Panama - Franchising IndustryPanama - Franchising Industry
Overview:
USD Millions
Note: The above statistics are unofficial estimates.
The Franchising sector in Panama offers excellent opportunities for U.S. companies. Panama is highly receptive to U.S. franchise concepts and the economy is showing strong and consistent growth.
Foreign franchises comprise 95 percent of the total number of franchises in the country. The U.S. is the market leader, but competition has increased from countries such as Colombia, Guatemala, El Salvador, Mexico, and some European markets. Competitive prices, product quality, and strong promotion are the main factors in determining successful market penetration. There are no major restrictions for franchise operations in Panama. Most banks are familiar with the franchise business, and, the use of the U.S. dollar in and a well-developed banking system result in business transactions being substantially easier than in other countries.
Sub-Sector Best Prospects
The market is continuing a diversification trend with new franchises entering the market in different sectors, such as house cleaning, security services, beauty services, flower arrangements, mail and package delivery services.
Opportunities
For historical reasons, Panamanians are receptive to U.S. culture and American business, with U.S. franchises being well-regarded and accepted in Panama. Many Panamanian have traveled to the U.S. and are familiar with U.S. franchise concepts. In addition, Panama has become a regional shopping destination for many Latin Americans, with a steady stream of foreign consumers in Panama’s growing malls. As a result, there is significantly greater purchasing power in the franchise space, particularly in restaurants, than Panama’s own income distribution and small population would at first indicate.
Web Resources
USD Millions
Note: The above statistics are unofficial estimates.
The Franchising sector in Panama offers excellent opportunities for U.S. companies. Panama is highly receptive to U.S. franchise concepts and the economy is showing strong and consistent growth.
Foreign franchises comprise 95 percent of the total number of franchises in the country. The U.S. is the market leader, but competition has increased from countries such as Colombia, Guatemala, El Salvador, Mexico, and some European markets. Competitive prices, product quality, and strong promotion are the main factors in determining successful market penetration. There are no major restrictions for franchise operations in Panama. Most banks are familiar with the franchise business, and, the use of the U.S. dollar in and a well-developed banking system result in business transactions being substantially easier than in other countries.
Sub-Sector Best Prospects
The market is continuing a diversification trend with new franchises entering the market in different sectors, such as house cleaning, security services, beauty services, flower arrangements, mail and package delivery services.
Opportunities
For historical reasons, Panamanians are receptive to U.S. culture and American business, with U.S. franchises being well-regarded and accepted in Panama. Many Panamanian have traveled to the U.S. and are familiar with U.S. franchise concepts. In addition, Panama has become a regional shopping destination for many Latin Americans, with a steady stream of foreign consumers in Panama’s growing malls. As a result, there is significantly greater purchasing power in the franchise space, particularly in restaurants, than Panama’s own income distribution and small population would at first indicate.
Web Resources
- American Chamber of Commerce in Panama: http://www.panamcham.com
- Panama Chamber of Commerce: http://www.panacamara.com
- Expocomer (Commercial Trade Show): http://www.expocomer.com