Introduction to the First Edition

• Author: Peter V. Snell - Larry Weinberg
• Pages: 32-34

Contents xxxi

Introduction to the First Edition

A large number of American franchise systems have, over the last 40 years,

made Canada one of their chosen international expansion targets. Many of these

have thrived in the Canadian marketplace. They have joined the various home-

grown franchise and other retail or service chains in a climate that readily ac-

cepts franchising as a method of doing business. Geographic proximity, together

with a common language, history and culture, are cited often as the reasons why

Canada is the first stop on the road to international markets for U.S. franchisors.

In fact, experience tells us that many franchise systems did not historically con-

sider Canada an “international market” at all, but instead simply an extension of

their domestic one.

Just as the rest of the world has become a more complicated place to do

business, however, so too has entry into this “sort of” international market di-

rectly north of the 49th parallel (the geographic line that forms a large part of the

border between the two countries). This book is, in part, recognition of that fact.

It has been developed as part of the Intensive Program on “Fundamentals of

Franchising—Canada” being held at the ABA’s Annual Forum in Vancouver,

British Columbia, Canada, on October 6, 2004. The intention is to educate those

readers who are, or who have, clients intent on expanding into the Canadian

marketplace. In many ways, Canada is very familiar to American companies as

a place to franchise their business. But in many crucial aspects, it is a different

place to franchise and to conduct business.1

Canada has a well-educated, highly-skilled workforce, with disposable in-

comes and spending patterns generally seen as being on par with American

consumers. Canada also has available retail locations and undeveloped land, an

abundance of natural resources, and an extensive infrastructure of highways,

railways, shipping lines and telecommunications. Canada is also seen as recep-

tive to foreign investment. Canadian cities are generally considered safe, and

Canadian business practices and legislative developments tend to follow those

in the United States (except, notably, in the area of litigation), giving American

business the opportunity to succeed in the Canadian marketplace. The vast ma-

jority of Canada’s population lives within one hundred miles of the American

border.2

1. This Introduction is, in part, reprinted from an article by Larry Weinberg and Geoffrey Shaw in the

Fall 2004 ABA Forum’s Franchise Law Journal, titled “A Practical Road Map to Entering the Canadian

Market,” and is reprinted with permission.

2. “Canadian Statistics—Population of census metropolitan areas,” online: 2001 Census boundaries,

http://www.statcan.ca/english/Pgdb/demo05a.htm.

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