Twelve Panamanian companies in the SME sector will become franchises and will be able to expand to local and international markets. This will be possible after the Chamber of Commerce, Industries and Agriculture of Panama (CCIAP) and the consulting firm Front507 and its Front Consulting International (FCI) network, launched the “FRANCHISING PANAMA” Program, a comprehensive scheme for economic reactivation, which promotes to these companies.
The main objective of the program is to promote the development, growth and expansion of Panamanian SMEs through the provision of tools and methodologies of proven success in business growth through associative means, under special financing conditions.
This project is aimed at Panamanian companies of all types and sizes, it is not exclusive, however, it has a special emphasis on SMEs in the trade and service sector, which have been in operation for at least one year and have proven success.
Initially, this first edition seeks to serve a total of 12 companies. SMEs that show interest in participating in this project will have to go through a selection process by Front507 / FCI and the CCIAP, where some elements will be taken into account such as the company’s history, brand registration, level of formalization, projections growth, employment generation capacity, corporate social responsibility programs, among others.
This project, which was launched today and runs until April 2023, includes five phases, beginning with the launch and promotion. Then follows the process of selection and registration of participating companies; signing of contracts; structuring process and the closure of the program.
Companies interested in enrolling in this program can access www.panacamara.com/services or write to the Center for Professional Training and Business Development of the CCIAP at [email protected]
According to the organizers of this program, an SME that has proven to be successful, by becoming a franchise, can begin to rapidly multiply its operating units, with the corresponding growth in the generation of employment opportunities. Likewise, the franchise model promotes the association between successful SMEs and new entrepreneurs who will have support to dramatically increase the chances of success of their businesses.
On the other hand, in the medium term, when an interesting number of franchising companies have been achieved, the organizers of this program seek to promote the creation of a chamber or association of companies in the sector, which will contribute to the expansion and growth of the franchise business in Panama, as well as to help collect data on this industry in the country, which has been growing in recent years.
“Panama, due to its geographical position, offers multiple advantages, in connectivity, logistics and transportation, among others, and is conducive to the expansion of this business model, which is an interesting market for regional entrepreneurs, although figures are not available, in which last five years we have seen that this industry has grown in the country. Foreign firms continue to enter and the local industry continues to search for new horizons. To reach this boom, specialists in franchise development identify and train those who meet the conditions to multiply with this system”, said Marcela Galindo, president of the CCIAP.
For this reason, Galindo stressed that with this alliance between the Chamber of Commerce and the Front507/FCI consultancy, through this program Panamanian companies, especially SMEs, will be given the opportunity, a boost that this franchise business model that It contributes to the generation of jobs and its multiplier effect on the economy of the local and regional market with a greater probability of sustainability, providing stability to both the investor and its collaborators.
For Alfonso Riera Seijas, representative of the consulting firm FRONT507 and Juan Carlos Fallas, director of Front507: Front Consulting International – FCI, the International Network of Business and Franchise Consultants, who have been leading throughout Ibero-America, with special emphasis on the region Central America, projects to strengthen companies and structure under the franchise model, in alliance with the main trade unions in each country, focused on working together to generate employment and economic reactivation through the development of franchise formats, replicating successful concepts . The examples of FCI El Salvador with Coexport and USAID, FCI Honduras and the CCI of Cortez, and now with FCI Panama with the CCIAP, have been, are and will be the ideal combination for these objectives to become a reality in Panama.
During the launch of this program, a success story of the company, Pretelt Gourmet Meats, who has been in this food business since 1997, was presented; as a pioneer, in providing excellence in imported meat cuts of the best quality for hotels and restaurants of great gastronomic prestige in Panama.
Robert Pretelt, founder of Pretelt Gourmet Meats, proudly indicated the progress he has made in developing his company as a new franchise, meeting the needs of the entire Panamanian small, medium and macro industry. In addition to this, they manage offices in the United States to ensure the origin of the cuts of meat. Therefore, he said “we are very careful when selecting who we start the business with, knowing the candidates through our selection process.”
The Front507 and FCI consultancy, creator of this project over almost half a century of experience, has participated in the structuring of at least 2,500 franchises, which are multiplied by around 25,000 franchised units granted in Latin America and Europe.
