25 Largest Franchising Networks In Brazil
Franchising has been regarded as one of the least expensive ways of expanding businesses. This is a profitable opportunity in Brazil with an expected growth of 13% growth in the franchising sector in 2014. In this article, we will take a look at the 25 largest franchising networks in Brazil.
1. Correios
The Empresa Brasileira de Correios e Telégrafos, Portuguese for Brazilian Post and Telegraph Company - or simply Correios - is a state-owned company that operates the national postal service of Brazil. Correios has 7,440 branches in the country. Since 2012, Correios started franchising again, by means of an edital who started a public tender process. A third of Correios’ offices are franchised and account for about 40% of Correios’ revenues.
The estimated initial investment to open a Correios’ franchise is BRL 112.000.
2. O Boticário
Since 2013, O Boticário has been Brazil’s leading company in the cosmetics sector, with an annual revenue of BRL 7,6 billion, representing a growth of more than 10% compared to 2012. As of 2014, O Boticário has 3.650 stores in more than 1.700 states in Brazil.
O Boticário started franchising its stores at the end of the 1970s. The necessary initial investment to open a O Boticário franchise is BRL 250.000.
3. Ortobom
Ortobom was founded in 1975 and it specializes in the production of mattresses. In 2013 Ortobom was voted the most recognized brand in the Brazilian mattress industry. The company, which now owns 1.860 stores in Brazil, opened its first store abroad, in Bolivia, in 2010. In 2013, stores were opened in Uruguay and Paraguay. Ortobom is planning to expand throughout Mercosul and plans to open more than 240 stores outside of Brazil by 2016. The necessary initial investment to open a Ortobom franchise is BRL 90.000.
4. McDonald's
McDonald’s opened its first restaurant in Brazil in 1979 and, since then, has opened more than 800 restaurants, over 700 kiosks in shopping malls and nearly 100 McCafé units and are spread across more than 190 Brazilian cities. The fast-food restaurant is one of the largest employers in Brazil, employing over 33.000 people. The necessary initial investment to open a McDonald’s franchise is BRL 2,5 million.
5. Cacau Show
Cacau Show is a Brazilian food company, created in 1988, and specializing in the production of chocolate. Cacau Show is the largest network of fine chocolate in the world and has over 1.600 stores in Brazil. The necessary initial investment to open a Cacau Show franchise is BRL 150.000.
6. Subway
Subway opened its first restaurant in Brazil in 1993 and, as of September 2014, has more than 1.600 restaurants. Brazil is actually the third most important market for Subway in the world, trailing only behind Canada and the United States. Subway restaurants are present in more than 440 Brazilian cities and in all 27 states. The necessary initial investment to open a Subway franchise is BRL 302.000.
7. Kumon
Kumon is a japanese education company present in Brazil since 1977, offering an education method which encourages self-education. It has, as of September 2014, nearly 1.600 franchises in Brazil. The necessary initial investment to open a Kumon franchise is BRL 25.000, besides disposing of a minimum area of 40 m².
8. AMPM Mini Market
AMPM Mini Market are convenience stores which operate exclusively in Ipiranga gas stations in Brazil. As of September 2014, there were more than 1.500 AMPM Mini Market stores in the country. The necessary initial investment to open a AMPM Mini Market franchise is BRL 159.000.
9. Wizard
Wizard is a network of language schools founded in 1987 and since then has opened more than 1.200 schools in Brazil. It offers lessons in English, Spanish, Italian, German, Chinese, Japanese, Portuguese for foreigners and English in Braille. The necessary initial investment to open a Wizard franchise varies between BRL 57.500 and BRL 343.000, besides disposing of a minimum area of 80 m².
10. Jet Oil
Jet Oil is a network of stores specializing in oil change and other automotive services in Brazil. It was founded in 1994 and, similarly to AMPM Mini Market, operates exclusively in Ipiranga Gas Stations. As of September 2014, Jet Oil has 1.235 stores, which require an initial investment of BRL 111.000.
