TORONTO -- Canadian Tire (TSX:CTC.A) has reached an agreement on contracts with its almost 500 franchise dealers through the end of 2024.
The Toronto-based retailer of general merchandise, clothing and sporting goods as well as financial services and automotive products and services says terms of the new contract were approved by the associated dealers at a meeting on Wednesday.
Individual dealers will now sign contracts with the corporation based on the new terms, with implementation expected to begin later this year and continue into 2024.
Specific details of the contract agreement with the Canadian Tire Dealers' Association were not disclosed, but Canadian Tire said they "reflect the future of retail, the importance of digital channels and technology and reaffirm the strong relationship and expertise of both the corporation and dealers."
Canadian Tire touts its mix of corporate and locally owned stores -- 489 of them according to the dealer association's website -- as a major contributor to its success over the years.
"Canadian Tire's dealers are community leaders and the strongest group of entrepreneurs that I have ever worked with," corporation president and CEO Stephen Wetmore said in a statement announcing the agreement.
"I will put our franchise model up against the best retailers in the world every day of the week."
Canadian Tire, with more than 1,700 retail and gasoline outlets from coast to coast, employs more than 85,000 people across the enterprise. In addition to its Canadian Tire corporate and franchise locations, the company operates Mark's and FGL Sports, which includes such banners as Sport Chek, Hockey Experts, Sports Experts, National Sports, Intersport and Atmosphere.
