Peru's local franchise market closed 2016 at US$1.3 billion with 434 franchises operating in the country, the Peruvian Chamber of Franchises (CPF) reported.
According to CPF Vice-President Luis Kiser, 218 of said franchises are national. Thus, the sector sustains a 20% annual growth rate.
The economic dynamism has increased franchises' attractiveness for local and foreign investors, making the country an idea business platform.
"Peruvian economy's upward trend over several years has set a highly attractive and competitive scenario in the region, drawing new franchises into the country," he pointed out.
Gastronomy, leading franchise
While gastronomy remains at the forefront of the sector, the general services sub-sector has expanded in 2016. The latter now accounts for 43% of the market, whereas gastronomy holds 57%.
In this respect, Kiser said 2017 represents a major opportunity for investors with different options in areas such as beauty, health and education. Likewise, the market increasingly offers affordable franchises.
"Several investors are seeking to diversify their investments in less-risky sectors. In this sense, franchises prove an increasingly requested option, since they are renowned brands with tried-and-tested concepts," he explained.
Investors are not only enterprises, but also natural persons with surplus capital, savings or severance payments who dream of self-employment.
This year, U.S. brands were the most demanded due to their differentiating factor and experience.
"They are still the most expensive, but there are Argentinian and Spanish brands that will continue to enter and bet on the Peruvian market in 2017," Kiser projected.
"In some cases, we will see natural persons who are not necessarily experts in the field," he added.
Lastly, the CPF representative announced the launching of an ethics code to promote good practices and professionalization in the sector. The document will be released by the end of the year with the support of the Foreign Trade and Tourism Ministry and the Association of Peruvian Exporters (Adex).
(END) DHT/MVB