Discusses opportunities for U.S. franchisers and legal requirements in the market.
Last Published: 10/16/2019

Though franchising is limited in Mozambique, the emergence of a middle class with disposable income in urban areas such as Maputo, Beira, Nampula, and Tete is driving interest in goods and services provided by foreign franchising companies.  YUM! Brand’s KFC gained significant market share by opening seven stores throughout the country in a period of five years. YUM! also has developed a Pizza Hut franchise.  Hertz and Avis rental car companies have local franchise partners, and the Dutch retailer Spar has several franchise agreements with supermarket operators.  The concept of franchising is relatively new, hence there is no franchise association or formal authority responsible for franchising activity.  Legal protection of brands also remains weak.  Franchise fees and royalty transfers may be difficult to remit due to bureaucratic processes for sending funds outside the country.
 

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.