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Franchises in Portugal

14 de December, 2022

Franchises in Portugal

Franchises are widespread in the Portuguese country and range from real estate agents to supermarkets, insurance companies, and laundromats.
Reading: 8 min

The alternative found by many Brazilians who want to venture into a new market, but minimizing the risks, is to invest in franchises in Portugal. Franchises are widespread in the Portuguese country and range from real estate agencies to supermarkets, including insurance companies and laundries.

But after all, how to invest in a franchise in Portugal? We present all the tips to start a business, from the best opportunities to how is the step by step of opening, check it out.

QuestionsAnswers
How to invest in franchises in Portugal?It is necessary to study the market, define the franchise sector, prepare the documentation for the franchisor’s evaluation, and make the investment.
How much does franchising cost in Portugal?The values vary depending on the franchise desired, but it costs from one thousand euros.
Which is the best franchise to open in Portugal?It depends on the sector you want, but real estate and aesthetics/cosmetics and fitness sectors are among the most profitable and successful.

How to open a franchise in Portugal?

Opening a franchise in Portugal, or franchising, the English term used in the country, is a good way to become an entrepreneur in the country. Below is a step by step guide of the steps to be considered when opening a franchise.

  • Define the investment budget;
  • Define the market in which you want to invest and select the best performing brands within your investment budget;
  • Find out about the chosen brand, visit stores, talk to franchisees, and deepen the market study;
  • Be prepared for the franchisor’s evaluation and have the necessary capital to get started;
  • Find the ideal place to open the franchise;
  • I read the franchise agreement carefully and sign it if everything is correct;
  • Take advantage of all the support and knowledge of the franchisor to have a successful business.

The best franchises to invest in Portugal

According to the Eco portal, in 2022, Portugal will reach the number of 30 thousand franchises in Portugal, totaling 200 thousand and creating 200 thousand jobs in the country. Among them, the real estate company Re/Max, the construction company Melom, and the supermarket chain Auchan stand out.

When investing in a franchise it is important to consider that you are investing in a brand, and in many situations the brand has value in the market. Thus, the better known the brand, the greater the chances of return and the higher the investment.

Therefore, we have selected 5 franchises in Portugal with an investment value between 25 and 50 thousand Euros, according to the Portuguese Franchising Association (APF).

  1. Açaí Algarve: franchise in Portugal focused on the sale of açaí products, coffee shop and snack bar;
  2. Acoplex Mattresses: franchise of the mattress manufacturer with distribution throughout Europe;
  3. Auchan: the supermarket chain is one of the fastest growing franchises, according to ECO’s report;
  4. Bifanas de Vendas Novas: the brand has been present in the Portuguese market for 30 years with one of the most traditional dishes in the country;
  5. DepilConcept: franchise of the Portuguese brand of laser hair removal with IPL and Diode H8 Laser technologies.

Microfranchises in Portugal

Microfranchises are businesses with low investments that, in some cases, do not require physical space and can be easily implemented. In Portugal, the micro-franchise model is not as widespread as in Brazil. Therefore, we consider micro-franchises to be businesses of up to 5 thousand Euros.

What is required to open a franchise in Portugal?

Before starting the process you need to have capital that matches the type of franchise you intend to open, or the means to finance part of the business.

Those who intend to enter the franchise business in Portugal also need to consider that the business needs a considerable investment for entry and may take a few months, or years, to turn a profit. Besides the monetary issue, it is necessary to prepare the documentation and understand the country’s tax system.

Signing a contract to open franchises in Portugal
Gathering the documents to present to the franchisor and to open the franchise is an important part of the process.

The process can be complex for many entrepreneurs, so counting on the help of an advisory company to open your franchise in Portugal can be of great help, mainly to avoid mistakes regarding documentation and the tax authorities.

Documentation

To start a franchise in Portugal you need to follow some steps common to the process of opening a company in the country. With the support of the franchisor, it is necessary to put together a business plan and define the category of the company, whether singular or collective, if it has partners.

In addition, it is necessary to submit the documents for opening the business, such as NIF, commercial registration, social security number, declaration of commencement of activity, and articles of incorporation, if any.

In addition to these documents, you may also need to present the documents requested by the franchisor, which can be anything from proof of income to professional documentation.

Taxes and Bureaucracies

After opening the company and starting the franchise there are no significant bureaucracies. The most important thing is to follow the requirements of the franchise and keep the recommendations, you may also need to pay royalties, not all franchising networks make the charge, but in some it can be a monthly expense to consider.

