Franchising in Portugal: setting the pace of expansion

Running a profitable business and receiving franchise enquiries does not mean you are ready to open several outlets at once. When turning a business into a franchise network, the pace of expansion should reflect your ability to pass on the concept and support those who will operate it. Before promising dates, establish how many openings you can support without compromising existing outlets.

1. Measure available capacity, not just demand

An application represents a commercial opportunity; an opening means actual work. Between the two lie assessment, preparation, training and support tasks that compete for the same people’s time.

Start by listing everything the central team needs to do for each new outlet. For each task, record who is responsible, how much time it requires, its dependencies and when it needs to happen. Draw on experience from the existing business to build an initial estimate, distinguishing measured timings from those that still need to be confirmed.

Include activities that are often overlooked:

• Answering questions while the outlet is being prepared;
• Setting up tools and access permissions;
• Tracking orders and resolving installation problems;
• Providing support during the first few days of trading;
• Resolving difficulties that persist after opening.

Then deduct the time these people already spend on company-owned operations and existing franchisees. Expansion capacity is the time genuinely available, not the team’s entire working hours.

If several essential tasks depend on the same person, that concentration of responsibilities may limit openings, even where there is demand and funding is available.

2. Turn capacity into a franchisee intake schedule

Do not simply count how many outlets you intend to open in a year. Assess how many will be in preparation, training and initial support at the same time. Two openings close together can demand more effort than several spread across the calendar.

Create a simple weekly schedule, with a row for each future outlet and another for each shared resource. Mark the points that require an on-site presence, dedicated availability or a rapid response from the central team.

Next, test less favourable scenarios: building work is delayed, training needs to be repeated or an existing outlet requests urgent support. If any deviation makes the schedule unworkable, the plan does not have enough leeway.

You can admit franchisees in groups at spaced intervals, rather than accepting every application as soon as it is ready. Explain in advance that joining the network also depends on its operational capacity.

This discipline does not require a universal limit on the number of openings. It requires an internal rule: do not confirm a new date when the resources needed are already committed. A transparent waiting list is preferable to commitments the team cannot fulfil.

3. Align your promises with Portugal’s legal framework

Portugal has no specific franchising law or mandatory register specifically for franchisors or franchisees in that capacity. This does not remove applicable commercial and tax registration requirements, nor does it mean there are no legal obligations.

The contract is subject to the general provisions of the Portuguese Civil Code, including freedom of contract under Article 405 and good faith in negotiations and performance. Where standard contractual terms are used, Decree-Law No. 446/85 also applies. Portuguese and EU competition rules, along with legislation governing the business activity concerned, remain relevant.

There is no pre-contractual disclosure document whose format and delivery deadline are specifically prescribed by a Portuguese franchising law. However, general duties of good faith may require disclosure of facts relevant to the decision to enter into a contract. Your actual ability to provide the promised support should not be concealed or presented misleadingly.

Before making commitments, therefore, obtain a legal review of how the contract addresses dates, preparation requirements, responsibility for delays and the consequences of non-performance. Distinguish an estimated opening date from a binding deadline, without using that distinction to undermine obligations you have undertaken.

The European Code of Ethics for Franchising is a self-regulatory reference, not a Portuguese law of general application.

4. Decide when to accelerate and when to pause

The decision to accept new openings should be based on verifiable operational indicators. Monitor overdue preparation tasks, outstanding support requests, the need to repeat work and the availability of those responsible for the next cycle.

Do not confuse opening with becoming operationally stable. An outlet that has opened may still need intensive support. Before freeing up capacity for another, confirm that it can carry out essential routines and that recurring difficulties are being addressed systematically.

Define who can put new opening dates on hold and who authorises their resumption. If delays build up, temporarily reduce the intake of franchisees, explain the situation to applicants and address the cause before accelerating again.

Practical takeaway: before confirming the next opening, put existing commitments, the work required and the people available to do it on the same calendar. Expand only when all three align.