Franchising: Challenges and Expectations

Recruiting the best staff to operate the points of sale and reducing the costs of the initial investments to set up a franchise are some of the challenges faced by franchisers, who expect better sales in 2020.

Tuesday, February 25, 2020

Access to financing, containment of operating costs, and maintaining profitability levels are other issues of concern to franchisors in Guatemala.

You may be interested in "What are the Characteristics of the Consumer in Central America?"

Regarding the type of franchises that have good expectations for 2020 in the country, José Roberto Fernandez, president of the Guatemalan Franchise Association (Francorp), told that those of "... personal services, such as education, personal care, health, languages, professional services are the categories of greatest growth, although the food and restaurant sectors represent the base of franchises and it is a very stable twist."

Fernandez added that "... franchisors are conservative about their sales projections for 2020, however, they visualize a better year than 2019 which was really difficult for many business and service turns in the country."

See "Where are the Consumers Who Spend the Most?"

When questioned about the reasons why franchises fail in Guatemala, the executive said that it is for lack of preparation in structuring its franchise model and for entering to compete in niches extraordinarily well served and do not have a differentiated value proposition for the consumer.

In other cases, it fails when franchises are acquired without prior investigation.

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