Spanish Franchise System Thrives in Turbulent Times

Eduardo Abadía
Spanish Franchise Association
Executive Director
In the turbulent times we are currently going through, it is very gratifying to be able to state that the Spanish franchise system is making good progress, thanks to the fact that it is a business model that adapts well to situations such as the one we are experiencing today, due to its capacity for innovation and its ability to respond to the new reality of the market and consumers, reinforcing its commitment to business lines that already worked before the pandemic, but which now have much more weight and prominence in the profit and loss account, such as delivery, take away, online sales, operating in smaller premises, in corners...
However, the most important thing about this statement is that it can be confirmed with real and objective data, extracted from the report of our Association, "Franchising in Spain 2023", where a gradual recovery of the franchise is evident, which already began in 2022 and which will surely be consolidated during this year 2023 and more in the medium term. According to this study, the system grew in its turnover variables (by 2.9%, with a turnover of 26,929 million euros) and employment generated (by 3.18%, employing 303,595 people in our country). 595 people in our country), registering a not very relevant and significant decrease in the number of networks (by 0.5%, leaving the number of companies that have opted to franchise their business concepts at a total of 1,375) and establishments (by 0.7%, accounting for 77,246 premises opened by franchisers in Spain).

Given this reality, growth forecasts are promising. In fact, there are already sectors that have begun their recovery and are opening establishments again, and not only throughout the country, but the commitment to grow beyond our borders continues, landing in new markets and expanding into those in which they already operate, to the point that today, and as reflected in our report "The Spanish Franchise in the World 2022", there are 288 national franchises established in 139 countries, totalling 18,808 open establishments, which means that 25.44% of our franchises have already taken the step towards internationalization. This means that 25.44% of our franchises have already taken the step towards internationalization.
Against this backdrop, we at the Spanish Franchise Association are committed to moderate growth in this trading system, which will gradually but surely make itself felt. In the meantime, all of us in the world of franchising will continue to work with the dynamism and innovation that characterizes us, strengthening and regaining muscle. It is clear that the current reality demands answers, determination and large doses of work and effort, and the franchise already has experience in this demand and it is implicit in its DNA.

Written by Eduardo Abadía

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