Franchising in Argentina: more outlets, but less business activity

Franchise networks in Argentina added outlets during the first half of 2026, although that expansion came alongside a decline in business activity. A survey by the Argentine Association of Brands and Franchises (AAMF) and the Córdoba Franchise Cluster highlights this mixed picture: the networks surveyed recorded net growth of 1.9%, while their average level of business activity fell by 1.4% year on year.

A net increase of 107 outlets

The study, conducted between July and August among 60 franchisor brands, recorded 107 additional outlets during the first six months of the year, according to a report published by iProfesional on 23 September. The result confirms that the networks surveyed continued to expand their presence, even in a more challenging trading environment.

The net figure, however, combines movements in opposite directions. According to information published by Yahoo Noticias on 21 September, brands that expanded added 179 outlets, while those that reduced their networks lost 72. The difference accounts for the growth over the six-month period.

This distinction matters when interpreting the figures: not every chain expanded, and the overall increase in outlets does not, on its own, describe the position of each business. More outlets do not necessarily mean greater business activity across the networks surveyed.

To give a sense of scale, iProfesional also cited a projection from the two organisations’ latest survey, which puts Argentina’s franchise community at around 2,000 brands and approximately 56,800 outlets. That market estimate should be distinguished from the findings for the 60 brands surveyed.

More brands experienced a decline in activity

The sharpest contrast emerges when comparing business performance with the first half of 2025. In that period, only 5% of the brands surveyed had recorded a decline in activity. In the first half of 2026, that proportion reached 38.3%, according to figures published by Yahoo Noticias.

At the same time, the share of brands reporting growth fell from 55% to 45%. Those that maintained stable activity dropped from 39% to 16.7%. The comparison shows a less favourable spread of results, even though some networks continued to grow.

The scale of the declines also deserves attention. Some 18.3% of brands recorded a fall of more than 10% in business activity. The report noted cases involving declines of 37%, 40% and 50%, although these figures do not represent the sector’s average performance.

The average decline of 1.4% should therefore be considered alongside the variation in results. For anyone considering joining a chain, the overall trend provides context, but it is no substitute for analysing the brand, its network and the proposed location.

Pricing adds to the pressure

Price trends provide another sign of the difficulties facing operators. According to iProfesional, 48% of brands were unable to raise their prices in line with inflation. This finding sits alongside the pressure on margins described in the information published by Yahoo Noticias.

The combination of new openings, lower activity and difficulty passing on costs makes it important to distinguish between two things: a network’s growth and the financial performance of its individual outlets. The survey provides information on expansion and activity, but these indicators alone cannot establish the profitability of a particular franchise.

Nor should new openings be interpreted as a guarantee that consumer spending is recovering. The publications consulted suggest a more cautious reading: the sector continues to expand while facing an environment in which generating sales and maintaining margins is becoming harder.

What to check before investing

For a prospective franchisee, these findings provide a starting point for asking specific questions. It is worth requesting information on sales trends at comparable outlets, operating costs and the assumptions underpinning financial projections. It is also useful to distinguish new openings from reductions in network size.

The central finding for the six-month period is precisely this mixed picture: there was net growth in outlet numbers, but also lower average activity and a larger proportion of brands experiencing declines.

Practical takeaway: before investing, compare the chain’s pace of expansion with the performance of its individual outlets. Outlet numbers give an indication of scale; they are no substitute for assessing the financial viability of the business.