Brazil Franchise Market Grows 13.5%, Hits USD 47B

(MENAFN- Brazil-Arab News Agency (ANBA)) São Paulo – In 2024, the Brazilian franchise market performed excellently, surpassing initial forecasts of a 10% growth, achieving a nominal growth of 13.5% and revenue of BRL 273.083 billion (USD 47.225 billion). The quarterly survey by the Brazilian Franchising Association (ABF) on franchisee performance also revealed that in the last quarter of the previous year, the sector expanded by 11.3%, totaling BRL 81.086 billion (USD 14.023).

Moreira Leite (C), Friedheim (R), with Felipe Buranello, Director of Relationships, Microfranchises, and New Formats at ABF

The franchising market reached 3,300 brands and 197,709 units last year, showing a growth of 0.9%. The sector generated 1,718,621 jobs, marking a 1% increase compared to 2023.

According to the president of the association, Tom Moreira Leite, this positive performance is directly linked to the recovery of consumption, driven by the low unemployment rate, the increase in wages, and the higher purchasing power of families in Brazil. He also mentions the significant rise in the gross domestic product, which was first projected at 1.59% but reached around 3.49%, as a major influencing factor. Domestically, the result was supported by the search for operational efficiency, the digitalization of processes and services, the improvement of omnichannel strategies (which integrate all channels of a company, both online and physical), the expansion of franchising across the country, and the growth of markets related to agribusiness, such as the state of Goiás.

“The heated job market and the increase in the circulation of money in the economy, even amid inflationary impacts, boosted the revenue of Brazilian franchising, surpassing its initial expectations. However, this result was only possible thanks to the efforts of franchise networks in adjusting their operations and offerings to consumers. It's important to highlight the pursuit of operational efficiency, the advancement of digitalization, and the development of markets outside major centers,” says Moreira Leite.

Last year, for the first time, the Entertainment and Leisure sector grew by 16.6%, surpassing the Health, Beauty, and Wellness segment (16.5%), Food Service (16.1%), and Retail and Distribution (14.7%). This was the first time this sector ranked among the highest growth areas. Moreira Leite attributes this growth to a direct post-pandemic effect and says the second reason consumers seek shopping centers is entertainment, citing data from the Brazilian Association of Shopping Centers (Abrasce).

In 2025, the franchise sector will face a transforming landscape and challenges such as labor shortages, inflationary pressure, and the rise in benchmark Selic interest rate, which could hinder credit and consumption. The sector is also closely monitoring the volatility of the dollar and global events, aiming to understand potential impacts in the coming months. However, growth projections point to a range of 8% to 10%.

Franchises outside Brazil

In Moreira Leite's view, for franchising companies that rely on product supply as a key revenue driver, the exchange rate with the depreciated real can be an attractive factor, not only from the brand's perspective but also for international buyers seeking to do business with the Brazilian market.“I believe many brands will seek international growth, but in a measured way. I think the maturity of Brazilian franchising, combined with a concept of Brazilian identity, generates interest in foreign markets, as there is this combination of economic factors with the desire for products that represent what Brazil has to offer.”

André Friedheim, ABF board member and president of the World Franchise Council (WFC), says that there are about 200 Brazilian franchisors operating in over 100 countries.“This number is not representative compared to the three thousand franchising companies operating in the market. Brazil still offers many opportunities, and international expansion requires planning, significant capital, the right choice of international partner, and a series of other factors that will ensure the brand's success abroad.”

Read more:
Bibi: Potential for franchising in Arab countries

Report by Paula Medeiros, in collaboration with ANBA

Translated by Guilherme Miranda

Keiny Andrade/ABFKeiny Andrade/ABF

The post Brazil franchise market grows 13.5%, hits USD 47B appeared first on ANBA News Agency .

MENAFN06022025000213011057ID1109177733