“A trend appears to be emerging among U.S.-based franchisors to target the Canadian market first for international expansion. A slow-to-recover U.S. economy, combined with Canada’s relative strength during the recession, seems to be luring franchise operators to Canada,” writes Derek Sankey in the Financial Post.

The article restates many of the same points we have been making for a long time. But there is some interesting analysis from a Canadian franchise lawyer.

“I think the word is getting out that Canada is a good place to do business,” said franchise lawyer Larry Weinberg.

It’s more than an issue of proximity. The Canadian economy emerged relatively unscathed from the recent recession. The story talks to the CEO of Top 100 Global Franchise Puroclean who says, “Canada is absolutely the place we need to focus our growth and efforts,” says Keith Gerson, chief executive of Puroclean, which recently hired a Canadian expert to oversee its expansion plans in the country.

That strategy helped push Puroclean into the Top 100 and it seems like it will be a strategy that many other franchises will use in the near future.

You’ll find the best Canadian franchises with Franchise Direct Canada.

There is no questioning the value of the Canadian franchise market. As we found through many interviews with the franchises represented on the Top 100 Global Franchise list, Canada is often the first destination for franchises considering international expansion. The cultural and business similarities make it quite easy to seamlessly transfer a thriving franchise business to the Great White North.

Interestingly, Paul Segreto has provided some really interesting information on the state of the Canadian franchise market via the Canadian Franchise Association on his FranchisEssentials blog. Here’s a breakdown:

• The Franchise industry in Canada represents over $100 billion in sales annually
• Franchised businesses account for 40% of all retail sales
• There are over 78,000 franchises across Canada
  Canadian Franchise Association membership grows at a rate of 10% per year
• Franchising directly employs over 1,000,000 people
• Every year, thousands of Canadians are improving their lives by becoming franchisees
• Franchising accounts for $90 billion per year in sales nationally or 10% of Canada’s Gross Domestic Product (GDP)
• Franchising has been reported to account for one out of every five consumer dollars spent in Canada in goods and services

We’ve seen the huge push towards international franchising in America in the last six months. As if you needed any more encouragement, these facts make the Canadian market even more mouth-watering. Learn more about the Canadian franchise industry from the CFA and Canadian readers can find the franchise for them with Franchise Direct Canada.

Those insiders will be have taken positive news from the McDonald’s recent gathering for analysts and journalists at its corporate headquarters in Illinois last week. According to the Wall Street Journal, the attitude of the McDonald’s corporate executive was typically bullish, with the company extremely optimistic about the way it has positioned itself for the time beyond the recession.

“This is also as much about changing the perception of our brand in the consumer’s mind that allows us to stretch both the price and products you can serve in a re-imaged restaurant,” McDonald’s Chief Financial Officer Peter Bensen said.

The confidence is a direct result of the investment in new stores and technology, as well as the unveiling of popular new products.

Restaurant profits are down in the last year across the industry, but McDonald’s market share has remained steady. The WSJ reports that some of the products coming down the pipeline are new wraps, smoothies and frappes and possibly a $1 breakfast menu. Clearly the challenge for McDonald’s, and indeed everyone in the QSR sector, is balancing the surge in consumer frugality brought on by the recession with the constant demand for a high-quality product.

As the year goes on, McDonald’s seem like they’re in a great position to retain the top ranking in Franchise Direct second Top 100 Global Franchises.

To some, these papers might seem like a legal burden. But in reality, the more engaging these documents are, the more likely it is that your franchise will prosper. That’s certainly the feeling of franchise lawyer and blogger Charles N. Internicola, who has written extensively on the subject of franchise agreements.

In a recent post on his New York Franchise Law blog, Charles urges business owners considering expansion to view the FDD and franchise agreement as “a collaborative process focused on the development of a critical “asset” that uniquely reflects, identifies and protects the components of your business…franchise and franchise system.”

When starting a franchise keep in mind that all agreements are not the same and and that your input will be critical to insuring that your agreements and disclosure documensts reflect the unique nature of your business. This is no easy task and is not one that is not simply delegated - an in-depth working relationship with your franchise lawyer is required.

