Franchising in Brazil: foreign entrants build a presence

Abstract

Purpose

The purpose of this paper is to provide an overview of the franchising sector in Brazil and highlight the opportunities and offer strategies for practitioners. It also points out some challenges and gives suggestions to overcome them and thrive in the Brazilian market through the franchising system.

Design/methodology/approach

This paper reviews both literature and practical sources providing primary data from interviews conducted with franchising experts from the Brazilian Franchising Association and a consultant company.

Findings

International franchisors willing to enter the Brazilian market might face some challenges, such as the language barrier, the complex tax system and the need for local adaptations. Foreign entrants should consider low control entry modes as master franchising and area development agreements, with local partners that know the Brazilian culture, business system and regulations.

Originality/value

Brazil presents a great market potential for international franchisors. It counts with an established franchising system and a stable regulatory environment. This paper provides relevant information about the characteristics, opportunities and challenges to operate in the Brazilian market, offering suggestions of strategies and several possibilities to explore different regions, locations and models across the country.

Citation

Bretas, V.P.G. and Alon, I. (2021), "Franchising in Brazil: foreign entrants build a presence", Journal of Business Strategy, Vol. 42 No. 6, pp. 374-381. https://doi.org/10.1108/JBS-03-2020-0051