Discusses opportunities for U.S. franchisers and legal requirements in the market.Last Published:8/1/2019
Franchising is not yet widespread in Nepal but there is potential for franchising ventures that cater to the tourist, resident expatriate, and local middle -class markets. A few U.S. franchise companies have entered the Nepali market, mainly in Kathmandu and Pokhara, both of which are tourist centers with a large market base. For example, KFC and Pizza Hut operate franchises in Kathmandu (run by an Indian licensee) and Baskin-Robbins has several outlets in both Kathmandu and Pokhara. Under the Foreign Investment and Technology Transfer Act of 1992, the Department of Industry (under the Ministry of Industry, Commerce and Supplies) grants permission to establish franchises. Since trademarks and brand names registered in a foreign country do not automatically qualify for trademark protection in Nepal, the trademark and brand name must first be registered in Nepal under the Patent, Design and Trademark Act of Nepal of 1965 to limit any possible infringement. Trademark registration is done by the Department of Industry. Nepal restricts outward foreign direct investment and limits access to U.S. dollars, making payments to U.S. firms difficult for franchises.
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.