Franchising Trends in Canada: Here's What To Expect in 2025

In 2025, franchising will continue to be a thriving and dynamic sector of Canada's economy. However, the landscape is evolving, with shifts driven by economic trends, technology, and consumer preferences. Here are some of the key franchising trends that may define Canada’s franchise industry in 2025.

Ownership with economic resiliency

Becoming a business owner can be a daunting task for many entrepreneurs. While the rewards can be high and positive, the risks are what keep most people from taking the leap. Fortunately, franchising offers an enticing pathway to business ownership with lower risks and the necessary support to thrive during challenging times. That’s why this year, we can anticipate the franchise industry to continue its upward trajectory, seeing an increase in people choosing the franchise route versus going independent.

One group expected to perform better than others is quick service restaurants (QSRs). According to a report by Mordor Intelligence, the Canadian food service industry is valued at over $135 billion USD. Forecasts predict that the market will grow to nearly $304 billion USD by 2030, making it a desirable industry to pursue for new and existing business owners.

Technology integration and digital transformation

One of the most significant trends in franchising for 2025 is the increased integration of technology into business operations. From artificial intelligence (AI) to automation, franchisors are embracing state-of-the-art tools to streamline processes and improve guest experiences. Digital orders, for instance, provide valuable information and analytics that give franchise owners the power to personalize what menu items and rewards are prompted for that individual versus others.

At Little Caesars, our exclusive Pizza Portal pickup, a heated, self-service mobile order pickup station, allows us to track the volume and type of orders we receive at certain periods throughout the day. This gives us the knowledge we need to better stock our Pizza Portals to ensure we are meeting guest demand and provide seamless ordering and pick-up services.

Multi-unit and multi-brand ownership

The trend of multi-unit and multi-brand franchise ownership is expected to grow in 2025. Aspiring franchisees are increasingly investing in multiple locations of the same brand or diversifying their portfolios by owning franchises across different industries likely to see higher consumer demand in the years to come.

Franchisees are increasingly falling back on their experience with established business models while spreading their risk across multiple revenue streams. For franchisors, it provides an opportunity to work with experienced operators who understand the market and can scale rapidly. The support and systems provided by franchisors help multi-unit operators manage their portfolios more effectively, which is crucial in a competitive business environment.

Go where the customers are

One key to success will be thinking outside the box. If you’re complacent, you’re stagnant and won’t see any potential growth. For example, Little Caesars is currently accelerating its footprint in Canada with restaurants across non-traditional venues including gas stations, providing greater access for consumers looking for a quick bite on the go. When you cast your line into a sea of customers, you have a better chance at securing bites rather than waiting for consumers to swim upstream to you.

Franchising in Canada is poised for continued growth and evolution in 2025. With an increasing focus on technology, sustainability, and a desire to anchor to an evolving landscape, the industry is adapting to meet the changing needs of consumers and entrepreneurs. By staying on top of these trends, franchisors and franchisees can position themselves for long-term success in a competitive marketplace.

Kevin Winters is the franchise development manager with Little Caesars Canada.