An Expert's View about Franchising in Panama

Posted on: 26 Apr 2012

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 excellent 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 is increasing from other countries such as
Colombia, Guatemala, El Salvador, and some European countries. Competitive prices,
product quality, and strong promotion are the main factors determining successful market
penetration. There are no major restrictions for franchise operations in Panama. Because the
U.S. Dollar is legal tender in Panama and there are well-developed banking systems, business
transactions are substantially easier than in other countries. Most banks are familiar with the
franchise business.

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 packaging services.

For historical reasons, Panamanians are receptive to U.S. culture and American business. U.S.
franchises are well regarded and accepted in Panama. Many Panamanian have traveled to the
U.S. and are familiar with U.S. franchise concepts.

Read the full market research report

Posted: 26 April 2012

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