El Blog de la Franquicia

Spanish Franchise Market: There is enough room for everybody?

Let me be honest. Despite the amazing figures that each year different consultant companies launch to the market with studies totally different from each other, there is a reasonable doubt if there’s enough room for everybody in the Spanish Franchise market.

That is the reason why each sector top list, «the marquee players», hurry up to fill the free remaining places. Comess group have quit Zena positions, but they know that their earnings of this «sale» couldn’t be stopped, so now they are planning to buy «Lizarran» to Nazca Capital, who probably is going to buy another brand in the sector with the 13 milion euros that they are going to earn in this operation. ( I hope so, another option is a bad piece of news for our market).

Obviously in this race they have realized how faster is to buy another Franchise Brand than to grow by opening new sales points and recruiting new Franchisees. This option involves the problems every merger or acquisition involves (people, synergies,culture crash…etc…), but it is clearly the right way to achieve their goal.

The problem for smallest (10, 20, 30 or 40 units) is that the situation is getting worse and worse, fewer clients and less money for them, and the danger of being caught by the big ones. GROWTH, That is what this is about.

So small brands…hurry up, hurry, hurry…..

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7 Respuestas a “Spanish Franchise Market: There is enough room for everybody?”

Well, it is happening in other sectors (check Endesa), so why is not going to happen in the franchise market. It is true that for a Group, the first years of starting a business, developing a brand and positioning the franchise net in number and popularity is less attractive than buying an existing one. Usually it is advanteageous. I observed very closedly the acquisition of my friends Dehesa Santa Maria by Eat Out Group and I see the acquisition with good potential and as a good way for the Group of having an introduction to the tapas quality restaurants.
Josan García - 18/03/07
Of course, that acquisition have you mentioned is related, and "related" diversification is a good point. In fact, all the last mergers and acquisitions in our franchise market, are related in order to win the advantages that synergies provides, especially in the world of "food" companies. But is important to say one thing: People shoudn´t think that buy another brand is only vital for huge companies, in fact, there is so much exemples that small business owners face the same challenges that the big ones, especially if their aproach is to buy a "related business company", and apply that strategy as a result of their succses.
Of course, in the United States, it is usual to buy business by small business owners and also very common to see brokers intermediating in the purchase and selling small companies. One expample of good expansion in Spain is VR BUSINESS BROKERS, that is specialized on this buying-selling small businesses.
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[...] la que estams instalados. Sin embargo me trae a la memoria el post de hace un año y medio titulado Spanish Franchise Market: There is enough room for everybody? en el que ya [...]
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