Moreover, Canada encourages an expansion of religious freedom in China, including Tibet, and I do not doubt that Canada would welcome a dialogue between Chinese authorities and the Dalai Lama, a world spiritual leader who earned the Nobel Peace Prize in 1989 for his dedication to peace and human rights.
Canada encourages the expansion of Tim Hortons franchises in Canada.
From the context, we do not know whether or not Canada encourages the expansion of Tim Hortons franchises in Canada.  Therefore the statement is neither definitely correct nor definitely incorrect.
( z1 encourage :ARG0 ( z2 country :name ( z3 name :op "Canada" ) ) :ARG2 ( z4 expand :ARG1 ( z5 franchise :mod ( z6 company :name ( z7 name :op "Tim_Hortons" ) ) ) :location z2 ) )