Why is it so difficult for Canadian franchises to expand to the US?

Possibly because:

  1. Canadian companies don’t have access to as much investment capital as American companies do and expanding into a very saturated very large market requires ALOT of capital
  2. Canadian investors are generally more risk averse than American investors
  3. Canadian companies have to compete harder just on the basis of not being an American company. All international companies face an uphill battle because they are fighting against people who want to be patriotic and support their own country’s companies

One person below said that there ‘aren’t many Canadian franchises’ this isn’t true. There’s lots of Canadian franchises besides the obvious Tim Hortons:

  • Canadian Tire (tried twice to expand to US and failed)
  • New York Fries (I believe they tried before and failed)
  • Kelsey’s
  • Montana’s
  • Boston Pizza
  • East Side Mario’s
  • Harvey’s
  • Swiss Chalet
  • Pizza Pizza
  • Pizza Nova
  • Panago Pizza
  • 241 Pizza
  • Coffee Time
  • Country Style
  • Second Cup
  • Mr Sub

All have tried and failed to expand to the USA. But yeah I think the main and very important reason is Canadian investors just don’t have as much on hand AND are generally more conservative than their American counterparts, and expanding to the US requires ALOT of investment