Buying a franchise in Spain: the cheapest and best businesses to set up
Investing in an already recognised brand can be a good way for foreigners to guarantee a good living in Spain or get a business visa approved. Here are several Spanish franchises you can buy for under €20,000 and the trends you need to be aware of.
Have you ever thought of buying and running a franchise in Spain? Of course, when setting up a business there are always risks involved, but setting up a recognised brand could be a good way to make money in Spain.
How to choose the right franchise?
There are currently more than 1,300 franchises in Spain, which makes choosing the right one and mammoth task.
Picking the right franchise for you and for the current situation can be tricky. You can’t only look at price and rental costs, but you also have to look at the profitability, the economic climate and what is happening in the country.
According to the business and political website Moncloa, you must also try to do as much research as possible and find out everything you can about the company. Know how much money you are going to spend and work out what the return that the business will provide you during the first few years.
READ ALSO: Why you’ll soon be able to set up a company in Spain with just €1 rather than €3,000
Moncloa suggests that the hospitality and fitness sectors are safe bets at the moment. After almost two years of not being able to do everything they want, people want to have fun and take care of themselves. The site also says that you should choose those franchises that are committed to innovation and technology and an experience that is different from its rivals.
This means choosing franchises that offer the latest in technology, customisation and those that use extra innovative things such as apps.
According to the Spanish Association of Franchises (AEF), franchises in the sectors of supermarkets, restaurants and fast food, hotels and transport services made the most money in Spain in 2020.
InfoFranchises.com, a Spanish website all about setting up a franchise in Spain says the top most profitable franchises in Spain in 2022 will be:
- Eroski – with a profitability of 5 percent
- General Óptica – which could earn you €150.000 next year.
- Caprabo – With a profitability of 5 percent.
- Tous – Between 5 and 10 percent
- Cepsa – Between 5 and 10 percent.
- Pans&Co – Between 15 and 20 percent.
- Sol Meliá – Between 15 and 20 percent.
- Movistar – 10 percent
- Vodafone – 10 percent
- Orange – 10 percent
- The Good Burger – Between 10 and 20 percent
- 100 Montaditos – Between 10 and 20 percent
- Real Madrid Store – Between 5 and 10 percent
- Futbol Club Barcelona Store – Between 5 and 10 percent
While these are the most profitable, they are not necessarily the cheapest franchises to set up and some of them could cost you back hundreds of thousands of Euros.
According to reports from the AEF, TopFranchises.es and InfoFranchises.com the following franchises are not only profitable but are also some of the cheapest franchises to invest in, setting you back between €10,000 and €20,000.
READ ALSO: Spain to give €3 billion in digital bonuses to one million SMEs and self-employed
Día
According to AEF, Dia supermarkets are the biggest growing franchise in Spain and the company plans to open 400 new franchises before 2023.
In order to set up a Dia supermarket, you will need an entry fee of €300, a guarantee of €12,000 and 50 percent of the value of the initial stock. In addition, you must contribute royalties of two percent on sales and expenses of three percent on sales.
La Botica de los Perfumes
One of the leading companies in Spain selling bulk perfumes, it offers high quality and competitive prices. It is another of the cheapest franchises to set up in Spain, since you can open a store with an initial investment of €14,900.
General Óptica
Setting up a General Óptica franchise is a great option for those who already have a business similar to an optician as you can easily convert it and pay just €12,000. However, if you don't, setting up a new franchise will set you back €110,000. The company offers a marketing plan that ensures the profitability of the franchise and it is also a well-trusted brand.
La Ventana Natural
A natural food and cosmetic store, La Ventana Natural started its franchise business in 2002 and now there are 160 franchises across the country. In order to start a business, you need at least 45m2 of space, an entry fee of €4,000 and an investment of €16,000, bringing your total to a round €20,000. It could be a good way to get your foot in the door of the health sector.
B the Travel Brand
While setting up a travel franchise, may not seem like such a good idea in the current climate, hotels and hospitality were some of the most profitable businesses in 2020, so it shows that people were still travelling. B the travel Brand is a travel agency owned by the Barceló Group and is a leader in the tourism sector, with more than 80 years of experience. It is a cheap franchise, starting at just €9,000 for investment. However, you also need to pay a €6,000 entry fee. Royalties are between 1.5 and two percent of the sale. In order to set one up, you must have experience in the travel sector.
Hola Mobi
While the most profitable telecommunications companies such as Orange, Vodafone and Movistar, may be out of your budget, Hola Mobi may not be. In terms of multi-operator and multi-service store model, is one of the best in which to invest due to the great demand. If you are passionate about technology and know what's what, then according to Spanish franchise website TopFranchises, you could invest in Hola Mobi for €18,495.
La Croquetería Gourmet
This foodie franchise offers great potential for entrepreneurs interested in the fast food business. The business aims to become the leading national brand of specialised in the sale of quality croquettes. According to Top Franchises, it is an inexpensive franchise and you don't have to pay any royalties. The initial investment costs €20,000.
