franchising.

The franchising business model is sweeping Latin America, where investors and entrepreneurs have been quick to catch on to the benefits and opportunities.

"Franchising is the most secure and the least risky way of starting your own business," notes Eduardo Schmidt, director of Stratega Consultor de Negocios, a franchise consultancy based in Cancun, Mexico. "You get a brand that is normally recognized by consumers, all the training and manuals to start off on the right foot, and you have technical assistance from the franchisor."

Over the past 10 years, many of the world's most popular brands have expanded their footholds in Latin America. The market in Mexico alone grew 20% last year, well over the world average of 10%, says Schmidt, who officially represents the trade organization Asociacion Mexicana de Franquicias.

Franchise operators in three key markets -- Mexico, Brazil and Argentina -- took in US$24.1 billion in revenues last year, according to the Federacion Iberoamericana de Franquicias, an industry group comprised of franchise associations in several countries, The goal of the association, founded in 1998, is to exchange information about government regulations, tariffs and local habits so that franchisors can more easily cross borders.

Franchise consultants can also ease the process. In addition to overcoming regulatory hurdles, a consultant can help research the market to avoid costly mistakes.

For example, Schmidt says a U.S. submarine sandwich chain has struggled in Mexico City because Mexicans prefers their bread crusty, not soft. A Brazilian rodizio chain had to add tortillas to its menu in Nuevo Laredo, Schmidt says, adding that even McDonald's sells a "Mexican hamburger" with spicy seasonings in addition to the Big Mac.

Buying a franchise means that investors have to run the business, so they should choose an industry that they'll enjoy. They should also consider whether the franchise operation is going to require importing a lot of ingredients from abroad. Imports are subject to currency fluctuations, which can make or break some businesses.

While the norm is for U.S. and European franchises to enter the Latin American market, now Latin-grown companies are beginning to look to international markets. A Mexican food restaurant is currently eyeing locations in U.S. Hispanic markets like San Antonio, Los Angeles and Miami, Schmidt says.

HOT PROFITS FOR A COOL PRODUCT

One of Latin America's fastest-growing franchises is Yogen Fruz, a frozen dessert chain with 4,900 outlets in 92 countries. Mounting an aggressive campaign seeking master franchisees in Brazil, Mexico and Panama, Yogen Fruz aims to open 1,000 stores in Latin America over the next three years.

"Latin America is already the world's strongest market for our product," says Aaron Serruya, president of the 13-year-old Toronto-based company, which registered US$680 million in sales and opened 1,600 stores last year. "Our Latin stores do double the sales volume compared with those in North America."

The products seem ideal for the market. The Yogen Fruz Brand frozen yogurt is mixed with fresh fruit before the customer's eyes, recalling to the Latin palate the fresh fruit traditionally served for dessert. Other brands in the Yogen Fruz franchise family include I Can't Believe It's Yogurt, Bresler's Ice Cream and Premium Frozen Yogurt, Swensen's Ice Cream, Tropicana Frozen novelties and Java Coast Fine Coffees.

"The climate is perfect," notes Serruya.

A Yogen Fruz master franchisee opens the first store in a new country after being trained in all aspects of the operations, then he's free to locate new franchisees and locations. The desserts are produced at local factories, keeping import costs to a minimum. And Yogen Fruz provides significant marketing support.

"We're good marketers, and we want our people to be good operators," Serruya says.

The cost depends on the location, ranging from $40,000 in some countries to $100,000 in North America. A franchisee's profit ranges from 18% to 25%.

Co-branding is another way to add new revenues. The operator of a pizza chain, for example, can offer Yogen Fruz products under license. The new profit center requires only about 2,500 square feet of space. "It's a win-win situation," says Serruya.

For more information, contact Serruya at [phone]; fax: [phone]. E-mail: [e-mail] or Stephen Bogyay at [e-mail]

SWISHER HYGIENE

Swisher International is actively seeking master franchisees in Latin America for it Swisher Hygiene division, which supplies full-service hygienic cleaning services and products for restrooms m restaurants, office buildings and other public businesses. The concept: A business' image is enhanced when its customers encounter a clean, well-stocked restroom.

"It is a proven business system, which we teach our fran-chisees how to duplicate," explains Bruce Mullan, director of international development. "We also offer great assistance in sourcing the products locally They are generic and are not imported from the United States."

Swisher International is the world's leading provider of commercial lavatory hygiene services, a business with unlimited growth potential. "People everywhere have to go to a washroom, and they want it to be well-stocked and as pleasant an experience as possible," Mullan adds.

The franchise for Swisher Hygiene is sold out in the United States and Canada; international franchisees are in 15 other countries. Swisher has more than 50,000 customers per week in the United States.

For more information, contact Mullan by email at [e-mail].

