TORONTO – Mastermind Toys is about to move into the franchise business.
A consulting company said over the weekend that it’s been hired by the Canadian toy shop chain to “prepare the business for franchising.”
“Mastermind Toys will enter new markets with local franchise owners, who will lead the growth efforts for their locations,” wrote Brian Bazely of Bazely Consulting in a recent LinkedIn post.
Neither Bazely, his Kitchener, Ont.-based firm nor several Mastermind Toys executives responded to requests for comment.
However, Mastermind commented on the post Monday, saying “we cannot wait to have franchisees coast to coast” and “stay tuned, more updates to come later this week.”
The push toward franchising is the latest in a string of changes Mastermind’s new owners have made to the business.
The chain began closing stores and filed for creditor protection on Black Friday in 2023, citing increasing competition, disruptions from the COVID-19 pandemic and a deteriorating macroeconomic environment.
It was eventually bought by Unity Brands, which also runs Casca Footwear and Kit and Ace and is owned by Canadian retail titans Joe Mimran, Frank Rocchetti and David Lui.
Since the deal closed, Unity has been working to rebuild Mastermind.
Last year, it brought back products from manufacturers like Melissa & Doug and experimented with a pop-up holiday store at Union Station in Toronto.
This year, it’s testing the same model at Holt Renfrew’s flagship store and has a partnership with convenience store chain 7-Eleven. Under that deal, Mastermind products, including plushies, games and puzzles, are being sold at 7-Eleven, while candy and snacks from the convenience store giant are available in the toy shop’s checkout aisle.
All of these moves symbolize that Mastermind is “regrouping,” said Lisa Hutcheson, a retail strategist with J.C. Williams Group.
She thinks franchising will only hasten the company’s revitalization because it will help the business reach new customers in different markets.
Mastermind hasn’t said what markets it is eyeing but Hutcheson thinks the business model could work at home and abroad.
“I think it will get more expansion in Canada, but the U.S. is also a good player and I don’t see why there wouldn’t be an opportunity for them to expand internationally,” she said.
By expanding this way, Hutcheson said franchisees rather than the company will be on the hook for the costs growth brings.
Franchisees often pay big upfront expenses to run stores under brand names and have to abide by strict rules around what products they can carry and prices they can charge.
Few, if any, Canadian toy stores are franchised but Build-A-Bear is among the international brands that has used the model to plot an expansion.
This report by The Canadian Press was first published Dec. 15, 2025.
