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Opening a Franchise in 2016?

Opening a Franchise in 2016?

asociación española de franquiciadores (AEF)This year, the Spanish Association of Franchisers (AEF in Spanish) published their “Report on Franchising in Spain”, having the end goal of ascertaining the situation and state of this business model in Spain.

It confirmed great momentum in franchising: In 2014, it reached a total sales volume of 25,879.5 million euros, a 0.5% increase from the previous year, thanks to both the retail and food and services sectors, which have driven this positive result.

As President of the AEF, Xavier Vallhonrat, explains, “the number of networks that make up the franchising system have continued to grow since 2005, even in times of economic stress. What this means is there exists a certain commercial confidence in this business model and all the advantages and merit it brings with it, including quicker expansion – which is fundamental for creating business in today’s world.”

The sector is made up of 1,199 networks which currently utilize the franchising system for their expansion processes, leading to an increase of 112 new incorporated businesses, which equate to 63,869 establishments and 248,914 jobs in whole – numbers which go to show the importance of franchising in the Spanish economy.

With 4,738 new openings and a growth of 8% compared to the previous year, it has generated 6,774 new jobs, and all analyses indicate that these numbers will grow in 2015.

In the opinion of Eduardo Abadía, Managing Director of the AEF, “the quick pace we saw in openings during 2014 may have its answer in two key facts: First, the improvement in the economy, which one began to notice in Q4 2013 and remained during the entire following year; and secondly, in turn, this economic growth – still slow but sustained – spurred banking institutions to, which should be their main activity, loosen their credit requirements – fundamental in a system such as franchising which is based on growth and expansion.”

We also noticed a strong international presence: 211 foreign franchises, mainly from French, Italian and American corporations.

Certain sectors of the Spanish franchising market stand out for recording higher growth, such as food, education, bakeries, and business and computer-telephony service providers – and, as always, exercise establishments specializing in the cutting-edge field of electro-stimulation.

This report demonstrates how, as in previous years, franchising continues to be an important economic stimulator for the country, remaining optimistic and dynamic.

Nevertheless, the reality of the franchising model in an adverse market has shown greater professionalization and competitiveness on behalf of franchised businesses, which have optimized this business model along with the support they give to their franchises. All this while adapting to new consumer tendencies and demands.

For Xavier Vallhonrat, “the franchising system is a formula that nonetheless creates jobs in a situation so unfavorable for employment. In recent years, we have come to see that more are more entrepreneurs, investors and people are approaching franchising as a method of expansion, because it’s a commercial process that offers confidence and minimal risks for self-employed workers.

In short, opening a franchise in 2015 turns out to be a great option for those searching for self-employment or investment opportunities.

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