This is valuable advice for anyone expanding into franchising. Stick with Charles’ blog for more insight on the particulars of franchise law.

Many IFA presidents have influenced the national debate on small business, but Mr Shay came through in a big way for small business owners and those in the franchise industry last month when President Obama announced the details of his small business recovery plan.

The hard work of Mr Shay and others at the IFA was rewarded that day. But how did Matt ascend to the position he is in? The cover story of the newest issue of Franchise Times explains how, as well as providing some of Mr Shay’s insight on how the IFA is changing.

The story features a dramatic story about how Shay overcame a serious car accident where he went through a windshield, breaking every bone in his face and fracturing his two legs. Shay eventually recovered and began his work with the IFA, working in state capitals. He gradually climbed the ladder and found himself as IFA president at a time of critical economic importance.

I thought this paragraph in Nancy Weingartner’s story was very insightful into what makes Shay successful.

No one will ever admit this—at least not on the record—but it can’t be easy to lead a bunch of strong-willed, self-made entrepreneurs. In essence, Shay not only has a different “boss” every year, as the new chairperson moves into the top volunteer spot, but he’s accountable to an entire board of directors, plus membership.

It’s a very tough job. But Shay has guided the IFA to a position where it is now ‘punching above its weight’. “Five years ago board members didn’t realize how much ability we had to improve our regard,” Shay says in the story.

Shay has mobilized the IFA in recent years. If you’d like to watch more about Matt, here is below in an interview recorded at this year’s IFA convention.

Produced by Franchise Direct

For those military veterans who have recently finished their service, there are many businesses out there that are seeking your expertise and experience. Equally, the franchising industry has actively been trying to make business ownership as easy as possible. Franchise ownership provides a path to becoming your own boss that is potentially safer and more lucrative.

The discounts that are available from franchisors make it even more enticing.

Here’s Franchise Direct’s outline of everything a veteran should know when considering a franchise. VetFran is also a reliable place for information. Finally, enjoy a video that breaks down the opportunities available for veterans below.

Produced by Franchise Direct

Ever since Franchise Direct published its study on the home-based business sector, there has been a small explosion of stories about opportunities available with a home-based businesses. Of course, it’s most likely a coincidence, but it does suggest that there is a growing conventional wisdom that home-based businesses are among the best businesses on the market right now.

There are reasons why. As Fox reported, credit markets remain stagnant. Home-based opportunities, which are often more affordable, offer a great starting point to entrepreneurship while the bad times pass over.

Of all the stories on home-based businesses that we’ve read recently, the one that spoke the loudest to us was written by Kirk Bannerman on the Small Business Brief website.

Kirk’s viewpoint is essentially this: yes, you will be successful with a home-bound business, but it might not happen over night.

There are so many home business opportunities (some real, some not) that it takes real personal discipline to avoid the scattergun approach…you know, throw enough against the wall and something is bound to stick. In the early going, it is really important to resist this temptation and to stay tightly focused on a single business.

Some will argue that “I don’t want to have all my eggs in one basket”. To those people I say, diversification is fine, but only after you have achieved solid success with your initial business. A premature attempt at diversification will quite likely cause a loss of focus and actually slow down your success rate.

Other advice from Kirk:

• Stay focused
• Remain patient
• Don’t get discouraged

Now this is solid advice for any entrepreneur. But it’s especially worthwhile for home-based businesses. All of the statistics are showing that home-based franchises are doing well at the moment.

But after you make the investment, remember, the real work is just starting.

This is not just corporate cheerleading. These are established lessons. Consider the story of Subway franchisee Stuart Frankel, which was recently featured in Business Week magazine. You wouldn’t expect a man who owns two South Florida franchises to institute one of the biggest eating crazes in America, but Stuart had a big idea.

