A great profitable business opportunity in Brazil is the franchise type, which allows negotiation with the biggest brands in the world. In fact, franchises in the food sector, especially fast food, tend to be a great investment.
Companies such as KFC, Burger King, Subway and Bob’s have already consolidated their brands and won over the Brazilian consumer. They are present on the streets, shopping malls and hypermarkets around the country.
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To determine its costs and advantages, the newspaper Estadão carried out a survey of the most popular fast-food companies in Brazil.
The data revealed that the initial investment is an average of R$500,000, but some brands can cost up to R$5 million to open a store.
Despite the expressive value, it is important to realize that many factors influence the power of a fast food company, for example, consumer needs that impact demand.
Likewise, another crucial aspect is the brand's appeal, which works on the company's presence and marketing, as explained by Ruy Barros, a consultant at Sebrae-SP, interviewed by the newspaper. But, after all, how much does it cost to invest in a franchise in Brazil? Check it out here!
(Image: Freepik/Reproduction)
Burger King (BK)
The initial investment in a unit in a shopping mall in Burger King is R$2.5 million. If the store is a street model, the cost is estimated at R$5 million. On the other hand, monthly revenue is around R$500,000.
The BK franchise contract is for a period of 20 years, with royalties of 8% and a marketing fund of 3.5%.
Bob's
To open a Bob’s franchise, the investor can choose between four models: store within a store, shopping mall, street and drive-thru.
The first costs R$930,000, the unit in the mall costs R$1 million, the street store costs R$1.2 million and the drive-thru costs R$1.5 million.
Despite not clarifying the average revenue for each model, Bob’s reported that the 60-month contract has a monthly profit of R$180,000, with a payback period established between 36 and 48 months.
Metro
To have a Subway franchise, the investor will need to have at least R$490,000, but the company did not inform the price difference between the conventional model and the stand-alone store.
This investment has a 20-year contract, profit of 10% to 15% and an estimated maintenance fee of 4.5% per month.
KFC
As it is a publicly traded company, the group responsible for KFC does not release profit estimates.
Even so, the investment in the fried chicken chain starts at R$1 million to open a franchise and have a return in 4 years.
Other contract requirements state that the term of the deal is 10 years, with 6% monthly royalties and a 5% maintenance fee for KFC's marketing.
Pizza Hut
Pizza Hut belongs to the same group as KFC, therefore, it also does not have open estimates for profit and revenue.
Furthermore, the numbers between the networks are similar, the 10-year contract determines an initial investment of R$1 million for a delivery franchise or in shopping malls and other locations.
Giraffes
The last franchise researched is from the Giraffas chain, it offers three types to invest in: street, shopping mall and hypermarket.
The lowest estimated investment is R$750,000 in the hypermarket model, but values can reach R$1 million in the street franchise.
On the other hand, the monthly profit is 12% with a return of up to 36 months. In this franchise model, the contract has a term of 5 years and royalties of 5% per month.
Definitely, having a fast-food franchise in Brazil is a profitable investment that has a good estimated return.
Therefore, the investor needs to observe the advantages of each company to choose which food chain is the most advantageous for commercial investment planning.
* With information from O Estadão.
