Patagonia recorded 70 agreements for new franchises

Argentina’s Patagonian franchise sector recorded agreements for 70 new openings between January 2025 and September 2026, according to a survey by Franquicias Que Crecen (FQC), reported by Mercado on 13 November. Although Neuquén accounted for the largest share, almost four in ten deals were in other provinces in the region.

Franchise agreements extend beyond Neuquén

The survey placed Neuquén at the forefront of activity, with 62% of deals, equivalent to 43 franchises. It was followed by Chubut with 23%, Río Negro with 7%, Tierra del Fuego with 6% and Santa Cruz with 2%.

The distribution shows a strong concentration in one province, but also activity across the rest of Patagonia. Chubut ranked second, while the other three provinces rounded out a picture of opportunities extending beyond the main hub of expansion.

The scope of the figures matters: the 70 deals represent agreements to open franchises during the 21 months surveyed. They should not be interpreted as a count of outlets already opened, nor as the total number of franchised businesses operating in the region.

For brands considering expansion into southern Argentina, this distinction makes the report an indicator of investment decisions and network development, rather than evidence of businesses already trading.

Local capital underpins demand

“Investors are mainly local,” explained Marcelo Bernardini, a consulting partner at FQC, in the report published by Mercado. The source of this capital is one of the defining features of the activity recorded.

According to the analysis, urban growth and the identification of underserved niches are sustaining interest in bringing new business concepts to cities where they are not yet available. Investors are combining local market knowledge with an ambition to introduce national brands.

Comodoro Rivadavia, Bariloche, Ushuaia and Río Gallegos are among the locations attracting interest. Activity is therefore not confined to cities associated with the oil industry.

Bernardini also noted that business concepts from Buenos Aires have aspirational appeal for investors and consumers, particularly where there is still room for a more varied commercial offering. Two types of investor are active in this market: entrepreneurs seeking to establish their first business, and business owners who already operate local brands and are adding national franchises to broaden their offering and reach new customers.

Food and drink leads as new categories emerge

Food and drink remained the most popular sector, in line with trends elsewhere in Argentina. However, the survey also identified categories beginning to gain ground and broaden the options within Patagonia’s franchise sector.

These include renewable energy businesses offering solar panels, water heaters and power generation systems. Gyms, Pilates, beauty services and interior décor also feature.

This diversity reflects the range of investor profiles. The report describes both first-time entrepreneurs and established local business owners adding new brands to their existing operations.

Assessment needs to be carried out city by city and sector by sector. “You cannot speak of saturated markets in general terms,” Bernardini said. His observation highlights the characteristics of each location rather than drawing a single conclusion for Patagonia as a whole.

Logistics and fit-out: adjusting the budget

The costs of entering a franchise were broadly similar to those elsewhere in Argentina. The difference emerges when logistics and premises fit-out are taken into account: according to FQC, these factors can increase the initial investment by up to 15%.

The survey noted that using local suppliers can reduce this cost. Rather than automatically applying the same surcharge to every project, investors should assess the specific requirements of each site.

Looking towards 2027, the outlook gathered in the survey points to gradual, sustained development, supported by the energy industry, tourism, production-related projects and demographic trends. These are expectations for growth, not confirmed openings.

Practical takeaway: before proceeding with a franchise in Patagonia, assess demand in your chosen city and budget for logistics and fit-out, comparing local suppliers and contractors.