See which areas are most promising to invest in franchising in 2022

The recovery of franchises surpassed the sector’s expectations. “In the third quarter of 2021, we returned to the level of 2019. We expected to grow 8% in the year, but everything indicates that we will reach 9%”, says André Friedheim, president of the ABF (Brazilian Franchising Association).

Based on the performance of franchises this year and the ability of some segments to adapt to the demands generated by the pandemic, Friedheim says it is possible to make some bets for 2022.

The tourism and hotel industry occupies the top of the list. According to the Quarterly Industry Performance Survey, carried out by the ABF, the sector’s growth in the third quarter was 53.1%, driven by pent-up demand. “In particular, local tourism has made a strong comeback, which should encourage agency franchises, car rental companies and hotel chains,” he says.

Another area that stood out in the pandemic and promises to remain strong is education, with an emphasis on networks that have adapted well to the hybrid format. This category includes language courses, preparatory courses for public examinations and specialization courses, such as professionalizing a game designer.

“People learned in the pandemic that online courses represent an opportunity for greater qualification. Prejudice in relation to distance learning is over,” says the president of the ABF.

In the food sector, some changes imposed by the pandemic are expected to remain, such as the increase in delivery and the proliferation of dark kitchens, which helped to reduce costs and simplify operations. This is the opinion of Leonardo Lara, commercial director of the Conexão Franquias consultancy. “We already see shared kitchens,” he says.

The nearly two-year health crisis has also boosted the emergence of new franchise models, which have what it takes to continue their boom. More compact physical stores, designed for smaller cities, and alternative outlets gained strength — such as kiosks installed in supermarkets and home centers and units formatted for residential condominiums, such as mini-markets and laundries.

Microfranchises, which had their investment ceiling revised in 2021 based on World Bank criteria —now, chains priced up to R$ 105,000 — are included in this category, will continue to leverage Brazilian franchising, according to ABF projections.

Within this group, the homebased format stands out, which eliminates the need for a fixed point, and the service segment franchises, especially those specializing in elderly care, sale and installation of solar energy and cleaning equipment.

For Leonardo Lara, low initial investment franchises are an opportunity for an audience that entered franchising with a will in 2021: young people. “They represented 10% of our clientele and, today, they are 20%, as many of them undertook out of necessity due to unemployment,” he says.

But, according to the expert, it is necessary to be careful when investing, because the popularization of microfranchises has led to the emergence of many networks not associated with the ABF, which promise profits that are incompatible with the initial investment. “Before signing a contract, talk to other franchisees, ask if the franchisor’s support is efficient and if the financial projections are being met.”

5 microfranchises from sectors that will be on the rise in 2022

Tourism Club (franquiaclubeturismo.com.br)
Segment Tourism agency
Units 532
Investment From BRL 5,900
Return From 4 to 24 months

The Kids Club – English Just for Kids (thekidsclub.com.br)
Segment Language course
Units 53
Investment From BRL 23.5 thousand
Return 12 to 36 months

take care (cuidarebr.com.br)
Segment caretakers of people
Units 69
Investment From BRL 26 thousand
Return From 8 to 24 months

Brazilian Maria (mariabrasileira.com.br)
Segment Domestic and corporate cleaning
Units 356
Investment From BRL 36,500
Return 12 to 15 months

Graviola
​Segment healthy food restaurant
Units 7
Investment From BRL 85 thousand
Return From 16 to 24 months