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Have you ever thought of buying and running a franchise in Spain? Of course, when setting up a business there are always risks involved, but setting up a recognised brand could be a good way to make money in Spain.
How to choose the right franchise?
There are currently more than 1,300 franchises in Spain, which makes choosing the right one and mammoth task.
Picking the right franchise for you and for the current situation can be tricky. You can’t only look at price and rental costs, but you also have to look at the profitability, the economic climate and what is happening in the country.
According to the business and political website Moncloa, you must also try to do as much research as possible and find out everything you can about the company. Know how much money you are going to spend and work out what the return that the business will provide you during the first few years.
READ ALSO: Why you’ll soon be able to set up a company in Spain with just €1 rather than €3,000
Moncloa suggests that the hospitality and fitness sectors are safe bets at the moment. After almost two years of not being able to do everything they want, people want to have fun and take care of themselves. The site also says that you should choose those franchises that are committed to innovation and technology and an experience that is different from its rivals.
This means choosing franchises that offer the latest in technology, customisation and those that use extra innovative things such as apps.
According to the Spanish Association of Franchises (AEF), franchises in the sectors of supermarkets, restaurants and fast food, hotels and transport services made the most money in Spain in 2020.
InfoFranchises.com, a Spanish website all about setting up a franchise in Spain says the top most profitable franchises in Spain in 2022 will be:
- Eroski – with a profitability of 5 percent
- General Óptica – which could earn you €150.000 next year.
- Caprabo – With a profitability of 5 percent.
- Tous – Between 5 and 10 percent
- Cepsa – Between 5 and 10 percent.
- Pans&Co – Between 15 and 20 percent.
- Sol Meliá – Between 15 and 20 percent.
- Movistar – 10 percent
- Vodafone – 10 percent
- Orange – 10 percent
- The Good Burger – Between 10 and 20 percent
- 100 Montaditos – Between 10 and 20 percent
- Real Madrid Store – Between 5 and 10 percent
- Futbol Club Barcelona Store – Between 5 and 10 percent
While these are the most profitable, they are not necessarily the cheapest franchises to set up and some of them could cost you back hundreds of thousands of Euros.
According to reports from the AEF, TopFranchises.es and InfoFranchises.com the following franchises are not only profitable but are also some of the cheapest franchises to invest in, setting you back between €10,000 and €20,000.
READ ALSO: Spain to give €3 billion in digital bonuses to one million SMEs and self-employed
Día
According to AEF, Dia supermarkets are the biggest growing franchise in Spain and the company plans to open 400 new franchises before 2023.
In order to set up a Dia supermarket, you will need an entry fee of €300, a guarantee of €12,000 and 50 percent of the value of the initial stock. In addition, you must contribute royalties of two percent on sales and expenses of three percent on sales.
La Botica de los Perfumes
One of the leading companies in Spain selling bulk perfumes, it offers high quality and competitive prices. It is another of the cheapest franchises to set up in Spain, since you can open a store with an initial investment of €14,900.
General Óptica
Setting up a General Óptica franchise is a great option for those who already have a business similar to an optician as you can easily convert it and pay just €12,000. However, if you don't, setting up a new franchise will set you back €110,000. The company offers a marketing plan that ensures the profitability of the franchise and it is also a well-trusted brand.
La Ventana Natural
A natural food and cosmetic store, La Ventana Natural started its franchise business in 2002 and now there are 160 franchises across the country. In order to start a business, you need at least 45m2 of space, an entry fee of €4,000 and an investment of €16,000, bringing your total to a round €20,000. It could be a good way to get your foot in the door of the health sector.
B the Travel Brand
While setting up a travel franchise, may not seem like such a good idea in the current climate, hotels and hospitality were some of the most profitable businesses in 2020, so it shows that people were still travelling. B the travel Brand is a travel agency owned by the Barceló Group and is a leader in the tourism sector, with more than 80 years of experience. It is a cheap franchise, starting at just €9,000 for investment. However, you also need to pay a €6,000 entry fee. Royalties are between 1.5 and two percent of the sale. In order to set one up, you must have experience in the travel sector.
Hola Mobi
While the most profitable telecommunications companies such as Orange, Vodafone and Movistar, may be out of your budget, Hola Mobi may not be. In terms of multi-operator and multi-service store model, is one of the best in which to invest due to the great demand. If you are passionate about technology and know what's what, then according to Spanish franchise website TopFranchises, you could invest in Hola Mobi for €18,495.
La Croquetería Gourmet
This foodie franchise offers great potential for entrepreneurs interested in the fast food business. The business aims to become the leading national brand of specialised in the sale of quality croquettes. According to Top Franchises, it is an inexpensive franchise and you don't have to pay any royalties. The initial investment costs €20,000.
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