Expand to Panama · Esta página en español
Expanding a franchise to Panama
Panama runs on the US dollar, its consumer market is concentrated in one city, and it has its own franchise registration filing. The brands already there entered in four different ways, and every one of them is documented in our census.
Panama City accounts for 65% of national consumer-goods sales; the remaining 35% is spread across David, Colón, Santiago and Chitré (Trade.gov, March 2026). A franchise agreement can be filed with MICI's DIGERPI for 4.00 balboas in stamps under Law 35 of 1996. Of the 328 brands in the franchise directory, 70 publish master franchise among their development models, 97 state their Panama rights are closed to third parties, and 224 have a named national operator on record.
The form reaches [email protected], the mailbox PanaFranquicias staff read. First reply within one business day.
The market
What Panama is for a franchise, and what it is not
What works in your favour
- Currency: the balboa is pegged 1:1 to the US dollar and dollars circulate. A franchisor billing in USD carries no exchange risk.
- Concentration: 65% of consumer-goods sales happen in Panama City. One well-placed first unit covers most of the market. [S1]
- Regional base: Panama-based groups take masters for the whole region. Cotton Candy International holds Toys R Us for 27 Latin American markets. [S6]
- Experienced operators: Grupo Vierci (Burger King since 2016, Popeyes since 2019, Subway since 2026) and Platinum Brands (KFC and Dairy Queen since 2024) show there is local capital used to running international brands. [S4][S5]
What you have to accept
- Size: outside the capital, the rest of the country adds up to 35% of consumption across four hubs. A twenty-unit plan is not realistic for most formats. [S1]
- Regulated professions: the Trade.gov guide notes nationality restrictions on legal and accounting services; you need a lawyer admitted in Panama for filings. [S8]
- Personal data: Law 81 of 2019 applies to recruiting candidates and customers. [S9]
- Consumer pricing: Law 531 of 2026 postponed the "total price" rules of Law 473 of 2025 to 1 July 2027; design menus and advertising to comply from day one. [S10]
Four routes that already exist
How the brands now in Panama got there
Each example links to its census profile and its sources. Brand profiles are written in Spanish.
1. National master franchise
One partner takes the rights for the whole country with a development obligation. In April 2023 Subway signed a 20-year master with a Panamanian company, its first in Central America, at 72 restaurants with a target above 100; in March 2026 Grupo Vierci bought that master. [S3][S4]
Subway profile — Spanish2. National operator buying the operation
The brand keeps a single franchisee in the country, but the franchisee changes. Platinum Brands bought the KFC and Dairy Queen operation (76 restaurants) from Franquicias Panameñas, effective 1 June 2024. [S5]
KFC profile — Spanish3. Regional master headquartered in Panama
A Panamanian group takes rights for several countries and enters Panama as one of them. Cotton Candy International announced Toys R Us for 27 markets with a Panama City store planned for 2026. [S6]
Expansion Radar — Spanish4. Direct offer to individual franchisees
The brand publishes Panama terms and recruits unit by unit from a regional office. Kumon publishes a country-specific brochure with a USD 30,000 investment, requirements and expansion zones (Brisas del Golf, Costa Verde, Colón), run from Mexico. [S7]
Kumon profile — SpanishChecklist
Nine points before signing with a partner in Panama
Rough order. Legal items require a lawyer admitted in Panama; they are only listed here.
- Trademark registered in Panama. File with DIGERPI before negotiating; without it there is nothing to license.
- Entry model decided. Master, area developer or single units; it changes the contract, the price and the partner profile.
- Ticket costed with local prices. Fit-out, imported equipment with duties, Panama City rents, staff.
- Supply chain. What is imported, what is substituted, who imports (the partner usually acts as importer and distributor). [S1]
- Franchise agreement adapted. Governing law, exclusivity, opening targets, termination causes, and an assessment of the DIGERPI filing. [S2]
- Partner's corporate vehicle and sector licences (food, health, education) in the local operator's name.
- Personal data. Consent and purpose for candidates and customers under Law 81 of 2019. [S9]
- Total consumer price ready for the rules taking effect on 1 July 2027. [S10]
- Development budget assigned: travel, opening training, manual adaptation, launch marketing support.
