Question 1

What is a franchise?

Accepted Answer

A franchise is an arrangement in which a franchisor grants another business the right to operate using its brand and an agreed business model, in return for payment. Support may include operational know-how, marketing and training. In Brazil, both Brazilian-owned and foreign networks use this approach. The particular rights, charges and support should be assessed through the disclosure information and agreement.

Question 2

Where did franchising begin?

Accepted Answer

The United States was a pioneer in the development of modern franchising. Its structured network model expanded strongly after the Second World War, with well-known restaurant brands emerging in the 1950s and American networks subsequently spreading internationally. These networks reached Brazil during the 1970s, contributing to the development of a franchise community that also built its own domestic brands.

Question 3

How has franchising developed in Brazil?

Accepted Answer

Franchising was present in Brazil in the 1960s and gained momentum in the 1980s, including through language education networks. ABF was established in 1987, followed by franchise legislation in 1994. Growth has since involved both Brazilian and foreign brands. More recently, annual turnover reached R$301.7 billion in 2025, while Brazilian networks have also developed an international presence.

Question 4

What are the advantages of franchising compared with going it alone?

Accepted Answer

Franchising can provide access to an established brand, operating know-how and support rather than requiring an entrepreneur to develop everything independently. In Brazil, available support may include marketing, logistics and business guidance, depending on the network. These potential advantages need to be weighed against fees and contractual obligations. A recognised name does not remove the need to assess the opportunity carefully.

Question 5

How do I get started with a franchise in Brazil?

Accepted Answer

Start by researching brands, customer demand and the investment you can realistically support. Use QFA’s directory and guides to organise your initial exploration, then investigate each Brazilian opportunity in detail. Request and review the franchise disclosure information, clarify fees and promised support, and seek independent legal and financial advice in Brazil before signing an agreement or committing funds.

Question 6

How is franchising regulated in Brazil?

Accepted Answer

Brazil has specific franchise legislation, with its first dedicated franchise law introduced in 1994. Disclosure and contractual documentation are important parts of assessing a franchise relationship. Do not assume that historical descriptions explain every current requirement: ask a Brazilian franchise lawyer to check the applicable rules, documentation and your obligations before proceeding. This is general information, not legal advice.

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