Franchising has become a successful business model that allows entrepreneurs and corporations to expand their distribution chains.
This business model has consolidated in recent years since its surge in the late 80’s. According to the Spanish Franchising Association (AEF), this industry alone accounts for 9% of all retail sales, and generates 13.5% of the employment in the retail industry, with almost 66,000 establishments and 1,232 chains, where 30% of them have expanded outside Spain.
This type of business model has gained popularity due to a series of factors, including financial stability, risk sharing between the franchiser and the franchisee, and reduced capital costs, among others. Franchising has allowed those who have chosen this type of business model to overcome the first barriers into the market as new business owners. Furthermore, this model has been particularly popular in times of crisis due to its flexibility and adaptability to each business’ specific needs.
Lastly, it is worth mentioning that this business model has been chosen by realtors and food distribution companies to grow their respective businesses.