Brazil's franchising market hits record amid management challenges and rising foreign investment

In 2025 Brazil's franchising sector recorded revenue of R$ 301.7 billion, a 10.5% increase over the previous year, operating more than 202,000 units, according to the Brazilian Franchise Association (ABF). The sector, now the world's fourth‑largest franchising market, faces persistent management gaps, as highlighted in the newly released book *Franchising: Culture of Excellence in Franchise Network Management* by six partners of Praxis Business, a consultancy serving 39 of the 50 largest Brazilian franchise chains.

During the same period, foreign direct investment in Brazil reached US$ 83.3 billion, up 5.2% year‑on‑year and representing 3.4% of the country's GDP, per the Central Bank. Investors cite Brazil's strategic mineral reserves and its role in diversifying supply chains, yet they encounter bureaucratic, legal and tax hurdles. Projections forecast continued inflows of around US$ 78‑80 billion annually through 2029, with the pending Mercosur‑European Union trade agreement seen as a potential catalyst for deeper European capital involvement.