Annual Report Shows Spanish Franchise Brands Have Grown Worldwide

The Spanish franchise system comprises 14 sectors, 43 brands, and 201 stores in the country.

The Spanish Franchise Association (AEF) has prepared a new report ,“The Spanish Franchise in the World 2023”. The study, conducted in collaboration with ICEX Trade and Investment and the Grupo Cooperativo Cajamar bank, offers official data that reflects the reality of Spain’s brands in foreign markets.

The main conclusion of the 2023 report is that there has been an increase in all the variables examined in this annual study. The 2022 report showed 288 networks operating in different countries. Today 305 Spanish franchises are spread across the globe, an increase of 5.9%.

The franchise system in Spain is integrated by 1,375 networks, 1,137 of which are of national origin, which means that more than 1 in 4 (26.82%) of Spain’s franchises are currently established in other countries.

The report also shows that Spanish franchises are established in 140 countries (one more than in the 2022 study), accounting for 19,336 operational establishments, compared with 18,808 in 2022, an increase of 2.8%.

After evaluating the data in this year’s report, Eduardo Abadía, Executive Director of the Spanish Franchise Association, commented: “After the decrease that occurred in 2022 compared with 2021 as a consequence of the global crises and the pandemic, the 2023 report shows increases in the number of Spanish franchises established in other markets, in the number of establishments open, and in the number of countries where they are present. This is a very good news and reinforces our brands’ commitment to internationalization.”

José Antonio Guerrero, Director of Business Banking at Grupo Cooperativo Cajamar, said, “There is no doubt that, in recent years, uncertainty has become a structural element of decision-making. This makes the periodic publication of reports like this much more valuable. In this complex environment, the franchise model is demonstrating its capacity for resilience and recovery. At Cajamar, we have the firm conviction that difficulties can be overcome with a clear and flexible strategy, and in the company of reliable collaborators: employees, partners, clients, and suppliers.”

Sectors leading internationalization

Fashion continues to lead Spain’s international franchise expansion with 76 networks totaling 9,065 stores (46.88% of the total) spread across 126 countries.

Next, and at some distance, is the Hospitality/Restaurant sector with 55 brands in 73 markets, with 1,305 establishments (6.74% of the total). In third place is the Beauty/Aesthetics sector with 35 franchises in 47 countries operating 1,262 establishments (6.52% of the total).

It is also worth highlighting the data from the Food sector, with 17 networks operating in 20 countries, adding up to 2,218 establishments (11.47% of the total).

The Health Centers sector also stands out here, with 11 brands operating in 30 countries, with 1,227 stores (7.22% of the total), placing it fourth with the highest number of operating points of sale abroad.

Preferred markets

The study also offers information on the countries where Spanish franchises have the greatest presence.

The same countries as last year remain in the top five positions, and in the same order. Thus, Portugal continues to lead, with 166 national networks from 20 different sectors established in the neighboring country, which concentrates 54.42% of the total of Spanish brands abroad. Mexico follows, with 101 chains from 17 sectors (33.11%); Andorra, with 87 brands, also from 17 sectors (28.52%); France, with 65 brands of 17 sectors (21.31%); and Italy, with 58 networks, operating in 16 sectors (19.01% of the total)

Rounding out the top 10 countries with a presence of Spanish franchises are Colombia, which remains in sixth place with 49 brands, the United States (43), Guatemala (41), and Chile and Ecuador, with 40 brands each.

The countries with the highest number of establishments opened by national franchises are Portugal, which also leads this statistic, with 2,419 establishments (12.51%); Italy, with 2,261 (11.69%); Mexico, with 1,668 (8.62%); France, with 1,278 (6.60%), and Argentina, with 1,156 stores (5.97%).

Rounding out the top 10 here are Brazil, with 897 establishments open, China (607), Germany (596), Poland (491), and Chile (387).

Implementation by continents

The report also noted that Europe continues to be the preferred destination for Spanish brands in foreign markets: they are spread across 44 countries with a total of 10,083 establishments (52.14%). Portugal (166), Andorra (87), France (65), Italy (58), and the United Kingdom and Romania (27 each) are, in this order, the main European markets with Spanish franchise concepts.

The Americas. This region, consisting of North, Central, and South America, has the second most Spanish franchises, with a presence in 32 countries and 6,096 open points of sale (31.52% of the total). The countries most preferred by Spanish brands are Mexico (101), Colombia (49), the United States (43), Guatemala (41), and Chile and Ecuador (40).

Asia/Middle East. Spanish franchises operate in 37 countries here (27 in Asia and 10 in the Middle East), adding a total of 2,729 stores (14.11% of the total, with 1,813 in Asia and 916 in the Middle East). In Asia, the main destinations for Spanish franchise brands are China and the Philippines (19) and Singapore (14), while in the Middle East, Saudi Arabia (31), the United Arab Emirates (24) and Qatar (22) stand out.

Africa. Spanish networks are present in 24 countries here, with 398 establishments (2.05% of the total). Morocco (34), Egypt (16) and Tunisia (15), are the main African markets with a presence of Spanish franchise brands.

Oceania. Spanish franchises are concentrated in three countries in this region: Australia, with 5 brands from 3 different sectors and 28 establishments, and New Caledonia and New Zealand, with 1 brand and 1 store open in each market.

Most exporting autonomous communities

Finally, the 2023 report shows which Spanish autonomous communities export the most franchise concepts abroad, a statistic that Catalonia once again leads. Of the 318 networks that have their headquarters established in this community, 99 already have made the leap to enter other markets.

Madrid follows next, with 85 centers abroad out of a total of 401 franchising centers; the Valencian Community and Andalusia, with 30 out of a total of 176 and 157 headquarters, respectively, and Galicia, with 19 of the 48 brands that have their headquarters in this Spanish community.

To see a complete video of the study’s presentation, “Estudio de la franquicia Española en el mundo 2023,” click here.

Andrea Lazzari is CEO of the 06 Group. Based in Madrid, he is recognized as an expert in franchising and tourism in Spain. His three decades of knowledge and experience with national and international companies and brands include positions in management, development, expansion, and marketing in several sectors of the economy. To learn more about franchising in Spain, contact him at +34 658771226 or andrea@06group.es.