BECOMING A FRANCHISEE

If the prospect of running your own business in partnership with a 100% Canadian-owned company appeals to you, then you have come to the right place.

Since 1911, Canada Bread has produced one of Canada’s most loved and finest tasting commercial bakery products. Today, Canada Bread is the largest commercial bakery operation in the country enjoying strong customer service based relationships with such grocers as Sobeys, IGA, Metro, Wal-Mart, Super C, Safeway, Overwaitea and Costco Wholesale as well as Food Service customers such as A&W, Harvey’s and Burger King.

Canada Bread has operated as a Franchisor since the 1960’s and provides premium customer service by way of an Owner Operator Franchised Network that is comprised of over 1,000 Franchisees from coast to coast.

Canada Bread has a proven track record of great business stability and a desire to embrace business change through product innovation that will help drive mutual growth for Canada Bread, its Customers and its national network of dedicated Franchisees.

At Canada Bread, our goal of mutual growth and success is rooted in a business philosophy that is driven by a unique core Values system. This core Values system was introduced to Canada Bread by its strongest business partner and one of Canada’s most widely recognized companies, Maple Leaf Foods. The Maple Leaf Values have taken Canada Bread to the next level of business excellence.

Canada Bread has become one of Canada’s leading bakery supplier by offering “Superb Franchisee Support” through our experienced and knowledgeable management teams while “keeping the market fresh” with industry leading product innovation and high integrity business partnerships with Canada’s finest grocery and food service leaders.

The Canada Bread Owner Operator Franchise

The Canada Bread Franchise System is based on an “Owner Operator” business model. You are the face of the Franchise from start to finish each day with the full support of Canada Bread’s Sales, Marketing, and Franchise teams.

Franchisees typically start their day between 1:00 to 3:00 am at an assigned Canada Bread Depot Location where all of the bakery products they have ordered in advance arrive to be sorted by the Franchisee. Once sorting is complete, the Franchisee leaves the depot and begins his/her route.

The “Owner Operator” at Canada Bread is truly unique. Canada Bread Franchisees are far more than delivery people. Franchisees are intensely driven business people focused on building their business and driving growth within their customer accounts.

With the support of the Key Account and Field Sales teams Canada Bread Franchisees offer on time service to customers, merchandising support at all partnered grocery accounts where Canada Bread is a primary supplier, daily communication on execution plans with each customer account and a high level of accuracy as it relates to inventory management.

The Canada Bread Franchisee is an inspired individual that is able to work effectively in a variety of business settings and is willing to hire and manage employees at his/her discretion to offer up the most robust customer service levels in the direct store delivery industry (DSD).

Acquiring a Franchise

Acquiring a Canada Bread Franchise gives the Franchisee the right to distribute Canada Bread products to an assigned list of customers or assigned territory (Atlantic Canada and Quebec only) throughout the term of his/her agreement. The acquisition fee is agreed upon and paid for at the time of commencement. The acquisition fee of a Franchise is based on historical and projected revenues generated by the customer list or territory being purchased and variable and fixed operating costs to arrive at projected net revenue before taxes. Factors like type of customers, geographic location and various market conditions will have an impact on the purchase price of a Canada Bread Franchise.

All Franchise route purchases are managed by the Canada Bread Franchise Department. The acquisition fee is based on the historical revenue earned by the previous Franchisee or if a corporate owned route Canada Bread’s own experience. The Canada Bread Franchise Department will prepare a “Proforma” which outlines the projected revenue and estimated expenses of the Franchise in order to provide the candidate with an estimated annual cash flow. Canada Bread does not provide an earnings projection. Information substantiating the historical and forecasted figures can be inspected at Canada Bread’s principal business address in Toronto, Ontario. This Proforma will assist the candidate when seeking financing from the financial institution of their choice. .

From time to time, Canada Bread will sell its Corporate owned routes. When selling Corporate owned routes, Canada Bread may provide financing with our own internal finance program to qualified candidates. The prospective Franchisee is not required to obtain financing from Canada Bread and may obtain financing from any other lender.

Start Up Investment Costs

To invest in a Canada Bread Franchise, you will need a minimum of 25% of the total initial investment costs of the Franchise in unencumbered* cash. The average cost of each Franchise varies by region and you will need to contact us directly in order to determine the cost relevant to the area you’re interested in. The Canada Bread Franchising Department will assist candidates with their preferred lending institution or, where applicable, assist in the arrangements for in-house financing. In Quebec each Franchisee must supply a letter of warranty in the amount of $5,000.00 which needs to be renewed annually.

*unencumbered in this context means money that is not borrowed and is not securing any other loan.

