PERU Trends and Developments Contributed by: Walter Aguirre, Aguirre Abogados & Asesores
review, from a legal standpoint the author considers it essential to evaluate, at a minimum, the following aspects: • the franchisor’s ownership of intellectual property rights within the country; • the legal framework and regulatory requirements applicable to the specific industry in which the franchise will operate; • the related tax considerations; • the lease agreement for the commercial premises; and • the prospective franchise agreement. On the other hand, the franchisor should evaluate the franchisee’s financial and operational background, as well as its experience in managing the business, since – among other considerations – they will be granted a licence to use the brand, and any breach by the franchisee could severely damage the reputation of the franchise system in the market. Therefore, due diligence must be a secure and effec - tive process not only to accurately determine the pro - file of each party and identify potential risks in the business relationship, but also as a strategic manage - ment tool for both the franchisor and the franchisee. Due diligence enables a comprehensive understand - ing of the industry and provides solutions to mitigate the impact of identified contingencies. From the franchisee’s perspective, and in the absence of spe - cific franchise regulation, conducting thorough due diligence of the franchise system prior to signing any documents or making any investments is essential. Non-Resident Franchisors Doing Business in Peru The Peruvian Constitution provides that domestic and foreign investments are subject to the same condi - tions within the country. Additionally, Law No 26887, the General Companies Act, governs the operation of companies in Peru. The most commonly used corporate structure for both local and foreign investors doing business in Peru is the closely held corporation ( sociedad anónima cer - rada SAC), which is characterised by:
• a minimum of two and a maximum of 20 share - holders, who may be individuals or legal entities, domestic or foreign; • an optional board of directors; and • a restriction on the transfer of shares. It is important to highlight that there is no minimum capital requirement for Peruvian companies, nor are there any limits on foreign ownership of shares. Trends for 2025–26 and Conclusions Although the economic crisis caused by the COVID-19 pandemic in 2020 suspended many expansion and investment plans for several years, it also prompted the adaptation and reinvention of numerous franchise systems. These systems adjusted to the new reality through lower capital requirements, cost reductions, diversification, increased profitability and greater pro - ductivity per square meter, while focusing on sectors that benefited from the pandemic. In this regard, based on the author’s experience in the sector and the current national context, the following trends in franchising are highlighted: • increased importance of online sales channels; • development of delivery and takeout services; • greater emphasis on digital marketing; • reduced dependence on physical premises or large infrastructures; • flexible and adaptable business structures; and • franchise and commercial lease agreements featur - ing strong exit clauses for force majeure or unfore - seen events. While the author expects the franchise sector to con - tinue growing, it is important to note that Peru will hold presidential elections in 2026, which could lead to a general slowdown in investment. Historically, in Peru, political uncertainty tends to decelerate invest - ment during the year prior to elections. However, the first half of 2025 has shown relative macroeconomic stability, which the author hopes will continue. In conclusion, franchising in Peru represents a power - ful tool for economic development and growth – not only for domestic and international investors involved in new or existing franchise systems, but also for local
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