Bangladesh's franchise market is valued at approximately $500 million, growing at 20–25% annually, driven by an expanding middle class and rapid urbanization. Over 200 foreign franchise brands have entered the market, with the highest concentration in F&B (food & beverage), followed by education, beauty & spa, fashion, and services. The proliferation of shopping malls in Dhaka and Chittagong (5–10 new openings per year) is accelerating franchise expansion.
Bangladesh has no dedicated franchise legislation, meaning general contract law, trademark law, and company law apply. While this lowers the barrier to entry, it also requires particular attention to intellectual property protection and franchisee management. Korean franchises benefit from strong brand recognition fueled by the popularity of K-content, presenting significant market entry potential.
$500M
Franchise Market
2024 Est.
20–25%
Annual Growth
2024–2030
200+
Foreign Brands
Brands Present
55%
F&B Share
Top Segment
80+
Shopping Malls
60+ in Dhaka
4–8%
Avg. Royalty
Of Revenue
$10K–$100K
Franchise Fee
Varies by Brand
15+
Korean Brands
Active/Preparing
Foreign Franchise Landscape
Foreign franchises in Bangladesh are dominated by global F&B brands, with Korean, Japanese, and Turkish brands accelerating their market entry in recent years. Most operate under master franchise agreements that grant exclusive operating rights to local partners.
Major Foreign Franchises in Bangladesh (Incl. Korean Brands)
Brand
Origin
Sector
Outlets
Entry Year
Contract Type
KFC
USA
F&B (Chicken)
35+
2006
Master Franchise
Pizza Hut
USA
F&B (Pizza)
25+
2003
Master Franchise
Dominos
USA
F&B (Pizza)
15+
2019
Master Franchise
Burger King
USA
F&B (Burger)
10+
2021
Master Franchise
BBQ Chicken
Korea
F&B (Chicken)
5+
2023
Master Franchise
Korea Martria
Korea
F&B (Burger)
3
2024
Master Franchise
Paris Baguette
Korea
F&B (Bakery)
Preparing
–
Master Franchise
Kumon
Japan
Education
20+
2014
Master Franchise
Tony Moly
Korea
Beauty
8+
2022
Licensing
Innisfree
Korea
Beauty
2
2023
Direct + Franchise
Direct Operation vs. Master Franchise vs. Area Franchise
There are three primary franchise entry models for Bangladesh. For most Korean companies, the master franchise model—granting exclusive operating rights to a local partner—offers the most efficient balance of risk and investment.
Direct Operation
InvestmentHigh ($200K–$1M/outlet)
Control★★★★★ Full Control
RiskHigh (Direct local ops)
Revenue100% of Revenue
Local KnowledgeMust learn firsthand
Best ForLarge conglomerates
Master Franchise
InvestmentLow (Partner invests)
Control★★★ Contract-based
RiskMedium (Partner-dependent)
RevenueFees + 4–8% Royalty
Local KnowledgePartner provides
Best ForMost Korean franchises
Area Franchise
InvestmentNone (Franchisee invests)
Control★★ Limited
RiskLow (Fee-based revenue)
RevenueFees + 3–6% Royalty
Local KnowledgeIndividual franchisees
Best ForSmall service brands
Franchise Agreement Process
Korean Franchise Bangladesh Entry Process
1. Market Research
Dhaka F&B/retail market, competitor analysis, location study
→↓
2. Partner Discovery
Identify master franchisee candidates via KOTRA, trade fairs, local networks
→↓
3. LOI / MOU
Exchange Letter of Intent (LOI) → sign Memorandum of Understanding (MOU)
→↓
4. Due Diligence
Assess partner financials and operational capacity + negotiate terms
Fit-out, training, trial operations → grand opening
Key Practical Considerations
01
Trademark Pre-Registration Is Essential
Trademarks in Bangladesh are registered with the DPDT (Department of Patents, Designs & Trademarks). Processing takes 18–24 months. Korean brands must pre-register their trademarks in Bangladesh before signing any franchise agreement. Without pre-registration, local entities may squat on the trademark. International registration via the Madrid Protocol is also available.
02
Master Franchisee Selection Criteria
Key criteria for selecting a master franchisee in Bangladesh include: (1) F&B/retail operational experience, (2) ability to secure leases in Dhaka shopping malls, (3) financial soundness (minimum net worth of $1M+), and (4) existing food import/processing licenses. Conglomerate subsidiaries such as Transcom Group, ACI, and Meghna Group are strong candidates.
03
Food Ingredient Supply Chain
Standardized taste is the cornerstone of F&B franchising. Sauces, seasonings, and dry ingredients are exported from Korea for local preparation. Fresh ingredients (chicken, vegetables) are sourced locally. BSTI food certification and Halal certification are mandatory. Cold chain logistics must be secured for frozen ingredients.
04
Fee & Royalty Structure
Master franchise fees typically range from $50,000 to $200,000 (10–20 year exclusivity). Royalties run at 4–8% of revenue, with an advertising fund (Ad Fund) contribution of 1–3%. Given the early-stage market, a strategy of lower upfront fees with higher royalty rates is effective. A phased structure where 50% of the franchise fee is collected after the first store succeeds is also viable.
05
Location & Shopping Mall Strategy
Key Dhaka shopping malls include Bashundhara City (largest), Jamuna Future Park, Shimanto Square, and SKS Tower. Food court rents range from BDT 200,000 to 800,000/month (approx. $1,700–$6,800). Standalone stores target Gulshan, Banani, and Dhaka Old Town (New Market) as prime commercial districts. Delivery-only cloud kitchens offer a low-cost initial entry option.
Bangladesh's franchise market is underpinned by three growth drivers: an expanding middle class, increasing shopping mall development, and the popularity of K-content. Korean franchises can leverage strong brand recognition in K-chicken, K-cafe, and K-beauty segments for rapid market entry. The master franchise model minimizes local operational risk, but thorough trademark pre-registration, food certification, and partner due diligence are essential. Halal certification and Ramadan operational strategies are non-negotiable requirements for entering this Muslim-majority market. Leveraging KOTRA's localization programs for partner discovery and securing prime locations in Dhaka shopping malls are the critical success factors.