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TORONTO, ONTARIO--(Marketwire - Oct. 17, 2011) - A report by BMO Bank of Montreal released today revealed that, among franchise owners, over half chose to own a franchise instead of starting their own business because franchises provide a proven business model, and 53 per cent said being a franchisee was their first career choice.

The survey, conducted by Leger Marketing for BMO Bank of Montreal, asked franchise owners for reasons why they chose that particular model; recognizable name and brand was the most frequently mentioned (28 per cent). Others reasons included having a higher chance of success because of the proven business model (23 per cent); being your own boss (21 per cent); and access to training and central support from the franchisor (15 per cent).

"With only 10 per cent of Canadian business owners operating a franchise, there is still room for more franchisees in Canada," said Steve Iskierski, Senior Manager, National Franchising Services, BMO Bank of Montreal. "Franchisees within both established and growing networks continue to benefit from having proven business models as well as recognizable name and branding in the marketplace."

Steady growth in the economy and jobs, together with persistent low interest rates, should support consumers, and retailers, in the months ahead, says BMO Economics.

"Despite continued healthy job growth and low interest rates, sales at Canadian retailers (excluding automotive dealers and gasoline stations) moderated to a 1.1 per cent year-over-year rate in July from 3.3 per cent in 2010 due to elevated household debts and weaker consumer confidence arising from global economic concerns. Sales are expected to remain moderate during the holiday shopping season, with the strong Canadian dollar encouraging cross border shopping and high gasoline prices restraining purchasing power," said Sal Guatieri, Senior Economist, BMO Capital Markets.

The latest outlook from BMO Economics indicates that the Canadian economy will grow at 2.2 per cent in 2011 and expand at a somewhat slower rate next year. Growth prospects for small business owners should parallel their respective sectors.

If you are thinking about franchise ownership, BMO suggests ten key points to consider:

The survey was completed between August 30 and September 16, 2011, with a sample of 509 small, medium and large business owners in Canada. A probability sample of the same size would yield a margin of error of ±4.4 per cent, 19 times out of 20.