May 28, 2020

Your CFA Daily Update on COVID-19

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Franchisor Revenues have been impacted by Gov't Lockdowns

NFI is helping CFA members save on Franchise sales overhead. Many leases will need to be restructured for franchisees to survive, and Operations Manuals need updating to meet COVID-19 Protocols.

CBRN Business Reopening Toolkit and Provincial/Territorial Regulation Tracker

In order to operate, businesses must abide by all national, provincial/territorial and local codes issued by our governments. This includes when and which businesses can open, an array of health and safety measures, social distancing standards, occupancy limits and more. Through the CBRN Business Reopening Toolkit, you can access the rules and regulations that are in place according to federal and provincial/territorial jurisdictions. 

Manitoba launches online tool to match employers and students for jobs

The Manitoba government on Thursday launched an online tool to match students looking for job opportunities with employers who need help.

Student Jobs MB helps students apply for multiple jobs with the click of a button. Private-sector employers, not-for-profit organizations and governments can post jobs and connect directly with students.

Quebec courthouse to reopen June 1

Today, Quebec Justice Minister Sonia LeBel confirmed that courthouses in Quebec would reopen on June 1. She said there will be a limited number of people allowed inside, physical distancing rules and Plexiglas barriers for judges.

On a more positive note, the Minister also stated that the pandemic had considerably accelerated the process of digital transformation of the justice system in Quebec. The resumption of activities will thus rely on the reopening of courthouses and tribunals, on the one hand, and on technology, on the other.

• 136 virtual courtrooms have been created and have been permanently integrated into how the justice system operates.
• All judicial institutions that will reopen on June 1 will be adapted in order to comply with social distancing instructions:
  • Transparent plastic screens will be installed where appropriate;
  • Hand washing stations and disinfectant will be made available;
  • Facilities will be redesigned to respect the 2-metre distance;
  • Each facility will be able to resume operations at a pace that corresponds to its capacity.

What can we expect as the Canadian economy emerges from the COVID-19 pandemic?

Please join TSA for an online discussion Friday, May 29, at 2:00 PM EDT, with our expert guests:

• Rana Sarkar, Consul General for Canada for San Francisco and Silicon Valley
• Veronica Clark, Senior Associate at Citi Research Economics

Rana and Veronica will give us their insights into the future of economic relations and trade between Canada and the U.S., including the future work in the virtual world, as we emerge from this historic pandemic.

Click here to reserve your attendance

Guest Speakers

Rana Sarkar – appointed as Consul General of Canada in San Francisco/Silicon Valley in 2017, with accreditation for Northern California and Hawaii. He is also a member of Canada’s NAFTA Advisory Council. Sarkar previously served as National Director for High Growth Markets at KPMG Canada, and Co-Chairman of the Advisory Board at the Munk School of Global Affairs, University of Toronto. From 2009 - 2013, he was President and Chief Executive Officer of the Canada-India Business Council.

Veronica Clark - joined Citi Research in 2015. She is a Senior Associate on the U.S. Economics team at Citi Research and a regular commentator providing insight on latest economic trends and patterns, including on Bloomberg. Prior to joining the team, she worked in Emerging Markets Strategy and G10 Short Term Interest Rate Trading. Veronica holds a Master’s degree in Economics from New York University and Bachelors in Mathematics and Economics from the University of North Carolina at Chapel Hill.

After registering, you will receive a confirmation email containing information about joining the webinar.

Please send any questions you would like addressed in the webinar to info@tsa.ca

Edmonton launches $5M grant program to help business

Edmonton businesses struggling to survive the COVID-19 pandemic can apply for municipal assistance through a new program approved on Wednesday. The city's new economic recovery program includes a 50-per-cent discount on business licensing fees — upon request — until the end of 2020. It includes $5.3 million in grant money, with $1,000 to $25,000 available to each successful applicant.

The city will implement the recovery program in two phases. Forty per cent of the grant money will be allotted in phase one, from June 10 to Dec. 31, 2020, and the rest will be delivered in phase two, from Jan. 1 to Dec. 31, 2021.

Licence fees cut in half

Of Edmonton’s 36,000 businesses, 300 have already asked for the 50-per-cent discount on their licence fees. Council approved adjustments to the spring operating budget, moving money from one department to another, to free up the money for the grant program.

New Brunswick nixes new property tax breaks for businesses, cottages

New Brunswick Finance Minister Ernie Steeves has moved to cancel more than $20 million in property tax cuts for businesses and cottages that he unveiled in his budget just 11 weeks ago.

