Brazil’s franchise sector generates R$149 billion in revenue in the first half of 2026

Brazil’s franchise sector generated R$149 billion in revenue in the first half of 2026, a nominal increase of 9.7%, according to the Quarterly Performance Survey from the Brazilian Franchising Association (ABF). The figures, released on 3 September and reported by PEGN magazine, show continued growth, but also a slowdown between the first and second quarters against a backdrop of tight credit and pressure on consumer spending.

Second-quarter growth continues, but loses momentum

Between April and June, franchise revenue reached R$76.3 billion, with nominal growth of 9.3%. This was below the 10.1% increase recorded in the first quarter. Growth over the first six months totalled 9.7%.

The difference between the two quarters matters when interpreting performance: revenue continued to rise, but at a slower pace. The figures therefore indicate a slowdown in the growth rate reported by the survey, rather than a fall in revenue.

Easter falling in April did not prevent this slowdown. According to the report, the holiday typically benefits food businesses, but overall franchise sector growth in the second quarter was lower than in the first three months of the year.

The national figure brings together the performance of the businesses surveyed. It should not be treated as a growth rate that automatically applies to every franchise network or outlet. For anyone assessing a particular business, it provides context rather than a substitute for analysing that business’s own results.

Nominal growth requires careful interpretation

The published percentages are nominal, meaning they are not adjusted for inflation. This distinction matters because an increase in revenue alone does not establish that sales volumes or the purchasing power of that revenue have risen by the same amount.

Nor can the 9.7% increase in the first half be used to draw conclusions about franchisees’ profitability. Revenue and profit are different measures: revenue shows the value of sales, while assessing financial performance also requires consideration of each business’s costs and expenses.

For the franchise sector, the survey provides a broad picture of economic activity over the period. Decisions to invest, expand an outlet or revise a business plan, however, require additional information about the operation concerned.

In practical terms, three aspects should be kept separate: the reported nominal growth, the outlet’s own sales performance and changes in its margin. The survey presented does not provide a profit measure that would allow these indicators to be treated as equivalent.

Interest rates, credit conditions and consumer spending weigh on performance

In ABF’s assessment, the result was achieved in a challenging retail environment. The association points to high interest rates, persistent inflationary pressure, restricted access to credit, household indebtedness and slower overall economic activity as factors shaping these conditions.

Together, these factors help put the slowdown in context, but they do not allow an exact share of the change between quarters to be attributed to each one. Based on the figures presented in the report, the survey does not separately quantify the impact of each obstacle on revenue.

For franchise operators, this backdrop reinforces the importance of carefully assessing financial commitments and sales expectations. Aggregate revenue growth coexists with conditions that may make it harder both to finance investment and for customers to spend.

ABF maintains a positive outlook for 2026

Despite these challenges, ABF maintains its forecast of nominal revenue growth of between 8% and 10% in 2026. It also expects the number of franchise networks to grow by 2% to 4% and the number of operating outlets by 1% to 3%.

These ranges are projections for the year, not results already achieved. First-half growth of 9.7% falls numerically within the forecast range for annual revenue growth, but does not guarantee that the forecast will be met by the end of 2026.

Alongside economic pressures, the association identifies the transition to Brazil’s reformed tax system as another obstacle to meeting its targets. The reference concerns the challenges of that transition; it does not detail new obligations or specific changes to franchise agreements.

In practice: use ABF’s figures as a benchmark when reviewing your plans, without automatically applying the national growth rate to your own outlet. Before expanding, assess revenue, margins, borrowing costs and your capacity to invest.