Franchising in Mexico

Franchise RegulationThe current legal structure in Mexico is laid out within the Industrial Property Law (IPL) and the Regulations to the IPL. In the Regulations, the franchisor must provide prospective franchisees with the documents related to its business, also called «Franchise Offering Notice,» at a minimum of 30 days before signing a franchise agreement. It is recommended that the Franchise Offering Notice must contain the financial, economic, and technical information, along with the rights of the franchisor and the franchisee and obligations in their franchise contract.

The laws pertaining specifically to Franquicias mexico are restricted in Mexico. So, both franchisees and franchisors can set the rules that govern their relationship, mainly through the franchise agreement. To encourage the concept of franchising in Mexico, the Mexican Franchise Association, together with the Mexican Association of Certified Quality, established and published the «Mexican Franchise Standard.» While compliance with this standard is not required, it is mandatory. Mexican Franchise Standard provides a set of essential requirements for franchises, such as the legal, operational, administrative marketing, financial and strategic specifications. The conditions and standards outlined in the Mexican Franchise Standard have been crucial in developing the franchising business in Mexico.

Intellectual Property Protection

 Franchises operating in Mexico benefit from intellectual property law protections provided through the IPL and its equivalent Regulation. The license to the utilization of trademarks in connection with the franchise’s products or services has to be registered with the Mexican Institute of Industrial Property (IMPI) to allow it to be legally binding against third-party. The license application may be filed by any one of the parties. If otherwise agreed to, the licensee or franchisee has the power to pursue legal actions to defend and protect the trademark rights. The trademark registration can be valid for ten years and renewed for further ten-year intervals. The registration through the IMPI is only valid for trademarks registered in Mexico.

Mexico is a signatory to various international IP agreements and recognizes priority date fillings for registrations from other countries.For more, click to Trino Marin that would be the right place for you.

Other

 Another major factor that affects the expansion and opportunities for franchising in Mexico includes one of them being the National Franchise Program (Programa Nacional of Franquicias). Mainly this Ministry of Economy established a fund that, for several straight years, supported franchising acquisitions in Mexico. In addition to other benefits offered, the National Franchise Program grants 36 months’ credit to prospective buyers at a 0 percentage interest rate. This can be used to pay 50 percent of initial costs (subject to the applicable limitations). To be eligible, the franchise purchased must be listed in the Ministry’s «Certified Franchise Catalog.» The buyer could request the franchise certified and added to the Certified Franchises Catalog to qualify for this federal credit.