Where the units are and who operates them
72.9% of network units remain active five years after opening, compared with 63.4% in the same activities
Share of units of the 478 measured networks, opened from 2015 to 2020, with an active registration five years after opening
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| Segment | Units opened | Active at 3 years | Comparison at 3 years | Active at 5 years | Comparison at 5 years |
|---|---|---|---|---|---|
| Food, retail and distribution | 1,782 | 87.0% | 73.1% | 74.9% | 56.8% |
| Fashion and accessories | 3,539 | 88.1% | 78.3% | 76.9% | 64.2% |
| Gyms and sports | 313 | 89.8% | 81.1% | 82.1% | 69.6% |
| Food | 4,222 | 80.9% | 71.2% | 66.4% | 54.0% |
| Education | 1,505 | 88.3% | 79.1% | 74.2% | 66.8% |
| Health, beauty and wellness | 3,796 | 88.6% | 81.6% | 78.1% | 70.9% |
| Services and other businesses | 3,190 | 80.5% | 80.3% | 68.4% | 67.1% |
| Tourism and hospitality | 180 | 83.9% | 80.4% | 69.4% | 68.2% |
| All measured networks | 18,527 | 85.2% | 77.3% | 72.9% | 63.4% |
The CNPJ (Brazilian company registry) records the opening date of each establishment and the date on which it ceased to be active, through deregistration, inapt status or suspension. With these two dates it is possible to follow the units of franchise networks from opening and compare them with other establishments that carry out the same activity and opened in the same year. The indicator makes this comparison for the units of the 478 networks measured by the observatory with a unit opened from 2015 to 2020.
Of the 18,527 units followed, 85.2% were still active three years after opening and 72.9% five years after. Among other establishments in the same activities, with the same composition of activity and year of opening, the shares are 77.3% and 63.4%. The difference appears in every opening year, from 6.4 to 9.5 percentage points at three years, and varies across segments. The largest gap is in food, retail and distribution, with 74.9% compared with 56.8% at five years, and the smallest are in tourism and hospitality and in services and other businesses, with differences of 1.2 and 1.3 percentage points, segments in which the comparison group exceeds the networks when only deregistration counts as termination.
When only deregistration counts as termination, a narrower criterion, the five-year shares are 76.5% in the networks and 71.4% in the comparison group. The comparison is descriptive. It does not separate the effect of the franchise model from the choice of location, the franchisee's profile and the fact that the set of networks consists of those operating today.
How we calculate
In the open CNPJ data of Receita Federal (the federal tax authority), reference month October 2026, we read the head-office establishments that the observatory's census attributes to each of the 478 measured networks with a unit opened in the period, using the same trade name expression and the same CNAE (national classification of economic activities) subclasses as the network profile, and the other head-office establishments with a trade name in the same subclasses. Individual microentrepreneurs are excluded from both groups, based on the MEI (individual microentrepreneur regime) option in force at opening as recorded in the Simples Nacional (simplified tax regime for small companies) file. A unit counts as active at k years when it had no deregistration, inapt status or suspension dated before the k-th anniversary of its opening. The comparison share is calculated in each combination of subclass and year of opening and weighted by the number of network units in that combination, so that the difference does not result from the networks being concentrated in longer-lasting activities. Combinations with fewer than 30 establishments in the comparison group are left out of the weighting.
What this figure does not show
- The set of networks is the observatory's as of October 2026, made up of networks in operation. Units of networks that ceased operations before then are not included, which tends to raise the networks' share.
- The registered trade name is the current one. A unit that left the network and changed its name drops out of the set, whether active or terminated.
- Registration status does not always coincide with the operation of the location. There are dormant companies without deregistration and units sold with a change of CNPJ, which appear as a termination and an opening.
- Only head-office establishments are included, which correspond to most units. Units opened as a branch of a franchisee with more than one location are left out.
- The comparison brings together independent businesses, head offices of company-owned chains and units of networks that the observatory does not track, always with a registered trade name and excluding MEI registrants.
- The difference between the groups is descriptive and does not measure a causal effect of the franchise model.
Frequently asked questions
Do franchises survive longer than independent businesses?
In the 478 measured networks, 72.9% of the units opened from 2015 to 2020 were still active five years later, compared with 63.4% of other establishments in the same activities. When only deregistration counts as termination, the shares are 76.5% and 71.4%, and in the indicator on the duration of units, which follows head-office CNPJs (Brazilian company registry) opened since 2010 through deregistration, the five-year difference is 3.0 points. The comparison is descriptive and does not isolate the effect of the franchise model.
How many franchises close within five years?
In the measured networks, 27.1% of the units opened from 2015 to 2020 had a deregistration, inapt status or suspension in the CNPJ (Brazilian company registry) records five years after opening.
In which segment do franchise units last longest?
The largest difference relative to other establishments in the same activities is in food, retail and distribution, with 74.9% of units active at five years, compared with 56.8%. The smallest differences are in tourism and hospitality and in services and other businesses.
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Where the units are and who operates themOther indicators in the same group
Maintained by Marktech, which serves franchise networks and franchises. The brands cited belong to their owners and are mentioned here only to identify the network the data refers to.