Important facts you should know about Franchise and licensing agreements in Latin Americ
Franchise and Licensing Agreements are different in every country of LATAM.
In general terms, a franchise agreement is a contract in which one part known as franchiser, allows the use of its intellectual property (know-how, trademarks, patents, copyrights, etc.) to another person, called the franchisee, with the aim of economically exploit a business or company within a given geographical area. It is a contract with an international vocation, since it allows the expansion of the business model at low costs in different regions outside the country of origin on the franchiser.
A franchise agreement may involve an international relation; in others words, two or even three parts with different nationalities, and generally the agreement must be governed by the laws of each country in which the business will be settled. In this order of ideas, and understanding that Latin America does not have a community regulation, it is important to know the rules of the country where the franchise operation is intended.
Some examples include:
Mexico:
Franchise agreements are regulated by the Industrial Property law, adopted in June 1991 and reformed in April 2012. The regulatory framework of this agreement is found primarily in articles 142, 142 Bis, 142 Bis 1, 142 Bis 2 y 142 Bis 3 of the aforementioned law, that state that the contract must be made in writing and must contain certain requirements...