When it comes to taxes, the franchise will pay the same as a normal company, which are:

  • IRC (17% on the first 15 thousand euros of profit and 21% after that);
  • Derrama (up to 1.5%) – municipal tax;
  • VAT of 6%, 13% or 23% (varies depending on the company’s product or service);
  • Single Social Tax – on employees’ salaries (23.5%).

Can foreigners open a franchise in the country?

Yes, any investor, even a foreign one, can open a franchise in Portugal. It is important to check with the intended franchise to see if there are any restrictions, but, generally, Brazilians can open franchises as well as their own businesses in Portugal.

One aspect that the Brazilian investor should be aware of are the bank loan conditions, in case they do not have the full capital to start the business.

Do you want to live in Europe?

Realizing your goal of living in Europe or obtaining European citizenship can be simpler than you think. We offer personalized support to make the immigration process more accessible and uncomplicated.

Entrepreneur visa to open a franchise

There are those who intend to invest in franchises in Portugal just for the return on investment, however, most investors intend to move to the country and live off the business. In these cases, for those who do not have European citizenship, it is necessary to apply for an entrepreneur visa in Portugal.

To apply for an entrepreneur visa you do not need to invest large amounts of money as is the case with the Golden Visa.

This visa modality requires documentation of the business, such as the business plan and the declaration of commencement of activity. Also required are documents from the applicant involving identification, as well as proof of means of subsistence, which can be the bank statement for the last 3 months.

How much does it cost to open a franchise in Portugal?

It depends. It can cost from one thousand euros up to two hundred thousand euros, everything will depend on the franchise you choose. It is common that some franchises, especially those that require the structuring of physical space and that involve better-known brands are more expensive than simple franchises.

For example, the initial amount to open a Minipreço franchise (a daily grocery store in Portugal) costs about 12,500 euros. Another area with many franchises is that of real estate agencies, the investment in a little known brand is around 12 to 20 thousand euros, while the Remax franchise, one of the most famous in the country costs 50 thousand euros.

In other words, a franchise in Portugal has very varied values, it will depend especially on the segment, the brand, and how much you can invest.

Adaptation to the Portuguese market

This step is one of the easiest for those who invest in a franchise that is already active in the country. Investing in a new market, about which one knows little, is a risk, especially when opening a business from scratch. Franchises are a way to skip this step of adapting to the market, since they are already formatted for this market and the public that exists in it.

Computer search for franchises in Portugal
Defining the segment of the franchise in Portugal is a point that deserves a lot of attention and study.

Anyway, the first months will be a time of adaptation, especially to the new business, in which it will be necessary to get to know the market better, understand what the habits of the customers in that specific point are, and how to make the most of what the franchise can offer.

Franchise Fairs in Portugal

Participating in franchise fairs in Portugal is a good way to get to know the market better, the most valuable markers and the segments that are emerging the most. In the country there are some fairs that bring together the main companies in the segment.

The main one is Expo Franchise, which takes place annually in Lisbon. With 25 years of existence, the fair brings together important companies with investment opportunities starting at 5 thousand euros. Some of the exhibitors that take part are Century 21, Auchan, and Factory Fitness.

The Franchising Fair promoted by the Portuguese Franchising Association (APF) is another important event in the area. In 2022, the event took place in the month of opened in Lisbon and brought together companies from various segments.

In addition, throughout the year, APF promotes several conferences to discuss the franchising market in Portugal. The disclosure is made through the social networks and registrations via online form.

Online Franchises in Portugal

There are some online franchises, mainly focused on technology and marketing. Online franchises are low-investment businesses, generally up to a thousand euros, but requiring some prior knowledge of the field.

Beware of online franchises, know how to evaluate what is really worth it, because you may come across franchise models that are not very well structured.

Is it worth opening a franchise in Portugal?

Yes. Especially if you are a foreigner and have little knowledge of the local market, franchises in Portugal can offer the necessary support to structure your business.

Thus, if you intend to invest in Portugal and you are not yet familiar with the country, the existing types of businesses, and the dynamics of the market, franchising can be a safer alternative.

But beware, you must also dedicate yourself to studying the market to choose a franchise category. This is because, although the model is already formatted for the local market, not always the specific segment is profitable or has the best acceptance.

Get a better understanding of the Portuguese economy and know what to expect when investing in the country.

If you want to open a business in Portugal, count on Atlantic Bridge’s support.

Article originally published on our partner site Euro Dicas.

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Atlantic Bridge

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