrants, youth, women, and those impacted by downsizing. The document outlines advantages of franchising like support from the franchisor. It compares franchising to licensing and provides examples of hot franchise trends like home-based businesses and food services. It describes services provided by M-FOUR International to help identify franchise opportunities and establish new franchises.

1. Welcome
Exploring Franchise and Licensing
Opportunities for Your Community

2. Agenda
Dashboard
Speakers
Q&A
Follow-Up

3. 3
Jan Swanson
VP, M-FOUR International
Owner, X Stream DJ and Media
Presenter

4. Exploring Franchising & Licensing Opportunities
Jan Swanson, M-Four International
jan@mfourintl.com 1-855-906-3787
Encouraging
Entrepreneurial
Growth in Your
communities

5. A Few Franchise Facts
• Franchised businesses account for 40% of all retail sales 1
• There are over 78,000 franchise units across Canada 2
• Franchising directly employs over 1,000,000 people 3
• Franchising accounts for 10% of Canada’s (GDP) 3
• Franchising accounts for one out of every five consumer
dollars spent in Canada in goods and services 3
• 1. Uniform Law Conference of Canada
• 2. Canadian Franchise Association
• 3. Manitoba Law Reform Commission, Franchise Law Consultation Paper

6. In This Session
• What Franchising is
• Franchising Myths & Misconceptions
• How Franchising Drives Business Growth
• How to identify potential franchisees
• Challenges for franchisees
• Advantages of franchising
• Franchising vs. licensing
• Franchise Strategies
• Hot Franchise Trends with Examples
• How we can help

7. What changed my mind
• Early On I wasn’t a Franchise Fan
except for those like A&W,
McDonalds, Dairy Queen
• Franchise Fees & Royalties
• Success!

8. • M-Four was founded in 1981
by Martin Greenspon and is
regarded as a leading
authority on innovative
franchising, licensing,
marketing and strategic
planning.
• M-Four International has
been assisting businesses
expand through franchising
and licensing for about 30
years.
• Our experience in
developing successful
programs is unrivaled.

9. What is Franchising?
• Franchisor is a company that owns and controls a
franchise system and can grant a license to
qualified individuals
• The Franchisee pays the franchisor an initial
franchise fee and an ongoing royalty
• Protected territories
• Marketing & Advertising support
• all the advantages of big business —- established
brand name, reputation, reliability, resources and
experience
• In Business for yourself, but not by yourself!

10. Misconceptions
• The individual is “buying a franchise".
• Franchises are way too expensive - low ROI
• I can do better on my own
• The Franchise owner must be hands on 24/7
• Open the doors and in flood the customers
• Franchise Ownership is easy

11. Driving Business Growth
• Canada the second largest franchise market in
the world (after the US).
• 35% of Fortune Magazine's Top 250 Companies
were either directly or indirectly involved in some
form of franchising.
• Franchise operations are now responsible for
about 60 percent of the total annual sales of the
top 100 food service and hospitality firms in the
country.

12. Potential Franchisees
The key potential for your community is:
• Immigrants
• Youth
• Women
• Those Impacted by Corporate Downsizing
• Early Retirees
• Home Based Business Market

13. Potential Franchisees
Immigrants
• 1 of every 6 immigrants is self employed
• Recent immigrants are 30% more likely to be self-
employed than native Canadians
• Immigrants are more likely to be self-employed than
native born
• Immigrants are more likely to choose a business with
more stability
• Immigrants are moderate risk takers and prefer pre-
tested business models

14. Potential Franchisees
Youth
• Young entrepreneurs across Canada have been entering the
franchise forum at three times the rate per year of entrepreneurs over
the age of 50.
• Youth entrepreneurs are found in every sector of the franchise
industry. 20% operate in goods producing and 72% are in the service
sector, which includes food and automotive services, health care,
communications, retail and other professional services.
• Parents purchasing for children
• Post Graduate students who might be seeking business opportunities
as an exciting alternative to the traditional career path.

15. Potential Franchisees
Women
• steady growth of women entrepreneurs
becoming franchisors or investing in their own
business as franchisees
• 50 percent increase in the number of self-
employed women in Canada, and one million
Canadian women now own a small business.
• The number of women-owned businesses is
growing 60 % faster than those run by men.

16. Potential Franchisees
Corporate Downsizing
• Most "involuntary retirees" are well
educated, hardworking and high achievers
and have become vulnerable to being
displaced. They now find themselves in
transition.
• Corporate "severance packages“
• Franchise offers them, quicker to open,
experience success sooner….

