In the midst of a complex economic outlook marked by global uncertainties, the franchise industry in Spain remains strong and shows remarkable growth and adaptability.
According to the latest data from the Spanish Franchisors Association (AEF), in collaboration with the Cajamar Cooperative Group, the franchise sector in Spain has demonstrated its resilience in the face of the challenges posed by the pandemic, geopolitical tensions and fluctuating energy prices. Despite these obstacles, the franchise sector has recorded a notable increase of 2.9% in turnover and 3.18% in job creation compared to previous years.
As we delve deeper into this article, we will unravel the dynamics of franchising in Spain, highlight key sectors, featured brands and the opportunities and challenges for aspiring franchisees. Join us as we explore the thriving franchise landscape in Spain and discover the secrets of its success.
The situation of franchises in Spain
The franchise landscape in Spain is characterized by a robust and dynamic sector, with a great diversity of brands and sustained growth. With a total of 1,375 brands in the franchise system, Spain offers a wide range of opportunities for entrepreneurs.
Likewise, despite a 0.5% decrease in the number of brands compared to 2019, the industry is still thriving. In fact, 82.6% of franchises are of national origin and 17.4% come from twenty-four different countries. These include France, the United States, Italy, the United Kingdom and Portugal.
In terms of financial performance, the franchise system witnessed a remarkable 2.9% increase in total turnover reaching €26,929 million at the end of 2022. It is worth noting that, while company-owned stores experienced a 10.4% increase in turnover, franchised stores experienced a slight decrease of 1.7%.
However, despite this, franchising remains a key driver of economic activity, contributing to job creation and stability. And the fact is that, at the close of 2022, the franchise sector employed 303 595 people, an increase of 3.18% compared to 2019.
The most represented sectors in the Spanish franchise
The franchise landscape in Spain is characterized by a great diversity of sectors, each of which contributes to the dynamism and growth of the industry. Among these sectors, the food sector stands out as the undisputed leader with the highest turnover: EUR 8,900.7 million in 2022.
It is closely followed by the restaurant and fast food sector , as well as the hotel sector, which recorded a turnover of EUR 3081.4 million and EUR 2380.6 million, respectively. The resilience of these sectors, especially during the pandemic, can be attributed to the essential nature of their services, as they ensure continuity of demand and income generation.
In terms of the number of outlets, food is once again in the lead, with 13,473 outlets nationwide. This is followed by catering and fast food, beauty and esthetics, and travel agencies, with significant presence and accessibility for consumers.
In addition, these sectors contribute greatly to job creation in Spain. With the food industry employing 72,912 people, followed by the restaurant and fast food sector, and also the service and transportation sector, the franchise industry plays a fundamental role in the creation of employment opportunities and boosting economic prosperity.
Within these sectors, successful franchises have arisen, such as the real estate Don Piso, el Reprepol children’s fashion group, the Eroski supermarkets, the 100 Montaditos food outlets and the Llongueras beauty establishments, which capitalize on consumer demand and leverage innovative business models to thrive in the competitive market landscape.
Opportunities and challenges for franchisees in Spain
If you are an aspiring franchisee in Spain, you have seen that the franchise industry offers abundant opportunities for growth. However, it is important to keep in mind that starting a franchise involves several challenges.
From overcoming challenges such as initial investment costs to finding the right franchisor and adapting to market dynamics. However, by conducting thorough research and seeking guidance from industry experts and support networks, franchisees can mitigate risks and maximize their chances of success.
Conclusion on franchising in Spain
In conclusion, the franchise landscape in Spain is an example of resilience and opportunity in the midst of a complex economic context. Despite the challenges posed by global uncertainties, it is undeniable that the franchise sector has demonstrated remarkable growth and adaptability by registering significant increases in turnover and job creation.
In addition, with a wide range of sectors and a rich repertoire of brands, the franchise sector in Spain offers abundant opportunities for aspiring entrepreneurs to embark on profitable business ventures.
Of course, it is clear that sectors such as food, catering and hospitality play a key role in boosting economic activity and job creation. As such, successful franchises within these sectors serve as a testament to the industry’s potential for innovation and growth.
So, for those considering franchising in Spain, it is essential to consider the challenges that come with the territory, from initial investment costs to market dynamics. However, these challenges can be overcome through thorough research, seeking guidance and leveraging support networks.
Looking ahead, the franchise sector in Spain remains promising for both investors and entrepreneurs. For more information on franchising and industry news, visit our news section and stay up to date on the franchise landscape in Spain.
