Franchising in Quebec: preparing for the next generation

Succession could become a significant issue for Quebec’s franchise sector. An article published by Droit-inc on 28 October 2026 reports that around 25% of franchisees in the province are preparing to transfer their businesses or retire over the next five to ten years. For prospective buyers, this outlook highlights the importance of examining contractual commitments as closely as commercial potential.

A potential pool of businesses to approach with caution

The Droit-inc article, which features comments from Aurore Bondu, a lawyer at Lanctot Avocats, describes a Quebec franchise sector comprising some 781 brands and 25,500 outlets or service locations. It puts the sector’s contribution to Quebec’s economy at C$89 billion.

Against this backdrop, the reported proportion of franchisees who may be ready to hand over their businesses deserves entrepreneurs’ attention. However, it points to potential ownership transfers over several years, rather than an inventory of businesses currently for sale. Nor does it mean that a quarter of outlets will necessarily change hands according to a fixed timetable.

For a prospective buyer, this distinction matters: a demographic trend may provide a reason to explore buying an existing franchise, but it is no substitute for assessing a specific opportunity. The key is to understand both the business on offer and the obligations that would come with operating under the brand.

An established brand, but limited autonomy

Bondu highlights several advantages of the franchise model: brand recognition, access to expertise, training, mentoring and marketing support from the franchisor. She also mentions purchasing terms and potentially easier access to bank finance.

These factors explain the appeal of franchising for entrepreneurs who want to work within an established framework. They do not, however, remove financial risk or the operator’s responsibilities. Membership of a franchise network also means less entrepreneurial freedom, particularly over the business format and the products or services offered.

Anyone taking over an existing franchise needs to consider this just as carefully as someone starting a new business. The venture is not simply about running an outlet: it also means accepting the brand’s operating rules. Assessing whether those rules fit the prospective buyer’s personal expectations is therefore an essential starting point.

Funding goes beyond the initial investment

The figures cited by Bondu illustrate the variety of opportunities available. Some home-service franchises or travel agencies can be launched for less than C$50,000. However, the initial investment can reach C$150,000, or even exceed C$800,000 for major brands or restaurant concepts.

These examples relate to launching a franchise; they are not a price guide for buying an existing outlet. Nevertheless, they show why an assessment of the prospective franchisee’s financial position should precede any commitment.

Bondu also draws attention to weekly or monthly royalties, often calculated on gross revenue. Prospective franchisees must therefore consider recurring commitments, not just the amount needed at the outset. She explains that her firm starts with a personal and financial assessment so that future franchisees understand how much they will need to invest and what their obligations to the franchisor will be.

Check the brand and contractual terms before committing

Bondu recommends carrying out market research and due diligence on the franchisor. She notes that examining public records can help establish its legal history and identify any disputes or ongoing legal proceedings.

Non-compete clauses also require careful scrutiny. According to Bondu, these clauses must be reasonable to be valid in Quebec. Excessive or abusive restrictions on duration or geographical coverage may lead to a legal challenge and a court ruling that the clause is invalid. Prospective buyers should therefore understand a clause’s scope before signing, rather than assume it will be set aside.

Key takeaway: the anticipated wave of ownership transfers offers an avenue to explore, not a guarantee of success. Before taking over a franchise, have your financial capacity assessed, carry out due diligence on the brand and obtain advice on the contractual commitments.