He’s the guy, who realizing that business slowed substantially on the weekends, cut a dollar off the foot-long sub at his restaurants. He tells Business Week it’s because he likes round numbers. Whatever the reason, you can now buy a $5 foot-long sub in every town and city in America these days. It has generated $3.8billion for the company. For this genius innovation, Subway has to thank not its armies of market researchers nor its well-paid corporate executives, but a franchisee at a grassroots level who sensed a new niche for his business and had the courage and inventiveness to satisfy it.

“The whole thing took on a life of its own,” Jeff Moody, CEO of Subway’s franchise-owned advertising arm, the Subway Franchisee Advertising Fund Trust, told Business Week.

Business Week’s story is quite insightful as to how franchisees can bring about huge profits for a franchisor – sometimes in the face of skepticism from the franchise itself. It’s essential reading for any franchisee looking to make a greater difference in their franchise organization.

Those people who started the International Franchise Association a half a century ago would hardly recognize today’s business landscape, but still their organization continues to provide advocacy and guidance to franchised businesses around the country.

What began when Dunkin’ Donuts founder Bill Rosenberg brandished a 100 dollar bill from his wallet at a franchisor convention in Chicago back in 1959 is now a hugely mobile and influential organization, as the recent successful of lobbying of President Obama on small business reform shows.

The latest issue of Franchise Times magazine features a detailed story on the history of the IFA. For anyone with an interest in franchising, this is a must-read. Writer Nancy Weingartner takes a decade-by-decade look at the IFA’s evolution, discussing how it planted roots in Washington and began its education programs, and many other things.

Part of the IFA’s initial success was that it let franchisors of all stripes convene and discuss the in’s and out’s of operating a franchise business.

“Companies got together to share ideas,” said Jerry Darnell of Benetrends. “There is no place else to get this information.”

Franchisors weren’t afraid to share best practices because they weren’t sharing trade secrets with their competitors. Members were in a number of different industries and the information they were sharing had to do with business-format franchising, not with burgers or brake jobs.

And as for today? Well, the IFA remains more vital than ever. We particularly enjoyed how the story concluded.

IFA’s challenge is to make business-format franchising a priority in their members’ businesses. They’ve accomplished this in part through economic studies, education and lobbying for small business concerns.

And by selecting volunteers who are committed to the cause. The past chairs stay involved. “They don’t do their time and walk away,” IFA’s CEO Matt Shay said.

“Where IFA goes is where franchising goes,” stated Zeidman.

Here’s to 50 more years of success!

As recent reporting in the Wall Street Journal shows, international development is now a profitable course for many franchises seeking new markets, as economies around the world have been somewhat slower to introduce the franchising model than the US. With its inaugural rankings of the Top 100 Global Franchises, Franchise Direct not only listed the best-performing global franchises, but it provided a blueprint to other franchises eyeing similar growth.

Interviews with franchisors with businesses on the Top 100 list showed that there is no one path to successful international expansion. Selling a master license is a common strategy, but by no means the only route, as Coffee News USA discovered.

“In those countries that are doing well, we will leave them alone. If we take back countries we will run them from here for awhile and then sell them once we have someone who can do Coffee News well there,” said Bill Buckley of Coffee News USA.

Other companies like PakMail have tailored a business model that can be easily reshaped into different foreign economies.

“We are open to further international expansion and prefer to establish master licensees outside of the U.S. The Pak Mail operating concept is pretty easy to adapt to foreign markets as evidenced by the success of our franchises in Mexico,” says PakMail’s Sandy Lasky.

There will be many cultural roadblocks for the franchisor to overcome when opening in a foreign market. “Knowing the culture, language and business processes, as well as ensuring successful product distribution,” are some of the problems that PuroClean encountered when it launched its Canadian operation. However, it found a solution that changed the way it did business in the country.

“By having a native Canadian manager running operations in Canada, PuroClean has been able to overcome typical obstacles faced when entering a foreign market,” said PuroClean’s Natalie Zupo.

Launching a franchise on a global level takes time and patience. But the rewards can be limitless, as the success of Franchise Direct’s Top 100 Franchises has shown.