The improved economic environment, which is conducive to investment, contributed to the franchise sector recording nominal growth of 12.8% in the second quarter of this year. In the first half of the year, growth reached 15.8% and resulted in revenue equivalent to R$121.8 billion, according to a survey conducted by the Brazilian Franchising Association (ABF). Revenue between April and June rose from R$54.3 billion to R$61.2 billion, with the franchised areas of Health, Beauty, Wellness, Food and Home and Construction standing out.
This positive scenario, according to ABF, reflects the consistent recovery of the Brazilian economy, which grew 2.5% in the first three months of the year compared to the same period last year. The services sector, for example, had a positive performance of 3% in both the first two quarters of the year and in the last four previous quarters, with emphasis on the recovery of domestic consumption, products in the areas of tourism and technology.
This result was possible due to the significant improvement in the job market, the real increase in wages and the control of inflation, although the sector believes that if the Selic rate were below 10.5% per year, all indicators in the franchise market would be even better.
ABF president Tom Moreira Leite stated that the sector’s double-digit growth demonstrates market confidence and delivers favorable results for society, whether through the hiring of new employees or through its contribution to the economy as a whole. According to him, franchising is an investment alternative for those who want to start a business in a certain area, and offers safe business models with training, support and infrastructure from franchising companies.
Workforce
The survey showed that the number of workers in franchise networks grew by 3.85% in the second quarter of this year compared to the first, and this represents 1.67 million jobs; 4.3% more franchises were opened, totaling 183,151 operations. The greatest demand for business was concentrated in sectors such as Health, Beauty and Wellness, with an increase in the second quarter of 21.7%. Food had the second best performance, with growth of 16.4% and Home and Construction, with 15.1%.
