This leads to a great question for these folks to consider: What is the difference between getting a job and owning a franchise? There are definitely advantages and disadvantages to either choice. The right answer varies from person to person, based on what they want to achieve in life and how they feel about factors like risks and rewards. Let's start by taking a good hard look at the status of both the job market and the franchise industry.

The job market today is a mess. Not only is unemployment high, but the few companies that are starting to hire are taking advantage of the marketplace by raising qualification requirements and slashing starting salaries for new positions. They still get willing and qualified applicants lining up at the door, so why wouldn't they do this? Many unemployed executives have realized that the job they used to simply doesn't exist any more at that salary they were paid, and there's no telling when or even if it will return. This dynamic is causing a phenomenon of "under-employment" that may take years to correct itself. It's not a pretty picture for the job seeker.

The franchising industry is also suffering in today's market. Many franchise concepts have found that the recession cuts deeply into their revenue and margins. In many sectors, only the strong will survive the wait for normal economic times, which means that a prospective buyer has to be even more careful than usual in selecting the right opportunity. The disintegration of the credit markets has made franchise startup lending a thing of the past, so the new franchisee will likely have to look to other resources for the capital to start a business. Most unemployed executives don't have large reserves, so they must find a franchise that starts earning a positive income as quickly as possible. All of these factors make finding a great franchise opportunity potentially more challenging than it was in the past.

Even though the current marketplace isn't great in either arena, there are good opportunities for the careful seeker on both fronts. As you evaluate either option, keep in mind these three key areas that differentiate the two:

Income: Both a job and a franchise should provide you with an income. With a job, the income is typically clearly defined; you know what your salary is going to be and how often it is going to be paid to you. There may also be non-fixed income (commissions or bonuses, for example) but that is still usually pretty easy to estimate in advance, so a job provides quite a bit of certainty in relation to income. With a franchise, especially in the short run, your income is far less certain. It is quite common in a business startup to work for some period of time without any fixed income. Though the long-term income prospects may be quite a bit higher in a franchise, you need to make sure you have adequate reserves to live on while you are going through the initial building phase.

Wealth: Having ownership in a business is the classic path to creating wealth. When you build a franchise business you are building an asset that grows in value and can eventually be sold--hopefully for quite a bit of money. This wealth payoff to the franchise owner is on top of the income received during the operation of the business. Owning a franchise involves taking more risk in the beginning, but the reward is that any wealth created through your efforts will accrue to you rather than to someone else (as it does when you have a job). This factor is very important to most people who choose to go the franchise route.

Control: With a job, your control over your work efforts isn't very high. You basically have an employer who tells you what they want you to do and how they want you to do it. If you own a franchise, you are the employer who is telling others what you want done, and you are completely in charge of what you do at work. This fundamental difference is one that is very appealing to some people but uncomfortable or even frightening to others. As you evaluate which option is better for you, this is something you should carefully consider to make sure you go in the direction that best suits your personality.

Is a job or a franchise better? There is no right or wrong answer. It depends on a person's priorities and what they are trying to accomplish in their life. The basic trade-off is pretty simple: A job has more income certainty but owning a franchise has more wealth-creation potential and allows for greater control. Each person needs to determine the balance between these factors that works best for him or her.

By Jeff Elgin, Entrepreneur

When franchise partners don't trust their corporate team, it may take longer to complete projects. Most professionals in the franchise and business world would agree that trust is a vital element for a successful relationship between a franchise system and its franchise partners, whether on an individual level or between the franchisor and its franchise partners as a whole.

In 2009, I dealt with this very set of challenges when I took the CEO position for Fastsigns International Inc., the worldwide franchisor of more than 530 full-service sign and graphic centers.

I entered into this leadership role in one of the worst economic climates in recent history, with a company that was experiencing its first double-digit sales decline. Additionally, a lack of trust had formed between the franchise partners and the corporate team--the franchise partners were distressed and feeling as though their questions and concerns were not being heard. I knew I needed to immediately begin developing rapport and trust among the franchise partners in order to re-establish communication and motivate the company.

