A Guide by Canadian Franchise Development Experts

As experts in franchise development, we understand that navigating the franchise industry can be a daunting task. That's why we have put together this guide to help aspiring franchisors understand the key steps involved in building a successful franchise system.

Here are important steps to consider when entering the franchise industry.

Franchise Development System

Once you have determined that your business is suitable for franchising, the next step is to franchise development. This system should include everything from the operations manual to the training program for franchisees.

The franchise system should also establish guidelines for the franchisee-franchisor relationship, including expectations and requirements for both parties. At FMS Canada, we work with clients to develop effective franchise systems that are tailored to their specific businesses.

Create a Franchise Disclosure Document

A Franchise Disclosure Document (FDD) is a legal document that outlines the details of the franchise agreement. It must be given to franchisees before they sign any agreement. The FDD must include information on the franchisor's background, financial statements, and other important details about the franchise system.

In Canada, franchisors must comply with the Franchises Act and the regulations in their respective provinces. We can help you navigate the legal requirements of franchising and assist with the creation of your FDD. Here are a few of the  main points about an FDD in Canada: 

  • The FDD in Canada is regulated by provincial laws
  • The laws and regulations vary by province, so it's important to consult with a lawyer or franchise consultant with expertise in the specific province
  • The FDD must be provided to prospective franchisees at least 14 days before the franchise agreement is signed
  • The FDD must contain specific information such as franchise fees, initial investment requirements, and details about the franchisor's history and management team
  • The FDD must be written in plain language that is easy to understand for non-legal professionals
  • Franchisors must provide a French language version of the FDD if the franchise is being offered in Quebec

Recruit Franchisees

The success of a franchise system depends on the quality of the franchisees. As a franchisor, you will be responsible for recruiting and selecting franchisees. You must have a process in place for evaluating and approving potential franchisees, which may include a franchise application, interview, and other selection criteria.

At FMS Canada, we assist clients in identifying and recruiting potential franchisees and help develop a process for selecting the right candidates

Once your franchise system is up and running, you must provide ongoing support to your franchisees. This support may include training, marketing, and ongoing operational consultation.

You should have a system in place to help franchisees with any challenges they may encounter. By providing comprehensive support, you will help ensure the success of your franchisees and the overall success of your franchise system.


Entering the franchise industry can be a complex and challenging process. However, by following these key steps, you can build a successful franchise system that can grow and thrive for years to come.

At FMS Canada, we have decades of experience in franchise development systems and helping businesses navigate the Canadian franchise industry. Contact us today to learn more about our franchise development services and how we can help you build a successful franchise system.

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