Franchises in Brazil Are 90% National and Generate 30,000 Jobs

With an annual turnover of US$ 13.7 billion (32 billion reais), franchises currently account for 1.7% of the total wealth produced in Brazil, referred to as the Gross Domestic Product (GDP).

And the sector continues to grow: It expanded 9% last year and is expected to grow 10% this year. These figures were furnished by the Brazilian Franchising Association (ABF).


Contrary to popular belief, 90% of the franchises are Brazilian. They generate 30 thousand direct jobs each year, on average, and there are 804 networks operating in the country, with 59 thousand sales or service outlets.


Globally, Brazil is ranked sixth in this market, after the United States, Japan, China, the Philippines, and Canada.


For Ricardo Toledo de Camargo, executive director of the ABF, the franchise market is advantageous and more secure than that of the independent businessman.


He explains that, while conventional businesses have a 45% success rate, the annual failure rate for franchises is only 2.5%.


“Investment in a franchise is naturally much more secure, in consequence of all the organization the firm is required to have and all the orientation provided to the franchise operator,” he affirms. On average, the initial investment is recovered in two to three years.


A new Franchise Law proposal will soon be submitted to the Presidential Advisory Staff. The main objective is to guarantee greater security to franchise operators, according to Patricia Mayana, an adviser with the Market Access division of the National Sebrae (Small and Medium Business Advisory Service).


Under existing law, a business can be transformed into a franchise system immediately after the inauguration of the original establishment.


The new proposal would only permit this transformation after the business has been inaugurated and functioning for two years.


“This protects the franchise operator, since one can assume that the business that is being offered as a franchise has had time to mature and achieve market success,” he observed.


ABr – www.radiobras.gov.br

Tags:

Ads

You May Also Like

Brazil’s Landless Lesson: the Bounty of the Land Is for All

On May 17th, Brazilian news media reported that 50 people were injured as landless ...

Tropical Brazil Is Finally Embracing Solar Housing

Encouraging the increasingly important practice of sustainable development and construction in Brazil the Solar ...

Brazil Makes Act of Contrition to Reopen Europe’s Doors to Its Beef

Brazilian Agriculture minister, Reinhold Stephanes, stated that Brazil must "recover the European Union confidence" ...

Haiti Needs to Be Rebuilt from the Ground Up, Says Brazilian Professor

As the February 7 date for general elections in Haiti approaches, various preelection situation ...

Brazil’s Wilderness Gets Satellite Phone

Texas-based CapRock Communications, a global provider of industrial-grade satellite communication services, announced February 22 ...

Brazilian President Sacks a Lula Man and Gets a New Lula Man as Defense Minister

Brazil’s Defense minister Nelson Jobim (now former minister) was in Tabatinga in the state ...

Brazil Has Lowest Foreign Debt in 8 Years

Brazil’s foreign debt, according to the Central Bank’s calculations for May, was down US$ ...

RAPIDINHAS

Unable as Itamar Franco appears to be to see himself for what he isn’t, ...

Brazil Builds Reefs to Protect Fish from Nets

The Brazilian government’s fishing conservation program was inaugurated January 2 off the coast of ...

World’s Top Vaccine Scientists Gathered in Brazil See Bright and Challenging Future

Many new vaccines that have the potential to save millions of lives are in ...