Regardless of the economy, every franchisor should be working continuously to improve operations and efficiencies so that franchise partners can maximize their profits. You can no longer take the attitude, "If it ain't broke, don't fix it." Listening to franchise partners is a great way to generate ideas and learn best practices, so we began actively reaching out to franchise partners--not only listening to their concerns, but involving them in corporate decisions. Since their feedback comes from their experiences on the front lines, it provides great value and can teach you a lot about what works and what doesn't.

From there, I worked with the corporate team to employ a strategy of getting back to basics, which included an incentive program, and monthly company meetings for sales updates, program developments and company announcements. This went a long way toward opening the doors of communication, establishing trust and aligning the team on our common goals.

While these changes were a crucial stepping stone, they were just the tip of the iceberg. Tough times require tough measures, and I needed to get down in the trenches with my team. Fastsigns developed four key objectives: improve franchise profitability, drive top-line sales, increase the value of the Fastsigns brand, and increase franchise partner satisfaction.

We took a hands-on approach and reached out on a personal level to the franchise system--not a simple task. I began hosting monthly calls to the entire franchise system in which I provided updates and answered questions. The calls also gave franchise partners an opportunity to voice concerns directly to me. In addition, I embarked on a road tour, meeting face-to-face with as many franchise partners as possible.

The following strategies were implemented to help increase confidence and trust:

Franchise system road tour: One of my first objectives was to initiate a strategy that would put us face-to-face with as many franchise partners as possible. The goal? Re-establish our relationship with them and earn back their trust. As a result, we implemented a five-month, 28-city North American Town Hall Tour, during which I met in person with as many franchise partners as possible to engage in dialogue, share ideas and boost morale. Since then, we have met with more than 380 of our franchise partners in four countries. This strategy created more confidence and built CEO credibility among our franchise partners, while dramatically improving the relationships they have with our corporate support team.
 
Annual conventions: If your franchise system holds an annual convention or meetings within the field throughout the year, take the opportunity to sit down with your franchise partners at these events to discuss how they think things are going within the franchise system. They will give you insight into what programs work well, which ones do not, and any issues that may need to be addressed. Letting them participate in a one-on-one or group discussion demonstrates to them that you are willing to listen and take their advice under consideration.
 
Webinar: If an annual convention is not feasible for your franchise system, another solution is to host a series of ongoing webinars. Technology allows franchise partners to remain in the comfort of their own office or home while still having the ability to speak with you, the franchisor. A webinar is a great way to conduct the same presentation remotely that you would at a convention, but also allow two-way communication for franchise partners to ask questions or express concerns.

This hands-on approach helped rebuild trust and communication with more than 380 Fastsigns franchise partners in four countries, focusing on communicating the company's core values and vision for the future. It is imperative for both our corporate team and network of franchise owners to understand that we share the same vision and goals. The results have paid off with a happier franchise community, and an increase in profits and franchise growth.

Whether your franchise system contains five or 500 franchise partners, as a franchisor, you must listen to your franchise community before you start to implement changes that will affect the entire system. By doing so, you will remind your franchise partners that they play an important role in the decision-making process. Despite tough times, such as the recent economic downturn, it is possible to foster positive emotions in the workplace.

Communication is the most important factor in a triumphant relationship between the franchisor and the franchise partner. Remember that they invested in your concept to help fulfill their entrepreneurial dream and because they strongly believe in your concept's core values. They depend on your support and trust to help them grow and remain passionate about their business. It is important to understand that when they express a concern, you must listen and respond appropriately and with compassion. Better understanding the needs and concerns of your franchise partners will create a relationship full of trust that will lead your concept toward a future of great success.

By Catherine Monson, Women Entrepreneur

See the IFA for more information.