Initial Investment costs include:

• Purchase of a Delivery Vehicle (Truck)
• 25% of the total initial investment costs
• Purchase of an Approved Canada Bread Uniform
• Purchase of miscellaneous equipment

Applicable Initial start up fees:

Canada Bread treats the process of awarding a Franchise with great care and proper due diligence. Canada Bread franchisees will ideally have a bias for action and are driven by the needs of their customers. A rigorous Franchisee approval process helps to ensure we continue to introduce only the best Franchisees into our greatly admired Franchise environment.

You have already taken the first step in the process by “Getting Informed about Canada Bread” through visiting our website. Your next step will be to complete and submit your application. An application can be obtained by clicking on the “Contact” icon at the top of this page and selecting “Becoming a Franchisee” in the subject drop down box. Canada Bread will confirm the receipt of your application and outline next steps.

A summary of the major steps in the Franchisee approval process are outlined below:

• Submit your application
• Have an initial discussion with a Canada Bread representative
• Have an interview with a Canada Bread Regional Sales Manager, Territory Manager and Franchise Manager
• Participate in a “Route Ride” with an existing Canada Bread Franchisee
• Begin discussions about securing finances with your financial institution
• Pending our approval of your financial and other background information, your application will be formally approved
• A Canada Bread Franchise Manager will take you through “Disclosure” of the Canada Bread Franchise Agreement.
• You will be required to participate in a training program prior to start
• All applicable initial Franchise Fees are due and payable upon the start of training
• Upon the successful completion of your training, you will sign a Franchise Agreement and commence your own Franchised Operation

Training/Orientation

Before you start Operating your Franchise, Canada Bread provides several weeks of certified on-route and in-store training. The training takes place with your assigned “Franchisee Trainer” at an established Canada Bread Depot, usually in the same operating area as your Franchise. This training provides a comprehensive understanding of the Canada Bread Franchisee operating functions, which include:

• Inventory management
• Merchandising
• Customer service
• Billing
• Receiving protocols
• Standards of Operations

Start-Up Support

During your first few weeks as a new Canada Bread Franchisee, your Territory Manager will work closely with you. Your Territory Manager will also arrange to meet you at your customer locations providing direct coaching and feedback. He/she will work with you through communication and execution standards as they relate to your specific franchised route and list of customer accounts.

Your primary focus will be to manage timelines for delivery and service, as well as to establish expectations around weekly communication with Key Stakeholders at each customer location. Decisions about your specific Franchise will be managed through a coaching relationship with your area Territory and Regional Sales Managers.

As you settle into a regular business routine, Canada Bread will provide operational guidance through its network of Regional Sales staff. Your Territory Manager will meet with you for your Personal Franchise Meeting (PFM) at which time he/she will share strategic sales information with you about your Franchise. The focus of each PFM is to ensure that you are well prepared for additional customer level feature activity, you understand how your business is performing from a sales perspective and have discussions about other potential opportunities for you to grow your business by way of new accounts or within your existing customer base.

You will be required to attend regional meetings where you will gain new understanding about the direction of the bakery business and share ideas with senior management and other Canada Bread Franchisees.

Canada Bread is very proud to be one of Canada's finest Franchisors. Canada Bread understands that communication is a crucial element of any successful Franchise organization. The Canada Bread “CBfranchise.ca” website provides a forum for communication with our Franchise network. You will also have access to a 24/7 toll free line for use in contacting our operations staff about product quality.

Canada Bread has an established Franchisee Advisory Council or a Communication Committee which meets up to four (4) times each year and provides a forum to exchange ideas and information between Canada Bread and our Franchisees. The Council/Committee is comprised of a representative group of Franchisees from various operating regions. Members of this Council/Committee will serve a term of up to 3 years. Canada Bread’s close interaction with the Advisory Council/Committee is strong evidence of how, by working together, we continue to strive to develop our mutual businesses and long term successes.

Canada Bread’s Marketing Department conducts extensive consumer research in order to monitor marketplace dynamics around bakery product consumption and emerging commercial bakery trends. Canada Bread uses this knowledge to guide the development and execution of product lines. Over the years Canada Bread has proven to be an innovator within the bakery category. Canada Bread pioneered extended shelf life products with its “Stays Fresh” product line and has recently taken that formulation and applied it to other core product lines within the portfolio. Marketing at Canada Bread is led corporately and no additional fee is passed on to the Franchisee for any Marketing initiatives.

Canada Bread provides consumers with some of the Finest Commercial Bakery products in Canada such as fresh bread, rolls, bagels, sweet goods, par-baked bread products, and home ready meals. We have strong regional brands whether it is our award winning Whole Grain Bread line-up or our Market leading Wheat Bread, the POM, Bon Matin, Ben’s, and Dempster’s brands of Canada Bread product lines bring high end and quality bakery products at great prices to your kitchen table.