Franchise Model Transforms Panama's Economy

The franchise model is transforming Panama's economic map because, in addition to promoting investment, it represents a concrete tool for social development that formalizes, trains, and generates stable employment. The expert mentioned that the challenge for the coming years will be to integrate franchises into the national development strategy, attracting investment, generating jobs, and exporting Panamanian brands to the world. "While in other countries the franchise is a business, in Panama it can be an economic policy: it formalizes, professionalizes, and multiplies opportunities," stated Paul-Antoine Mocchi, spokesperson for Franquicias que Crecen en Panamá, a consultancy specializing in the development and expansion of brands in Latin America. With a dollarized economy, political stability, and a privileged logistical position, the country has all the conditions to become a regional hub for European and Latin American franchises. Opening a franchise in Panama requires an average investment of $100,000 to $250,000, with an estimated return of between 14 and 22 months, but the opportunity for expansion through micro-franchises is also growing, with accessible models starting from $30,000, which have already proven successful in Peru, Mexico, and Colombia. Each franchise creates between 8 and 12 direct jobs, in addition to transferring processes, brand, and continuous training to its operators. "Panama has the stability and connectivity that brands need to grow. In a country where more than 40% of commerce still operates in the informal sector, franchises offer a practical alternative to professionalize the small entrepreneur and strengthen the local economy. This structure reduces management errors and improves productivity, making a substantial difference compared to independent businesses, whose closure rate is three times higher. Currently, around 150 brands operate in the country, and the sector grows by about 10% annually, driven mainly by gastronomy, retail, and services. But above all, it has local talent that can multiply its value if it is structured under the right model," added Mocchi. This format can become a driver of economic inclusion, especially for young entrepreneurs and women, offering formal businesses with support and sustainable profitability.