The Brazilian franchising crosses borders and establishes itself as one of the largest exporters of brands in the world. Currently, national networks are present in more than 100 countries, with highlights for Portugal, the United States, and Argentina. According to the Brazilian Franchising Association (ABF), this movement reflects the robust growth of the sector, which billed over R$ 273 billion in 2024. However, expanding a franchise to another country requires careful and strategic planning.
According to Lucien Newton, Vice President of the Consulting vertical of the 300 Franchising Ecosystem, internationalizing a network goes far beyond just replicating a successful model. “Expanding beyond Brazil needs to consider 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 to take a franchise to another country
- Market analysis and local legislation
Before 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 evaluate the local demand and competition to ensure there is space for the brand. - Choice of expansion model
There are different formats for internationalization, such as master franchising, where the franchisor works on expansion by assigning the brand management rights to a third party; joint ventures, characterized by a commercial partnership or alliance between companies; and direct opening of own units. The choice should consider the management capacity of the franchisor and the level of investment. - Brand adaptation to the local audience
Each market has its own 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,” highlights Newton. - Formation of strategic partnerships
Having local partners facilitates market entry and reduces operational risks. Companies with experience in the sector can assist in logistics, distribution, and franchise operation. - Financial plan and support for franchisees
International expansion requires detailed financial planning, considering exchange rates, taxation, and operational costs. Furthermore, it is essential to provide continuous support to franchisees to ensure brand standardization.
Opportunities for the futureBrazilian franchising continues to rise globally. Segments such as food, beauty, and education are among the most promising for international expansion. According to Lucien Newton, internationalization is no longer an option, but a natural path for networks that aim to grow sustainably.
“The world is becoming increasingly globalized. Those who know how to position themselves and create intelligent strategies to scale internationally will be ahead of the competition,” concludes the specialist.
