The Canadian Franchise Association (CFA), the voice of the franchise industry, released its latest Franchise Forecast Report outlining the economic forecast for the franchise industry in 2022, with significant growth predicted in the franchise sector this year. In the Report, the CFA analyzed economic indicators such as the number of franchise establishments, gross domestic product (GPD), employment and tax revenue. The Report is based on the findings from a study conducted by The Canadian Centre for Economic Analysis (CANCEA), an independent research and data firm.

Despite the economic impact of the past two years, the franchise sector continues to be the 12th largest contributor to the Canadian economy. In fact, the economic contribution to Canada’s GDP has increased from $100 billion in 2019 to over $120 billion in 2022.

Key findings in the Franchise Forecast Report include:

·       71,196 new franchises operating in Canada by the end of this year
·       An increase in franchise employment (total) to almost two million in 2022
·       Total franchise related federal tax revenue estimated at $15.5 billion
·       Creation of 38,000 net new jobs
·       National average franchise unit growth of 2.1%
·       National average franchise provincial growth of 4.19%
·       Growth predicted in every province and territory, with Alberta leading at 4.5%

“Our members’ response to the pandemic truly showed how franchising is about being in business for yourself, not by yourself,” said Sherry McNeil, President and Chief Executive Officer of the CFA. “We worked together, as a community, to provide the education, investments and government supports needed to help our members survive and thrive during the greatest global economic slowdown in generations.”

The CFA plans to work with franchise businesses and governments across Canada to ensure the tools are in place to deliver on this projected growth this year and exceed it.
To access the full Franchise Forecast Report, click HERE.