Phase 0 — Decide if franchising makes sense

1. Assess profitability with at least 12–24 months of financial performance

2. Check scalability and ensure your model can be replicated

3. Forecast franchisee ROI after fees and royalties

4. Confirm you have training, support, and marketing capacity

Phase 1 — Protect the brand and structure your entity

• Incorporate a franchisor company separate from your operating unit

• Register your trademarks with the Canadian Intellectual Property Office

• Develop a brand identity kit and secure domains and social accounts

Phase 2 — Build your franchise system

• Draft your operations manual covering all processes

• Create training programs for pre-opening and ongoing support

• Establish supply chain and vendor contracts

• Define territory rules and performance standards

• Prepare build-out guidelines for locations and equipment

Phase 3 — Prepare your legal documents

Franchise Disclosure Document (FDD): Ontario law requires this to be provided 14 days before a prospect signs or pays anything. It must include material facts, financial statements, copies of agreements, fee details, investment estimates, training and territory info, advertising obligations, and a list of franchisees. If you include financial performance representations, they must be backed by data.

Franchise Agreement: Aligns with your FDD and sets terms for fees, renewal, territory, performance, transfer, training, brand standards, and termination.

Phase 4 — Set up your compliant sales process

• You may use NDAs, site reservations, and refundable deposits before disclosure

• Deliver the FDD as a single complete document (hard copy or compliant electronic copy)

• Wait the mandatory 14 days before signing or collecting payments

• If facts change before signing, issue a Statement of Material Change

Phase 5 — Tax and accounting compliance

• Register for HST at 13% in Ontario

• Charge HST on franchise fees and royalties

• Track advertising fund contributions and royalty flows separately

• Work with accountants experienced in franchisor reporting

Phase 6 — Franchisee onboarding

• Provide site selection and lease negotiation guidance

• Assist with design, build-out, and supplier introductions

• Deliver training and grand-opening support

• Implement a support schedule with coaching calls and audits

Phase 7 — Ongoing compliance in Ontario

• Follow the duty of fair dealing and right to associate under Ontario law

• Update your FDD annually with new financial statements and material changes

• Train your sales team to avoid making informal or undocumented earnings claims

Phase 8 — Expanding beyond Ontario

• Provinces with franchise laws include BC, Alberta, Manitoba, New Brunswick, and PEI

• Each has variations in disclosure rules

• Plan a multi-province FDD strategy before selling nationwide

Typical Costs and Timeline

• Legal (FDD and agreements): $25,000 to $60,000+

• Manuals, training, and systemization: $10,000 to $50,000+

• Trademarks: $500 to $1,500+ per class plus legal fees

• Timeline: 3 to 6 months from start to franchise-ready

How FranchiseVoice Can Help

Franchising in Ontario is regulated and requires expert guidance. FranchiseVoice connects you with specialists in legal compliance, operations manuals, training systems, marketing for franchise buyers, and growth strategy for Canada, the U.S., and beyond. By working with FranchiseVoice, you can avoid compliance mistakes, streamline your system, and position your business to attract qualified franchise buyers with confidence.

Speak with our team! FREE Consultation Available.