The franchise sector in Spain is presented as a dynamic and constantly growing industry, according to the latest report by Tormo Franquicias Consulting. Currently, 44% of franchising companies are in the startup phase, and if we add those in the development phase, the total reaches 1,103 brands, representing 75% of the overall industry. However, these brands face limited growth, reaching barely 10,000 units, which corresponds to only 12% of the total franchised establishments in the country.
In contrast, the 204 fully expanded brands dominate the research with 67,344 units, constituting 79% of the total. This situation highlights a notable polarization in the sector, where established brands generate greater trust among investors. The report outlines four phases in franchise expansion: startup, growth, development, and expansion, reflecting not only a clear path of evolution but also the inherent challenges at each stage.
The growing polarization in the sector presents a shift in the growth dynamics. Emerging franchises must adapt to a more competitive environment, where investors are increasingly demanding and professional management becomes crucial. Questions about the decline in demand for franchises and how to compete effectively often arise among new entrepreneurs.
Despite these challenges, sustained growth of the franchising system is expected. New brands bring innovation and freshness to the market, while established ones ensure their leadership and expand their presence both nationally and internationally. The real challenge for emerging brands lies in differentiating themselves, professionalizing their management, and building trust with investors to move towards more advanced development phases.
In conclusion, the franchise sector in Spain reflects a dynamic balance between maturity and renewal, becoming one of the most significant drivers of entrepreneurship in today’s economy.
via: MiMub in Spanish
