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Franchising Is Booming In Brazil

You know that China is a goldmine for American franchises. You've heard that India is enjoying incredible growth. You've read that franchises are opening in Middle Eastern countries that have new governments after the Arab Spring. But do you know about the success that franchising in Brazil?

Forbes have recently examined the conditions that are creating such a franchising boom in Brazil. They say that for anyone looking to gain a financial foothold in this buoyant economy which will host both the World Cup and the Summer Olympics in the next six years, franchising is the best route in.

Brazil actually ranks quite high in the global franchise table:

Brazil ranks fifth in the world franchising league table. The USA takes the lead, with 800,000 franchisees, while Brazil has 93,000. In 2011, Franchises generated profits of about $44bn and employed 837,000 people in Brazil.

Now look at this staggering statistic: franchises in Brazil have a 15% chance of failure combined with 80% for normal start-ups. The lesson then - franchising works in Brazil. With an economy rapidly supplying new infrastructure in a young population, Brazil is one of the countries that will play a huge role in the evolution of global capitalism over the next 75-100 years. This makes it a great country to open a franchise in.

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