ABF CON 2026 brings franchise sector together to discuss the agenda for 2027

ABF CON 2026 brought the franchise community together on Comandatuba Island in Una, southern Bahia, Brazil, from 28 October to 1 November. Now in its 24th edition, the Brazilian Franchising Association’s annual convention focused on preparations for 2027, combining discussions on profitability, tax changes, working arrangements and the association’s leadership transition.

A gathering focused on next year’s decisions

Traditionally an opportunity for networking and celebration, the convention also took on a planning role. According to a report published by the Mundo das Franquias news website on 4 November, the discussions and press conference highlighted franchise networks’ desire for more predictable conditions in which to make decisions.

The agenda covered issues affecting the relationship between franchisors and franchisees. These ranged from expansion decisions and operational performance to changes that could affect costs, pricing, working practices and cash availability.

Profitable growth was a recurring message at the event. In this context, rising turnover provides a starting point for discussion, but does not replace a financial assessment of each outlet. Higher revenue and operating profit are different measures — an important distinction when interpreting the figures presented during the convention.

Growth provides context, but does not settle the debate

According to ABF figures cited in coverage of the event, Brazil’s franchise sector generated turnover of R$301.7 billion in 2025. This represented nominal growth of 10.5% on the previous year. In the first half of 2026, reported year-on-year growth was 9.7%.

These indicators help explain why the discussions in Comandatuba went beyond opening new businesses. With an extensive network of outlets already operating, tax and management decisions affect both franchisors’ organisations and the day-to-day activities of the entrepreneurs running individual outlets.

The percentages must, however, be read in the context of their respective periods. First-half performance is not equivalent to a full-year result, just as nominal growth in 2025 does not, in itself, indicate improved profitability. The importance of growth backed by financial returns was one of the points highlighted in coverage of the convention.

Tax certainty links policy discussions to day-to-day operations

Tax reform featured prominently in the discussions and press conference. Reported topics included setting net-of-tax prices, the taxation of royalties and differences in the use of tax credits by businesses operating under different tax regimes.

The ABF’s president at the time, Tom Moreira Leite, described the difficulties networks faced in forecasting prices while tax rates remained undecided. The association also discussed options involving Simples Nacional, Brazil’s simplified tax regime for small businesses, and the so-called Simples Híbrido, or hybrid Simples model, depending on each business’s circumstances.

According to the coverage, 94% of franchised outlets in Brazil remain under Simples Nacional. This proportion illustrates the significance of discussions about the tax relationship between franchisors and franchisees. The ABF’s stated position was to seek a technical solution that preserves the model’s tax neutrality, rather than requesting a direct tax concession.

Another issue raised was the effect of split payment — separating the tax component from a payment — on small business owners’ cash flow. This connects the policy debate to a practical concern for outlets: the funds available to meet their operating commitments.

ABF leadership transition and continued dialogue

The convention also took place shortly before a new leadership team was due to take over at the association. The report recorded expectations of continued dialogue with the executive and legislative branches of government, keeping issues that affect franchise networks on the agenda.

Working-time arrangements were among the challenges discussed for 2027. However, the fact that this debate took place should not be mistaken for confirmation that a legal change is already in force: business planning and regulatory obligations require separate checks.

For franchisors and franchisees, the practical takeaway is to turn the convention’s themes into a joint review agenda: check margins, update cash-flow forecasts with accounting support, and distinguish confirmed rules from scenarios still under discussion before taking on new commitments.