This article identifies and highlights differences between the definition of franchise contained in the Ontario legislation, the Alberta franchise legislation, the UNIDROIT Model Law, the NASAA Model Law, the Federal Trade Commission Franchise Rule and under the Canadian Franchise Association Guidelines.

To read more, click here.

For a business like the one you are about to launch, your father is correct, location is important. And the wrong location can pose problems. Sometimes it's difficult to know what you are getting until you have it. But there are a few precautions that you can take to help deal with possible problems.

Several years ago the auto repair shop that I use moved to a busy intersection of what the owner called a heavily trafficked area that would become a gold mine for his business. And indeed it was an area where the traffic was extremely heavy.

In less than a year the owner stopped by my office to see if I could make a few suggestions to help him revive his business. His move wasn't what he had thought it would be. He had managed to maintain his old customers but, in order to support the expensive rent he needed new customers that he wasn't getting.

After a careful study we concluded that the problem was that the traffic was all pass-through. In other words, the traffic was in constant movement and rarely did anyone stop to shop. Other businesses in the area that needed walk-in traffic were experiencing the same problem.

It is reasonable to assume that if you can offer something that attracts buyers you stand a better chance of getting customers. My suggestion for the auto repair owner was to section off a part of his space and sub-lease it to one of the local farmers who could bring their fruits and vegetables to the market place.

My suggestion actually worked out quite well. Many people made a point to stop and shop at the "Farmer's Market." The farmers also brought flowers for planting in the spring and Christmas trees to sell in December. So from late March until the end of December the auto repair shop does good business.

This addition allowed people to get two things done at once; get their cars repaired or serviced while they shopped for fresh fruits and vegetables. A number of the other businesses were able to cash in on this added feature as well.

So perhaps you should go back to the area that you want to put your business in and visit the other businesses to see what the area has meant to their companies.

Is the heavy traffic just pass-through? Are the other companies doing well? Is adequate parking available? Nothing can deter business quicker than lack of parking. This has been the stronghold for shopping centers.

If you find that the heavy traffic is actually bound for some place other than the area, consider looking for another more suitable location, or, consider adding something of interest to encourage traffic to come to your place.

Your father's words are sound advice. Do your homework and when you have your grand opening, you will have covered all bases and be better prepared to succeed.

By Gladys Edmunds, USA TODAY

On the surface, this sounds like a great idea. You pay your fee and the franchiser researches the location, signs the lease, builds out the unit, supplies you with start up inventory, finds and trains the staff, and orchestrates the grand opening. All you have to do is “turn the key” to open your new business

There are advantages and disadvantages to a turnkey franchise. It could be a great advantage to you because of the work and aggravation it can save. It may also be an unnecessary expense if the package is overpriced for what it offers.

If the business you are looking at getting into says it is a turnkey opportunity, here are some ways to evaluate the value of the package offered. Most franchisers offer only a partial turnkey program, doing some but not all of the items mentioned above. Make sure you understand what they will help you with and what tasks you will need to tackle yourself.
You should expect to pay a reasonable cost for the labor involved in putting the package together, but not an outrageous price. If the price seems high, ask for a breakdown of the services provided.

Group purchasing power is a definite benefit of business franchising. You can expect to get a good deal on the components needed for the business since you are taking advantage of the buying power of the chain. Make sure you have an understanding of the savings.

Ask the current business franchisees about the value of the turnkey package. You will be calling them anyway as part of your due diligence so be sure to cover this topic thoroughly. Ask them if they feel they got a fair value for the turnkey package and if the process went as smoothly as they expected.

Finally, remember that you are paying a large upfront franchise fee and substantial ongoing royalty payments to this franchiser. These are accepted costs of a franchise business. You should not also have to pay a large markup above the actual costs to put the turkey package together. Take the time to understand all facets of the process and the associated costs.

There are always exceptions to the rule. Some franchisers do not charge a royalty but actually make their profit by selling you the components of a franchise. For example, a smoothie franchise may sell you their proprietary kiosks and ingredients rather than charge you a royalty fee. The franchiser’s profit comes from the mark up on the products they sell you.

