THE FRANCHISE MARKET IN IBEROAMERICA: What you need to know about this prime location.

Author:Riera, Alfonso
 
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The word Iberoamerica is the combination of Iberia and America. It designates the territories comprised by the 20 Latin American countries in which Spanish and Portuguese are spoken, as well as their historical colonial homelands, Spain and Portugal, which make up the Iberian Peninsula in Europe.

Iberoamerica?

The Iberoamerican block is a tightlyknit community. It is one of the largest linguistic regions in the world and one of the most historically and culturally cohesive, which makes it a common market with highly unified aspects, both for the reception of foreign franchises as well as the internationalization of its own franchises. Iberoamerica exceeds 22 million square kilometers, is inhabited by more than 680 million people and counts more than 7,600 native franchises.

IBERIA & AMERICA

Iberoamerican countries also present economic and social differences, as well as consumer habits and the varying degrees of maturity in their own franchise sectors. We can identify the status of each country according to the evolutionary stage in which it is.

Country Stages

  1. The first stage is characterized by the emergence of the model and the entry of large foreign brands. The countries that are in this stage are Honduras and Nicaragua.

  2. The second stage is when interest is increased and an initial growth of the franchising business is manifested, as is the rise of the first generation of local franchises. The countries in this stage are Bolivia, Ecuador, El Salvador, Panama, Paraguay and Puerto Rico.

  3. Then it moves to the third stage,

    which is when there has been an exponential expansion of the sector, with the accelerated entrance of foreign franchises and an increase in the number of local brands occurring. The countries in this stage include Chile, Costa Rica, Guatemala, Peru, Dominican Republic and Uruguay.

  4. The fourth stage is when the market reaches commercial and institutional maturity and consolidation, and

    the export of franchises is activated. This includes Spain, Portugal, Brazil, Mexico, Argentina, Colombia and Venezuela. The latter is currently experiencing a period of stagnation, but represents a territory with great potential when it reaches political stability and reconstruction begins.

    The countries with the highest level of franchising development, such as Spain, Portugal, Brazil, Mexico and Argentina, are the main exporters of concepts, although there are also some franchises from the rest of the countries that are already...

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