São Paulo – A population estimated at over 210 million across a huge territory makes Brazil a natural destination for investments, including in franchise businesses. Pictured above is an Havaianas store – the brand is a Brazilian Franchising Association (ABF) member.
As per ABF figures, in 2019 Brazil had 214 international brands operating in the sector, up 13% from 2018. They were from 30 different countries, particularly the United States, Portugal and Spain and across all business forms: own units, franchisees, master franchisees, area developers, exports, and joint ventures.
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Part of what makes Brazil an appealing investment destination is the country’s cultural diversity due to its many immigrants. Besides the abovementioned countries, ABF international manager Bruno Amado says there’s space for Arabs, who have been in Brazil for a long time and contributed to its developments.
“The presence of foreign franchises in Brazil has grown over the years, but it’s a market to be explored,” says Amado.
As per ABF figures, in 2019 the sector saw an increase in revenue, number of units and jobs created and was expected to keep growing in 2020 based on the Brazilian economy recovery. But the pandemic came and affected these plans.
“The figures are not closed yet, but the forecast is a decrease in revenue, number of units and chains. But, with the low interest rate and the reduced number of jobs, for example, the franchise sector lures people interested in having their own businesses and potential investors,” says Amado.
“We know that periods of crisis create new opportunities, and entrepreneurs and investors, including from other countries, can benefit,” he says.
*Special ANBA report by Marcos Carrieri.
Translated by Guilherme Miranda