Again, you should expect a fair price and the best way to determine if the price is fair is to ask the existing franchisees. Ask them if they are happy with the prices they are charged and if they shopped around before signing with the franchiser to see if this was the best deal they found.

A true turnkey franchise is a company that supplies franchises with a business in a “condition ready for immediate use, occupation, or operation,” according to a dictionary definition. In most cases, a franchiser will do a lot to get you up and running but you will still need to take care of a number of start up items yourself. But whether a business is or is not a turnkey opportunity, or is a partial turnkey operation, do not forget that there is still one element of the equation that a franchiser cannot provide and that is the drive, talent and determination of the franchisee to make the business successful. That is completely up to you!

Franchise Article courtesy of http://www.franchise-guide.org/

Before you take the plunge and agree with the franchisor, you should ask about the level of support that your franchisor is going to give you in terms of training, marketing, advertising, and financial support.  Once you have this information, research about the strength of the franchise business system and the brand name especially the business system.  You have to learn all about this from scratch.  You can find this information in public financial records of the company.  It is also advisable to know about the income of the company, financial statistic and the growth of the company.  From knowing how many new franchisees a franchise business system acquires yearly, you can figure out the growth of the company and the level of success of franchising.  One way to confirm all these is to talk to other franchisees and ask them about these things to solidify the researches you have made.

Once you have all this information on hand, then it is time to go to your franchisor.  You have to read carefully the franchise agreement and the financial agreement carefully as it contains the contract.  It is also imperative to know if your franchisor is agreeing to have another franchisee in your area, which means you and the new franchisee will be sharing customers.  If the answer is yes, it is showing less support because it means a lower income for you and for the new franchisee.  If the deal is all right for you then you can go ahead and sign the contract.

In dating, before marrying the person, you have to have information about them, their background and what they are really like before you say “I do” to the person because it the end you might be committed to a relationship that is not to your liking.  And there might be no way out.  Think of franchising as dating, who would want to be caught in a doomed relationship?

Source: The Franchise Guide

Franchising is a specialty of business, as pediatrics is a specialty of medicine. It is actually a financing model since every business needs money to grow. When a business wants to expand it can either: (a) go to the bank and ask for a loan to finance building corporate stores or, (b) go to individuals, called “franchisees” and have them invest in individual stores. Option (b) is much more attractive as the growth is funded with the money of others and not with corporate debt and hence, the company grows at a quicker rate. It then becomes a Franchisor, and creates a Franchise System. Each unit in the System must then share common goals and methods of operations. It has to appear as if the original business had financed multiple corporate stores.

The success of a franchise system is based upon 2 intangible principals: Consistency and Goodwill. This is true regardless of the product or service. By consistency, I mean that the customer can expect to have the same experience in every unit. A Big Mac is a Big Mac wherever you may be. The second element, goodwill refers to the fact that once the sign goes up above the door, customers will automatically be drawn to your store just by virtue of the fact that they’ve recognized the name and that they know what to expect from the customer experience. These elements must be present in any system you evaluate.

How do you know it’s there? Pretend that you are a mystery shopper, visit several locations. Do they look the same? Is the staff trained in the same way? Did you have basically the same experience at them all? Keep in mind that there will be variations among different outlets to reflect the personalities of the individual the trade market area.

The Franchisor is a team of people who create, implement and manage the system for the benefit of the whole. When you buy a franchise you will be given extensive training in that field of expertise. You are expected to follow the rules. Remember, that’s why you bought a franchise in the first place. What you are buying is the system, tried and tested tools, and a less risky way to go in to business. The franchisor’s job is to give you the tools and yours is to use them. Inevitably, franchisees forget this and figure out a way to “do it better, cheaper…whatever”. It’s on that day that your results will suffer. Many, many, great ideas have come from franchisees, and franchisors want to hear all of them, but there is a procedure for it. Franchisees cannot unilaterally implement changes at the store level. Most consumers don’t understand franchising, so if they have a bad experience at one unit, it reflects poorly on the entire system. The upside of franchising however is huge, the franchisor provides the name and goodwill, the research and development, continuing support and marketing, and that allows you to do what you need to do most, run your business. That’s the formula for franchising success.