17. Potential Franchisees
Retirees
• Once you retire you will be richer than you
think?
• Identification with “Job”
• New Purpose
• Franchise offers quick to build up clientele
and low to medium risk

18. Franchise Advantages
Business Failure Rates
• For Independent Business – 80-90%
• For Franchised Businesses – 10-12%

19. Challenges for a
Franchisee
• Challenge # 1 - Working within the System
• Challenge # 2 - The Risk
• Challenge# 3-Working with the Franchise
System
• Challenge # 4 - False Expectations
• Challenge # 5 - Managing the Business
• Challenge #6 Belief that the Franchise will be
successful

20. Advantages of Franchising
• Advantage #1- Experience of the Franchisor
• Advantage #2 - Training
• Advantage #3 - Buying and Advertising
• Advantage #4 - Ongoing Advice, R &D
• Advantage #5 - Business Synergy

21. Franchising vs. Licensing
• A Licensee, like a Franchisee,
o is given the right to use the licensors trademarks.
o typically pay fees to the Licensor which may
include an up-front fee, royalty fees, and certain
advertising fees.
• The fees, however, are often less than those paid by
the Franchisee. These lower fees reflect the lower
level of services that are provided to a Licensee.
• Licensees are not subject to the same
comprehensive control system as Franchisees. But
at the same time, Licensees do not receive the
same level of services as a Franchisee.

22. Licensing Examples
• Licenses are not listed as prominently as Franchises,
but they exist all around us.
• The fact is, one cannot tell by physical appearance
what is a franchise and what is a license.
• For example, Starbucks uses licenses in their non-
corporate owned stores.

23. Businesses that Operate
under a License Format
• Health Services (e.g. home physical therapy);
• Inventions (e.g. mfg./distribution of new products or services);
• Fundraising (e.g. selling products or services);
• Consulting (e.g. internet marketing services);
• Educational (e.g. teaching art, music, language);
• Real Estate (e.g. joining of relators under trademark);
• Services (e.g. promote services under trademark);
• Professional (e.g. add techniques/services to existing practices);
• Consolidating an industry or stores under one name;
• Marketing or sales representatives of unique products;
• Beauty Products (e.g. add products or services);
• Coaching (e.g. licensing coaches under a trademarked name)
• Environment (e.g. license to sell products or services);
• Coffee Houses (e.g. Starbucks); Kiosks (e.g. services and
products)

24. Franchise Strategies
• Co-Branding - expanding your company
with the addition of new brands
• Branchising – conversion from company
owned to franchise owned
• Conversion Franchising – an independent
becomes a Franchisee

25. Hot Trends
• Home-Based
• Food Services – continues strong
• Energy
• Do-It-Yourself Services
• Mobile Franchises
• Health Care/Senior Home Care/Assisted
Living
• Business to Business (B2B) Services

26. Hot Trends
• Home care for the elderly
• Designer gifts and
confections
• Outdoor advertising
• Landscape maintenance
• Computer support
• Snow-removal
• Home inspection
• Customized corporate gifts
• Home Improvement
• Restaurant publications
• Carpet and upholstery
cleaning
• Business coaching
• Home delivered pet food
• Interior decorating service
• Commercial cleaning
• Direct mail advertising
• Home cleaning service
• Real-estate private sale
Home Based Businesses

27. Hot Trends
• Home Based Examples:

28. Hot Trends
• Food Service Example:

29. Hot Trends
• Energy Examples:

30. Hot Trends
• Mobile Franchise Examples:
• Creative Colors International

31. Hot Trends
• Health and Health Care/Senior Home
Care/Assisted Living Franchise Examples:

32. Hot Trends
• Business to Business (B2B) Services
Examples:

33. Hot Trends
• Do-It-Yourself Services
• There is a growing do-it-yourself movement taking
shape in Canada.
• This hands-on trend is rising as much for the sake of
individual satisfaction as it is for actual savings.
• Alert franchisors can answer this need for creativity
by providing products and services that make it
easier for customers to do-it-themselves…..

34. M-Four offers a wide range of services in addition to franchise sales, key
services include:
• Strategic Planning
• Market Entry Analysis
• A business style, logos, trademarks and/or patents
• Operational Layout
• Site Locating
• Detailed product and service specification
• Operation systems and manuals
• Accounting and financial systems
• Training and help to establish the business
• Continuing assistance, advice and back-up
• Market research
• Advertising, sales promotion and public relation press releases
• Website fuelling the "Brand"

35. How M-FOUR Can Help
• Encourage people to not start marginal
businesses that are likely to fail
• Help existing businesses to decide if
franchising is a growth alternative
• Promote the province to Franchisors
• Educate in terms of potential Franchise
opportunities

36. M-FOUR Franchise/Franchisor
Services
The Right Business for the
Entrepreneur
The Right Entrepreneur for M-
Four’s Franchisor Clients

37. Q&A
Please send your questions via the Chat
or Question widget on your dashboard.

39. Stay in Touch
Thank you for joining us!
Verona Thibault
President, SEDA
@saskecdevassoc
@growourregion
verona.thibault@seda.sk.ca
306-384-5817