Why Good Franchises Are Great Business for Argentina

Patrick Archer entrepreneurs, foreign investment, franchises

Hollywood Burger Employees

Franchises like Hollywood Burger create opportunities for employees (pictured) and investors alike.

This time last year we posed the question if more Argentine franchises would find success abroad. Now we have an answer.

The Art of Exporting Franchises in La Nacion singled out Havanna as one of the few Argentine business models that has translated to foreign soil. While Argentina is often associated with great generics like beef, leather, tango and the Patagonia, franchise experts believe there is potential for well-established Argentina brands once they focus on a creative niche.

Now an article from Panama’s La Estrella takes a closer look at the benefits of nurturing successful franchises in Argentina and other corners of Latin America. Author David Santa Cruz focuses primarily on Mexico where the number of foreign franchises is 21%, relatively high compared to a country like Spain (15%) or Brazil (11%). Mexico is one of the few countries that has a government office dedicated to encouraging franchise entry and growth, because research shows successful franchises mean two important things for an economy: employment and entrepreneurship.

In terms of employment, the Mexican Franchise Association found that 90% of new franchises are still operating after one year while 70% are still going strong after five. While striving to generate steady employment for workers, the Mexican program seeks to provide incentives to potential franchisees. The franchise model gives entrepreneurs the opportunity to plow their savings into a well established business concept or reinvent themselves after a layoff or long-overdue career change.

And while 21% of all franchises in Mexico are foreign companies, only 2% of Mexican franchises have opened outlets on foreign soil, which takes us full circle to last year’s post, Can It Go Both Ways? The answer is a resounding “Yes” for companies like KidZania, a family entertainment center where kids dress up and act like adults. After launching just last year in Mexico, KidZania is now in 16 countries including Japan, Brazil, China and Dubai. (Full Story in Spanish)

For more information about investment opportunities in Argentina and Uruguay including franchises, simply complete the form below.

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