Franchises as a driver of local commerce transformation: the role of local councils and the Cities and Franchises Forum

Madrid, July 31, 2025

In a context of urban transformation and the need to revitalize local commerce, city councils across Spain are discovering in the franchise model a powerful tool for economic and social development. Franchises not only represent a lower-risk entrepreneurship formula, but also an opportunity to improve employment, revalue commercial areas and renew the aesthetics and vitality of many streets in our cities, whether large, medium-sized or small.

The Cities and Franchising Forum, an initiative framed within the Franchise Innovation Summit (FIS) —to be held on October 15 and 16 at the Riyadh Air Metropolitano in Madrid, and promoted by the Spanish Franchise Association— stands as a bridge between local administrations, local entrepreneurs and major brands. Cities such as Toledo, Pozuelo, La Nucía, Palencia or Chiclana have already joined this movement, each with its own commercial characteristics and consumer profiles, highlighting the versatility and inclusive potential of the franchise model through local entrepreneurship.

“Franchises make it possible to bring major brands from any sector into medium-sized or small cities, generating added value for local commerce and facilitating entrepreneurs’ access to proven and sustainable projects,” highlights Eduardo Abadía, Executive Director of the Spanish Franchise Association (AEF). “The support of city councils for initiatives of this kind not only strengthens the business fabric, but also conveys confidence and projection to investors and national operators.”

The essence of the Forum is twofold: on the one hand, to promote local entrepreneurship, facilitating access for professionals, investors and self-employed individuals to consolidated business, service and retail models; and on the other, to position cities as attractive destinations for franchise expansion, improving their commercial offering and generating quality employment.

In addition, FIS proposes an innovative reverse mission strategy, inviting entrepreneurs from these cities to travel to Madrid to hold direct meetings with brand expansion managers. This enables real, inspiring and effective contact, where genuine investment and collaboration opportunities are created. These reverse missions, also promoted by public administrations, local chambers of commerce and business associations, highlight the importance and value of public-private collaboration.

One of the strengths of the model is its adaptability: from sectors such as supermarket chains, foodservice, beauty, health, training, education or technology, to emerging concepts with social or sustainable impact. This diversity allows each city to identify the brands that best align with its identity, needs and city strategy.

The recent inclusion of cities such as Palencia, Toledo, La Nucía, Chiclana, Pozuelo… in the Forum is an example of the type of commitment that makes a difference. “It is an opportunity to present cities as a driving force for major retail groups expanding under the franchise model and to connect with prestigious brands seeking to grow with local partners,” says Raul Calleja, Director of FIS.

In addition, informative sessions will be held in these cities to bring the franchise model closer to the local business community, featuring round tables, presentations of economic data and testimonials from local franchisees. These sessions prepare the ground for active participation in FIS and help consolidate a network of cities that drive commerce.

The Cities and Franchising Forum is more than an event: it is a public-private collaboration platform that supports local talent, urban modernization and the revitalization of small commerce through a strategic, professional approach connected to the real market.

From FIS and the AEF, an invitation is extended to all city councils seeking to boost their local commerce to join this network of cities that understand that the future of economic development lies in building alliances, opening opportunities and investing in local entrepreneurial talent.

The meeting point is Madrid, on October 15 and 16. Local commerce, investment and employment have a new opportunity: they choose franchising.