THE IMPACTS OF COVID -19 ON THE PERFORMANCE OF BRAZILIAN FRANCHISING

Abstract

The Brazilian franchise system has growth projections and has become an increasingly interesting option for those who want to open their own business (ABF, 2020, ORTEGA ET. AL, 2016). However, with the outbreak of Covid-19, this scenario has changed and the consequences of the pandemic for this market are not known. Therefore, this article aimed to analyze how the impacts of Covid-19 and its consequent social isolation measures affected the performance of the Brazilian franchising market. For this, a diagnostic and comparative analysis of data was carried out, with a descriptive and analytical approach, based on documents research. We analyzed 19 performance reports from the 1st quarter of 2019 to the 1st quarter of 2022, prepared by ABF and available on its website so far. The results point to a large variation in performance during the period, with the 2nd quarter of 2020 being the most affected. The franchise market, however, proved to be resistant, innovative and adaptive, resulting in the total resumption of this system in the 4th quarter of 2021, even surpassing the numbers of 2019. Also noteworthy is the variation between segments, some maintained growth expectations such as Home and construction and Health, beauty and well-being, others were strongly affected such as Hotel and tourism services and Entertainment and leisure, however, there is a gradual pace of recovery in these sectors.

Keywords

• Franchising
• Brazilian franchise system
• Covid-19
• Economic-Financial Performance
• Innovation