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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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