ABF survey identifies strengthening of networks with multi-franchisees and multi-brand franchises
The Brazilian Franchising Association (ABF) quarterly survey evidenced a strengthening of networks with multifranchisees and of the multibrand franchise networks trend. In 2017, 74.5% of networks claimed to have multi-franchised operations, in comparison with 68.5% in 2016. On the other hand, the number of networks that forbid this practice fell from 1.4% to 0.3%. Considering networks that have multi-franchised, 23% of their franchisees possess more than one unit. When viewed inversely, namely, from units, 37% of them are administered by multi-franchisees.
Similar expansion occurs among multi-brand franchisees (entrepreneurs who manage units of more than one franchise brand). In 2017, 43% of networks claimed to have multi-brand franchisees, an increase of five percentage points in comparison with 2016. Market penetration, however, is still low: amongst networks that allow this practice, only 6% of the franchisees are multi-brand franchisees. Managing units from 2 to 4 brands is a predominant practice.
"This is a growing trend in Brazil, both due to the operational advantages, the maturing of entrepreneurs and the opportunities generated by the economic downturn. However, we still have a lot of room to grow, seeing that in more mature markets such as North America, the percentage of franchisees who manage more than one unit exceeds 50%", assesses Altino Cristofoletti Júnior, president of ABF.