Panama Market Entry Score
Ten questions about your brand. The score is calculated in your browser and nothing is sent anywhere. It structures the conversation; it does not decide for you.
Result
What to review before talking to a partner
No relevant gaps detected with these answers.
A short brief with census references, applicable filings and a recommended partner profile. Requested by email; we reply with scope and price before starting.
This score does not assess the economic viability of your brand or predict outcomes. It orders ten factors Panamanian partners usually review. Weights are PanaFranquicias editorial criteria and are published in the methodology.
Scope
What PanaFranquicias does not do
- We are not your lawyer. The DIGERPI filing, the agreement, the corporate vehicle and the sector licences require a lawyer admitted in Panama. We name what applies and coordinate with local counsel under a separate engagement; we do not give legal advice.
- We are not a broker. We do not represent brands in negotiations, do not sell territories and do not earn a commission on a signed franchise agreement.
- We do not guarantee the market. No page here estimates return, payback or sales for a format that has not opened. The census reports what brands publish, with dates.
- We do not vouch for a partner. A profile in the census is documentation, not a reference. Background and financial checks on a candidate are your due diligence, or ours on assignment.
Entry services
What we do for a brand assessing Panama
Work on assignment, with scope and price in writing before we start. Legal work is carried out by lawyers admitted in Panama under a separate engagement.
A short brief: census references in your sector, competitors present and how they entered, applicable filings, recommended partner profile and next step. Delivered in days, not weeks.
Category and territory study: locations, local opening costs, supply chain, operator interviews and a recommended entry model with explicit assumptions.
Profile definition, Expansion Radar listing, qualification of candidates with capital and operating experience, and meeting coordination. Retainer plus a success fee agreed by contract.
Expansion Radar
Brands that have announced their arrival in Panama
A public register of entry announcements and partner searches, each with source and date. It holds 6 records today. A brand looking for a partner in Panama can publish its partner profile there.
Expansion Radar — SpanishList a partner search
Brand, home country, type of rights, territory, expected investment and operator profile. Published with a date and removed when you close or after 12 months.
Send the detailsFrequently asked
What brands ask before entering
Do franchise agreements have to be registered in Panama?
There is an official filing, "Inscripción de Franquicia", with the Directorate General of the Industrial Property Registry (DIGERPI) at the Ministry of Commerce and Industries (MICI). It records the franchise agreement or trademark franchise deed under Law 35 of 1996 and Executive Decree 7 of 1998, for 4.00 balboas in stamps plus a certified copy of the agreement. When it applies, what effect it has and how it relates to your trademark registration must be confirmed by a lawyer admitted in Panama.
Master franchise or individual franchisees?
It depends on your ticket and on how much support you can deliver remotely. In Panama the large quick-service chains run through a master or a single national operator (Subway, KFC, Dairy Queen, Burger King, Popeyes). Low-ticket service brands such as Kumon recruit unit by unit with a country-specific brochure. A master demands exclusivity and opening targets; single units demand that you provide the support.
Can I use my own lawyer from home?
For advice, yes. But the 2026 Trade.gov commercial guide notes nationality restrictions on the practice of several professions in Panama, including legal and accounting services. To act before DIGERPI, the Public Registry or the courts you need a lawyer admitted in Panama. PanaFranquicias coordinates that work with local professionals; it does not provide it.
What about the personal data of candidates I contact?
Panama has a personal data protection law (Law 81 of 2019, regulated by Executive Decree 285 of 2021). If you recruit candidates in Panama you need a stated purpose, consent and a channel for data-subject rights. Requests that reach you through PanaFranquicias already carry per-brand consent.
Sources
- Panama: Distribution and Sales Channels
- Inscripción de Franquicia (franchise registration)
- Subway announces a Master Franchise agreement in Panama
- Grupo Vierci acquires the Subway master franchise in Panama
- Franquicias Panameñas sells KFC and Dairy Queen operations
- Toys R Us to arrive in Panama in 2026
- Kumon Panama franchise brochure (PDF, Spanish)
- Panama: Licensing Requirements for Professional Services
- Law 81 of 2019 on Personal Data Protection (Spanish)
- Law 531 of 18 June 2026 (Official Gazette 30549-A, Spanish)
Last reviewed 20 September 2026. This page is not legal advice.