In this exclusive CanadianSME Small Business Magazine interview, Sherry McNeil, President and CEO of the Canadian Franchise Association, shares how a $133‑billion franchise sector is evolving as more Canadians look to business ownership, multi‑unit models, and technology‑enabled operations to drive growth. Drawing on more than 20 years of experience with brands from Dairy Queen and Boston Pizza to emerging concepts, she explains why responsible franchising can de‑risk entrepreneurship, which sectors—from foodservice and pet care to health, senior services, and education—are showing strong momentum, and how tools like the CFA’s Franchise Canada Directory and LookforaFranchise.ca help first‑time owners make informed, values‑aligned choices for long‑term success.
As President & CEO of the Canadian Franchise Association, you have a panoramic view of the sector across Canada. What key trends are shaping the franchise landscape as we move into 2026, and how are they influencing both franchisors and prospective franchisees on the ground?
Franchising has proven itself to be an extremely resilient industry. Through years of economic uncertainty, the industry has continued to grow—from approximately $100 billion industry in 2019 (pre-COVID-19 pandemic) to a $133.3 billion industry today!
Heading into 2026, some of the key trends we are seeing are high demand for essential servicesan increase in AI adoption and digital innovation, and more small business owners looking into multi-unit franchise ownership as an opportunity for wealth creation.
One of the biggest trends we’re seeing is just how many people want to own their own business. A recent RBC poll showed that the desire for entrepreneurship is at an eight-year high, with 59% of Canadians saying they want to own their own business. We’ve seen that bear out in the interest in franchising. According to a Google Trends analysis of search terms, interest in owning a franchise has seen a 110% year-over-year spike.
Full-service restaurant concepts have long been popular, driven by consumers’ desire for in-person dining, social connection, and memorable experiences. Today, brands that are rooted in cultural heritage or a founder’s story are gaining traction, as customers increasingly value authenticity and distinctive menu offerings.
When it comes to traditional brick-and-mortar businesses, experience-driven shopping is becoming more important, with consumers gravitating toward brands that offer engaging in-store environments while also prioritizing convenience. Brands are also improving their efficiency with digital tools like AI-enabled operations tools and digital inventory management. Tech innovations help brands connect with customers, too, with the adoption of digital loyalty programs, e-commerce, and more.
For franchisors and prospective franchisees alike, these trends point to the importance of clarity, relevance, and adaptability. Concepts that combine strong operational performance with a compelling customer experience and a clear point of view are well positioned to succeed as we move into 2026.
From foodservice and retail to home services, pet care, and health and wellness, several franchise categories are showing strong momentum heading into 2026. Which sectors do you believe entrepreneurs should be paying closest attention to over the next 12–24 months, and why are these models resonating with Canadian consumers?
There are franchises operating in nearly every industry in Canada—in fact, the CFA counts more than 60 industry categories among its membership!
Foodservice continues to be a popular category for prospective business owners looking to invest in a franchise. Full-service restaurant concepts remain strong, driven by consumers’ desire for in-person dining, social connection, and memorable experiences. At the same time, brands rooted in cultural heritage or a founder’s story are gaining traction, as customers increasingly value authenticity and distinctive menu offerings.
Beyond this core categories, several service-based sectors are showing strong momentum heading into 2026. Pet services continue to grow as Canadians invest more in the health and well-being of their pets. Health and wellness concepts are also gaining traction, reflecting a broader focus on fitness, mental well-being, and lifestyle-driven experiences. Senior care is emerging as an important growth area, driven by Canada’s aging population and increased demand for in-home and community-based support services. Education and children’s services are also expanding, as families seek enrichment, supplemental learning, and skill-building opportunities.
These categories resonate with Canadian consumers because they align closely with real, everyday priorities. For entrepreneurs, they offer the opportunity to build sustainable businesses that serve their communities while benefiting from the structure and support of proven franchise systems.
The franchise industry is projected to reach significant new heights by 2026, reflecting its growing contribution to Canada’s GDP, jobs, and local investment across the country. What fundamental factors are fueling this growth, and how do franchised businesses help de-risk entrepreneurship for Canadians compared with starting an independent business from scratch?
Franchising’s continued growth in Canada is being fueled by strong consumer demand, a resilient business model, and a growing interest in entrepreneurship. As economic uncertainty and job volatility persist, more Canadians are exploring franchising as a stable pathway to business ownership—one that offers independence while reducing the risks associated with starting a business from scratch.
Franchised businesses help de-risk entrepreneurship by providing established brands, proven operating systems, and comprehensive training and support. This structure allows franchisees to focus on running and growing their businesses, rather than building processes, supply chains, and brand recognition on their own. Peer networks and shared best practices further strengthen the model.
Technology is also playing an increasingly important role, helping franchisees operate more efficiently through digital marketing, customer engagement tools, and data-driven insights. Importantly, franchising offers opportunities across a wide range of industries, formats, and investment levels, making business ownership more accessible to Canadians from diverse backgrounds and at different stages of their careers.
The CFA represents hundreds of franchise brands and tens of thousands of franchisees coast to coast, providing education, advocacy, and best-practice sharing for the community. For first-time entrepreneurs considering franchising in 2026, what should they look for in a responsible franchisor, and how can organizations like the CFA help them make informed, values-aligned decisions?
For first-time entrepreneurs, choosing the right franchisor is one of the most important decisions they will make. Responsible franchisors are transparent, provide strong training and ongoing support, communicate clearly, and demonstrate a long-term commitment to franchisee success. One simple way to identify a credible opportunity is to “Look for the Logo.” The CFA Member logo signals that a brand has committed to the CFA’s Code of Ethics and to best practices in franchising.
It’s also essential for prospective franchisees to conduct thorough due diligence. This includes reviewing the franchise agreement, understanding operational expectations, and speaking directly with existing franchisees. Seeking advice from experienced professionals—such as franchise lawyers, accountants, bankers, and consultants—can help entrepreneurs fully evaluate an opportunity.
The CFA plays an important role in supporting informed decision-making by providing education, resources, and trusted connections. Tools like the Franchise Canada Directory and LookforaFranchise.ca allow prospective owners to explore the hundreds of franchise opportunities available, while CFA.ca and FranchiseCanada.Online offer guidance, insights, and access to reputable industry suppliers.
Franchising has helped many Canadians realize the dream of business ownership, including increasing numbers of women and underrepresented entrepreneurs over the last decade. What final advice would you share with CanadianSME’s small business audience about evaluating franchise opportunities and positioning themselves for long-term success in a changing economic environment?
My advice to entrepreneurs considering franchising is to be intentional and well prepared. Take the time to understand the business model, the level of support provided, and how the opportunity aligns with your personal goals, values, and lifestyle. A strong franchise relationship is built on alignment and mutual commitment.
It’s important to ask thoughtful questions, speak with existing franchisees, and gain a clear understanding of both the opportunities and responsibilities involved in ownership. Leveraging trusted resources such as the CFA, Franchise Canada publications, and experienced professional advisors can help entrepreneurs make informed decisions and avoid costly missteps.
In a changing economic environment, long-term success comes from choosing a concept with proven systems, strong fundamentals, and the ability to adapt. Franchisees are small business owners who live and work in their communities, and franchising allows them to be in business for themselves, but not by themselves. With the right preparation and support, franchising can offer a resilient, rewarding, and sustainable path to business ownership for Canadians from all backgrounds.
Disclaimer: The views and opinions expressed in this interview are those of the interviewee and do not necessarily reflect the official policy or position of CanadianSME Small Business Magazine. Our platform is dedicated to fostering dialogue and sharing insights that inspire and empower small and medium-sized businesses across Canada.
