Colombia’s franchise market expands beyond food service
The diversification of franchises into sectors such as health, wellness, fashion and services expands the range of business models available to entrepreneurs and investors in Latin America.
Colombia ranks fourth in Latin America’s franchise market, with more than 500 brands operating across approximately 18,000 establishments. In this context, the sector is expanding into activities such as wellness, fashion, pet care, healthcare, services and entertainment, while investment models in which the franchisor assumes responsibility for business operations are gaining ground.
The sector’s evolution is opening up new opportunities for entrepreneurs and investors interested in business models that extend beyond restaurants and fast food. The diversification of activities and the emergence of passive investment models are among the changes taking place in the industry.
Fractta, a Colombian firm specializing in franchise consulting and commercialization, operates in this market with a portfolio of nearly 150 local and international brands and 16 years of experience. Its CEO, Alejandro Couttin, attributes part of the sector’s evolution to the need for specialized advisory services to develop and expand these business models.
The Colombian market expands its investment options.
Colombia’s franchise market comprises more than 500 brands and approximately 18,000 establishments. In this context, expansion into new categories offers alternatives for those seeking to participate in the sector, although the conditions of each opportunity depend on the business model and its operations.
Diversification is transforming the franchise offering.
Although the food service sector has had a significant presence in the market, franchises are expanding into activities such as wellness, fashion, pet care, healthcare, services and entertainment. This diversification broadens the range of categories in which commercial expansion models can be developed.
According to Couttin, this evolution could reduce the share of food service franchises relative to other segments in the short and medium term. The executive believes that the new categories are driving brands with potential for regional and international expansion.
Another increasingly popular model is passive investment franchising, in which the franchisor is responsible for operating the business. This model seeks to attract investors who prefer to participate in a business whose day-to-day management is handled by the company that owns the brand.
Commercialization incorporates digital tools.
Franchise expansion also requires processes for marketing opportunities and evaluating candidates. Tools used by Fractta include digital marketing, customer relationship management (CRM) systems, electronic contract signing, candidate assessment software and artificial intelligence.
These solutions are among the resources the firm uses in its consulting and franchise commercialization services. Together, specialized management and digital tools play a role in the processes of candidate selection, commercialization and brand expansion.
Alejandro Couttin: “Companies need much more than manuals or contracts: they need a partner capable of turning successful business models into sustainable expansion platforms, and that is what we do.”
The diversification of sectors and investment models shapes the outlook for the franchise market described here, with alternatives that extend beyond food service and models in which the franchisor can assume responsibility for management.
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