In an insightful interview with CanadianSME Small Business Magazine, Sherry McNeil, President and CEO of the Canadian Franchise Association (CFA), shares her expertise on the impact of franchising in Canada’s economy. With over 20 years of experience in the industry and recognition as one of the world’s most influential women in franchising, Sherry discusses the role of franchising in community building, job creation, and economic growth. She also explores the future of franchising, trends to watch, and how the CFA supports franchisees and franchisors in adapting to the evolving business landscape.
Sherry McNeil is an experienced corporate and not-for-profit executive with more than 25 years of experience helping everyday Canadians realize the dream of owning their own business through the power of franchising. As a female in a traditionally male-dominated industry, Ms. McNeil is a champion for diversity, equity, and inclusion in corporate boardrooms and is regularly ranked among the 100 Most Influential Women in Franchising in the world. She is a fierce advocate for gender equity in the franchise industry, which has seen a 37% increase in the number of female franchisees over the last decade.
Throughout her corporate career, Ms. McNeil has worked with a wide range of franchise systems, from new and emerging concepts to iconic Canadian franchise brands like Dairy Queen, Boston Pizza, Little Caesars, and YUM Brands, in both consultant and executive leadership roles.
As President and Chief Executive Officer of the Canadian Franchise Association (CFA), Ms. McNeil is responsible for managing the association, leading its staff, and providing strategic advice to the Board of Directors. In this role, she has gained extensive experience in fiscal management, membership development, advocacy and government relations, issues management, and strategic planning. Ms.McNeil also has extensive experience with member-driven not-for-profits, engaging with the CFA’s almost 600 corporate members, representing over 40,000 franchisees (small business owners) from coast to coast to coast.
Ms. McNeil currently serves as the Vice-Secretariat for Communications on the Executive leadership team of the World Franchise Council, a global organization of international franchise associations.
Franchising is a significant contributor to the Canadian economy, but many people are unaware of its true impact. Could you share some of the lesser-known ways franchises contribute to economic growth and job creation across the country?
Franchising is not just a business model; it’s a community builder, a job creator, and a significant economic driver. The franchising industry is a cornerstone of the Canadian economy, being the 12th largest industry in the country and the 2nd largest franchise industry in the world. The Canadian franchising sector contributes over $120 billion annually to the national economy. In 2024, Canadian franchises are expected to contribute nearly $30 billion in federal and provincial taxation.
With one in 10 Canadians employed directly or indirectly in a franchise system, Canadian franchises create nearly two million jobs for Canadians, paying almost $62 billion in wages.
When a new franchise location opens, you can feel the power of the franchise industry. This is fuelled by the mutually respectful relationship between the franchisor and the franchisee, who work together to create a new business that did not previously exist in the community. This new business has a positive impact not only on the franchisor and the franchisee, but also on the entire community, as it creates new opportunities for employment, growth, and community connection. Wow!
The CFA has highlighted how the franchising sector continues to grow, with over 66,000 franchise establishments expected by the end of 2024. What factors do you think have led to this growth, and how is CFA supporting this expansion?
With the ever-evolving landscape of the Canadian economy, franchising has emerged as a vital sector, providing robust opportunities for individuals seeking to start their entrepreneurial journey and contribute to their community. With the introduction of the International Franchise Attractiveness Index in 2020, Canada has consistently ranked among the top six countries with attractive franchise markets for balanced growth.
The CFA is the largest advocate for the franchise industry in Canada, providing its members and the public with events, programs, and webinars year-round to improve their businesses and help those searching for franchise ownership opportunities discover their perfect brand. This fall, the CFA’s popular Franchise Canada Shows (FranchiseCanada.Show) return to Toronto on October 26 and 27 and to Vancouver on November 9 and 10. It’s free to attend, and the show floor is the perfect place to discover new investment opportunities, learn about the ins and outs of purchasing a franchise, connect with industry service providers, and more. Plus, all exhibitors at the Franchise Canada Shows bear the CFA member logo. By joining the CFA, these franchises have made the conscious decision to be the best franchisors they can be. CFA members strive for excellence for both their company and for those who invest in them, so we advise those considering franchising to look for the CFA logo!
With one in 10 Canadians employed directly or indirectly in a franchise system, what role do franchisees play in strengthening local communities beyond the financial metrics?
Franchisees are deeply rooted in their local communities, and their contributions go far beyond economic metrics. Nearly all small retailers (97%) report contributing to their communities or provinces in some way, with 74% donating to local charities and causes, 56% sponsoring local events and teams, and 55% providing job opportunities for youth.
In your opinion, what makes franchising an attractive opportunity for Canadians looking to go into business for themselves, and what should prospective franchisees consider to become successful?
Franchising offers a structured and supportive business model, which is particularly appealing to entrepreneurs. Franchising is about being in business for yourself but not by yourself. The support that franchisors provide—including systems, training, guidance, and ongoing support—helps franchisees successfully open and operate their local small businesses, making it an ideal pathway for individuals looking to start their entrepreneurial journey with a strong foundation and support network in place.
The CFA advises on several key areas for prospective franchisees to become successful, including:
- Navigating the franchise business model and finding the right franchise. The key is to begin with thorough research and self-assessment to identify a franchise that matches an individual’s skills, interests, and budget.
- Leveraging resources such as educational programs, mentorship opportunities, and networking events for insights and advice. Understanding the franchise agreement, support system, and operational requirements is crucial.
Looking for the CFA member logo, an indication that the franchise system has the tools and supports it needs to help it and its franchisees thrive.
Looking ahead, what trends or developments do you anticipate will shape the future of franchising in Canada, and what strategic initiatives are the CFA implementing to support franchisees and franchisors in adapting to these changes?
While quick service restaurants remain a large segment of the franchise industry, there are many other sectors that show continued growth. Due to Canada’s aging population, senior care systems are on the rise, as are brands that deal with emergency cleanup and repairs. CFA membership covers more than 60 sectors within the franchise industry, so really, the only limit on where your franchising journey can take you is your imagination!
The CFA offers many educational programs to support the expansion of our members and the industry, including our weekly Learn & Grow seminars, where experts explore trends and frequently asked questions from both franchisors and the small business owners who invest in their systems. Recent topics have included the benefits and pitfalls of AI in franchise expansion, public relations best practices, online training, and much more.
Of course, the easiest way to stay on top of developing news is by subscribing to the CFA’s e-newsletters, which you can find at FranchiseCanada.Online. You’ll be the first to know about our upcoming programs and events while learning more about the hundreds of franchise brands within our membership.