This is why when investigating a franchise it is so important to meet the franchisor’s management team. It’s easy to get caught up in investigating the actual business opportunity but don’t forget to pay attention to the people behind the opportunity. You are investing your money not only in your particular unit but in the system as a whole. You want to know about the foundation upon which the system is built. The provinces of Ontario and Alberta, PEI and New Brunswick require prospective franchisees to receive a disclosure document as the first step in the franchise purchase process. However, in all other Provinces, no such documentation is required. In the disclosure document, relevant information regarding the personal and professional backgrounds of all senior members of the management team is provided, as well, various financial and legal information regarding the franchisor. Given that providing this information is not standard procedure in everywhere, it is very important that you be an advocate for yourself and request it. Remember that this management team is the team that will lead your franchise and the system to future growth. Therefore, you want to know about the financial security of the company and its ability to finance future growth, how committed the team is to future growth, and what their development plans and strategies are. One telling question is whether the corporate stores contribute to the royalty and advertising funds. Another important element is whether there are any outstanding actions against the Franchisor by franchisees or suppliers.

One of the biggest indicators of the success of the system is how often units have been re-sold, how many franchisees typically renew or sell their units at the end of the term and how many multi-unit operators there are. This will give you an idea as to whether the present franchisees in the system are committed to growth and whether they foresee a future for the system as a whole. It is important to speak to other franchisees to determine what kind of support they have received. Other franchisees, including those that have left the system are a valuable source of information. The franchisor will furnish you with a list of franchisees to contact. Keep in mind the source of the information though, disgruntled franchisees are not likely to give raving reviews!

Franchisor’s, in evaluating prospective franchisees, all look for similar things. Believe it or not, experience in the area of expertise is not high on the list. Good franchisees are “intrapreneurs”, the have something of value to add to the system, and will be dedicated to developing their businesses. Their greatest pre-requisite skills are in the areas of people and time management.

When deciding what to purchase most people first consider the amount they have to invest. WRONG! You first have to make a quality of life choice. Franchisees have to be totally committed to working their business. If you don’t want to be up at 4 am, don’t buy a breakfast franchise! Evaluate all of the aspects of the franchise including: hours per week, training and ongoing training, amount of networking required, etc. Most of all, make sure it is a business you will enjoy. You have to get up every morning and go there. Once these factors have been established, review what options are available in your financial range.

To best educate yourself on the franchise industry and your individual choices there are great publications and resources. The www.thejournaloffranchise.com, and www.occasionfranchise.ca, websites are chock full of information, articles and investment options. I ask clients to begin reviewing their options and then to narrow down their choices to 5-10 franchises and then we investigate the “fit” of each opportunity.

Once you have made some selections, you are now at a critical point in the buying process. This is the point at which emotion comes out of the process entirely. Now you must investigate each opportunity purely on the basis of “dollars and cents”. You are making a large investment and you must continue in this frame of mine “Cousin Henry asked me to invest his money in a business, which one should I buy for him and why?” You may love the franchise but if it doesn’t meet your financial needs then don’t buy it.

I can’t stress enough the importance of doing your homework. Remember consistency and goodwill? Now is the time to investigate the systems on your list? Visit units, be mystery shoppers, speak to franchisees, and meet the management team. Don’t be shy about asking questions. A good franchisor understands the value of finding just the right “fit” between the franchisor and franchisee. Just like people have personalities, so do systems. It’s important for there to be a match. You should be looking for it too. Make sure when you sign that you are taking a level of risk that you are comfortable with and that you understand all your rights and obligations.

