Franchising in Mexico: calls for clearer contracts and support commitments

Contract clarity and the scope of technical support were among the first topics discussed at the 10th Latin American Franchise Congress, CdMx 2026. During the opening session, participants said that franchisors and franchisees should understand their obligations before entering into a business relationship, according to a report published by Milenio on 22 October.

Technical support: mentioning it is not enough

The event, organised by the Latin American Franchise Institute (ILAF), raised a specific issue for the franchise sector: including technical support in a contract does not remove the need to explain what that commitment covers.

During discussions of legal matters, participants stressed the importance of specifying the scope of this support. They also said that the terms under which franchise services and products would be supplied should be clear.

The emphasis was therefore on the substance of agreements, rather than simply having a signed document. A general reference to support can leave the parties’ commitments undefined; the recommendation put forward at the event was to set them out more clearly from the outset.

For anyone considering joining a franchise brand, this approach draws attention to an essential part of the offer: understanding the support they are signing up for. For franchisors, it means explaining the extent of their commitments to the person operating an outlet.

Understanding obligations before signing

Participants also stressed that reading and understanding contracts is essential to preventing disputes. The message applied to both parties: those granting a franchise and those acquiring one should know which obligations they are accepting before starting a business relationship.

The discussion went beyond treating the contract as a formality. It presented it as the document that should clearly establish both parties’ commitments, including those relating to support and the supply of products or services.

The practical point is to distinguish between knowing that an obligation exists and understanding how it is defined. That distinction helps focus a contract review on what is actually being agreed, rather than assuming what a general promise of ongoing support means.

The comments reported by Milenio focused on contractual clarity and preventing disagreements. They were recommendations for the relationship between franchisors and franchisees, not an announcement of new legal requirements.

Business connections backed by clear commitments

The opening session also addressed the development of business networks. Yadira Luna, director of BNI in Mexico, highlighted their importance in connecting business owners, raising awareness of products and services, and generating business opportunities.

Luna said that franchises can create opportunities for more people to build businesses in their communities. She also called for efforts to encourage both the entry of foreign brands and the development of Mexican franchise models.

These points were discussed alongside the review of contractual relationships. Business connections were presented as a way to bring opportunities within reach, while understanding agreements was seen as an important step in establishing the commitments of those choosing to work together.

Raising professional standards in franchise relationships

The congress brought together business owners and specialists from Mexico and other Latin American countries in Mexico City for a day of workshops and specialist talks. The event forms part of ILAF’s work to raise professional standards across the franchise sector through training, certification and the exchange of experience.

Within that programme, the contractual discussion identified a clear priority: reviewing how the obligations underpinning the business relationship are described, particularly technical support and the terms for supplying services and products.

Practical takeaway: before joining a franchise, check that the contract clearly explains what support you will receive, how far it extends and which commitments each party is responsible for.