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Franchising in Brazil is legally recognized as a business model since December 15 1994 (law 8.955); nevertheless the understanding of the advantages by the Brazilian entrepreneurs is quite limited. The historical approach to Franchising in Brazil is linked to fast food chains like McDonalds, Pizza Hut, KFC, etc. This debut to franchising made up the minds of consumers and investors linking too much the franchising idea to the external format and too little on the core competences and processes. Today a more mature scenario is surrounding us; the consumer expectations are high, the market is much competitive and a low performer franchising system will not take off. A very frequent situation that we find in our consulting work is the will of some companies in becoming franchisors without having their own experience on ruling some kind of network both for services and goods. A worse situation ocurrs when the franchisor aspirant does not really know the reasons of his own success; in this case we usually encourage the managers to pass through a batch of 4 or 5 sessions to discuss the main aspects of their business, targets, beliefs, vision, core competences, price policies, and other market related issues in order to discover the veiled reasons of their success. Brazilians are not organized by nature; they are mostly Latin descendents, besides the fact that in the southern part of the country you will find Germans, Jews, Polish, Ukrainians and other non Latin that are not totally influenced by the Brazilian mood. As a consequence their adherence to rules is not so easy as one could expect; then a Franchisor should consider to include as essential management ingredients: leadership, organizational behavior, motivation, and other human related techniques on the system modeling.
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