Franchises in Mexico report staff turnover of 3%

Mexico’s franchise sector records average staff turnover of 3%, according to Francisco Lobato Galindo, vice-president of the Mexican Franchise Network (Red Mexicana de Franquicias). In comments published by Ángulo 7 on 4 October, he linked this stability to pay, statutory benefits and formal employment contracts, while noting that patterns vary by business activity and type of role.

Pay and benefits as factors in staff retention

According to Lobato Galindo, these businesses offer average pay equivalent to 1.5 times the minimum wage, alongside all statutory benefits. In his view, this combination of income and certainty encourages employees to stay in their roles and helps businesses maintain a more stable workforce.

The vice-president of the Mexican Franchise Network also linked the figure to staff retention programmes and formal employment arrangements. His explanation emphasises employment conditions, rather than simply brands’ ability to attract applicants.

It is important to understand the scope of both figures: the 3% turnover rate and pay of 1.5 times the minimum wage were both presented as averages. They do not represent a uniform rate for every outlet or a salary offer that applies to every vacancy across a franchise network.

Customer-facing roles see higher turnover

Lobato Galindo stressed that the overall average covers a range of business activities. Within that group, customer-facing counter roles and restaurant businesses have traditionally experienced higher turnover than other operational roles.

He attributed these differences to employees’ socio-economic needs and life stages, rejecting the view that they reflect a lack of responsibility at work. This distinction matters because it avoids applying the same explanation to different job profiles and personal circumstances.

For a franchisee, making useful sense of the figure starts with identifying which roles are being compared. A workforce primarily serving diners should not automatically be assessed against the same benchmark as one focused on other operational duties. The national average provides context, but does not, on its own, describe the situation at each outlet.

Nor should the 3% figure be interpreted as a guarantee of staff retention. When assessing a franchise, it is more prudent to request its own records of staff joining and leaving, establish the period they cover, and break down the results by role and outlet.

A network of around 90,000 outlets

In his comments, Lobato Galindo said that, at the close of the December 2025 census, domestic and international franchises accounted for around 90,000 active outlets in Mexico. That figure refers to the end of that year, rather than an updated count of openings as of October 2026.

The information published by Ángulo 7 also cites an average of ten direct, formal jobs per outlet, attributed to Mexico’s federal Ministry of Economy. It also reports that these businesses operate across at least 72 business categories.

These figures help illustrate the employment footprint of franchises beyond food brands and the outlets most visible to consumers. However, their respective scope must be kept in mind: the outlet count is a census figure, while jobs per outlet is an average.

Formal employment also requires oversight

Lobato Galindo explained that, under franchise contracts, franchisors require franchisees to avoid informal employment practices and comply with current labour rules. This describes how the model operates; it is not an announcement of a new regulatory requirement.

For anyone considering joining a franchise network, that requirement warrants a detailed review: what obligations the contract sets out, how compliance is documented, and what support the brand provides in managing staff. The reported stability becomes more useful when it can be checked against the operations of the business a prospective franchisee intends to acquire.

Practical takeaway: before budgeting for recruitment, review pay, benefits and staff turnover at comparable outlets. The national average is a starting point; decisions should be based on data specific to the brand, role and location.