Franchise market in Brazil

FRANCHISE MARKET IN BRAZIL

Based on data from the Brazilian Association of Franchising (ABF), 163 Brazilian franchise brands currently operate in 107 countries. Such number shows the growth of the segment in comparison with 2018, when 145 franchise brands operated in 114 countries. The fashion industry is the most representative, with 35 brands. The beauty and personal care industry comes next, with 32 brands, while the food industry holds the third position, with 25 brands. These last two segments, combined with services and other businesses, had significant positive changes from 2018 to 2019.

The United States is still the main destination of Brazilian brands abroad, with 67 franchise brands operating there. Portugal remains the second most important destination, with 44 brands, and Paraguay is the third, with 36 franchise brands. Significant increases in the operation of Brazilian franchises were seen in all countries.

Projection for 2020

This year, ABF forecasts an increase in sales in the franchise sector of about 8%. As for the generation of jobs in the sector, it is estimated that there will be an increase of 6%. THE expansion of the units should be 6% and the number of networks may increase by 1%.

Foreign networks in Brazil

In the opposite direction, ABF recorded the existence of 214 foreign networks operating in Brazil, originating in 30 countries, growth of, respectively, 13% and 25% in relation to the 2018 indicators. The United States remains the leader, with 81 of the brands, Portugal remains in second position, with 22 and Spain comes next, with 17. Food, health, beauty and well-being, fashion and educational services concentrate the largest foreign networks.