The wish to run a business leads many entrepreneurs to consider a franchise. Options span different sectors and investment levels, from microfranchises to master franchises. With so many offers, it is easy to see every opportunity as a money-making machine. In practice, every format requires work, commitment and careful selection.
A good fit with the business
Start by identifying the sector and imagining yourself running the unit. An appealing sales proposition is not enough: understand the daily work and consider whether it suits you. A fashion or food franchise, for example, requires an affinity with that sector.
Gather information before deciding
Examine the franchisor’s structure, the know-how it transfers and the support it provides. Speak to current franchisees and people who have left the network. Their experience helps you compare the sales presentation with day-to-day reality.
Brazil’s franchise disclosure document, the Circular de Oferta de Franquia (COF), must identify the network’s members and those who left within the previous 24 months, with the details required by law. Missing information warrants attention.
Read Brazil’s Franchise Law
Brazilian Law No. 13,966/2019 governs franchising in Brazil. Article 2 sets out the mandatory information in the COF. Use those requirements as a guide when reviewing the documents.
Before committing, ask a lawyer experienced in franchising to review the COF and contracts. Legal analysis helps identify risks and explain the obligations you would assume.
Many networks are responsibly managed, but some offers do not live up to their promises. A model used by others does not eliminate investment risk. An informed choice is an important step towards a sustainable business.
Originally published in Portuguese on Jusbrasil on 20 December 2022. Editorial revision and English translation dated 7 October 2026, preserving the author’s central ideas. General information concerning Brazilian law.