As I begin to write this article sitting in my charming hotel room in the historic heart of Panama City, the Old City-or Casco Viejo-I can't help but feel immersed in the rich tapestry of culture and history surrounding me. The view of the Pacific Ocean and cobblestone streets echo stories of centuries past, while the vibrant energy of its present-day community breathes life into this remarkable neighborhood. Casco Viejo offers an unforgettable glimpse into Panama's soul, from the colonial architecture that whispers tales of Spanish influence to the scent of Panamanian coffee wafting through open windows (Far better than Starbucks, in my opinion).  And the pastries rival those offered in the best Parisian pâtisseries. It is from this enchanting locale that I write, sharing the essence of this captivating country.

However, in addition to exploring the vibrant sights and sounds of Panama, my fifty years of working in the franchise industry and my deep connection to the world of franchising compels me to share my observations of the American brand franchises that have established a presence in this dynamic country.

Here is a very brief overview of the country's  characteristics:

• Government
  Panama is a constitutional democracy. The President serves as both the head of state and government, elected for a five-year term. The country is divided into ten provinces and three indigenous regions, each with its local governance structure.
   
• Religion
  • The majority of Panamanians identify as Roman Catholic, making up about 65% of the population.
  • Evangelical Christians are the second-largest group, accounting for approximately 22%.
  • Other religious communities include Muslims, Jews, Buddhists, and Rastafarians, primarily concentrated in urban areas like Panama City.
• Finances
  • Panama's economy is heavily reliant on services, particularly banking, commerce, and tourism.
  • The Panama Canal is a major contributor to the country's GDP, generating significant revenue from international shipping.
  • The country uses the U.S. dollar alongside its currency, the Panamanian balboa, which is pegged to the dollar.
• First American Franchise in Panama
  • Kentucky Fried Chicken (KFC) was the first American franchise to open in Panama in 1970.
  • Many American franchises operate in Panama across various industries.
• Fast Food Franchises
  • McDonald's
  • Burger King
  • KFC (Kentucky Fried Chicken)
  • Subway
  • Domino's Pizza
  • Pizza Hut
  • Taco Bell
  • Dunkin' Donuts
  • Five Guys
• Retail Franchises
  • The Home Depot
  • Walmart (through the Walmex subsidiary)
  • 7-Eleven
  • Foot Locker
  • The Children's Place
• Coffee and Beverages
  • Starbucks
  • Dunkin' Donuts
  • Krispy Kreme Doughnut Corp
• Fitness and Health
  • Gold's Gym
  • Anytime Fitness
  • Orangetheory Fitness
• Entertainment
  • Cinemark (Movie theaters)
• Hospitality
  • Marriott International
  • Hyatt
• Franchise Sales and GDP Contribution
  • The services sector, including franchising, accounts for approximately 67% of Panama's GDP.
  • Franchising plays a significant role in food, retail, and services.
• Government Approval for Franchises
  • Panama does not have a specific agency for franchise approvals.
  • Foreign franchises must comply with business regulations, including registration with the Ministry of Commerce and Industry.
• Franchise Employment
  • The Panamanian government does not provide employees for franchise businesses.
  • Franchisees recruit employees through agencies and online job platforms.
• Franchise Business Sales
  • Specific sales figures are not publicly disclosed.
  • Over 200 franchise chains operate in Panama across various industries.
• Financing for Panamanians to Purchase a Franchise
  • Local Banks: Business loans for franchise investments.
  • International Financial Institutions: Funding for larger franchise operations.
  • Government Programs: Occasional incentives or SME loans.
  • Private Investors: Equity investments in franchise ventures.

Conclusion
Franchising in Panama presents a dynamic opportunity for both local and international investors. With a robust services sector, strategic location, and growing consumer base, Panama is an attractive market for franchise expansion. Understanding the regulatory environment, economic contributions, and financing options is crucial for success.
 
Whether you are a part of the franchise community or not, if you ever have the opportunity, I encourage you to discover the vibrant culture of Panama, where rich traditions, stunning landscapes, and warm hospitality await to create an unforgettable travel experience.
 
Written By: Carl J. Kosnar