The most recent research by the Brazilian Franchising Association (ABF) on the internationalization of Brazilian franchises shows that national chains registered a growth of 16% outside Brazil in 2022 when compared to 2021. The number of brands abroad rose from 183 in 2021, to 213 in 2022. When it comes to countries in which Brazilian chains are present, the number also grew, from 114 to 126 nations, an increase of more than 10%.
Among the main reasons for this expansion are the reopening of economic activities, the search for new markets, the expansion of sales in stronger currencies and the mitigation of economic risks. Examples of franchises that went international in 2022 are SD Group, Emporium da Beleza and Espaçolaser. All of them participate in Franchising Brasil — the result of a partnership between the Brazilian Trade and Investment Promotion Agency (ApexBrasil) and the Brazilian Franchising Association (ABF).
Among the main countries with Brazilian franchise operations, the United States remains in first place, with 78 brands in 2022 compared to 69 in the previous year. Portugal (from 51 to 56), Paraguay (from 44 to 46), Bolivia (from 25 to 27) and Colombia (from 20 to 23) maintained their rankings in relation to 2021. In sixth place appears Chile, which rose one position compared to 2021, followed by Uruguay, Mexico, Argentina and Spain.
The research also indicates that the fashion segment continues to lead the list in number of brands, but has reduced its share, from 44 to 40, tying with Health, Beauty and Wellness, which in 2021 had 36 chains abroad. The following sectors presented expressive growth: Food, which rose from 27 to 32 brands, Education, from 21 to 26, Services and Other Businesses, from 15 to 21, and Home and Construction, from 13 to 20.
“Fashion was the pioneer in franchising and continues with great participation, but, in fact, last year we identified the intensification of the Health, Beauty and Wellness segment, mainly in the area of aesthetics. It is interesting to note that we are talking here about the export of services, a market that we know has a lot of potential for Brazilian franchises. It is also worth highlighting the internationalization of açaí franchises, a typically Brazilian product that is gaining acceptance in other countries”, comments Bruno Amado, executive manager of Franchising Brasil.
With the cooling of the pandemic, the in-person missions agenda was resumed with more intensity in 2022. In all, Franchising Brasil carried out seven international missions, with emphasis on the Expo Franchise Paris, the Multi-Unit Franchise Conference in Las Vegas, USA , the Feria Internacional de Franquicias (FIF) in Mexico, as well as missions to Portugal, the United Arab Emirates, Paraguay and Bolivia. According to polls carried out after these events, the project estimates that it will generate around USD 4 million in business in the period of up to two years.
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 networks and their international trade promotion. The initiative was conceived to promote this recognized business model in the main international markets.