Permits for Franchising in Colombia: A Compliance Map

A business operating successfully in one city cannot assume that its permits and operating conditions will automatically carry over to another. Before franchising in Colombia, it is worth turning your own outlet’s compliance arrangements into a verifiable map. This tool helps distinguish between requirements linked to the activity, the premises and the operator, without confusing permission to use the brand with legal authorisation to operate.

1. Separate the franchise arrangement from the requirements of the activity

In Colombia, a franchise agreement is an ‘atypical’ contract: it has no specific, comprehensive statutory framework. It is governed by the terms validly agreed between the parties and the applicable general contract rules of the Commercial Code and Civil Code. There is no general mandatory register of franchise offers, nor a pre-contractual disclosure document with a statutory format and deadline specific to franchising.

This does not remove the business’s legal obligations. Article 87 of Law 1801 of 2016 sets out requirements for carrying out economic activities, including those relating to land use and the relevant health, environmental and safety conditions. Sector-specific rules and applicable regional and local provisions must also be checked.

For example, if the business model involves handling food, you will need to assess the relevant health requirements under Law 9 of 1979 and Resolution 2674 of 2013. An outlet’s compliance with health requirements should not be confused with any health notification, permit or registration that a product may require, depending on its characteristics.

The question is not simply which permits the business holds today, but which legal conditions each outlet needs to replicate. Contractual authorisation from the franchisor does not replace decisions or checks by the competent authorities.

2. Build a matrix covering the activity, premises and operator

Start by describing what the outlet actually does: preparing, manufacturing, storing, selling, transporting or providing services. Two outlets trading under the same brand may have different obligations if one produces goods while the other only sells them.

Then draw up a matrix with these fields:

• Requirement and legal basis: the applicable law or provision, avoiding vague expressions such as ‘hold all permits’.
• Trigger: the specific activity, product, equipment, location or condition that makes the requirement applicable.
• Competent authority: the national, regional or local body to consult or apply to.
• Holder or responsible party: the person who must meet the obligation or handle the procedure.
• Evidence: a document, record, procedure or physical condition that allows compliance to be verified.
• Monitoring: the validity period, periodic review or change that requires a fresh check.

Not every obligation results in a certificate, and not every requirement needs annual renewal. Distinguish between a procedure that must be completed in advance, a condition that must be maintained and an inspection that may take place during operations.

Check the matrix against your own outlet. If a practice relies on an old verbal response or the assumption that ‘they have never asked for that document’, mark it as awaiting validation. Before replicating it, consult the competent authority or a specialist adviser.

3. Allocate tasks without promising that the brand takes care of everything

The franchisee remains an independent business. Franchise documentation should therefore explain which obligations the franchisee manages as the operator and what support head office provides. Agreeing a division of tasks does not change the responsibilities that the law assigns to each party in relation to the authorities.

The franchisor can provide a reference matrix, technical specifications and guidance on common procedures. The franchisee can take responsibility for checking local requirements, submitting applications and retaining the relevant evidence. This allocation should be tailored to the business, not copied from another agreement.

Three limits should be made clear:

• Guidance from head office does not amount to a guarantee of regulatory approval.
• An internal visit does not replace an official inspection.
• Compliance at the original outlet does not, on its own, demonstrate compliance at another outlet.

You should also specify who pays for any necessary alterations or administrative procedures, and how to report an issue that prevents a particular activity from being carried out. This allows the franchise network to share compliance standards without blurring responsibilities.

4. Update the map when operations change

The map loses its value if it is consulted only when a franchisee joins the network. It should be reviewed whenever the applicable rules or significant aspects of the business change, such as the introduction of products, installation of equipment, expansion of services or relocation of the outlet.

For example, adding food production to an outlet that previously sold only packaged products requires a review of the applicable conditions before making the change. Commercial approval from head office is not enough.

Appoint someone to coordinate updates and communicate which outlets are affected, what they need to check and the deadline for taking action. If an official request or notice arrives, retain its contents, identify who is responsible for responding and document the action taken, without assuming that every outlet has the same issue.

Practical takeaway: before offering your franchise, complete the matrix for your own business and check how it would need to be adapted to another location. Every requirement should have a responsible party, supporting evidence and a clear trigger for updating it.