Get ready for a major shake-up in the toy industry! Mastermind Toys is betting big on franchising to reclaim its place in the market, and it’s a move that’s both bold and controversial. But here’s where it gets interesting: after a tumultuous few years, including store closures and a brush with financial turmoil, the Canadian toy chain is now under new ownership and ready to reinvent itself. On Monday, CEO John Bayliss confirmed the company’s plans to expand through franchising, calling it an ‘awesome opportunity’ to bring the Mastermind experience to more communities. But this isn’t just about growth—it’s about reconnecting with neighborhoods that have felt the void left by shrinking toy retailers.
Bayliss highlighted that the chain’s most successful stores are those deeply embedded in their communities, where managers feel a sense of ownership. ‘That’s the magic we want to replicate,’ he explained. While he didn’t specify which markets are next on the list, the goal is clear: re-enter regions Mastermind once exited and strengthen its presence in bustling areas like Toronto, Vancouver, and Alberta. And don’t worry—some stores will remain company-owned, ensuring a balance between expansion and control.
This shift comes on the heels of Mastermind hiring Bazely Consulting to pave the way for franchising and entry into new markets. The Kitchener-based firm, though tight-lipped on Monday, hinted on LinkedIn about its role in preparing the business for this transformation. But here’s the part most people miss: franchising isn’t just a growth strategy—it’s a lifeline for Mastermind to compete in a landscape dominated by online shopping and big-box stores like Walmart and Canadian Tire.
The road to this point hasn’t been easy. After filing for creditor protection on Black Friday 2023, citing fierce competition, pandemic disruptions, and economic downturns, Mastermind was acquired by Unity Brands, led by retail heavyweights Joe Mimran, Frank Rocchetti, and David Lui. Since then, Unity has been on a mission to revive the brand. From reintroducing beloved products like Melissa & Doug to experimenting with pop-up stores and partnerships with 7-Eleven, Mastermind is testing new waters. Heck, they’ve even launched Lajoué, a fresh store concept in Quebec, and reopened in communities like Woodbridge, Ont.
Retail strategist Lisa Hutcheson sees these moves as a clear sign of Mastermind ‘regrouping.’ She believes franchising will accelerate the company’s comeback by tapping into customers who’ve turned to online shopping or big-box retailers due to the decline of local toy stores. But here’s the controversial bit: while Bayliss is focusing on Canada for now, Hutcheson argues the model could thrive internationally, particularly in the U.S.. Is this a missed opportunity, or a smart, step-by-step approach? We’ll let you decide.
One thing’s for sure: franchising shifts the financial burden of growth onto franchisees, who often face hefty upfront costs and strict brand guidelines. While few Canadian toy stores operate this way, international brands like Build-A-Bear have successfully used franchising to scale. So, is Mastermind’s gamble a game-changer or a risky bet? And could this model work beyond Canada’s borders? Let us know what you think in the comments—this is one debate you won’t want to miss!
