Franchise Talk

U.S. Franchisors Eye Canada For Growth; First Stage Of International Expansion Strategies

November 23rd, 2009 | Author: Jack

U.S. franchise corporations have always eyed Canada for expansion — its geographic proximity and similar language and culture make it a natural fit — but going north of the border wasn’t always a top priority.

“You know it’s on their list somewhere after Wyoming, Alaska… Canada,” says Larry Weinberg, a Toronto franchise lawyer who recently cochaired the American Bar Association’s Annual Forum on Franchising in Toronto.

A trend appears to be emerging among U.S.-based franchisors to target the Canadian market first for international expansion. A slow-to-recover U.S. economy, combined with Canada’s relative strength during the recession, seems to be luring franchise operators to Canada.

“Now they’re thinking differently,” Mr. Weinberg says. “I think the word is getting out that Canada is a good place to do business.” Several U.S. franchise companies have either begun testing the Canadian market or rolled out aggressive expansion plans in recent weeks and months.

The Melting Pot, a Miami-based fondue-restaurant franchisor, has eyed Canada for international expansion for years, making Canada one on a list that includes Mexico, Brazil, the Middle East, Japan, India, South Korea and some European countries — but not until recently did Canada jump to the top of the list.

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