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.

Do you need detailed information about your sector? Contact Us.

this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423

More on this topic

Nicaragua: Consumption Outlook

April 2020

Once the economy begins to return to normal, as the phases of the pandemic are overcome in the country, it is estimated that the demand for meals outside the home will have decreased by 13%.

Using a demand/income sensitivity model developed by CentralAmericaData's Trade Intelligence Unit, variations in demand by Nicaraguan households for different goods and services can be projected as the most critical phases of the spread of covid-19 are overcome and restrictive measures are lifted in the country.

Pet Market in Panama

February 2020

Some pet service providers claim that their sales have been sustained, while others report that their income is beginning to recover after overcoming a period of economic slowdown.

In recent years the Panamanian economy recorded a slowdown, since in 2018 the Gross Domestic Product of the country reported a 3.7% year-on-year growth, far from the increases of 11.3% and 9.8% reported in 2011 and 2012, respectively.

Retail: What to expect in 2020?

December 2019

After recording in 2019 a decline in sales and loss of formal jobs, companies in the commercial sector of Costa Rica predict that during next year their revenues will begin to recover.

The current year has been a year of economic and commercial contraction, mainly because of the loss of consumer confidence and the consequent reduction in sales, which in turn reduced the capacity for investment and employment generation by companies, explains a statement from the Costa Rican Chamber of Commerce (CCCR).

Which Changes are Foreseen in 2019?

December 2018

Although some uncertainty is projected next year in Guatemala, because of the presidential and legislative elections scheduled for June, it is estimated that the economy will increase 3.2%.

According to the Center for National Economic Research (Cien), it is expected that in 2019 there will be some uncertainty derived from the changes in the three branches of government.

 close (x)

Receive more news about Business and Investment

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones

Professional ink refill franchise for sale

Ink and toner refills with latest generation machinery exclusively for the franchisee in Central America, investment opportunity with fast return.
Ink and toner refills with latest generation machinery...

Stock Indexes

(Apr 6)
Dow Jones
S&P 500


(Jan 20)
Brent Crude Oil
Coffee "C"