This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 4/17/2016
Overview:
USD Millions
Franchising Industry Statistics                                                     
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                                                                           

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.



Panama Franchising Trade Development and Promotion