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Why U.S. Franchisors Should Care About the Winds of Change in Ontario

By Markus Cohen, Q.C.
May 01, 2004

For U.S.-based franchisors seeking international expansion, Canada is often the first choice for a host of obvious reasons: proximity; common language (almost); similar purchasing patterns; reaction to Canadian-tourist expression of interest; cross-border spill-over advertising; relatively low incremental cost to service a nearby 51st market area with a population roughly the size of California; etc.

When Canada is the obvious choice, the next issue is selection of the most appropriate point of entry. For franchisors headquartered, in the eastern half of the United States, Ontario is the next obvious choice. Primarily English speaking (unlike Quebec), Ontario boasts the highest density of Canada's population, highly developed infrastructure (including transportation, manufacturing, and all other factors of production), and the highest mean disposable income of all Canadian residents. It's a natural choice for all the best business reasons imaginable.

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