Ecuador Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in ecuador, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Franchising
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Overview

The franchising model is widely accepted in Ecuador and has proven to be successful.  Familiarity with the United States and its brands generate a constant demand for U.S. franchises. The dollarized Ecuadorian economy makes it simple to send royalties back to the United States without the concern of currency depreciation. The franchising model generates employment and helps the local economy, representing approximately $1.5 billion per year and over 20,000 in direct jobs. U.S. brands have approximately 60 percent market share in the franchising industry. Food and beverages account for 50 percent of the franchising market, and the other 50 percent represents services (e.g., hotel chains, entertainment, and education). In the food and beverage franchise sector, around 90 percent of the brands are from U.S. origin. 

A challenge in this sector is that Ecuador’s protectionist policies lead to local sourcing requirements. The Ecuadorian government regulates imports, making it difficult to source elsewhere. That said, most franchises have been successful in sourcing locally and securing their supply chain.  

Labor and tax burdens are also challenging. Frequent regulatory changes that directly affect franchise operations are common.  For example, labor laws and taxation undergo regular changes. There is a five percent capital exit tax (ISD) that franchisees must pay when sending royalty payments back the United States. Registering the franchise brand is important, even if a franchisee is not yet chosen. 

As of 2025, there are approximately 57 U.S. franchising concepts in Ecuador with restaurants or stores in major cities like Guayaquil, Quito, and Cuenca. 

Leading Sub-sectors

  • Food & Beverage

  • Hotels

  • Technology: online shopping platforms, e-commerce, content for social media, big data analysis, eSports 

  • Location-based entertainment

  • Education: online, at-home tutoring 

  • Home delivery services

  • Fitness and Beauty

Opportunities 

U.S. brands are leaders in the franchising sector. Every year, large delegations of Ecuadorian investors travel to the International Franchise Expo in New York City looking for franchising opportunities. Although the food and beverage sub-sector is a mature market, there are still opportunities in services. Potential franchisee candidates include predominant economic groups in the country with experience in franchising, corporations that want to diversify their portfolio, and entrepreneurs. Brand recoginition is an important factor when selecting a franchise concept. 

Resources 

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