Franchising In Brazil

The franchising system in Brazil started during the ‘60s with the launch of Yazigi, a foreign languages school, and with the opening of the first McDonald’s store in the country.

Nowadays it is growing up: an increase of 10% is registered every year and Brazil prides itself on having 56.000 franchising agreements, 680 different brands whose 90% Brazilian.

Franchising market in Brazil is divided in 12 sectors: shoes and outfits, food and beverage, education and training, sport – health – beauty and leisure, graphics and signals, tourism, informatics and electronics, cleaning services, furniture and decoration, services, cars and clothing. A sector showing a very high growth is that of shoes and outfits, with a growing rate of 53%, represented by such as important brands as Tribos dos pes, TenisOne, Andarella etc, followed by food and beverage, with the higher numbers of networks, informatics and electronic, travelling and tourism.

There wasn’t any specific law to impact franchise until 1992. But, during the same year, the INPI (National Institute for the Private Property) passed a regulation which was in force for 5 years and then revoked by 2 acts. Nowadays the system is impacted by the Law about Franchising n. 8955 (14 May 1996).

Franchise in Brazil can trust in the Associação Brasileira de Franchising (Brazilian Franchising Association), established in 1987 as a no profit body, to protect and support the technical and institutional development of franchise. Nowadays it counts about 600 members.

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