Franchising is a Strong Method of Business in Mexico

I’ve been a 75,000 to 100,000 mile-per-year business traveler for many years. And I am incredibly blessed to have the chance to work and travel to several countries across all five continents. It required a recent excursion to Cabo San Lucas in Mexico. And family during the spring break to truly understand and appreciate «how global» international Franchising is and how common Franchising is in general.

My daughters (8, 13, 11, and 13) and I typically engage in a game wherein they have to determine whether a service or product we purchase originates from a franchised company (because dad is a franchisee). This trip was no different.

Arrived in Cabo and took the car of a Franchise and checked in at the Hotel that is which is also a Franchise and, of course, the girls were hungry, so we headed into town for a bite eat…we probably estimated at least a dozen franchised restaurants within the two blocks we took. We all love Mexican food, so we stopped for tacos…Franchised restaurant. Then on our return towards the Hotel, my beautiful wife realized she’d forgotten to pack sunscreen, so we stopped at a convenience store to purchase one. The store was a Franchise, and this was just on the very first day. I’m sure I saw my daughters shout and whisper Franchise as they pointed at the establishment more than 100 times throughout our 4-day excursion.For more, click to Trino Marin that would be the right place for you

Franchising (including International Franchising) is a highly profitable business method in Mexico.

More than 1,400 franchised brands are operating in the country, with close to 80,000 franchise businesses that offer around 1,000,000 jobs. Based on the number of brand names, Mexico places 4th worldwide. 85percent of them are Mexican-born brands, and the rest come out of the U.S. (8%), Europe (3%), South America (2%), and other countries (2 2 percent). For the companies that provide the Franchising Industry in Mexico, there is an average of 82% domestic and 18 percent international.

When it comes to economic efficiency, Franchising contributes to 6 percent of the G.D.P. and $0.15 from every dollar spent on the Franchised business. It is among the few sectors in the country that have experienced steady and constant growth over the last seven years and has seen significant double-digit growth in several of these.

Franchising is legal in Mexico is controlled through the 1990 Industrial Property Law and has disclosure requirements in the form of a Franchise Circular that is commonly referred to by the C.O.F. and, of course, the Franchise Agreement. The Mexican Franchise Association (www.franquiciasdemexico.org) is an influential non-profit organization dedicated to developing and promoting activities to better conditions for the Franquicias en mexico. They are the sponsors of the Feria Internacional de Franquicias every March in Mexico City, a Franchise Expo that brings together more than 350 brands and more than 40000 people each year.

These are only some examples of the successful U.S. franchises with a significant footprint throughout Mexico:

McDonald’s 400 restaurants, 500 dessert Kiosks, and 27 McCafes with annual revenue in the range of USD 25.4M.

Subway – 1,000 units generating $11.5M USD in revenue.

KFC 319 Restaurants, with revenues at USD 26.5 million.

As it turned out, my daughters were right, and Franchising has done a great job in identifying Mexico as a viable potential for growth.

The Mexican Franchise Association, Forbes Magazine (Mexico), and Annual Reports.