Resumption and growth. These are the two words that will dictate the global franchising market in 2022. At least three players that were interviewed by the Franchising Brasil website — a sectoral internationalization program carried out by a partnership between ApexBrasil (Brazilian Trade and Investment Promotion Agency) and ABF (Brazilian Franchising Association) — who brought their perspectives about the coming year to the conversation.
The general secretary of the APF (Portuguese Franchising Association) and the president of the World Franchising Council (WFC) task force, Cristina Maria Matos, showed optimism for 2022: “The current forecast, with the inflow of European Funds and the economic recovery are possibilities of growth for all sectors of activity. For sure there will be some areas that are likely to grow faster, but I believe there will be no stagnation in any segment”.
The executive director of the Ibero-American Franchise Federation (FIAF), José Roberto Fernández, bets on the areas of personal, residential and commercial services, with emphasis on the construction and food sectors, which are constantly expanding.
According to José, since the second half of 2021, the performance of the activity and the sales indexes of franchises from different countries have been very positive. “The franchises have adapted to new formats and the trend is to highlight more efficient units in fewer square meters, which generates more income for vacancies that were available in cities and were used by franchises in all branches of business”, he adds.
Reencounters
The return of in-person events is one of the evaluators of growth in the global franchise market. Investors are interested and they make as much contact in virtual events as in-person events. However, in-person events bring the opportunity to be attended live by a director or representative of the franchise, which generates certain bonds that are not replaceable yet, such as empathy and the initial trust of live contact between people.
“We must remember that the relationship between investors and franchisers is not just contractual and corporative, but human. These complex bonds become essential for the beginning of a long-term committed relationship. It is in person that we validate this essential relationship for franchising activities”, José Roberto explains.
According to Cristina, the acquisition of a franchise requires planning, interaction with the brand, with the franchiser and franchisees, and often the process begins at tradeshows. “These processes can last several months. The online format has undoubtedly revolutionized our lives, but there are still many activities that require face-to-face contact, making events very relevant to the market”, Cristina says.
Bruno Amado, executive manager of Franchising Brasil, reveals that he is excited about the resumption. “During the last two years, we have developed a series of virtual initiatives to maintain and create new bonds between Franchising Brasil participants and international investors. We work with key markets for our entrepreneurs such as Latin America, for example. Now is the time for us to meet again at the biggest tradeshows in the sector and business missions”, Bruno says.
A busy schedule
The schedules are starting at a dynamic pace this year. The APF starts on April 19 and 20, with the “Expofranchise”, the largest franchise tradeshow in Portugal, which takes place in Lisbon. This edition will also have the launching of the 2022 Franchise Awards, in which the first places will have the opportunity to compete for European awards, organized for the first time by the European Franchise Federation, of which APF is a member.
In the second half of the year, the “Nortefranchise” takes place, a regional franchise tradeshow in the north of the country, which will be in a smaller format and focusing on small urban centers. The “Business Round” will also be carried out, but its location and date are still to be announced The FIAF schedule confirmed the return of franchise tradeshows in Argentina, which will take place in May, in Mexico it will be in June, in Panama it will be in July, and in Colombia, in August.
The ABF will also carry out the ABF Franchising Expo in-person, which promises to bring together more than 400 brands, from the most diverse franchising segments, between June 22 and 25, in São Paulo.
For brands that intend to exhibit at international events, Cristina suggests that they should start by contacting the association in their country and take advantage of existing incentives to make the bridge with the international associations that will be present. “The World Franchise Council, of which APF and ABF are members, promotes interaction between more than 50 franchise associations worldwide. This interaction between organizations enables greater dynamics in the international growth of brands”, the president points out.
The ABF, which is part of FIAF, carries out this work through Franchising Brasil, providing information on the most suitable destinations and means, and carrying out trade missions to several countries. “In 2020, we carried out a first virtual exercise of franchise mission exchange in Guatemala, which resulted in the granting of several brands. Based on this initiative, ABF has repeated these and other exercises with excellent results”, José concludes.
About Franchising Brasil
Franchising Brasil is a joint project of the Brazilian Franchising Association (ABF) and the Brazilian Trade and Investment Promotion Agency (ApexBrasil), which aims to support the internationalization strategy of Brazilian franchise brands and their international trade promotion. The initiative was conceived to promote this recognized business model in the main international markets.