Are There Government Grants or Loans for Franchisees in Canada?

Starting or expanding a franchise in Canada can be a rewarding journey, but it also comes with financial challenges. Whether you’re buying into a well-known food chain or launching a niche service franchise, one of the most common questions is: Are there government grants or loans for franchisees in Canada?

The good news is, yes—there are multiple government funding programs available to franchisees across the country. While direct grants for franchises may be limited, there are low-interest government loans, training grants, and regional funding supports that can significantly reduce your startup costs or operational expenses.

In this guide, we’ll break everything down in plain language so you can understand what’s available and how to apply. Let’s explore how government support can help turn your franchise dream into a reality.

 

  1. What Is Government Funding for Franchisees?

 

Government funding for franchisees in Canada includes a variety of financial supports such as:

These programs aim to promote entrepreneurship, stimulate local economies, and create jobs. As a franchise owner, you qualify as a small business, meaning you can access many of these resources even if the word “franchise” isn’t mentioned directly in the program.

 

  1. Why Government Loans Are More Common Than Grants

 

Many people ask: Are there government grants to start a franchise in Canada?

While it’s a valid question, most government funding available to franchisees comes in the form of low-interest loans—not free grants. Why?

Still, as we’ll see, there are indirect grants for training, hiring, and digital tools.

 

  1. Top Government Loans for Franchisees in Canada

 

Let’s review the top loan programs for Canadian franchise owners.

Canada Small Business Financing Program (CSBFP)

Best for: First-time franchise buyers or those expanding with physical locations.

This federally backed program allows small business owners to access up to $1 million in financing, of which:

Highlights:

 

Business Development Bank of Canada (BDC) Franchise Financing

 

Best for: Aspiring franchisees who need flexible funding options.

BDC offers a Franchise Financing Loan up to $350,000 for:

They also offer up to $150,000 in online applications with fast approval.

Why choose BDC?

 

Farm Credit Canada (FCC)

 

Best for: Food-based franchises or agri-businesses.

If you’re starting a franchise in food production, retail, or services (e.g., a bakery or farm-to-table café), FCC can offer up to $1 million in financing.

They focus on:

 

  1. Available Government Grants for Franchisees

 

Now let’s talk about grants—free money that you don’t have to repay. While rare, there are a few programs you can tap into.

Canada-Ontario Job Grant (COJG)

Best for: Franchise owners hiring or training employees in Ontario.

This program covers up to 83% of training costs (to a maximum of $10,000 per employee). You can use it to:

Franchisees qualify just like any small business.

 

Regional Development Agency Funding

 

Canada has six Regional Development Agencies (RDAs). They offer grants, loans, and support depending on your location and industry.

They often support:

 

Canada Digital Adoption Program (CDAP)

 

Best for: Franchisees looking to boost their online presence.

This grant offers up to $15,000 to help you develop a digital strategy, plus a 0% interest loan up to $100,000 through BDC.

Eligible uses include:

 

  1. Tax Credits and Indirect Financial Support

 

Besides loans and grants, you can take advantage of tax credits that indirectly reduce your business costs:

Scientific Research and Experimental Development (SR&ED) Tax Credit

If your franchise does product development, app testing, or innovative cooking methods, you might qualify.

Apprenticeship Job Creation Tax Credit

If your franchise trains apprentices (e.g., in skilled trades or food service), you could claim 10% of wages up to $2,000 per apprentice.

 

Additional resources

 

  1. Programs for Specific Groups

 

Canada encourages entrepreneurship through targeted programs:

For Women Entrepreneurs

For Indigenous Franchise Owners

These support Indigenous people in launching or expanding a franchise business.

For Newcomers to Canada

Programs from IRCC (Immigration, Refugees and Citizenship Canada) and local settlement organizations offer:

 

  1. How to Apply for Government Grants or Loans

 

Here’s a simple step-by-step guide:

  1. Build a Business Plan
    Include startup costs, revenue projections, and job creation.
  2. Check Eligibility
    Go through program websites and check location, revenue, and employee requirements.
  3. Gather Financial Statements
    Banks and agencies want to see your income, expenses, and business structure.
  4. Submit Your Application
    For loans: Apply through your bank or BDC.
    For grants: Submit through program-specific portals.
  5. Prepare for Follow-Up
    Be ready to clarify your plan or provide additional paperwork.

 

  1. Tips for Getting Approved

 

 

  1. Best Tools to Find Government Funding

 

Use these free tools to find small business grants and loans in Canada:

Business Benefits Finder (by the Government of Canada)

 businessbenefitsfinder.service.canada.ca

Enter your province, business type, and needs to see a tailored list of government programs.

Futurpreneur Canada

Great for young franchisees (aged 18–39). Offers up to $60,000 in financing plus mentoring.

Fundica and Mentor Works

These are private platforms that help you find and apply for relevant funding opportunities. Some services are free; others charge a fee.

 

  1. Conclusion: Yes, There Is Help for Franchisees in Canada

 

So, are there government grants or loans for franchisees in Canada?

Yes—while outright grants for startup costs may be rare, there are plenty of low-interest loans, training subsidies, technology grants, and regional supports that franchise owners can take advantage of.

Whether you’re starting a new location, training staff, or investing in digital tools, there are multiple ways to reduce your risk and increase your funding.

Use tools like the Business Benefits Finder and BDC financing to get started—and don’t hesitate to speak to a small business advisor or consultant to improve your chances of success.

 

The final reflections on the PHO franchise opportunity in Toronto

 

Operating a pho franchise in Toronto offers a profitable and rewarding venture. The city’s diverse population, strong economy, and thriving culinary scene provide an ideal environment for success. However, it’s crucial to undertake thorough research to identify the most suitable franchise opportunity and craft effective marketing strategies to stand out in this competitive market.

To thrive in this industry, it’s essential to seek expert advice, network with experienced franchise owners, and stay updated on changing customer preferences. By tapping into the abundant pho franchise opportunities in Toronto, you can establish a successful business and meet the growing demand for pho, positioning yourself for long-term success in Toronto’s dynamic market.

Discover the incredible opportunities available as a pho franchise owner in Toronto! Our franchise has seen significant growth and success recently, proving the effectiveness of this business model. Contact the Toronto PHO franchise team today to explore the full potential of this exciting enterprise. We offer competitive franchise fees and robust support to ensure your profitability in this flourishing market.

To find us, search for “pho soup near me” and locate our franchises in Toronto, North York, Woodbridge, and Hamilton. We have carefully selected these diverse locations for their accessibility via public transport and ample parking, ensuring convenience for our valued customers.