When Orleans resident Krista Barban walked through her neighbourhood one hot, muggy day in the 1990s, that was all the market study she needed before deciding to buy a Dairy Queen franchise.

A decade later, having purchased six units of the decades-old ice cream and burger joint with a partner throughout Eastern Ontario, she's proud to say that it was an investment that has paid off. Nonetheless, she probably do things a little differently if it were any other franchise she bought into.

"Honestly no, we weren't looking to purchase which (franchises) were the best. We just wanted to purchase a Dairy Queen," she told the OBJ. Nowadays, however, she would likely do a little bit more research, and perhaps see if they had membership in a trade association first.

"Some of the newer ones that are popping up, that would be important for me," she said. "One of the key things is to look at a product that will have longevity. We weren't hesitant about Dairy Queen, because it's been a round for a hundred years, and will continue to grow. But you have to be careful of the fads. Look at Great Canadian Bagel – it popped up on every corner, then the bagel fad declined. Booster Juice is another one. It took off gangbusters, then started to peter out."

Getting into the franchise business is a tempting option for budding entrepreneurs who want to be their own bosses, but who don't want to be entirely reliant on themselves to make a go of it.

Opportunities in franchising have increased in recent years. More companies are taking the franchising route in Canada, including foreign ones, to the point where there are now an estimated 78,000 franchise units operating in the country, according to the Canadian Franchise Association (CFA).

But precautions must be taken, by both franchisors and franchisees, experts say.

"You're buying into a system, and it's your responsibility to make it work," said Lorraine McLachlan, president and CEO of the CFA. "Ask the right questions, until you are completely satisfied that everything has been answered. And make sure you understand your responsibilities."

Franchisors – those who sell franchise units or masters – should have experience, both as businesspeople in their individual sectors, as well as in franchising, says Gowlings lawyer Ned Levitt. They must be willing to provide ongoing support to those to whom they sell a franchise.

And franchisees must be on the ball, ask a lot of questions before diving in, and know their market, he added.

"The best successes come from the franchisor being solid, and the franchisee investigating their market," said Mr. Levitt.

With 30 years under his belt in franchise and distribution law, Mr. Levitt has provided advice for both sides of the transaction. He said potential franchisees have to look for an established franchisor, willing to help when the going gets tough, especially at the beginning.

"(Franchisees) want to work with a franchisor who has reached a level of maturity," he said. "That requires (them) to do their homework. They can't rush out and buy anything, just because the salesman is very persuasive."

While three provinces, including Ontario, have enacted franchise legislation in recent years, no national regulations exist for the industry, said Ms. McLachlan. Precise data on how many franchisees are in existence, therefore, is unavailable. But membership in the CFA is growing, she said, and "we believe that's indicative that franchising in Canada is growing."

They're branching out into all sectors, too. When Mr. Levitt began doing franchise law, restaurants were king. Now, any successful business model is a potential franchisor. Increasingly, business-to-business stores, like QuikCopy and Shred-it, are appearing on the horizon.

He is seeing more territorial arrangements, which he described as a new trend in franchising in Canada, one that is profitable for both sides in the arrangements.

"It's a system where there is one franchisee, but with multiple units," he said. "That is the modern trend in both the United States and Canada. Twenty years ago, it was very much the sale of a single unit. Now, they're finding greater success by opening up multiple units in an area."

While most franchises that come to Canada have traditionally been from the United States, Mr. Levitt said other countries are the becoming sources of franchise opportunities in Canada. Cobs, a bakery franchise, and Aussie Pet Mobile, a pet grooming franchise – both out of Australia – are two examples.

Ms. McLachlin said it is important that potential franchisees ensure that the franchisor is one of 350 or so members of the CFA.

"What that means is the franchisor has committed to our code of ethics," she said. The code encourages the franchisor, regardless of whether required to or not by law, to provide certain disclosure documentation to a franchisee.

"That is your first level of guarantee," she said. "Beyond that, it certainly says that the franchisor works closely with the franchisee to resolve challenges that may arise in the course of a business relationship."

But, she adds, getting a qualified lawyer is good practice, to avoid such problems down the road.

"The reason I highlight that concern is because I've done quite a number of interviews with media from specific immigrant communities, and the sense that I'm getting is that they prefer to get a lawyer from their own community," she added. "While I'm sure they're fine lawyers, they may not be able to provide the best (franchising) advice."

While foreign franchisors are increasingly entering the Canadian market, there are many who don't make a go of it. Those that fail often do so because they make the mistake of assuming the Canadian market works in much the same manner as the American, Mr. Levitt said.

"Our business approach is a lot more conservative," he explained. "It's probably going to take a little bit or a lot longer in Canada to make a decision.

"Far too often, U.S. franchisors come into Canada thinking it's just like the U.S. But there are differences, and they are subtle. They need adaptations for the environment in which they are going to be run."

Conversely, franchises that run the roost in their individual sectors in Canada often have a tougher time south of the border.

"Oftentimes, even well-intentioned franchisors underestimate how much they have to support a franchise in another territory," he said. "It may be a good idea, (and) the people they hired may be the right people, but if they don't have the right training and support, they may fail. They need the support, and they want the support. If it's not coming at the beginning when they need it, they might fail."

Adaptation, he said, is key. So too is adequate funding. Underfunding is a chronic problem he often witnesses. A slight downturn in the economy might be just enough to make a franchisee fail.

Ms. Barban said Dairy Queen's Canadian corporate HQ provides her with ongoing advice. Largely, though, after a thorough screening process of potential owners, it leaves most of the groundwork to them.

"It depends on the franchise you're purchasing," she said, with different ones providing help to different degrees, adding "it looks bad for their corporate brand if they're popping up and shutting down."