Brazil’s franchising industry is one of the most developed in the world: there are more than 3,600 networks and 200,000 franchise units, according to the Brazilian Franchise Association (ABF). The sector generated R$ 273 billion (US$ 51.5 billion) last year and has solidified its place as one of the engines of the national retail industry.

Still, despite its maturity, factors like high taxes, expensive credit, and the difficulty of training teams at scale distance the Brazilian market from the American one, which is seen as the benchmark for the expansion model.

This analysis comes from Aicha Bascaro, founder of the American Franchise Academy and one of the leading experts on the subject. With over thirty years of experience in the sector, she began as a pizza delivery driver for Domino’s in the 1980s, and throughout her career, she worked with global brands like Pretzel Maker, Popeyes, and Olive Garden. Today, she is dedicated to training multi-franchisees in the United States.

Aicha lived in Brazil in 1995 when she was sent by Domino’s to support operations in Rio de Janeiro. Now, almost 30 years later, she returns to the country to participate in Somo Multi 2025, a multi-franchisee conference happening next week in São Paulo, where she will give a lecture on the essential elements for growing a franchise network.

Additionally, she will lead a masterclass at EXAME in partnership with CommUnit, an ecosystem for franchisee training. The event, aimed at large franchisees, will detail management processes and practices applied in the United States that can accelerate the professionalization of Brazilian franchising.

“I’m really excited to return to Brazil. In my first experience, I was impressed by the franchisees’ thirst for knowledge. Now, I want to share everything I’ve learned over the years so that they can turn a job into a real business,” she says.

Check out the full interview:

What stands out to you the most about Brazilian franchising today?

Brazil is a much more mature market than any other in Latin America. There are many successful brands, multi-unit franchisees, and a strong learning culture. What I see is a great willingness to look at the American model and absorb best practices. This is positive: while in the U.S. it took decades to build giant brands, Brazil can accelerate this path by learning from that accumulated experience.

You were in Brazil in 1995 with Domino’s. What has changed since then?

I spent six months in Rio de Janeiro helping the master franchisee structure operations. Even back then, I noticed the Brazilian willingness to learn. Today, I see a much more sophisticated market, but one that still faces significant barriers, especially regarding taxation and access to capital.

What are the main differences between the Brazilian and U.S. markets?

In the U.S., growth is rewarded. In Brazil, it feels like success is punished with taxes. Additionally, access to credit is limited and very expensive. An American franchisee with a good track record can secure a loan to open five units at once. In Brazil, it’s often necessary to save profits for years to open a second store.

Another issue is training: an American law prohibits franchisors from directly training franchisee employees. In Brazil, this doesn’t exist, which is an advantage. But there’s a lack of time and resources for franchisees to invest in training.

When does a franchisee stop having a job and truly own a business?

I often say that owning just one franchise unit is like having a job. The owner opens the store, serves customers, closes the register, and goes home exhausted. To become a business owner, you need to become a multi-franchisee.

And that requires, first, a shift in mindset: believing it’s possible to grow and having the courage to delegate responsibilities. Then, it’s necessary to have access to capital, something easier in the U.S. than in Brazil. Lastly, it’s essential to develop management skills, forming and training trusted people to handle daily operations. Without these elements, the franchisee gets stuck behind the counter and can’t truly build a business.

Is it important to adapt a franchise to the local culture?

A franchise is, above all, a promise of consistency. The customer needs to have the same experience in São Paulo, Rio, or any other country. This ensures trust. However, there is something called “localization” that allows for small adaptations without betraying the essence of the brand.

For example, at Domino’s in the Caribbean, we launched barbecue pizza, which doesn’t exist in the U.S., but was popular locally. In Guatemala, we created a black bean pizza. The essentials, like pepperoni or mozzarella, never change. The key is to keep the core of the brand intact and only adapt when it’s truly necessary.

What can Brazil learn from American experience?

The most valuable lesson is discipline in processes and non-negotiable standards. American franchising grew because it built solid and consistent procedures applied across all units.

But balance is also necessary: when franchisors break the win-win logic with franchisees, the system collapses. Some brands that once had 5,000 units now have fewer than 300 because they lost that relationship.

How is technology transforming franchising?

When I started at Domino’s, we wrote down orders by hand. Today, the pizza chain is also a technology company. They created their own systems and are still a reference. Now we’ve entered the era of artificial intelligence. I already have franchisee clients using chatbots to attend customers and schedule services. The truth is, every company is also a technology company. Those who don’t understand this will be left behind.

Which sectors should lead the growth of franchises?

For a long time, food service led and is still extremely relevant. After all, the need for food will never end. But we’re seeing significant growth in personal services, gyms, education, and, since the pandemic, residential and elder care services. This is a sector that should grow in the coming decades with the aging population.

What advice would you give to someone wanting to open a franchise in Brazil?

I’d say that the first step is to carefully choose the brand, which means going beyond the franchisor’s pitch: you need to talk to other franchisees, understand the economics of the unit, and assess whether you like the product and the customers you will serve.

The second step is choosing the right location, as location is crucial for success. The third is investing in people because every employee can become a future manager. If the franchisee can align these three elements, they will have a better chance of succeeding.

The text was translated with artificial intelligence. If you have any questions or corrections, please write to rafael.balago (at) exame.com.