Franchising in Argentina: 38.3% of brands reported lower activity

A much larger share of franchise brands surveyed in Argentina reported a decline in business activity in the first half of 2026. Some 38.3% reported a downturn, compared with 5% in the same period of 2025. The shift shows that the weakness is not simply reflected in the average: it also affects a broader share of the sector.

A more widespread decline among brands

The figures come from a survey by the Argentine Association of Brands and Franchises (AAMF) and the Córdoba Franchise Cluster, published by Start Franchising on 27 September 2026. Average activity among the brands surveyed fell by 1.4% year on year in the first half.

However, the share of brands reporting a decline gives a clearer picture of how widespread the downturn has become. Between the first half of 2025 and the first half of 2026, that proportion rose by 33.3 percentage points, from 5% to 38.3%.

The two indicators answer different questions. The average change describes the overall movement in activity; the share of brands in decline shows how widespread that situation is within the surveyed group. An average fall of 1.4% therefore does not mean that every brand experienced a decline of that size, or that their trading experiences were comparable.

Nor should the figures be taken to mean that the remaining brands grew: the available information does not show how that group was split between stable activity and growth.

Prices and returns: further signals from the survey

The report provides two additional findings that help put the reported difficulties into perspective. Some 48% of the brands surveyed were unable to raise their prices in line with inflation. Meanwhile, 47% achieved a lower return on investment than expected.

The first figure points to difficulty keeping pace with the general rise in prices. On its own, it does not show how far each brand fell behind, which products were involved or which commercial decisions explained the gap. The publication also provides no breakdown by business activity or location.

The second indicator compares actual results with prior expectations. A lower-than-expected return does not necessarily mean a loss: it means performance fell short of expectations. That distinction matters when explaining the finding without suggesting a level of severity that the available information does not support.

The report also does not specify how many brands overlap between these two groups and those reporting lower activity. The percentages should not be added together or treated as though they describe exactly the same businesses.

Openings do not tell the whole story

For context, the brands surveyed recorded 179 openings and 72 closures in the first half of 2026. This resulted in a net increase of 107 outlets, equivalent to 1.9% growth in their outlet network.

That increase was smaller than the 2.6% recorded in the previous six months. The network continued to expand, but at a more moderate pace. This expansion occurred alongside the rise in the share of brands reporting lower activity.

The two measures are not inherently contradictory: one counts outlets, while the other describes performance. The net outlet figure also tells us nothing about how each new opening performed or whether closures were concentrated among particular brands. For those involved in franchising, distinguishing between these two dimensions avoids treating geographical expansion as a substitute for assessing trading performance.

How to interpret the figures without generalising

The figures cited relate to the brands surveyed by the two organisations, rather than a count of all franchises in Argentina. The published information cited here does not provide the sample size or its composition, so the results should be interpreted within those limits.

The key development is that the downturn has become more widespread among participating brands. As a practical step, franchise networks and their franchisees can review activity, price adjustments and performance against targets separately: these measures complement one another, but are not interchangeable.