11. Bob's
Bob’s is a Brazilian fast-food restaurant which was first opened in Brazil in 1952. It is the third largest fast-food network in Brazil, behind only McDonald’s and Subway. As of September 2014, Bob’s has more than 1.000 restaurants in Brazil, with an initial investment of BRL 620.000 and a minimum area of 40 m² per franchise.
12. Fisk
Fisk is another language school, founded in Brazil in 1958, although it started franchising only in 1992. As of September 2014, Fisk has more than 1.000 language schools in Brazil, with an initial investment varying between BRL 78.000 and BRL 494.000.
13. Hoken
Hoken is a Brazilian company specializing in the production of water purifiers. Founded in 1997, the company now has more than 900 stores in Brazil, and is also present in another seven countries. The necessary initial investment to open a Hoken franchise varies between BRL 22.000 to BRL 360.000.
14. BR Mania
BR Mania is a network of convenience stores operating exclusively in Petrobras gas stations. Its first store was opened in 1994 and it now has over 850 stores across the country. The necessary initial investment to open a BR Mania franchise varies between BRL 180.000 and BRL 670.000. Those interested in operating a BR Mania franchise are required to own a Petrobras gas station.
15. CVC
CVC is the largest Brazilian tourism operator in Latin America since 2012 in terms of bookings. Founded in 1972, CVC was the most recognized brand name in the tourism industry in Brazil in 2013 and has more than 830 stores in Brazil. The necessary initial investment to open a CVC franchise is BRL 110.000.
16. Dia
Dia is a Spanish supermarket network present in Brazil since 2001. Dia directly employs over 6.000 people in Brazil and has more than 700 supermarket units. The necessary initial investment to open a Dia franchise varies between BRL 610.000 and BRL 810.000.
17. Óticas Diniz
Óticas Diniz is a Brazilian company working in the optics segment, selling glasses and sunglasses of different brands. Its first store was opened in 1992 and since then, more than 700 other stores has been opened. The necessary initial investment to open a Óticas Diniz franchise varies between BRL 370.000 and BRL 520.000.
18. CCAA
CCAA, acronym for Anglo-American Cultural Centre, is a Brazilian language school founded in 1961, but started franchising it schools only in 1969. It has, as of September 2014, nearly 700 units in Brazil. The necessary initial investment to open a CCAA franchise is BRL 184.000.
19. Óticas Carol
Óticas Carol is a Brazilian company working in the optics segment, selling glasses and sunglasses of different brands. It was founded in 1997, and now has over 650 stores in Brazil. The necessary initial investment to open a Óticas Carol franchise is BRL 210.000.
20. Chilli Beans
Chilli Beans is a Brazilian company specializing in selling sunglasses. Its first kiosk was open in 2000 and it started franchising in 2001. As of September 2014, Chilli Beans has over 630 points of sale in Brazil. The necessary initial investment is BRL 155.000 to open a Chilli Beans kiosk and BRL 350.000 to open a Chilli Beans store.
21. Prepara Cursos
Prepara Cursos is a Brazilian technical course school network which was founded in Brazil in 2004. As of September 2014, Prepara Cursos offers computer, management and business courses, among others, in 630 franchised schools. The necessary initial investment to open a Prepara Cursos franchise is BRL 48.000.
22. Hering
Hering is a Brazilian adult fashion company founded in 1880, although it started franchising its stores only in 1994. As of September 2014, Hering has over 600 stores in Brazil. The necessary initial investment to open a Hering franchise is BRL 561.000, with a minimum area of 120 m².
23. CNA
CNA is a Brazilian language school founded in 1973, although it only started franchising in 1983. CNA has, as of September 2014, 589 schools in Brazil. The necessary initial investment to open a CNA franchise is BRL 92.000.
24. Seguralta
Seguralta is a Brazilian insurance brokerage company founded in 1968. Despite only adopting the franchising method in 2008, as of September 2014, it has over 560 franchises in Brazil. The necessary initial investment to open a Seguralta franchise is BRL 22.500.
25. Doutor Resolve
Doutor Resolve is a Brazilian company specializing in small repairs and renovations founded in 2010. As of September 2014, Doutor Resolve has 550 franchises in Brazil. The necessary initial investment to open a Doutor Resolve franchise is BRL 44.400.