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Venezuelan franchising scheme modified by import troubles

The sector is improvising due to the delay in delivery of foreign currency (P. Pérez/ File photo)

Economy Obstacles to get foreign currency and import inputs have changed the operation patterns of some Venezuelan franchises.

According to Alfonso Riera, Venezuelan Franchise Chamber (Profranquicias) Director, although one of the goals of such trade is to purchase local commodities, the reality shows that for some franchisees imports substitution is not easy.

Franchises linked with the food sector and services such as dry cleaning are the most dependent on goods not manufactured in Venezuela. Therefore, they have had to improvise ways to overcome the paperwork delays at the Foreign Exchange Management Committee (Cadivi) and the Ministry of Light Industry and Trade (Milco).

Karen Armando Cohen, the Director-General of Wendy's, said that the company has made "additional efforts" in order that the import substitution policy sponsored by the Venezuelan government does not imply shortages or deteriorated quality of their products.


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Worsening chronic poverty in Venezuelan households

11:00 AM. Economy. Based on the official data, more and more families failed to get out of poverty in 2008; the exclusion status of more people moved faster and fewer people are on their way to overcome this situation. According to the data provided by the official National Statistics Institute (INE), last year the poorest homes in the country recorded an average monthly income of USD 401.82, whereas the food basket amounted to 417.77

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