The buying process begins with the completion of an Application Form and often, the remittance of a fully-refundable deposit. This deposit shows your good faith that if you are accepted, you will continue with the buying process and ultimately, buy. There is then a personal meeting, and depending on the province, remittance of a Disclosure Document. If a deposit has not been given, it will likely be requested 14 days after delivery of the Disclosure Document. If the parties still like each other, the next step is the signing of the Franchise Agreement and the payment of the balance of the Franchise Fee. If the Application is not accepted and a deposit has been given, it will be refunded immediately. At this point if there is a location to be selected, it will likely be done simultaneously with the negotiation of the franchise agreement. If you are buying a service business, it is not likely that any training will begin until the Franchise Agreement has been executed. In retail, including restaurant, you usually train (at a corporate centre) while you’re unit is under construction. You then get onsite training from pre-opening until sometime after opening, depending on the system. From then on you are a “franchisee” and will receive all the services and support you contracted for in the Franchise Agreement. Although this is a simplified view of the process, it should follow this general path.

If the process sounds scary, (it’s not really!), there are a bevy of professionals in the franchise industry who are willing to help out. I do recommend that you use “franchise” professionals as franchising is a specialty. An investment in professional legal and financial advice will be the smartest investment you will ever make. It may cost you a couple of thousand dollars but it could save you a couple of hundreds of thousands of dollars!

The franchise selection process can be long and is often trial and error. Don’t get discouraged. It can take a while to find the “right” opportunity but you will know it when you find it. It will excite you. Wait for that “right” one and don’t feel obligated to anyone. Remember it’s your money, and you are in the driver’s seat-no matter what sales pitch you are given. Take your time and finish your homework dear!

Franchising is my favorite business model and I have been working with it for 15 years now. I have seen systems and franchisees come and go. The successful franchisors are those who recognize that to be successful, the franchisees must be successful. They realize that prospects will ask franchisees 2 questions (1) are you making money? and (2) are you getting support? If the answers are yes to both, then the franchisees become their best salesmen and vehicle for growth. Successful franchisees are committed to following the system and they actively work and promote their business. A solid franchisor has a committed management team and a committed network of franchisees.

Franchising has had a bad rap on occasion, and it is wholly undeserving. In fact, it is a brilliant way to get into business. Industry Canada Statistics show that independent business owners over a 5 yr period go bankrupt at a rate of 85%; however, of those in a franchised business, at a 5 yr. term, over 85% are still in business. The numbers speak for themselves.

I have had the joy of seeing many people flourish in business with this model and to realize dreams beyond their wildest imagination. To each of you I wish the same success.

Sincerely,
Lori Karpman
The Journal of Franchise

Options to Meet Your Needs
A key advantage of purchasing a franchise versus starting your own business from scratch is the fact that you will receive a complete and proven business system which typically includes comprehensive training as well as guidance and support for the lifetime of your business. By the time you open the doors of your new business, you will be a confident industry pro. So, whether you'd like to use your experience to purchase a business in a field you're familiar with, or you've always dreamed of working in a completely different industry, there's a franchise that will fit your interests.

Buy a Business that Not Only Interests You, But Also Has a Strong Demand In Your Area
Perhaps you've always dreamed of owning a café. Think about the current cafes in your area and then look at available franchise concepts for sale. Is there a concept that will offer your prospective customers a product, service, or environment that is different, appealing, and in high-demand in your area of the country? Unless you are purchasing a franchise with massive, widespread brand recognition, your new business must be different and trigger a large demand in your city to succeed.

Plenty of Choices…
So what industries offer franchises for sale? You might be surprised to learn that franchises are available in nearly 90 industries, ranging from children's afterschool enrichment programs, handyman service providers,and pet storesto business consulting, specialty beverage cafes, and publishing businesses. There's bound to be a franchise that meets your interests, needs, and the market demand in your area.

Source: franchise.com

But it's not only American sports bars that feel they will find a warm welcome north of the border. A maturing U.S. market and a stronger Canadian economy make the country a logical growth opportunity for U.S. restaurant chains in general.

