Although inserted in a challenging context, the franchising market has been maintaining a pace of growth that exceeds its own projections. According to data from Performance Survey 2022, of the Brazilian Franchising Association (ABF), the sector recorded an increase of 14,3% in 2022 revenues, reaching the historic milestone of R$202.6 billion.
The franchising market is increasingly promising for entrepreneurs looking for opportunities with good return prospects. Currently, the sector has more than 3.000 active brands, 11 registered segments and 184.354 units in operation.
It is worth noting that, in 2021, the sector recorded revenues of R$185.068 billion and forecast growth of only 12% for the following year.
If we go back to 2020, then, the scenario was adverse due to the COVID-19 pandemic, responsible for a drop in 10,5% in the franchise market. However, we could not say that the resumption of activities put the segment on a similar level to the pre-pandemic, since in 2019 the growth of the franchise market was only 7,1%, compared to the previous year. (Source: ABF performance survey)
These numbers indicate that not only has franchising recovered from the critical period generated by the health crisis, but it also shows clear signs of ascension.
What's Behind the Progress?
The reasons that decanted in such a promising scenario are diverse, but measurable. Firstly, the search for entrepreneurship and financial independence has been a determining factor. More and more people are looking to invest in franchises. Mainly because they offer a series of interesting advantages. Among them, we highlight the possibility of having an already established brand, support in business management, standardization of processes and risk reduction.
Secondly, we could not disregard the digitization of franchises, a trend that has intensified during the pandemic.
With the need to adapt to social distancing, many franchises invested in high technology and online solutions, which expanded the presence of brands and allowed business continuity even in the midst of the crisis.
Finally, we emphasize the diversification of segments. Nowadays, there are franchises for the most diverse niches, from food and beauty to cleaning services and pet shops. This wide variety of options makes the market more attractive and accessible to different profiles of entrepreneurs, contributing to an increase in the number of businesses and revenues in the sector.
Top 3: Segments highlighted in the franchise market
Also according to ABF data, all franchise segments recorded growth in 2022, with emphasis on:
- Hotel and Tourism
variation of 24,5% in billing. We can cite as causes the repressed demand resulting from social isolation. As well as the gradual resumption of face-to-face activities and an increase in the average ticket for airline tickets.
- Health, beauty and wellness
After the pandemic, health plays an increasingly crucial role in people's lives. For this reason, new investors are attracted to the sector, valuing the market and professionalizing the management of the units. The variation in 2022 was 21,5%.
- Food and Food Service
With variation of 21,5%. the food business is experiencing the resumption of physical points of sale. However, it does not record a drop in delivery sales, which have already increased during isolation. In addition, there was an increase in the average order ticket due to inflation.
According to the president of ABF, Tom Moreira Leite, in addition to the resumption of face-to-face activities, he highlights the fact that digitization offers numerous advantages for business management and brand visibility. This certainly contributes to the accelerated recovery of the market and, now, its upward curve.
Projections for 2023
Taking into account variable factors such as inflation, monetary policy, GDP and global economic uncertainties, projections for this year are still promising.
An estimated growth of 9.5% to 12% in billing, an increase of 4% in the presence of other chains in the country and an increase of 10% in the generation of new jobs (which in 2022 registered growth of 12%, with 1.589.276 jobs: an average of 9 per franchised unit).
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