Legal framework of the Franchise Agreement in Guatemala
Franchising is a result of commercial expansion around the world; it is a way by which a merchant/entrepreneur who already has an established, proven, and successful business model in the marketing of its products and services under an identifying trade name, and therefore a booming business, can be operated by an independent third party who wants to invest in this business, paying an entry fee and costs for the implementation of franchise acquisition through the time-honored Franchise Agreement (FA).
The Franchise Agreement is not subject to regulation in Guatemala; it is considered an atypical commercial contract without legal definition that derives from the freedom between parties to contract under the principles of Commercial Law of good faith and known truth, with the supplementary application of Guatemalan Civil Law. Read more
