Have you ever wanted to own an establishment like McDonald’s, Marriott International or RE/MAX? All over the world, and the Central American region is no exception, we have these types of businesses that, in the legal context, translate into franchise contracts that establish the legal framework to start the business.
Lawyers call franchises sui generis, onerous contract that includes various contracts in them, such as the distribution contract, know-how contract, brand licensing, supply contract, collaboration contract; it also includes clauses of non-competition, conflict resolution, confidential information, advertising aspects, among others. That said, we must indicate that from a day-to-day perspective, the franchise is a business model with proven success.
Why might it be interesting to obtain a franchise?
Because the franchise is a highly successful business, nationally or internationally; and because the knowledge of the original owner of the business will be embedded within the contract, as well as support in its execution, which gives the person to whom the franchise is granted (known as the franchisee) a competitive advantage in the trade. This type of business is carried out through the franchise contract.
Therefore, the franchise contract is an excellent way to… Read more
