Canada's Franchise Sector Hits $143 Billion in GDP, Outpacing Forecasts

Canada's franchise sector contributed more than $143 billion to national GDP in 2025, blowing past the previous projection of $133 billion, according to the 2026 Canadian Franchise Industry Economic Outlook. The Canadian Franchise Association released the figures as it prepares to mark World Franchise Day on June 10, a global initiative first launched in 2025 to spotlight the industry's role in local economies.

The numbers describe an industry that has quietly become one of the country's largest. Franchising now ranks as Canada's 12th largest industry, with more than 1,100 brands operating at least one establishment nationwide. A new franchise opens somewhere in Canada every two hours, year-round. There is one franchise for every 450 Canadians, and the average Canadian interacts with three to five franchise businesses daily. One in 20 Canadians works in the sector, directly or indirectly.

The report, produced in partnership with the CFA and the Canadian Centre for Economic Analysis (CANCEA), projects that nearly 70,900 franchise establishments will be in operation by 2027, with 457 net new locations opening in the coming year alone. The strongest growth areas are expected to be professional and technical services and construction.

Employment and fiscal impact

Employment in the sector is projected to reach 1.83 million jobs by 2027, with nearly 11,800 new jobs added in the coming year. Wages are expected to total $75.7 billion. Governments are major beneficiaries: the report forecasts $19.3 billion in federal tax revenue and $17.2 billion in provincial tax revenue from the sector.

According to the report, the industry is entering a period of steady, sustainable growth, supported by strong consumer demand, rising wages, and increased productivity.

"On World Franchise Day, we recognize the people behind the brands — local business owners who are employing Canadians, investing in their neighbourhoods, and helping their communities thrive," said Sherry McNeil, President and CEO of the Canadian Franchise Association. "Franchising is a powerful contributor to Canada's economy, but more importantly, it's built on local entrepreneurs making a difference every day."

Regional growth spreads beyond Ontario

Ontario continues to lead in overall expansion, with the highest number of new franchise locations. But the CFA says growth now spans the country. Western provinces such as Alberta and British Columbia remain strong contributors. Eastern Canada is experiencing steady momentum, with increasing franchise development supporting local economies, job creation, and small business ownership opportunities across the region.

The Association frames the model's appeal in straightforward terms: franchising offers individuals the chance to be in business for themselves, but not by themselves. Behind every location, it notes, is a local owner deeply connected to their community.

World Franchise Day, created to bring global attention to an industry that blends brand strength with local ownership, will serve this year as a showcase for the sector's scale. If the 2026 outlook holds, the industry that opens a location every two hours will add hundreds more by 2027 — and deepen its weight in Canada's tax base and labour market along the way.