Franchisee mindset

Melanie Collao didn’t always have entrepreneurial aspirations, but when she wanted to build something with her partner, becoming a franchisee was the solution.

Collao and Gary Biala discovered Minuteman Press when they attended a franchise exhibition in 2018. The print and design company’s booth caught Collao’s eye because it included a mug press and she used to make custom mugs and sell them for fun.

“Once we got to talking, we saw how much (Minuteman Press) can do,” said Collao, who studied health information management in college.

In February 2019, Collao and Biala opened their Minuteman Press store at 1599 Dugald Rd. It’s one of three locations in Winnipeg.

“I always wanted to build something with (Gary),” Collao said. “Becoming a franchisee allows anyone that has the mind to do it to become a business owner.”

Statistics from the Canadian Franchise Association show many Canadians have “the mind to do it.” According to the association, there are 40,000 franchisees across the country, representing 600 brands and creating jobs for almost two million Canadians.

Franchising is the 12th-largest industry in Canada and is projected to contribute more than $133 billion to its gross domestic product in 2025. That includes nearly $3 billion to the GDP in Manitoba, where there are approximately 1,700 franchise establishments.

“Franchising is about being in business for yourself but not by yourself,” Sherry McNeil, CFA president and CEO, said in an email. “It offers a well-structured and supportive business model that is highly appealing to emerging entrepreneurs, empowering them to reach their entrepreneurial dreams and contribute to their local economies.”

Franchising offers many advantages, especially for individuals who want to own a business but don’t want to start from scratch, McNeil added.

One of the biggest benefits is the support from the franchisor. Franchisees benefit from a proven business model, brand recognition, training and established supply chains, marketing systems and operational procedures.

This structure is especially valuable for first-time business owners as it significantly reduces the risk and guesswork involved in starting a business, McNeil added.

That reduced risk, guesswork and marketing support is part of what attracted Chris Reid to becoming a franchisee. Two years ago, the former diesel mechanic started a Hickory Dickory Decks branch from his home 45 kilometres south of Winnipeg in New Bothwell.

It’s the first and only Manitoba location for the composite deck building franchise, which was started in Dundas, Ont., and has around 100 locations across Canada.

“You kind of jump in running instead of the grind of starting (from scratch and) having those learning curves,” Reid said.

Starting a business is difficult no matter how you do it, he added, “but it’s harder, in my opinion, if you don’t go the franchise route.”

The challenges of being a franchisee are the same as those faced by any small business, McNeil said: managing economic challenges and keeping bottom-line costs low, to name a couple.

“But the great part about franchising is new business owners can face these challenges from within a proven system that offers specialized support — whether that means the advantage of pre-existing supplier relationships, access to business coaching or national marketing.”

Amit Kapoor once owned a coffee shop and some retirement homes, but about a decade ago, decided to become a McDonald’s restaurant franchisee. In November 2015, he started operating two locations in Winnipeg.

“What McDonald’s does really well is it offers you the opportunity to scale if you’re following the right format,” said Kapoor, who today operates 11 locations in the city.

There is, of course, a significant cost involved with becoming a franchisee.

The total investment for a Minuteman Press franchise opening in Canada, for example, can range from $100,000 to $150,000 when leasing the equipment, according to a company spokesperson. There are financing options available for qualified buyers that may put the initial investment in the $45,000 to $65,000 range.

Tim Hortons coffee chain requires at least $100,000 in cash up front and minimum net worth of $500,000, The Canadian Press reported in October — though the investment may be up to four times that amount. Operators must also pay between 4.5 and six per cent of sales to the company, which has about 3,500 restaurants across the country, and another four per cent for advertising and marketing.

For people like Reid, however, the benefits outweigh the costs.

“I enjoy it because it’s rewarding building something for somebody that’s new,” the Hickory Dickory Decks operator said. “You build well and they’re happy with the end product.”

Kapoor enjoys being a McDonald’s operator because it’s given him the opportunity to invest in his community through charitable initiatives at schools and care homes.

“At the end of the day, we are a local business which is totally embedded in the local community,” he said.

Many Winnipeggers are interested in franchise exhibitions, according to Lisa Spodek, vice-president of marketing at National Event Management.

National produces a franchise expo that visits 26 markets across Canada and the U.S. annually. The company most recently brought the expo to Winnipeg in February. About 1,000 people attended the two-day event at the RBC Convention Centre.

“Winnipeg’s a strong market for the show,” Spodek said. “They seem to have a good population of entrepreneurial people who are looking to own their own business.”

aaron.epp@freepress.mb.ca