"The Canadian economy is in a lot better shape than the U.S. economy and that likely makes it more attractive in terms of development," said analyst Destin Tompkins of Morgan, Keegan & Co.

"On the whole, most of the mature (U.S.) casual dining companies and quick service companies have very limited domestic expansion plans," he said.

Buffalo Wild Wings, which began nearly 30 years ago as a college bar in Columbus, Ohio, announced plans last week to open more than 50 company-owned and franchised restaurants across Canada over the next five years, starting with two next spring near Toronto.

"I think the economy is going to have a slow recovery, and I think sometimes when you go in when it's slow, you really can take advantage of some of the growth opportunities that come along," said Buffalo Wild Wings Chief Executive Sally Smith, whose company is approaching the 700-store mark in the United States.

"Canadians have many of the same attributes as the United States: love their sports, love beer and love wings. So it seemed like the perfect fit," Smith said in an interview.

Buffalo Wild Wings said the expansion will create 3,500 jobs in Canada and will use Canadian sources for ingredients such as its fresh chicken wings.

The company is joining other U.S. chains that have recently set up shop in Canada and those that have been here for years and are looking to expand. Five Guys Burgers and Fries, which operates 655 burger joints in the United States, and Chipotle Mexican Grill (CMG.N), which operates roughly 1,000 company-owned restaurants south of the border, are two examples of relative newcomers.

Five Guys, which made headlines in 2009 when President Barack Obama made a surprise visit, expanded into Canada this year and has five locations so far. Three more are slated to open before the end of the year, and at least four more locations are in the works for 2011. Chipotle opened its second Canadian restaurant this summer after launching its first in 2008.

"There are several companies that are already there. I wouldn't be surprised if we see more that start to enter Canada similar to what Buffalo Wild Wings announced this week," Tompkins said.

According to the National Restaurant Association in the United States, Americans spend $580 billion, or 49 percent of their food dollar, in restaurants. In contrast, it's a C$60 billion ($57 billion) industry in Canada, which has about a tenth of the U.S. population, and households spend about 23 percent of their total food dollar away from home, according to the Canadian Restaurant and Foodservice Association.

"Canada really represents an opportunity to increase the amount that consumers spend away from the home," said equity research firm Wisco Research's managing director Greg Schroeder, noting that restaurant spending in the United States is flattening in a maturing market.

"There's no market saturation and just given the dynamics of how consumers buy their food there, it just seems like there's a lot of opportunity in Canada," he said, adding that even established chains are still expanding.

Some U.S. chains, McDonald's (MCD.N), Burger King (BKC.N) and Darden Restaurants Inc (DRI.N), the company behind Red Lobster and Olive Garden, for example, have been operating in Canada for decades.

But Krispy Kreme Doughnuts Inc (KKD.N) and Dunkin Donuts have all but disappeared, with only a handful of stores left. Part of their challenge was competing with cultural fixture Tim Hortons Inc (THI.TO), which dominates 40 percent of Canadian fast-food traffic, according to NPD Crest, the leading global provider of consumer market research. Its nearest competitor, McDonald's, has about 14 percent.

And Canada is not always the natural first choice for international expansion for U.S. restaurants. The relatively small market size can be a deterrent.

"If you're not going to have critical mass in the country, the additional cost of learning how to do business in a foreign country may be tougher to generate a return," said analyst Bart Glenn of D.A. Davidson & Co.

It does represent "an easy first step" for companies looking to expand globally, however, said Tompkins. "It's a good transition as you evolve your international plans."

Buffalo Wild Wings, which began exploring the Canadian market two years ago, is already making visits to Europe and eyeing markets beyond that. It hopes to announce expansion plans overseas within the next two years.

"A lot of the companies I'm talking to in the last 12 months are announcing deals...outside of the United States," Schroeder said.

"They're really seeking international growth opportunities and Canada is just a natural, I think, over time."

By Solarina Ho, Reuters