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Latin American Franchising On The Rise

We’re in the final stages of producing our third-annual Top 100 Global Franchise rankings. As usual, you’ll get a comprehensive tally of the best international franchises. The list will be published soon but in the meantime, we’d like to discuss one element which will be discussed in depth in the report: the rise of franchising in Latin America.

We hear so much about franchising in China and India that it’s easy to forget that Latin America and in particular Brazil is poised for huge economic growth. The Top 100 deals specifically with the explosion of franchising in Brazil. An interesting tie-in to this element of the report is this article in Latin Trade on the rapid growth of franchising in Latin America.

The Latin Trade article focuses primarily on Columbia. They discuss how Century 21 will have 35 franchises in the country by the end of 2011.

“About five years ago we saw the start of an important boom,” said Julio Seneor, head of the American Group of Franchises. “Unlike many other Latin American countries, Colombia has big populations living outside the capital. … That makes Colombia a very attractive place to set up franchises.”

But Colombia is not the only market where franchising is on the rise. Activity has been accelerating around the region as national and international chains seek new, growing markets and local business owners and entrepreneurs look for opportunity with tested concepts. Strong, stable economies have produced more middle-class consumers who are enjoying greater purchasing power.

With this rapidly-growing middle class in Brazil and all around Latin America, it’s clear that franchising in Latin American is going to be one of the major growth markets on the planet. Given the proximity to America and the familiarity of the Spanish language that many American businesses possess, franchisors must not overlook this continent as they map out their international expansion plans.

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