Get ready for a major shake-up in the toy industry! Mastermind Toys is betting big on franchising to reignite its brand, and this move could be a game-changer—or a risky gamble. But here's where it gets controversial: Can a beloved Canadian toy chain maintain its community-focused charm while handing over the reins to franchisees? Let’s dive in.
Mastermind Toys, the iconic Canadian toy retailer, is poised to embark on a bold new chapter by adopting a franchise business model. In a recent interview, CEO John Bayliss revealed that the company is eager to expand its reach by bringing the Mastermind experience to more communities across the country. But this isn’t just about growth—it’s about reconnecting with neighborhoods that have felt the void left by dwindling toy stores.
Bayliss highlighted the success of their strongest stores, which thrive due to deep community ties and managers who 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 move is expected to help Mastermind re-enter regions it previously exited and strengthen its presence in bustling areas like Toronto, Vancouver, and Alberta. Importantly, the company will retain some corporate-owned stores to maintain control over its core operations.
This announcement comes on the heels of Bazely Consulting being hired to facilitate the franchising process. The Kitchener, Ontario-based firm confirmed on LinkedIn that it’s working to prepare 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. Since acquiring the chain after its 2023 financial struggles—driven by competition, the COVID-19 pandemic, and economic challenges—Unity has been on a mission to revive the brand.
From reintroducing popular brands like Melissa & Doug to experimenting with pop-up holiday stores in Toronto’s Union Station, Mastermind has been testing innovative strategies. This year, they’ve partnered with Holt Renfrew and 7-Eleven, blending toys and convenience in a way that’s both clever and unexpected. Mastermind plushies, games, and puzzles now share shelf space with 7-Eleven snacks, while the toy store’s checkout aisles feature convenience store treats. Additionally, the launch of Lajoué, a new Quebec-based store banner, and the reopening of locations like Woodbridge, Ontario, signal a broader regrouping effort.
Retail strategist Lisa Hutcheson believes franchising will accelerate Mastermind’s revitalization by helping it reach customers who’ve turned to online shopping or big-box stores like Walmart and Canadian Tire. “It’s about filling the gap left by the decline of traditional toy retailers,” she explains. While Bayliss is currently focused on Canadian expansion, Hutcheson sees potential for international growth, particularly in the U.S. market. But here’s the catch: franchising shifts the financial burden of expansion onto franchisees, who must navigate hefty upfront costs and strict brand guidelines.
This model isn’t common among Canadian toy stores, though international brands like Build-A-Bear have successfully used it to scale. The question remains: Can Mastermind strike the right balance between growth and preserving its community-centric identity? And this is the part most people miss: If successful, this could redefine how specialty retailers expand in a digital-first world.
What do you think? Is franchising the right move for Mastermind Toys, or could it dilute the brand’s unique appeal? Share your thoughts in the comments—let’s spark a debate!
