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

The Ethiopian Parliament approved a Commercial Registration and Business License Proclamation in 2016 which allowed registration of franchises. However, difficulties in enforcing intellectual property rights, product quality control, cumbersome banking regulations, and continuing foreign exchange convertibility issues make franchising difficult.

Despite the challenges, several branded U.S. companies have franchise operations in Ethiopia, including Pepsi-Cola and hotels such as Sheraton, Hilton, Marriott, Radisson Blu, Ramada and Hyatt Regency hotels. In April 2018, Belayab Food and Franchise Plc opened the first Pizza Hut in Addis Ababa and quickly increased its outlets in Addis Ababa to three. KFC and Subway are currently exploring the market for potential opening of their first stores in 2020.

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.