Brazilian franchising crosses borders and establishes itself as one of the largest brand exporters in the world. Currently, national networks are present in more than 100 countries, with emphasis on Portugal, the United States, and Argentina. According to the Brazilian Franchising Association (ABF), this movement follows the sector’s robust growth, which generated over R$ 273 billion in revenue in 2024. However, expanding a franchise to another country requires meticulous and strategic planning.
According to Lucien Newton, vice-president of the Consulting vertical at Ecossistema 300 Franchising, internationalizing a network goes far beyond simply replicating a successful model. ‘Expanding outside Brazil requires considering three essential pillars: cultural adaptation, market intelligence, and financial structuring. Without this well-defined tripod, the risk of failure increases considerably,’ explains Lucien.
Step-by-step guide to taking a franchise to another country
- Market and local legislation analysis
Before making any move, it is essential to understand the regulations of the target country. Franchising in Brazil is highly regulated, but not all markets have such structured legislation. Additionally, it is necessary to assess local demand and competition to ensure there is space for the brand. - Choosing the expansion model
There are different formats for internationalization, such as master franchising, where the franchisor expands by granting brand management rights to a third party;joint ventures,characterized by a business partnership or alliance between companies; and direct opening of company-owned units. The choice should consider the franchisor’s management capacity and investment level. - Brand adaptation to the local audience
Each market has its cultural and consumption particularities. ‘What works in Brazil may not be as attractive in another country. Testing the model, adjusting the product mix, and paying attention to communication are fundamental steps,’ emphasizes Newton. - Forming strategic partnerships
Having local partners facilitates market entry and reduces operational risks. Companies with sector experience can assist with logistics, distribution, and franchise operations. - Financial plan and franchisee support
International expansion requires detailed financial planning, considering exchange rates, taxation, and operational costs. Additionally, it is essential to offer continuous support to franchisees to ensure brand standardization.
Opportunities for the futureBrazilian franchising continues its global rise. Segments such as food, beauty, and education are among the most promising for international expansion. For Lucien Newton, internationalization is no longer an option but a natural path for networks looking to grow sustainably.
‘The world is increasingly globalized. Those who know how to position themselves and create smart strategies to scale internationally will stay ahead of the competition,’ concludes the expert.
