Franchising in Argentina: your right to pre-contract information

Buying a franchise means joining a community with shared rules and commitments. But your decision begins before the contract: you need information that allows you to assess the proposal. Argentina has a specific legal requirement to provide pre-contract information. This guide explains how to exercise that right, organise the disclosure process and avoid signing an acknowledgement for information you have never seen.

What Argentine law requires

Franchise agreements are governed by Articles 1512 to 1524 of Argentina’s Civil and Commercial Code. It is incorrect to say that Argentina has no specific franchise regulation, although older documents making that claim are still in circulation.

Article 1514(a) requires the franchisor, before the agreement is signed, to provide economic and financial information covering two years of performance of units similar to the one being offered, which have operated for a sufficient period, either in Argentina or abroad.

The precise wording matters: the provision refers to similar units and their performance over a period of time. A sales presentation containing an estimated investment and a promised payback period does not, on its own, amount to that historical information. Nor should the obligation be treated as a guarantee of future profitability.

Negotiations are also subject to the Code’s general rules on good faith. This reinforces the importance of exchanging information honestly, without making every additional request from the buyer a specific legal obligation automatically.

Do not confuse a legislative proposal with a law in force. These provisions do not set a general twenty-day deadline for supplying documents, nor do they establish the Register of Franchising Companies mentioned in some legislative proposals. Agreeing a review period may be sensible, but that is not the same as relying on a statutory deadline that does not exist under these provisions.

How to request information without mixing obligations and preferences

Send a written request before setting a signing date. Divide it into two sections: the information required by Article 1514 and the additional background material you need to make your decision. This distinction helps avoid disputes over what the law requires and what you are proposing as a condition of your purchase.

To organise the disclosure process, ask the franchisor to specify:

• Which units are covered: their format, general location and how long they have been operating.
• What period is covered: the start and end dates of the data supplied.
• Which documents make up the package: files, appendices and supporting explanations.
• Why the units are comparable: relevant similarities and differences compared with the unit being offered.
• Who will answer questions: a named person responsible and a contact channel.

These details are a practical way to organise your review; they are not a documentary checklist expressly prescribed by the Code.

If the information relates to units abroad, do not dismiss it automatically: the law allows for this. Ask the franchisor to identify where the information comes from and explain any differences compared with operating in Argentina. Whether information has been provided and whether it is useful in your circumstances are related but separate questions.

How to keep a record of what you receive

Create a folder with dated versions and a simple index. Keep both the documents and the emails delivering them, along with replies to your questions. If you are given access to a platform, agree how to retain a copy or a verifiable record of its contents, while respecting any agreed confidentiality restrictions.

Use a tracking table with four columns: document requested, date received, period covered and outstanding points. This will help you spot incomplete disclosure without relying on your recollection of meetings.

Pay particular attention to statements included in the agreement. A clause stating that you received all the information sufficiently in advance must reflect what actually happened. Do not sign a blanket acknowledgement if files are missing or you received the material that same day without an opportunity to review it.

Suggest identifying the documents in an appendix and recording any outstanding questions. Receiving documents does not mean endorsing their conclusions or accepting that a forecast will be achieved. Nor does a signed acknowledgement replace actual delivery.

What to do about delays or incomplete disclosure

If the response is incomplete, set out in writing what is missing and request a delivery date. Do not simply ask for “greater transparency”: identify the missing period, the inaccessible file or the lack of explanation about the units used.

If you are told the data is confidential, propose reasonable arrangements for access and protection. Confidentiality can shape the review process, but it should not serve as a blanket refusal to meet the legal obligation.

If omissions persist, postpone signing and consult a lawyer about the extent of any failure to comply and your available options. Do not assume that a refund, compensation or invalidity of the agreement follows automatically: the consequences depend on the facts and the commitments made.

Practical conclusion: before signing, make sure you can demonstrate what information you received, when it arrived and what remained unanswered. A well-organised record safeguards your decision-making and helps build a clearer relationship within the franchise community.