Costa Rica - FranchisingCosta Rica - Franchising
Overview
Based on a Costa Rican Chamber of Commerce study, the Costa Rican franchise sector has grown significantly in the last few years. In 2017, this sector grew 9 percent from 2016. As shown in the table above, there are a total of 349 franchises operating in the country, of which 266 are international and 83 are domestic. 54 percent of the foreign franchises present in Costa Rica come from the United States, representing a decrease of 9 percent from 2016. Increasing franchise development provides opportunities for small and medium sized companies to expand.
For international franchises, the duration of the contract is typically greater than 10 years, in this situation is 62% of the total of the franchises identified. It should be noted that for 15% of franchises, contracts range from 5 to 9 years.
In the past few years, franchises have reached a total of 2,917 establishments throughout the country. This has generated a lot of employment in Costa Rica. In 2017, the franchise sector produced 31,741 new jobs. The franchise sector has greatly contributed to the Costa Rican economy, earning more than $250 million in the last decade. Sales are as important as the impact of investments.
Sub-Sector Best Prospects
With regard to international franchise sectors, fashion ranks the highest with 39% of the market, followed by the food sector with 20%. Specialized service is the third largest sector of international franchises, making up 18% percent of the market. The remainder of the market is comprised of health, education, and commercial retail centers, among other types of franchises.
Generally, the main areas in which franchises are established are in western suburbs of San Jose, in cities such as Escazú and Santa Ana. Malls and other commercial centers are also the home to many franchises. This has led to the construction of new malls toward the East of San Jose.
Opportunities
Costa Rica takes second place after Guatemala in franchising sector growth within the Central American region. The Chamber of Commerce of Costa Rica and public banks support franchising. Both offer assistance with legal issues in addition to providing financing and consulting services.
Web Resources
CS Costa Rica Administrative/Commercial Assistant Emilio Cordoba:
Emilio.Cordoba@trade.gov
Commercial Service office Costa Rica: http://www.export.gov/costarica
VIII Study of Franchises in Costa Rica by the Chamber of Commerce of Costa Rica 2017:
www.centralamericadata.com/docs/EstudioFranquiciasCRNov2017.pdf
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.
| General Distribution of Franchises in Costa Rica | ||
| Distribution | Quantity | Percentage |
| International | 266 | 76% |
| National | 83 | 24% |
| Total | 349 | 100% |
| Data Sources: Chamber of Commerce of Costa Rica | ||
For international franchises, the duration of the contract is typically greater than 10 years, in this situation is 62% of the total of the franchises identified. It should be noted that for 15% of franchises, contracts range from 5 to 9 years.
In the past few years, franchises have reached a total of 2,917 establishments throughout the country. This has generated a lot of employment in Costa Rica. In 2017, the franchise sector produced 31,741 new jobs. The franchise sector has greatly contributed to the Costa Rican economy, earning more than $250 million in the last decade. Sales are as important as the impact of investments.
Sub-Sector Best Prospects
With regard to international franchise sectors, fashion ranks the highest with 39% of the market, followed by the food sector with 20%. Specialized service is the third largest sector of international franchises, making up 18% percent of the market. The remainder of the market is comprised of health, education, and commercial retail centers, among other types of franchises.
Generally, the main areas in which franchises are established are in western suburbs of San Jose, in cities such as Escazú and Santa Ana. Malls and other commercial centers are also the home to many franchises. This has led to the construction of new malls toward the East of San Jose.
Opportunities
Costa Rica takes second place after Guatemala in franchising sector growth within the Central American region. The Chamber of Commerce of Costa Rica and public banks support franchising. Both offer assistance with legal issues in addition to providing financing and consulting services.
Web Resources
CS Costa Rica Administrative/Commercial Assistant Emilio Cordoba:
Emilio.Cordoba@trade.gov
Commercial Service office Costa Rica: http://www.export.gov/costarica
VIII Study of Franchises in Costa Rica by the Chamber of Commerce of Costa Rica 2017:
www.centralamericadata.com/docs/EstudioFranquiciasCRNov2017.pdf
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.