Brazzil Magazine:

Last year alone, 14,365 new franchises were opened in Brazil, generating 144,000 new work posts. The country has the third main franchise market in the world. According to figures included in a Rizzo Franchise study, in 2010, the sector should continue growing and expectations are for the generation of revenues of US$ 135 billion by the end of the year.

The food sector was the one that presented the greatest growth in 2009, with 33% more franchises than in 2008. In the second place came the garment sector, with growth of 18.4%. Then came the sectors of personal accessories, with 11.4%, and services, with 9.4% growth. This year, 39 new franchises are being inaugurated each day.

According to research “Franchises in the Brazilian Economy 2010″, the country has 149,000 franchise units, which together had revenues of US$ 128 billion last year.

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Bizjournals.com:

Colorado’s Fitness Together Franchise Corp. is expanding its franchise network to a sixth nation, Brazil.

The Highlands Ranch-based personal-training chain said Monday it has awarded a master franchisee agreement to Antonio Cassiano Ximenes of Fortaleza, Brazil, who plans to open as many as 60 Fitness Together studios throughout Brazil over the next five years.

Existing franchise agreements cover the United States, Costa Rica, Israel, Ireland and Canada.

The first Fitness Together studio in Brazil is slated to open in Sao Paulo in January.

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Kansas.com:

An international company with ties to a Brazilian restaurant group is bringing a new franchise concept to the United States and opening its first restaurant in Wichita this spring.

“Wichita is a good lab,” says Alberto Moreira , who is bringing Bossa Grill to Northrock Retail Center at 3242 N. Rock Road.

Moreira points to Wichita as the successful home to franchises like Pizza Hut and White Castle.

“It’s a good test market for a restaurant.”

Moreira and Wichita business attorney Michael Biggs are partners in Bossa Group International with several Brazilians who are owners of TAC Comercio Alimenticio .

That company has 80 restaurants in Brazil, including the Bonaparte and Donatario concepts that are the inspiration for Bossa Grill.

“We’re taking what works in Brazil, and we’re adapting it for use… in American markets,” Biggs says.

Biggs has spent three decades handling restaurant and franchise deals. He’s also done international law. Read more.

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Financial Times:

Fisk educational centres began the year expecting to open 50 franchises in Brazil. So far, they’ve opened 72. They expect to reach 80 by December.

“We started the year very strongly, with double the number we expected looking to open new entities,” says Cristian Ambros, director of the Richard H Fisk Foundation, owner of Centro de Ensino Fisk.

“Demand in the first half of the year was well above what we expected and it has stayed high in the second half. People are looking to franchises as a safe port in a storm. It’s been a great year for us.”

It has been a great year for the franchise sector. Annual growth is expected to hit a decade-high 13 to 14 per cent, according to Marcus Rizzo, director of Rizzo Franchise, a trade consultancy group.

The increase would consolidate Brazil’s position as the fourth biggest franchise market in the world, behind the US, Canada and South Korea, Mr Rizzo says.

The reasons are many and go far beyond Brazil’s relatively solid economic performance. The country might have missed the worst of the crisis, but the global meltdown persuaded many that franchises are a secure prospect.

Read on…

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Reuters:

Brazil’s beauty industry is booming on a combination of the nation’s rising consumer power and Brazilians’ passion for looking good.

Following are some facts about the industry.

* Brazil accounted for 8.6 percent of the global market in personal hygiene, cosmetics and perfume in 2008, making it the world’s third-largest market behind the United States (15.6 pct) and Japan (10.1 pct). Given its double-digit annual growth rate of recent years, it is expected to overtake Japan in 2010.

* Brazil is the No. 1 market for deodorant sales and is on course to overtake the United States as the world’s top market for fragrance, sales of which grew 32.7 percent last year to account for 13.6 percent of the world market.

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AzevedoSette.com.br:

Brazilian franchisers may have gained a new opportunity to try to reverse the Superior Court of Justice’s (STJ) 2007 ruling that from 2004 onward, franchise income would be subject to the municipal service tax (ISS). In a recent decision, Supreme Court Justice Marco Aurélio argued that franchise income is not characterized as service income and therefore should not be subject to ISS.

Decision 651255, published in the judiciary’s official gazette on May 26, was issued in acceptance of an appeal before the Supreme Court by Rio de Janeiro franchiser Spoleto Franchising Ltda.

The decision is important to the franchise sector, which includes many multinational companies, particularly in light of the STJ’s ruling in Special Appeal 87344 that franchise income received as of January 1, 2004, would no longer be exempted from ISS. The court cited the enactment of Complementary Law 116/2003 (the ISS Act), which lists franchising activities as taxable services.

To read the full article please subscribe to linexlegal.com.

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Franchise Key:

The marketing system, Premissimo Premiumclub, has found a master franchisee for Brazil. The company announced recently that Michael Müller-Habig has been working on building up a network in the country since the summer.

Premissimo Premiumclub’s marketing concept is targeted at owner-run firms providing them with the opportunity to extend their customer base. The franchisees help their clients by, for example, approaching potential customers, developing service concepts as well as with marketing measures and events. According to the company, there is a great potential for luxury brands in Brazil thanks to the country’s growing economy.

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El Universal:

Economy obstacles to get foreign currency and import inputs have changed the operation patterns of some Venezuelan franchises.

According to Alfonso Riera, Venezuelan Franchise Chamber (Profranquicias) Director, although one of the goals of such trade is to purchase local commodities, the reality shows that for some franchisees imports substitution is not easy.

Franchises linked with the food sector and services such as dry cleaning are the most dependent on goods not manufactured in Venezuela. Therefore, they have had to improvise ways to overcome the paperwork delays at the Foreign Exchange Management Committee (Cadivi) and the Ministry of Light Industry and Trade (Milco).

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Macau Daily Times:

A Macau delegation from the is due to visit Brazil between 25 June and 2 July to promote bilateral cooperation, officials said yesterday.

The delegation from the Forum for Economic and Trade Cooperation between China and the Portuguese-speaking Countries, headed by the coordinator of the secretariat’s support Office, Rita Santos, will also include representatives of the Chinese Trade Ministry and the China International Centre for Investment Promotion.

An official statement said that in Sao Paulo, “the delegation will take part in the 17th edition of ABF-Franchising Expo, where there will be a session to present the Forum for Economic and Trade Cooperation between China and the Portuguese-speaking Countries and the 12th International China Trade and Investment Fair, which will take place in Xiamen in September.”

As well as meeting in Brasília with the Federation of Industries of the Federal District (FIBRA) and the National Confederation for Industry (CNI), the forum delegation will also meet with officials at the Development, Industry and Foreign Trade Ministry, the Brazil Export and Investment Promotion Agency (Apex), the Sao Paulo City Hall, the Brazil-China Chamber for Economic Development and the Sao Paulo Trade Association.

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