Start a franchise

Last updated on July 31, 2024

Franchised businesses are a significant contributor to B.C.'s economy. These businesses create many jobs across the province. A lot of businesses are franchised. These include restaurants, hotels, car dealerships, retail stores and more.

How franchises work

A franchise is a business that can sell goods or services under a franchisor's business system or trade name. In return, the franchisor may receive fees and royalties from the franchisee.

The franchisor provides the franchisee with the operating system, brand name and support. To be consistent, the franchisee operates the business in the way the franchisor wants.

Example of a franchise

Olivia wants to start a fast-food restaurant.

Instead of spending time and money to develop their own brand name and operating system, Olivia wants to open a business under the popular brand, ABC Fast Food Inc.

Olivia has done their research. They think that most people already know about ABC Fast Food Inc. and enjoy their food products.

ABC Fast Food Inc. provides Olivia with access to their brand name, operating system and support. In return, Olivia pays fees and royalties to ABC Fast Food Inc.

In this example, Olivia is the franchisee. ABC Fast Food Inc. is the franchisor. Olivia's business is a franchise business.

Resources to start a franchise

Franchisee checklist

Use the franchisee checklist (PDF, 183KB) to learn about what to consider before buying a franchise. Translated resources are available.

Questions to ask

Learn about what questions to ask (PDF, 95.1KB) when deciding to buy a franchise. Translated resources are available:

Questions and answers

Learn about the Franchises Act and Franchises Regulation for B.C. with a questions and answers resource (PDF, 108.9 KB). Translated resources are available.

Other resources

Resources are available to help you start, manage and grow a successful small business.

Find small business resources

Get help

Governments and organizations like Small Business BC can help you start, manage and grow a successful small business.

Get help with your small business

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