WENDY'S INTERNATIONAL

Growing fast in Latin America, Wendy's Old Fashioned Hamburgers is the highest quality hamburger restaurant chain in the world, with more than 5,400 units in more than 35 countries and territories. "Our international corporate resources are currently focused on the Americas, with a strong emphasis on Canada, Latin America and the Caribbean," says James C. Hartenstein, regional vice president. "Wendy's currently has more than 120 locations in 16 countries in Latin America and the Caribbean arid is growing at 25% annually. By December 1999, Wendy's will have entered four new markets in this region during the preceding twelvemonth period."

Wendy's largest markets in the region are Puerto Rico, Venezuela and Argentina. The company is also actively seeking franchisees in new markets such as Chile, Costa Rica, Peru and others, as well as an expanded presence in Mexico.

"Consumers in the region have enthusiastically accepted our brand," Hartenstein says. "Our continued success in Latin America, the Caribbean and the rest of the world will be based on delivering to each customer on every visit our fundamental promise of quality food, excellent service, total value and sparkling clean restaurants." For more information, see www.wendys.com or call [phone].

PIZZA INN

Pizza Inn Inc. franchises and services more than 500 Pizza Inn restaurants around the world, increasingly in Latin America. The company is seeking master licensees across Latin America and sees great opportunity for business development.

Pizza Inn uses three types of restaurant formats, depending on site needs and demographics. They include a full-service, dine-in restaurant that seats 120 to 140 customers; delivery and carry-out (Delco) with or without seating in a smaller facility, and the Pizza Inn Express, located inside busy public buildings like airports or campuses.

As a benefit to its franchisees, Pizza Inn operates a food purchasing and distribution division that provides 80% of their food products and restaurant supplies. The company is highly experienced in logistics and dealing with varying tariff schedules.

While the proprietary products take the guesswork out of menu planning, Pizza Inn encourages its franchisees to adapt their offerings to the local market.

See www.pizzainn.com for more information, or call Bob Soria, vice president of intemational restaurant development, at [phone]. E-mail: [e-mail].

FASTRACKIDS

FasTracKids -- the $5,000 franchise -- is a remarkable new (1998) educational system designed to provide enrichment learning to young children. FasTracKids is already active in more than 10 countries, and the program is available in various language versions.

The technologically advanced FasTracKids educational system utilizes CD-ROMS projected onto an interactive white board, which the teacher controls by touch. The 48-week curriculum (two hours per week) is based on the research of famed educator Dr. Johann DeBeer. The program is designed to increase children's thinking and reasoning ability while simultaneously enhancing communication and speaking skills and self-esteem.

FasTracKids plans to expand its franchise operations throughout Latin America. For more information on a franchise, or to enroll your child in the FasTracKids program, visit www.fastrackids.com or call Mr. Allen at 303-224-0200. Fax: [phone].

CRESTCOM MANAGEMENT TRAINING

Crestcom International Ltd., rated as the world's No. 1 management training franchise (Success Entrepreneur; Income Opportunities; and Entrepreneur International Magazines), has experienced its fastest growth in Latin America.

Crestcom(R) offers executive training programs for managers, sales people and secretarial staff. The training combines interactive monthly seminars with video-based instruction featuring world renowned business authorities. This program is available in Spanish and Portuguese.

For more information about owning a Crestcom Distributorship or if you have an interest in Crestcom's training for your company, see www.crestcom.com, or contact Mr. K. Krause at 303-267-8200 or by fax at 303-267-8207.

PERKY'S PIZZA

Perky's Pizza, the "unfranchise," is seeking master licensees in South America, particularly Argentina, Chile and Brazil, as well as in the Caribbean. A branded food service program, Perky's Pizza outlets offer fresh-baked pizza products inside high-traffic locations like convenience stores, universities and airports.

Latin America is the fastest-growing market for Perky's Pizza, representing nearly half of its 550 outlets around the world, says Hugo Moran, manager of international store operations. About 195 are in Esso Tiger Market stores throughout Latin America and the Caribbean.

"The advantage to our program versus our competition is that we do not charge a franchise fee," Moran adds. "Whatever profits are made from sales go directly to the operator/owner, resulting in a savings of 8 to 10%. Also, all our products are imported and are of the highest quality"

For more information, see www.perkys.com. E-mail:[e-mail], or contact Paul Debia by telephone at [phone] or fax [phone].

                                KEY MARKETS

          FRANCHISORS STORES     REVENUES
Mexico        500     25,000   $8 billion
Brazil        900     30,000  $15 billion
Argentina     150      1,500 $1.1 billion
Uruquay       120        400 $350 million


SOURCE: FEDERACION IBEROAMERICANA DE FRANQUICIAS, 1998, REVENUES IN US
DOLLARS.
                           FRANCHISES IN MEXICO

Service companies:  24%
Restaurants:        23%
Convenience stores: 10%
Real estate:         8%
Other:              35%


SOURCE: ASSOCIACION MEXICANA DE FRANQUICIAS, 1999.