Nepal Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in Nepal, 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

Although the franchise market is relatively small, it has the potential for expansion. U.S. and international brands present in the Nepali market include Coca-Cola, Pepsi, Western Union, Hyatt, Radisson, Marriott, DHL, United Colors of Benetton, Hard Rock, Cookie Man, Cinnabon, Baskin-Robbins, Wimpy, Hot Breads, Bata, Puma, Reebok, and Adidas. KFC and Pizza Hut operate restaurants in Kathmandu. Indian franchises also operate in the Nepali market including Gini and Jony, Time Square, Planet Fashion, Raymonds, Angan, Lilliput, Big Cinemas, John Players, Peter England, Provogue, Yana Sizzlers, Kendriya Vidyalaya, Patanjali Chikitsalaya, Aptech, NIIT, and Eurokids.

Leading Sub-sectors

•    Fast food restaurant chains
•    Coffee houses
•    Clothing
•    Sports equipment
•    Hotels

Opportunities

Franchises can expand in Kathmandu and Pokhara, two of Nepal’s largest cities and tourism hubs. Market growth is projected at 25 percent through the first few years of establishment. Key benefits of franchises lie in brand name recognition and consistent quality. With growing local demand, approximately one million tourists that have been arriving annually prior to the pandemic, and a sizable expatriate community, fast food franchises hold excellent potential. The business environment for franchise expansion to other growing Nepali cities, such as Birgunj, Biratnagar, and Bhairahawa, is also improving. In recent years, due to increased consciousness of quality and durability of goods, demand for branded products has increased.

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