The franchising sector faces an uncertain outlook, according to a recent report from Tormo Franquicias. The transformation of the operating model will primarily affect small and medium-sized enterprises, which will need to adapt to thrive in a changing environment, characterized by a decrease in revenue and an increase in costs, which will impact their profitability.
One of the most notable changes is the end of the large expansions. The focus will shift from opening new franchises to the profitability of each business unit. This new cycle will require valuing quality over quantity, fostering an environment where economic efficiency and network control prevail.
Expansion will be more selective and gradual, with well-defined processes and constant support for franchisees. The obstacles to expanding and financing themselves are increasing, which makes it harder for new operators to find strategic locations and retain talent.
At the same time, the profile of the franchisee is evolving, becoming more diverse and experienced. Entrepreneurs, former executives and investors seek business models that fit their skills and investment capacity. Moreover, there is increasing female leadership, which indicates a trend toward a more inclusive and dynamic environment.
For emerging franchises, it is recommended to seek specialized investors, similar to startups, as an effective strategy to strengthen and expand their brands.
Tormo Franquicias concludes that this transformation entails a natural selection in the sector, favoring those companies with a strategic vision. Franchises that adapt to these new trends and optimize their operations will be better positioned to lead the future.
