Question 1

What is a franchise?

Accepted Answer

A franchise is a contractual arrangement in which a business, the franchisor, allows another operator, the franchisee, to use its brand, intellectual property and know-how under agreed guidelines. In Colombia, this model is used by both local and international brands. The franchisee operates their own business, but must follow the terms and operating requirements agreed with the franchisor.

Question 2

Where did franchising begin?

Accepted Answer

Modern commercial franchising is commonly associated with Singer’s sewing-machine distribution arrangements in the nineteenth-century United States, although earlier forms of granting commercial privileges existed. Business-format franchising developed much further in the US during the twentieth century, particularly after the Second World War. Colombia’s own adoption came later, with early activity involving international restaurant concepts and Colombian brands during the 1970s and 1980s.

Question 3

How has franchising developed in Colombia?

Accepted Answer

Colombia’s early franchise activity involved incoming international brands and local businesses expanding abroad, including Caribu Internacional in 1977. The model consolidated gradually during the 1990s and gained greater visibility after 2000. Its present-day reach includes restaurants, fashion, beauty and services. Colfranquicias supports this community through representation, guidance and collaboration, while both Colombian and foreign brands contribute to its development.

Question 4

What are the advantages of franchising compared with going it alone?

Accepted Answer

Rather than developing a brand and operating approach from scratch, a franchisee can use an existing business concept, intellectual property and know-how. In Colombia, that can mean choosing between home-grown brands and international networks across several business activities. These advantages depend on what the agreement actually provides; they do not guarantee success, and operating under another brand also means accepting its controls and restrictions.

Question 5

How do I get started with a franchise in Colombia?

Accepted Answer

Begin by researching Colombian and international brands, your intended location and the resources you can commit. Use QFA’s directory and guides to organise your initial exploration. Ask for detailed disclosure of costs, obligations, operating requirements and the basis for any earnings claims. Before committing, obtain independent legal and financial advice in Colombia and have the proposed agreement and brand rights checked.

Question 6

How is franchising regulated in Colombia?

Accepted Answer

Colombia has generally treated franchising as an atypical contract rather than a contract expressly regulated by a dedicated franchise statute. That does not mean it sits outside the law: the agreement, general commercial rules and intellectual property rights remain important. Seek Colombian legal advice on current requirements, trademark protection and each party’s obligations before signing. This is general information, not legal advice.

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