Franchises are establishing a firm foothold in the economy, with turnover equivalent to 1.9 per cent of GDP

• In Spain, where the business sector consists mainly of small enterprises, franchises play a unique role by enabling the accumulation of human capital and facilitating the internationalisation of businesses that would otherwise be unable to compete on the global stage
• This model boosts productivity, increases the chances of survival and creates quality jobs, as well as improving access to finance, as banks value the backing of a strong brand behind each project.

Madrid, 12 December 2024

BBVA and the Spanish Franchise Association (AEF) brought together more than 70 franchise brands in Madrid on 13 and 14 November for the Franchise Innovation Summit (FIS), an event that promises to become the flagship event for the franchise sector. Over the two days of the event, various experts from BBVA took part in a wide range of talks discussing payment methods, sustainability and innovation.

This new event, organised by the AEF in collaboration with Show2be and sponsored by BBVA, was opened by Marta Nieto, Director-General for Trade, Consumer Affairs and Services of the Community of Madrid; Raúl Calleja, Director of the FIS; the President of the Spanish Franchise Association (AEF), Luisa Masuet; and José Luis Serrano, Head of SMEs at BBVA in Spain, alongside Eduardo Abadía, Director of the AEF. The President of the AEF, Luisa Masuet, noted that “our aim with this summit is to create a genuine meeting point for the sector, drawing on the valuable knowledge available to us”. “Thanks to the invaluable support of our partner BBVA, whose collaboration has been essential, we have been able to bring this forum to life, with technology and innovation as its cornerstones,” she added.

Meanwhile, José Luis Serrano emphasised that at BBVA we have been supporting businesses for many years, particularly SMEs, which are the driving force behind our economy. “The enthusiasm for moving forward and making a positive impact on the productive fabric of society are values we share with our entrepreneurs, our SMEs and our businesses.” José Luis Serrano also conveyed BBVA’s “firm commitment to continuing to support SMEs and franchises, which are key sectors for our country’s economic development”.

“Our aim is to continue being the trusted bank that supports every franchise on its path to success, offering the financial backing and expertise needed for them to bring their projects to fruition and establish themselves in the market. At BBVA, we are here to provide solutions that enable every franchise to grow in a sustainable and responsible manner, thereby contributing to their growth and to the development of the local economy,” he added. As proof of this, BBVA has increased its lending to SMEs by 15 per cent in the first nine months of the year and by 23 per cent when considering franchises alone.

An in-depth analysis of SMEs

On the first day, the president of the AEF provided an in-depth analysis of the franchise ecosystem. In Spain, there are 1,384 franchise brands, comprising 78,255 outlets, which employ 318,313 people and had a turnover of 27,623 million euros at the end of 2023. By sector, catering (19 per cent), fashion (15 per cent), services (13 per cent) and food (5 per cent) account for 52 per cent of all franchises. In terms of the number of jobs, the catering sector accounts for 31 per cent of the total, followed by food (24 per cent), services (9 per cent) and fashion (8 per cent), according to data from the study “Franchising in Spain 2024”, presented by Luisa Masuet.

At the same round-table discussion, María Eugenia López, Head of Specialised SME Business at BBVA in Spain, pointed out that the franchise sector has proven to be a safe haven in times of crisis, as was the case between 2008 and 2014, when high unemployment led many people to find stability and opportunities for growth within the franchise model.

“During those years, the sector not only provided employment opportunities but also became more professional, efficiently integrating human capital and achieving a diversification of profiles, including business groups and multi-brand franchisees. Franchising is not just about starting a business, but doing so alongside an established brand, which provides stability and support in the market,” he explained, adding that “since 2020, franchising has highlighted key characteristics such as resilience and support, committing to franchisees and achieving growth figures in 2024 comparable to those of the years of peak expansion, with an exponential increase in new openings and double-digit growth, reflecting the sector’s strength within the Spanish economy”.

“In an increasingly digitalised market