Franchising 2026

MEXICO Trends and Developments Contributed by: Gustavo A. Alcocer, Luis Astorga, Isabella Montero Torres and Fernanda Martínez Zolezzi, OLIVARES

Franchising in Mexico in 2026: Digital Growth and an Updated Disclosure Framework Introduction Mexico remains an important market for international franchise systems seeking to expand in Latin America. Franchising provides a relatively flexible mechanism for introducing established brands and business models into the Mexican market while allowing local operators to contribute capital, management and knowledge of local consumers. At the same time, the Mexican franchise environment is becoming more complex as traditional, location-based business mod - els increasingly intersect with e-commerce, digital marketing, competition law and more sophisticated consumer expectations. Mexico does not have a standalone franchise code. Instead, franchising is regulated under the Federal Law for the Protection of Industrial Property ( Ley Fed- eral de Protección a la Propiedad Industrial , or LFPPI), supplemented by rules concerning intellectual prop - erty, competition, commercial contracts, consumer protection, personal data, taxation, employment and sector-specific regulation. The LFPPI establishes the basic legal framework for franchise relationships, including the definition of a franchise, pre-contractu - al disclosure, mandatory contractual provisions and certain rules governing the relationship between fran - chisors and franchisees. Against this background, the most relevant devel - opments for businesses considering franchising in Mexico concern not so much the creation of a new franchise-specific regulatory regime, but the way in which existing rules interact with a rapidly changing commercial environment. In particular, prospective franchisors should consider the increasing importance of digital sales channels, the allocation of territorial rights in an omnichannel business, competition-law restrictions within franchise networks, data protection, consumer protection and the structuring of interna - tional and multi-unit franchise arrangements. The 2026 franchise disclosure update Mexico’s franchise disclosure law was updated in 2026. Amendments to the industrial property frame - work were published in April, followed by a new imple - menting Regulation that entered into force on 22 July

2026. The new rules expand the technical, economic and financial information that franchisors must provide to prospective franchisees during the hold period of at least 30 business days before the franchise agree - ment is executed. The expanded disclosure covers, among other mat - ters: • whether the proposed franchise derives from a master franchise, development, multi-unit or similar arrangement; • the prospective franchisee’s rights and obligations; • general payment amounts and investment-recov - ery periods; and • network data, including company-owned and fran - chised units and units opened, relocated, trans - ferred or closed. Franchisors should therefore review and update their Mexican disclosure materials before making an offer, as untruthful or incomplete disclosure items may sup - port claims for nullity and damages. A franchise market in transition Franchising continues to provide an important route for domestic and international brands seeking to establish a presence in Mexico. The model allows franchisors to expand through independently owned and operated businesses while maintaining a degree of control over branding, products, services and oper - ating standards. For entrepreneurs, private equity, institutional investors and other prospective fran - chisees, the model provides access to an established brand, operating know-how, technical assistance and a business format that may otherwise take substantial time and resources to develop independently. Nevertheless, the Mexican market is changing. Con - sumers increasingly interact with brands through a combination of physical stores, websites, mobile applications, social-media channels, delivery plat - forms and online marketplaces. This has transformed the practical meaning of a “franchise territory” and has made the allocation of online sales, customer data, marketing responsibilities and digital channels increasingly important.

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