The measures being undone involve proposed relief for residential properties that are subject to secondary provincial taxes, including apartment buildings, cottages and single-family homes not lived in by the owner. That budget proposal was to reduce taxes by $140.40 per year on every $100,000 those properties are assessed to be worth.

A second tax cut on commercial and industrial properties is also being withdrawn. It was worth $82.50 per year on every $100,000 of a business property's assessed value. It would have been a substantial saving for some of the province's larger business properties, including a $142,000 tax reduction for Champlain Place in Dieppe beginning next January and a $84,715 reduction in property tax on the Irving Oil refinery.

There was also a plan to lower the same taxes identical amounts in 2022, 2023 and 2024, providing a total of $96 million in annual property tax relief to business and cottage properties after the fourth year.

Premier Blaine Higgs said the province could not afford the loss in revenue, but he hoped to be able to restore the tax cuts when the province's finances improve.

PEI extends state of emergency until June 14

Cabinet extends state of emergency until June 14.

Profit falls at TD and CIBC as loan loss provisions soar

Canadian Imperial Bank of Commerce (CIBC) and TD Bank Group missed quarterly earnings expectations on Thursday, as they set aside billions to cover future loan losses due to the COVID-19 outbreak. The massive jump in provisions took the total amount set aside by Royal Bank of Canada, Bank of Montreal, Bank of Nova Scotia, National Bank of Canada , CIBC and TD Bank to $10.93 billion.

CIBC posted an adjusted profit of 94 Canadian cents per share for the quarter ended April, compared with analysts' expectations of $1.58 per share. Net income was $392 million at CIBC, down 70 per cent from last year. CIBC also reported lower net income across divisions and higher expenses. Controlling costs is particularly vital for CIBC, which has already said it expects expenses to grow this year at about double the rate of its rivals. CIBC set aside $1.41 billion in the quarter for future loan losses, compared with $255 million a year earlier, while total provisions for TD Bank jumped to $3.22 billion, compared with $633 million a year earlier.

TD Bank, reported an adjusted profit of 85 Canadian cents per share, missing estimates of 89 Canadian cents. Net income was $1.5 billion at TD, down 52 per cent from last year.

B.C. parks are set to reopen next week, with restrictions

According to B.C. Parks, Cypress, Juan de Fuca, Inkaneep, the Kettle River Recreation Area, Liard River Hot Springs, Porteau Cove, Mount Seymour, some Shuswap Lake sites and Shannon Falls will all open their gates to visitors on June 1, along with dozens of others.

Services that will and will not be operating in each of the parks are listed on the B.C. Parks website. Hundreds of other provincial parks in B.C. already reopened on May 14.

29 of Canada's national parks to reopen to day-use visitors June 1

Meanwhile, Parks Canada says day use at some national parks, national historic sites, historic waterways, and national marine conservation areas will resume June 1. The list included six national parks in B.C.:  Yoho, Kootenay, Mount Revelstoke, Glacier, Pacific Rim Reserve and Gulf Islands Reserve. 

CFA NATIONAL SPONSOR

As part of our ongoing commitment to support the growth of franchising in Canada, CIBC is extremely proud to be a National Sponsor of the Canadian Franchise Association for the 8^th consecutive year. At CIBC, we have been involved in the franchise industry and franchise banking for over a quarter century. Our dedicated National Franchising Services Team works with many of Canada’s most successful franchise systems to provide both industry expertise and customized financial advice to help franchisors and their franchisees succeed. Visit us at https://www.cibc.com/en/commercial/areas-of-specialization/franchising.html

UPCOMING WEBINAR

JUNE 2, 2020
AT 2:00 PM ET

Hands-On Approach to Commercial Real Estate  
 50 CFE PARTICIPATION  CREDITS  

SPEAKERS: Armen Khajetoorian and Kwaku Tabi, Cassels, Brock & Blackwell LLP

Commercial real estate has been a hot topic throughout COVID-19. Join us for a deep dive into commercial real estate leasing issues and gain a practical take-aways through a “how-to” approach to challenges you may be facing.

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Feedback from our Members

“I would like to take this moment to express how amazing the CFA webinar series has been for myself and my stores. I am regularly sharing the information and enjoy the daily "break" around lunch time, basically having a nearly daily lunch and learn”

 - Suzanne Howie, Franchise Support, Print Three Franchising Corp.

COVID-19's impact on the world is creating waves across all sectors and industries.

Every member of the CFA community is dealing with an issue that is affecting the world, our industries, our communities, our businesses, and our people.

We would like to hear from you if you have any topics, issues or questions to navigate turbulent times in order to support you further: 

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