Franchises strengthen the economy with revenues equivalent to 1.9% of GDP

Madrid, December 12, 2024

BBVA and the Spanish Franchise Association (AEF) managed to bring together more than 70 franchise brands in Madrid on November 13 and 14 for the Franchise Innovation Summit (FIS), which promises to become the benchmark event in the franchise sector. During the two-day event, various BBVA experts participated in numerous talks discussing payment methods, sustainability, and innovation.

This new event, organized by the AEF in partnership with Show2be and sponsored by BBVA, was inaugurated by the General Director of Commerce, Consumption, and Services of the Madrid Community, Marta Nieto; the director of FIS, Raúl Calleja; the president of the Spanish Franchise Association (AEF), Luisa Masuet; and José Luis Serrano, BBVA's SMEs director in Spain, along with Eduardo Abadía, AEF director. AEF president Luisa Masuet stated, “Our goal with this summit is to create a real meeting point for the sector, leveraging the valuable knowledge that accompanies us.” “Thanks to the invaluable support of our partner BBVA, whose collaboration has been crucial, we have made this forum a reality, with technology and innovation as its foundational pillars,” she added.

Meanwhile, José Luis Serrano emphasized that BBVA has been supporting businesses, especially SMEs, for many years, which represent the backbone of our economy. “The desire to progress and create a positive impact on the productive fabric are values we share with our entrepreneurs, SMEs, and companies.” Serrano also reiterated BBVA’s “strong commitment to continue supporting SMEs and franchises, which are key sectors for the country's economic development.”

“Our purpose is to remain the trusted bank that accompanies each franchise on its path to success, offering the financial support and expertise needed to bring their projects to life and establish themselves in the market. At BBVA, we are here to provide solutions that drive sustainable and responsible growth for each franchise, contributing to their expansion and the development of the local economy,” he added. As proof of this, BBVA increased SME financing by 15% in the first nine months of the year, and by 23% when considering only franchises.

Overview of SMEs

During the first day, AEF's president gave an overview of the franchise ecosystem. In Spain, there are 1,384 franchise brands, 78,255 locations, employing 318,313 people, and generating €27.623 billion in revenue as of the end of 2023. By sectors, food services (19%), fashion (15%), services (13%), and retail (5%) make up 52% of all franchises. When measured by employment, the food service sector accounts for 31% of the total, followed by retail (24%), services (9%), and fashion (8%), according to data from the "Franchising in Spain 2024" study presented by Luisa Masuet.

In the same panel discussion, BBVA Spain's Specialized Business SMEs manager, María Eugenia López, highlighted that the franchise sector has proven to be a refuge in times of crisis, such as between 2008 and 2014, when high unemployment rates led many to find stability and growth opportunities in the franchise model.

“During those years, the sector not only offered a professional outlet but also professionalized itself, efficiently integrating human capital and achieving profile diversification, including corporate groups and multi-brand franchisees. Franchising is not just about entrepreneurship but doing so under the wing of a consolidated brand, providing solidity and market support,” she explained. She added that “since 2020, franchising has highlighted key characteristics such as resilience and partnership, focusing on franchisees and achieving 2024 growth figures comparable to peak expansion years, with exponential growth in openings and double-digit growth, reflecting the sector's strength in the Spanish economic fabric.”

“In an increasingly digitized and innovative market, unity and support are essential, which has motivated BBVA to be the official sponsor of this event, showcasing its commitment to the franchise ecosystem.” “We are here to accompany them every step of the way and be the trusted ally they need to bring their projects to life,” she concluded.

Innovation in payment methods and treasury

During the roundtable on "Trends and technological payment solutions for 2025," BBVA Spain's Acquisition Director, Antonio Macías, emphasized that in a context of constant evolution, Bizum has established itself as the first and only immediate payment solution in Europe. With over 27 million users and a sole focus on instant transfers, Bizum has achieved strong acceptance in e-commerce. By 2025, the company plans to expand into physical store payments through NFC technology, offering an experience similar to contactless cards or mobile payments. Additionally, with its recent agreement with counterparts in Portugal and Italy, Bizum demonstrates its ambition to grow and interoperate with other European solutions, aiming to create a comprehensive immediate payment solution across Europe. On Wednesday, the first real tests of this collaboration were announced, with successful transactions between the three countries, and the service is expected to be available for all Bizum customers next year.

BBVA Spain’s Open Banking Director, Ana Climente, emphasized in a conversation with Game’s CFO, José Ramón Cortés, that revolutionizing treasury management is not just a matter of technology but of strategic vision. Game serves as an example of how BBVA’s Open Banking solutions represent a significant opportunity for businesses to innovate and transform their financial operations, generating a positive impact on critical business processes. Today, real-time access to banking reconciliation information, validating account ownership in seconds, or making unattended automatic payments from their systems are just a few examples of solutions that enable businesses to improve treasury management, optimize business processes, and reduce operational errors. Agile treasury management not only reduces risks but also drives growth, facilitating access to new investment opportunities and strengthening relationships with suppliers and customers. The key lies in leveraging unattended, real-time digital solutions to transform every financial transaction into a strategic business asset.