Get ready for a major shake-up in the toy industry! Mastermind Toys is betting big on franchising to reignite its brand, and it’s a move that could change the game—or backfire spectacularly. But here’s where it gets controversial: can a once-struggling retailer really thrive by handing over the keys to its brand to franchisees? Let’s dive in.
The beloved Canadian toy chain, Mastermind Toys, is taking a bold leap into the world of franchising, marking a significant shift in its business strategy. On Monday, CEO John Bayliss confirmed the company’s plans to expand through this model, framing it as a way to ‘bring the Mastermind experience to more communities.’ But what does this really mean for the brand, its customers, and the future of toy retail?
In an interview, Bayliss highlighted the success of stores deeply rooted in their local communities, where managers feel a sense of ownership. ‘That’s the magic we want to replicate,’ he explained. While he didn’t specify target markets, the move is expected to help Mastermind re-enter regions it previously exited and strengthen its presence in densely populated areas like Toronto, Vancouver, and Alberta. Some stores, however, will remain under corporate ownership.
This announcement comes on the heels of Bazely Consulting being hired to facilitate the franchising process. The Kitchener, Ontario-based firm revealed on LinkedIn that it’s preparing Mastermind for this transition and its entry into ‘new markets.’ But this isn’t the first bold move from Mastermind’s new owners, Unity Brands, led by retail heavyweights Joe Mimran, Frank Rocchetti, and David Lui.
After filing for creditor protection on Black Friday 2023—citing fierce competition, COVID-19 disruptions, and a shaky economy—Mastermind was acquired by Unity Brands. Since then, the company has been on a revitalization spree. Last year, it reintroduced popular brands like Melissa & Doug and launched a pop-up holiday store at Toronto’s Union Station. This year, it’s testing partnerships with Holt Renfrew and 7-Eleven, where Mastermind products like plushies and puzzles are sold alongside 7-Eleven’s snacks in toy store checkout aisles. The company also opened Lajoué, a new Quebec-based store, and reintroduced Mastermind to communities like Woodbridge, Ontario.
But here’s the part most people miss: franchising could be the accelerator Mastermind needs to reconnect with customers who’ve turned to online shopping or big-box stores like Walmart and Canadian Tire. Retail strategist Lisa Hutcheson believes franchising will speed up the company’s comeback by reaching new audiences. While Bayliss is focusing on Canada for now, Hutcheson sees potential for international expansion, particularly in the U.S. ‘Why limit the growth to just one country?’ she asks.
However, franchising isn’t without risks. Franchisees typically shoulder hefty upfront costs and must adhere to strict brand guidelines. While few Canadian toy stores operate this way, international brands like Build-A-Bear have successfully used franchising to scale. But will Mastermind’s model work in a crowded market? And more importantly, can it maintain its unique brand identity while relying on franchisees?
As Mastermind embarks on this new chapter, one thing is clear: the toy industry is watching closely. Will this move solidify Mastermind’s place in the market, or will it dilute the brand’s essence? What do you think? Is franchising the right move for Mastermind, or is it a risky gamble? Share your thoughts in the comments—let’s spark a debate!
