After almost three years of operations, the Mexican company Franquicia Master now seeks to conquer the US market through its network of national brands under this scheme.
Mexican firm Master Franchise operates eight franchise brands: Yumi Loko (popcorn and snacks), Chicago Pops popcorn, Bubble Waffle, Hot Run (hot dogs), Margarita Boom (drinks vending), Sky pizzerias Rocket Pizza, Splash Fun children’s salons and Flavor Cup yogurt ice cream
Currently, Franquicia Master is located in Mexico, Guatemala, Costa Rica, Colombia and Ecuador. In the last three years, the firm has created 85 branches of its brands domestically and 20 more internationally.
“We are clear that Mexican franchises have a very large growth factor in all of Latin America, so we have explored there,” said Vladimir Ramírez, one of the firm´s co-founders.
For this reason, the group also hopes to bring its franchises to Argentina, where they are already in talks with investors, added Jose Luis Uberetagoyena, another of the founders.
In the United States, the company’s plan is to conquer the Hispanic market in California, where they are due to arrive in the second half of 2017, at which time they also expect to venture into Argentina.
Initially, the firm entered both markets through its brands of popcorn Chicago Pops and Bubble Waffle. The firm chose to create business models with an initial investment amount of around 300,000 pesos.
In addition to the initial amount, which includes equipment, know-how and manuals, the interested party invests for the adequacy of their premises, which is equivalent to 50% more of the main cost of the brand, he explained.
The company also has franchises that hover around one million pesos, among them the signature of children’s salons Splash Fun.
“The perception of the market is that acquiring a franchise is expensive. People have the idea that buying or owning a franchise is expensive, so we are clear that offering attractive business models, with good value in the market, supports the investor,” added Ramirez.
Globally, Mexico ranks fifth in terms of number of franchise brands. In my view franchises generate a source of employment, wealth and significant investment for the Mexican economy.