The system of franchises In Argentina, it continues to offer an attractive way for those who seek to undertake with the support of consolidated brands. But how much capital is needed to enter this business model and what results can be expected?
According to a survey carried out by the Argentine Association of Marks and Franchises (AAMF)the fan of initial investments is broad, although most opportunities are concentrated in two segments: 35% of the franchises relieved requires between $ 16,000 and $ 50,000 to startand another 35% is in the range of 51,000 to $ 100,000. The lower investment options, below $ 15,000, represent only 9% of the proposals, while 12% require between $ 100,000 and 200,000, and another 9% exceed 200,000 dollars of initial investment.
It is important to remember that franchises are a business model that is based on capital integration by franchisees to expand already consolidated networks. In return, those who invest access business models that are already successful, which allows to limit the risks and aspire to reasonable returns on the capital invested.
“Given the recessive context we had during the first half of 2024, 26% declared to have obtained returns from worse investment and 5% much worse than what they had planned by 2024. However, more than half was In line with the planned (53%) y 17% remaining was even better or much better”, Commented from the AAMF.
In addition, most entrepreneurs maintain good expectations for what is coming. 69% commented that they expect their business to improve something or a lot, 26% said they are in line with 2024 and only 5% predicted something worse.
During 2024, 65% of the trained brands grew their points of sale for the equivalent of 5% against 2023, which is equivalent to 268 new net stores, that is, subtracted from the closures. The rhythm was less than 8.8% registered in 2023, but marks the improvement with respect to the pace registered during the first semester of 2024, which had reached 3.6% due to the strong retraction of the economy during that period.
“If we assume that this sample is representative of the total universe of franchise brands in Argentina, we could say that the franchise system operates some 52,500 points of sale throughout the country”, Commented from AAMF.
They complete the picture, 21% of brands that maintained the same amount of points of sale as in 2023 and 14% that reduced them.
Anyway, almost all business items showed growth for 2024, although with very different rhythms. The segment of Aesthetics and health He was headed with an increase in the amount of points of 49%, followed by services (39% growth), clothing and footwear (11%) and much further back gastronomy (6%) y specialized shopswith 3% rebound. The only item that showed a setback was “training”which fell 10% based on the 3 participating chains of the sample.
Another interesting fact that arose from the survey is that 83% of the chains relieved has multi-Francoiatesthat is franchisees that operate more than one point of sale. “That is a very good sign, since an investor who chooses the same franchise is a double sample of confidence,” they said. The general average of the sample is 1.4 points of sale per franchisee and only 10% reaches a total of two or more.
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