Brazil’s franchise industry is booming. The Brazilian Association of Franchising states that the sector has been growing 10% to 13% annually for the past decade. This year, Brazil’s franchising industry is expected to grow profits 15%, while the total number of franchises should rise by a further 10% to 2,031 brands.
With 3,252 franchised stores, O Boticário is the most profitable and the largest franchise in Brazil. In 2011, Brazilian franchises generated profits of $44bn and employed 837,000 people. Brazil ranks fifth in the world franchising league table.
According to Global Entrepreneurship Monitor, between 2002 and 2010, the number of young Brazilians aged between 18 and 24 who became entrepreneurs rose by 74%. Today, Brazil is only behind the US and China in total number of entrepreneurs, with 27 million, or 14% of its total population.