Microfranchises: key to the recovery of the economy

The monthly survey of the Brazilian Franchising Association (ABF) showed that, in June of this year, there was an average drop in revenues in the franchise sector as a whole of 30%.
Despite this index, they remain a safe undertaking for those who want to invest. With the pandemic, microfranchises, in turn, have presented some advantages, especially those that work with cleaning, automotive, marketing and digital communication services.
For market analysts, microfranchises will play a very important role in the recovery of the Brazilian economy, receiving professionals in search of a new occupation, especially those who work with cleaning and small food businesses.
According to ABF's regional director in the northeast Leonardo Lamartine, before embracing a microfranchisy, one must keep in mind that a low-investment initial franchise is, anyway, a business that demands attention, time and direct involvement of the entrepreneur.
Even microfranchisy will also require prior preparation, both in relation to the franchising system, as well as in relation to business management and the characteristics of the market in which it will be invested. "Because it has a lower initial investment, in general, it is also necessary that the entrepreneur puts more 'hand in hand', that is, he himself executor of the activities", he points out.
Lamartine also stresses that it is important that the entrepreneur has a reserve capital to support himself until the business is more mature.
The Director of the ABF also points out that, due to the crisis, various initiatives were adopted by the franchising networks to facilitate access for entrepreneurs. "The most common are decrease or installment of the franchise rate, negotiation of royalties and other franchise fees and facilitated access to credit. In some cases, a unit already in operation is also offered, a process we call a transfer, in conditions that are also attractive", he says.
Sebrae Tauan Sousa's Innovative Business Coordinator points out that, among the microfranchises, the service sector has been standing out at the moment in which it is being lived. "Precisely due to the great uncertainty and need to invest safely, the franchise presents itself as the best alternative", highlights the representative of Sebrae.
"A franchise is usually formatted to meet different types of stakeholders with different values and structures, but all units receive the same amenities as the others. Considering that the franchise operates based on specific law, all franchisor find safety in operations and minimize the risks of the investment", he adds.
Tauan Sousa recalls that the franchisor is responsible for ensuring all the necessary logistics for its networked units to maintain the standard of the franchised business. Among the units, the exchange of experience ensures a greater consolidation of the brand in the region where it is inserted. "Bahia has not been standing out in the microfranchisement segment, which are characterized by revenues of up to 80,000 per year. There is practically no promotion for this very interesting business model. The predominance is of micro and small franchises", he laments.