The franchise market expects to close the year 2022 with a 7% growth in the number of units in the country, compared to last year, resulting in a 5% increase in jobs generated. This is the expectation of the Brazilian Franchising Association (ABF), which forecasts R$ 207 billion in revenue, 12% more than in 2021.
The positive expectation is driven by the result of the first half of this year, when revenue grew 12.9% compared to the same period in 2021. In practice, it jumped from R$81 billion to R$91.4 billion.
Compared to the first six months of 2020, when the Covid-19 pandemic began, growth this year is even higher: 17%.
“The franchise sector in Brazil has demonstrated its strength, its ability to react and overcome the great challenges posed by Covid-19, and the numbers reinforce that franchising is maintaining its growth trajectory and is prepared to grow even more in a scenario of improvement in the country’s economic environment”, says André Friedheim, president of ABF.
The entity’s projection is to reach the end of 2022 with 181,900 units, 3,026 brands and 1,453,852 professionals employed.
A survey by ABF shows that the increase in operations is moving away from the Rio-São Paulo axis. Manaus, capital of Amazonas, for example, leads the growth in the number of franchises in the first half of this year (35.1%), followed by Cuiabá (31.7%), capital of Mato Grosso, Belo Horizonte (30.9% ), capital of Minas Gerais, and São José do Rio Preto (30.6%), in the interior of São Paulo.
“With the pandemic, the franchises that made the most progress in digitalization and/or launched new business models, new service proposals, explored new niches, with stabilization, accelerated their expansion, which was reflected in the growth in the number of operations in these cities. . The trend is that the capillarity will advance even more and the internalization of franchises will intensify in the coming years”, says Friedheim.
Currently, the city of São Paulo has the largest number of franchises in operation: almost 20 thousand. In second place appears Rio de Janeiro, with just under 10 thousand enterprises. Just below Brasília and Belo Horizonte with around 3,400.
Among the main segments, health, beauty and well-being was the one that grew the most in the first half: 16.9%. Food and foodservice stores appear in second place, with 16%. Hotels and tourism establishments are in third position, with 15.9%.
The number of vacancies in the franchise market was also influenced by the advancement of the sector in the first half of 2022. According to ABF, job creation in this period increased by 12.5%, compared to the first six months of 2021 , from 1.2 million to 1.4 million.
According to financial educator and specialist in the franchise sector Aline Soaper, the Covid-19 pandemic played an important role in the growth in the number of franchisees in the country.
“One of the factors that favored the growth of the search for franchises was the departure of many people from companies in the pre and post-pandemic. Many people who have experienced the flexibility of the home office, decided to resign to undertake or took advantage of being disconnected from companies to start their own business.
With the possibility of acquiring franchises at more affordable prices, this has become an opportunity for many people”, highlighted Aline Soaper.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.