How do foreign suppliers enter the Chilean market?

In general, foreign suppliers enter the Chilean market by appointing an agent, distributor, or wholesaler. Most are small-to-medium size firms. Several large firms handle different product lines and operate as wholesalers. Almost all the firms have their main offices in Santiago.

Do US companies have to register trademarks in Chile?

U.S. companies are encouraged to register their trademarks prior to entering the Chilean market. Chile does not have a franchise association, however, there is a franchise committee under the Santiago Chamber of Commerce that organizes the only franchise trade show in the country, FIF Chile.

Are franchise companies regulated in Chile?

Franchise companies operating in Chile are subject to the same general Chilean trade laws as all companies. Royalties and fees are subject to a withholding tax ranging from 15 to 35 percent and contracts are usually for five to ten years. U.S. companies are encouraged to register their trademarks prior to entering the Chilean market.

How many franchises are there in Chile?

As of 2020 (latest information available), there are approximately 300 franchises in Chile, with more than 7,000 stores throughout the country. Franchises are located primarily in the Santiago Metropolitan Region, with additional representation in the Valparaíso and Bío-Bío regions.

Where are franchises located in Chile?

Franchises are located primarily in the Santiago Metropolitan Region, with additional representation in the Valparaíso and Bío-Bío regions. In Chile, 82 percent of franchises originate from five countries: Chile, the United States, Spain, Peru, and Argentina.

What is Chile's business culture?

Chile has a conservative and risk averse business culture that is cautious about large, upfront investment for unproven concepts until the franchisor has a track record of success in other markets.