Franchising is one of the ways to start or grow a business in Canada. Franchises have a higher success rate than normal start-up businesses. About 86 percent of the franchises that were opened in Canada over the last five years are still under the same ownership and 97 percent of them are still operating.

The national average salary of a franchise owner is $40,480 in Canada. The franchise business in Canada represents over $100 billion in sales annually and continues to grow. Franchising is responsible for 5 percent of Canada’s Gross Domestic Product (GDP). If you are interested in opening a food truck franchise, here are some of the basic steps to consider.

Top Food Truck Franchises in Canada

  1. Carvel

Carvel is known to distribute ice cream, cakes, pies, and other treats. In 1934 Tom Carvel opened his first ice cream shop in Hartsdale, New York. The company has operated retail stores selling ice cream and other frozen desserts and also granted franchises for these stores since 1947. As of 2018, Carvel operates more than 400 franchise and food service locations in more than 20 states and over 10 countries.

  1. Kona Ice

This is a mobile, Hawaiian-style shaved ice truck franchise based in Florence, Kentucky. The company was founded by Tony Lamb in 2007. As of March 2015, the company had more than 600 franchise locations in 3 countries. Customers can customize their shaved ice with the Flavor wave, a patented flavor dispenser built into the side of the truck. Kona Ice shaved ice contains 60 percent less sugar than regular sugar water snow cones and can be made of 100 percent fruit.

  1. Cafe2U

This is the global mobile coffee franchise system that delivers fresh espresso coffee and great food to businesses, events, and other functions. Cafe2U is a member of the British Franchise Association and has over 85 franchisees in the UK. Cafe2U was launched in the UK by managing director Tom Acland in 2004. Tom first experienced Cafe2U when he was working in Australia and became a customer of one of the very first Cafe2U vans between 2000 and 2004.

  1. Lazymeal

Lazymeal is an online food marketplace featuring high-quality photos established in Vancouver BC, serving consumers, offices, and local restaurants. Lazymeal’s goal is to provide an online food ordering experience that is second to none. As the company’s Regional Partner or business owner, you will build and foster relationships with local businesses.

The app and team at Lazymeal look after the day-to-day details. No need to worry about managing customer service, website maintenance, or technical support. The platform is a game changer, which offers more delivery options and better efficiency for both merchants and users.

Steps to Consider When Opening a Truck Franchise in Canada

  1. Conduct a Thorough Research

The first step to buying a food truck franchise in Canada is to conduct thorough research, not just about franchising but also on the food industry and the location you want to open it. The research will help you analyze the pros and cons associated with investing in a food truck franchise in Canada.

It will also guide you in making the right choice for the best food truck franchise that will suit your business plan. Once you decide to take a more precise dive into the franchise: visit their website, go through their marketing items, and ask current franchise owners about their experiences, also seek their advice.

  1. Study the Franchise Requirements

The second step is to study the franchise requirements. When it comes to franchising, there are different requirements– some of the requirements might be favorable to you and others might not. Hence, a key step you must consider when buying a food truck franchise is to go through the franchise requirements.

These requirements usually vary from one franchise to the other, and you can risk not being qualified if you are not ready professionally and financially. Some of the requirements include; liquid assets, management experience, and credit score. In addition, make sure you have certain personal and management skills that will help you identify a brand that suits your skill set.

  1. Contact Your Preferred Food Truck Franchise 

Another important step you must consider is to contact the food truck franchise on your list. When contacting a franchise company, you can visit their office, send them an email, call them or send them a text message. You can also visit the franchise’s website or you can submit a preliminary application online to request an interview.

Note that during the application and interview process, you should be interviewing the franchisor just as they ask you some questions to guarantee that you are suitable for each other. Once you scale through this phase, the franchisor will share the franchise agreement.

  1. Write Your Business Plan

It is advisable you create a good business plan that states how you intend to launch and grow your business. A business plan will contain certain key points that are very critical to the success of your business, such as a market analysis of the competition in the area and the gap that your need franchise will fill that’s not being filled by other competitors.

You can include other information like expected costs, the number of employees to hire, what your position in the franchise will be, financial projections, and more. One good thing about opening a food truck franchise is that you can also obtain some information for your business plan directly from the franchisor or franchise agreement.

  1. Sort Out Your Finance

Finance is another important thing to consider when buying a food truck franchise in Canada. Without adequate funding, you cannot buy a franchise. The total cost of investing and running your franchise will vary, and will most often depend on the exact brand you decide to invest with.

Aside from the initial startup costs of your franchise, ensure you have adequate funds to run your business before it reaches the break-even point. It is necessary to have access to extra capital, even if you don’t expect to take from it.

  1. Choose a Good Location

When it comes to food truck franchises in Canada, your choice of location will impact the success of your business. So, you are advised to choose a location that is convenient and easily accessible.

Since you are looking forward to making profits from the food truck franchise, it is important to choose a location with high demography of people. While some franchisors will give you autonomy when it comes to choosing a location for your food truck franchise, others will decide the location themselves.

  1. Meet with the Company’s Affiliates or Partners

The next step you are expected to take when opening a food truck franchise in Canada is to meet with the company’s affiliates or partners. Meet with the marketing department of the franchising company to get assistance in the marketing and promotion of your franchise school. They will help you to execute cost-effective promotional techniques that will make your food truck franchise name known in all localities in Canada.

  1. Build Your Team

Once you have a suitable location and all the necessary requirements to start your food truck franchise in Canada, you should start building a team to carry out the operation. In building your team, you must give them adequate training. You would need to assign duties to different staff; like the manager, driver, caterers, and cashier. With the right team and the right food truck franchise in Canada, you can break even within the shortest time frame.

  1. Organize a Grand Opening

Lastly, once you have successfully purchased a food truck franchise in Canada, you will need to organize a grand opening party for the business. No business is open without first organizing an opening party to officially launch it.

You can do a soft opening party if you are operating on a low budget or you can go for a grand opening party for all and sundry. With the proper launching of the food truck franchise, you will be able to officially inform people in your city that your food truck franchise is open for business.