Founder of Asia Source says new investors underestimate costs, ignore regulatory risks and commit cash before even selling
The import-oriented franchise model is undergoing a movement of greater demand in Brazil, driven by a more informed investor and by structures that demand strict control of costs, deadlines and operational variables.
If before the appeal was access to international suppliers and the promise of high margins, today performance depends on execution capacity and financial predictability. “People stopped looking just at the business and started looking at who is behind it”, says Luis Muller, founder of Asia Source, in an interview with Jovem Pan Business.
This change is intensified in foreign trade, where errors tend to have an immediate impact on cash. One of the most common mistakes, according to the businessman, is treating imports as a domestic purchase.
Many beginners still see the process as a simple process, similar to an online purchase, ignoring longer deadlines, advance payment and logistical risks.
In practice, an import can take 90 to 120 days, a period in which the capital has already been committed, but there has still been no financial return. “The biggest risk today is the lack of investment predictability”, he says. Without this control, the entrepreneur decapitalizes himself before even starting sales.
Another recurring error is in forming the actual cost of the product. The initial bill usually disregards taxes, freight, logistics and regulatory requirements, which completely alters the viability of the operation.
There is also a less visible but critical risk. Products that require specific certifications may be detained at ports. If the release does not occur within the legal deadline, the loss is full. “It’s been three months and it’s gone,” says Muller. In practice, this means that companies that ignore these requirements can lose 100% of the value invested in a single import.
This scenario has led companies in the sector to reposition their operations. More than intermediating purchases, the focus became the complete structuring of the process, with prior feasibility analysis, cost definition and support in decision making.
In franchising, the impact is direct. Growth is no longer a question of speed and begins to depend on the consistency of the format and monitoring of the network. “The franchisee buys a recipe. If he executes it, he expects to have results. The problem is in the monitoring”, he adds.
The difficulty lies in the details. Small deviations in execution compromise performance and are not always noticed immediately. At the same time, the franchisee is not an employee, which limits the franchisor’s level of control.
Another point that gained importance is the process of entry of new operators. Misaligned expectations are among the main causes of frustration and low performance, which has led networks to adopt more rigorous validation steps before signing.
According to Muller, the lack of information still leaves room for unprepared operators, which affects market perception. The presence of “adventurers” in the sector, according to him, contributes to negative experiences and distrust among new investors.
Furthermore, structural factors in the Brazilian environment also influence the risk of transactions. Operational differences between ports and bureaucratic obstacles directly impact the predictability and cost of imports.
The model implemented by Asia Source gained traction during the pandemic, driven by the home office format and the search for new sources of income. In six months, the company sold almost 100 units, a move that accelerated expansion and brought new standardization challenges.
Today, the scenario is different. Growth continues, but with a greater focus on quality and profile selection, in addition to operating in more predictable niches, such as auto parts, tires and gym equipment.
The movement reflects a structural change in the sector. With more information and less tolerance for error, growth was no longer linked to the opening of units and began to depend on consistency in execution. In practice, the advancement of import franchises makes it clear that uncontrolled scale is no longer an advantage and has become a risk.
