Franchising
A Top U.S. Export Prospect for Panama
Market Estimates
(in US$ millions) |
2010 |
2011 |
2012est |
2013est |
Total Market Size |
$83 |
99 |
105 |
115 |
Total Local Production |
10 |
11 |
12 |
14 |
Total Exports |
0 |
0 |
0 |
0 |
Total Imports |
83 |
88 |
93 |
101 |
Imports from the U.S. |
75 |
80 |
85 |
92 |
Overview
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.
Opportunities
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.
Web Resources
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For More Information
The U.S. Commercial Service in Panama can be contacted via e-mail at: Enrique.Tellez@trade.gov;
Phone: 011-507-317-5080; or visit our website: http://www.export.gov/panama.
