Franchising sees record growth and represents 8.3% of Portugal’s GDP

Franchising continues to grow in Portugal and consolidates its position as one of the essential drivers of the national economy.

In 2023, the sector accounted for 8.3% of Portugal’s Gross Domestic Product, a number significantly above the previous year when it was 7.23%.

Sectors such as services and retail stood out as crucial to increasing turnover. On October 18 and 19, some of the main companies in the sector will be gathered in Pátio da Galé for the 27th edition of Expofranchise, the largest fair of its kind in the Iberian Peninsula.

In addition to having stands from about 50 brands, there will be lectures and the chance for delegates to network.

This year the fair will include the Expofranchise Experience, an interactive space for visitors to get to know the products offered better.

According to data from the Portuguese Franchising Association, the biggest growth was in revenue, with an increase of 29.41% in just one year, from €17Bn in 2022 to €22Bn in 2023.

This is the biggest growth ever recorded in Portugal. The number of brands operating in the country increased by 4.63%, from 518 to 542 in 2023.

“The growth of franchising has a significant impact on the national economy. In addition, the increase in turnover and the creation of jobs reinforce domestic consumption, generating dynamism in sectors such as services and retail, which boost the growth of Gross Domestic Product and strengthen Portugal’s position in the global economic scenario, especially in areas such as tourism and trade,” explains Cristina Matos, general secretary of the Portuguese Franchising Association.

In 2023, franchising accounted for 185,423 jobs in Portugal, representing 27% of total jobs in the country. This number reflects a growth of 4.78% compared to the previous year, when the sector was responsible for 176,956 jobs, reinforcing the relevance and impact of franchising on the Portuguese economy.

Services account for 57% of total brands, followed by commerce, with 25%, and catering, with 18%. Franchises with investments up to €50,000 were the ones that grew the most in 2023, being 71% of the sector.

According to the Portuguese Franchising Association, the Restaurant and Fast Food segments lead with 9.62% of total brands, followed by specialised trade with 8.27% and fashion, footwear and accessories retail with 7.88%.

Other highlights were coffee shops and ice cream parlours (7.12%), aesthetics, health and well-being (6.15%) and real estate mediation (5.96%). These sectors show a great diversity of businesses and reinforce the vitality and dynamism of franchising in various areas of the economy.

“The structure of franchising in Portugal remains stable, with services leading the sector and commerce and catering following. However, growth has stimulated an increase in low-investment franchises, up to €50,000, allowing greater accessibility to Small and Medium Enterprises (SMEs), which further diversifies and solidifies the franchising structure in Portugal, increasing competitiveness and innovation in business models,” concludes Cristina Matos.