
Franchising in Canada: Setting Your Royalty Fees
Set sustainable royalty fees, define how they are calculated and test their impact on cash flow before offering your first franchise.
Read moreStep-by-step guides to franchising your business in Canada: readiness, legal documents, fees, recruitment and local regulation.

Set sustainable royalty fees, define how they are calculated and test their impact on cash flow before offering your first franchise.
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Set clear criteria, vet applicants and build a selection process that meets franchise disclosure requirements.
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Before franchising, check your trade mark rights and put clear rules in place for its use so you do not pass on a vulnerable brand identity.
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Turn your working practices into usable procedures, then align your manual with the franchise agreement and disclosure requirements.
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Plan for mandatory franchisee refurbishments: triggers, costs, timing and disclosure before signing.
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Plan the cash you need to become a franchisor without relying on initial fees from your first franchisees.
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Before selling your first franchise, test an initial training programme with measurable outcomes and set out its terms in your documents.
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A national set of documents is not always enough. Here is how to adapt your franchise documentation to the rules in each province you plan to enter.
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Inadequate disclosure can lead to substantial repayment obligations. Prepare your business for this risk before granting a franchise.
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Which company will sign your franchise agreements? Clarify its role, resources and relationship with your existing business.
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Before offering a franchise, identify information that could influence the investment decision, even if it falls outside the mandatory disclosure headings.
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Granting one franchisee the rights to several outlets requires a realistic timetable, clear commitments and appropriate disclosure.
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Who finds, assesses and approves the premises? Establish a site selection process before welcoming your first franchisees.
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How to share your know-how with a prospective franchisee without revealing it too early or compromising your disclosure obligations.
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Planning to finance part of your franchisees’ investment? Set out the offer, its terms and the required disclosures before recruiting.
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Before asking a franchisee for a personal guarantee, define its scope, its limits and how it fits into pre-contractual disclosure.
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Prepare your franchise offer for legal and financial review without influencing the prospective franchisee’s advisers or rushing their decision.
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Prepare a reliable list of current and former franchisees, then facilitate useful conversations without steering what they say.
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Plan your decisions as a franchisor to meet the duty of fair dealing and build a lasting franchise network.
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Who must sign the franchisor’s certificate? Put checks and responsibilities in place before offering your first franchise.
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Litigation, insolvency and management experience: prepare a reliable record before offering your business as a franchise.
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Before accepting a deposit, check provincial rules and put a clear reservation and refund procedure in place.
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Before franchising your business, identify the permits each outlet will need and clearly allocate the tasks and responsibilities involved.
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Before setting up an advertising fund, define its permitted spending, governance and reporting arrangements to build a transparent franchise network.
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A simple licence can legally be a franchise. Learn how to establish your model’s legal status before signing agreements with your first partners.
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Plan for collective dialogue with your future franchisees and respect their right to associate from the outset of your network.
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Before granting your first franchise, set out the grounds for termination and the exit process to protect your franchise network.
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Plan how you will deliver your disclosure document and retain the evidence you need before any agreement is signed or payment is made.
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Before franchising your business in Quebec, make sure your supporting contract documents are accessible, consistent and clearly identified.
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Before taking on your first franchisee, put a clear procedure in place to handle disagreements without undermining your franchise community.
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Prepare objective, tested quality checks that align with your franchise agreement before entrusting your concept to your first franchisees.
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Has something changed before a franchise agreement is signed? Put a process in place to identify it, disclose it and decide whether to proceed.
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Plan for a future franchise resale from your first agreement: buyer approval, disclosure and the transfer of responsibilities.
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Before franchising your business, align the lease and franchise agreement to limit premature commitments and prepare for each opening.
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Before granting a franchise, prepare the franchisor’s financial statements and coordinate their preparation with your disclosure obligations.
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Learn how to present your business’s earnings to prospective franchisees using verifiable data, clear assumptions and appropriate legal safeguards.
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Before franchising your business, assess your suppliers, plan for shortages and clarify what future franchisees will be required to buy.
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Prepare for franchise agreement renewals in Canada: check deadlines, conditions, investment requirements and disclosure obligations.
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Can your business run without you? Test its independence before entrusting your concept to prospective franchisees.
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Before you franchise, define support that is realistic, measurable and consistent with your contracts. Here is how to turn promises into clear commitments.
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Define your future franchisees’ territories and clarify online sales arrangements before promising exclusivity.
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Initial fees, royalties and advertising contributions: set transparent, sustainable charges before franchising your business in Canada.
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Define your criteria, assess applicants and manage discussions carefully to welcome your first franchisees in Canada.
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Before recruiting your first franchisees, check your trade mark rights and set clear rules for its use across your network.
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Turn your know-how into procedures others can follow, then align your manual with the franchise agreement and provincial requirements.
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Before recruiting your first franchisee in Ontario, prepare a complete disclosure document and put a clear delivery process in place.
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Turn the results from your pilot operation into reliable cost figures before setting fees for your future franchise network.
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