This industry sector represents a high-potential opportunity for the country. Below is a market overview and trade data.
Overview:
While the franchise market in Nepal is currently small, it holds significant growth potential. International brands like KFC and Pizza Hut have already entered the market, with Nepali locals accounting for 70% of demand and foreigners making up the remaining 30%. Several U.S. and global brands, such as Coca-Cola, Pepsi, Hyatt, Marriott, Adidas, and Reebok, are already operating in Nepal. Additionally, Indian franchises like Patanjali, Aptech, and Raymonds have also established a presence.
Leading Sub-Sector
- Coffee Shop Franchises
- Restaurant & Fast Food Franchises
- Business Consulting Franchises
- Training & Education Franchises
- Leisure & Entertainment Franchises
- Cleaning & Maintenance Franchises
- Tourism & Travel Agency Franchises
Opportunities in Nepal
Franchises have significant growth opportunities in major cities like Kathmandu and Pokhara, which are key tourism hubs. The market is expected to grow by 25% in the initial years. The growing tourism industry (with around 1 million visitors annually) and an increasing expatriate community create a strong demand for fast food and branded products. Other cities like Birgunj, Biratnagar, and Bhairahawa also offer potential for expansion. With rising consumer awareness of quality and durability, demand for branded goods is on the rise.
Web Resources
As the franchise sector is still developing, limited research data or trade leads are available. However, the U.S. Embassy’s Political/Economic Section monitors local interest in U.S. franchises. For inquiries about potential local partners, U.S. businesses can contact the Economic and Commercial Officer at the U.S. Embassy in Kathmandu: basnyatap@state.gov. This information is provided by the U.S. Commercial Service, which supports U.S. companies in global markets through its network of 108 offices across the U.S. and in over 75 countries. To find a trade specialist near you, visit http://export.gov/usoffices.”