Mastermind Toys preparing to expand through franchised stores: post

Article content

TORONTO — Mastermind Toys is about to move into the franchise business.

Article content

A consulting company said over the weekend that it’s been hired by the Canadian toy shop chain to “prepare the business for franchising.”

Article content

Article content

“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.

Article content

Neither Bazely, his Kitchener, Ont.-based firm nor several Mastermind Toys executives responded to requests for comment.

Article content

Article content

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.”

Article content

Article content

The push toward franchising is the latest in a string of changes Mastermind’s new owners have made to the business.

Article content

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.

Article content

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.

Article content

Since the deal closed, Unity has been working to rebuild Mastermind.

Article content

Last year, it brought back products from manufacturers like Melissa & Doug and experimented with a pop-up holiday store at Union Station in Toronto.

Article content

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.

Article content

Article content

All of these moves symbolize that Mastermind is “regrouping,” said Lisa Hutcheson, a retail strategist with J.C. Williams Group.

Article content

She thinks franchising will only hasten the company’s revitalization because it will help the business reach new customers in different markets.

Article content

Mastermind hasn’t said what markets it is eyeing but Hutcheson thinks the business model could work at home and abroad.

Article content

“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.

Article content

By expanding this way, Hutcheson said franchisees rather than the company will be on the hook for the costs growth brings.

Article content

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.

Article content

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.

Article content

This report by The Canadian Press was first published Dec. 15, 2025.

Article content