Discusses opportunities for U.S. franchisers and legal requirements in the market.

Overview

Over four hundred American franchises operate in the fast food, clothing, office supply, furniture, cosmetics, office cleaning, and auto repair sectors.  Master franchise holders are attracted to the marketing image and name recognition of well-known U.S. products and brands.  In recent years, several malls have opened in Morocco including the Morocco Mall in Casablanca, which is North Africa’s largest.

Over the past decade, Morocco has enjoyed stable annual GDP growth rates of 3 to 5%.  Moroccans, joining the middle class in increasing numbers, desire convenience and demonstrate keen brand awareness.  Franchise outlets are concentrated in metropolitan Rabat and Casablanca due to higher population density and purchasing power. Other urban centers with franchises include Tangier, Tetouan, Marrakech, Agadir, Fez, and Meknes.

Franchising in Morocco is appealing to an expanding base of young entrepreneurs, many of whom are U.S.- educated and have the financial means to develop master franchises. Franchising is also seen as an efficient way to promote small business creation and employment in Morocco.
 

Challenges

  • Weak trademark protection.

  • Counterfeit products within the market (especially in apparel).

  • Limited financing options; while banks are often comfortable with financing franchises, financing typically excludes franchise fees.

  • Lack of a well-defined franchising regulatory framework.

  • Dense regulatory system for leasing store space.

 


Opportunities:

The sectors of interests to Moroccan franchisees are:

  • Restaurant/beverages

  • Apparel

  • Education/training (languages, executive training and higher education)

  • Supermarket, hyper-market chains

  • Housewares and linen retail

  • Temporary employment services

  • Business building management services

  • Entertainment (movie theaters, theme parks)

 


Web Resources

Moroccan Association of Franchises (Association Marocaine des Commerces en Réseau, AMCR):
www.observatoiredelafranchise.ma

For more information about future Franchising Trade Shows in Morocco or information on legal firms specializing in Business Transactions and Joint Ventures, contact the U.S. Commercial Service at Office.Casablanca@trade.gov.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.