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Cuba opens up franchises

Cuba opens up franchises

Published in elEconomista.es , 12 - October , 2015 abogados franquicias Franchises from abroad

The economic reality of Cuba is living a historic moment. 55 years after the United States would block this Central American commercial market, the normalization of diplomatic and economic relations between the two countries is the opening of the Cuban economy to the world.
Without any doubt, the lifting of the embargo is going to translate into significant economic benefits for Cuba and for all those foreign companies that are committed to doing business in its territory, an opportunity that can not pass unnoticed by Spanish companies, and more specifically for franchise chains.
It is undeniable that this profound change will have a direct impact on economic growth and employment generation. Also, the increase in investment from abroad will be provided and must be taken into account that certain sectors will clearly benefit from this trade liberalization, activities in which the franchise may find your own niche to start trading a country that has significant potential, commercially speaking.
In a context as close as that Cuba has had to undergo until recently less than a year, it is logical that Spanish franchises have not been interested in entering this market, and for all the obstacles that meant.
If today there are nearly 300 flags of our country implemented in the five continents, according to data from the Spanish Association of Franchisers (AEF) - only five have entered Cuba, adding 31 establishments open.
A figure that is neither testimonial, when you consider that national franchises increasingly look towards other markets, a strategy that has worsened due to the crisis. However, our international plans was not covered teach the Cuban nation? until now.
In this scenario in which a new economic era opens, Spain has to take positions and ride this train of liberalization, enhancing their existing trade relations with Cuba, as now, Spain is the third largest supplier of the Cuban market, only behind Venezuela and China.
If you join that forecasts indicate that the Cuban economy could grow by 4 percent in the 2015, which relies on a significant increase in foreign investment and the Government\'s objectives in economic matters are especially focused on this remove obstacles to growth, through policies such as giving priority to investments that generate export earnings, all requirements are concentrated to start looking at this market that now has an interesting business potential.

Furthermore, Spain is very competitive in certain areas and have SMEs and very flexible, able to offer solutions to this new phase, with a high level of understanding of Cuban needs and a great insight into all the business of franchising Cuba.
While it is true that Spanish franchises those arising enter the Cuban market, following the lifting of the trade embargo, have to take into account a number of conditions, such as tariff payment or most of the population is in a low socioeconomic status, they must also consider that this is a virgin market, where many opportunities are generated and in which there is much to do from a business point of view, after many years of secrecy.
In this sense, there are sectors that open up a wide range of possibilities, such as food, hotelier to absorb the increase of tourists will occur as a result of trade liberalization, mining, renewable energy, construction and infrastructure .
In turn, it is important to note that the franchise system is not well developed in Cuba, because, until now, configuring the Cuban market, marked by a strong state and high bureaucratic complexity Control hindered the implementation of this business model .
However, the new scenario could facilitate the definitive launch of this type of business marketing, but would have to consider a number of keys that are critical to understanding its operation in this country.

One of the most important is that when implanted in Cuba usually done through commercial agreements with certain Cuban entities.
Also, the costs will depend on the negotiations, although it must be borne in mind that, usually, the Cuban party assumes those relating to local personnel employed and expenses such as electricity and water, while the foreign party must meet the relating to the goods that are in stock at warehouse, furniture and decoration, bags, catalogs and other promotional material.
It is also essential to register the mark, held in the Cuban Industrial Property Office (CIPO) and come from the hand of a local partner, to provide market knowledge, existing legislation, from the likes of consumer of the best locations in which to implement the business, cultural aspects?
As always make is intended to enter any market, never leave anything to chance, but maybe in the Cuban case is key when it comes to internationalize it is even more important because it is a country that for years has been ostracized to the outside, and now begins to open, also for Spanish franchises.

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Cuba abre la puerta a las franquicias
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