Discusses opportunities for U.S. franchisers and legal requirements in the market.
Last Published: 2/12/2019

The growing number of European franchises in Armenia and the prevalence of copycat shops and restaurants – together with a general premium on name recognition - suggest that U.S. franchises could be successful, especially in Yerevan.  Although the only current U.S. food franchises in Armenia are Coca-Cola, Pepsi, Pizza Hut, KFC, Burger King, Nathans, Tutti Frutti, and Cinnabon, new pizzerias, restaurants, and sandwich bars appear regularly. High-priced restaurants serving foreign cuisine are also finding success in niche markets. The retail business is also a attractive investment and partnership opportunities for U.S. firms. There are several retail outlets selling U.S brand clothes such as Polo, GAP, etc. In addition, two big fitness chains “Gold’s Gym” and “Orange” have been operating in Yerevan for several years, with a Reebok branded gym opened in 2017. Besides U.S. franchises, there are many international franchise brands, including Debenhams, Next, Segafredo, Carrefour, etc. Franchise offers from well-known American chains might attract substantial interest, both from customers and local investors.

Trademark owners will have to contend with a local business culture that is still casual in its respect for intellectual property rights (IPR). U.S. businesses will generally find it easier to protect their brands from infringement in the Armenian market if they have a legitimately authorized presence in Armenia, either directly or through an authorized agent or distributor.  Armenian law and state agencies tend to give greater standing to an IPR complainant doing actual business in Armenia than to a foreign firm with no local operation.  In the latter case, where there is no duly authorized competitor being directly harmed by a counterfeit operation, state agencies often tend to see the infringement as a forgivable and victimless offense.  IPR awareness is improving gradually, however, and the government has adopted and introduced amendments to legislation aimed at improving trademark owners' ability to protect their rights.

U.S. companies interested in more information about franchise opportunities in Armenia should contact the Embassy Economic/Commercial Office at: businessyerevan@state.gov.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.