Is Your Trade Mark Ready for Franchising in Mexico? A Practical Review

Customer recognition does not mean your trade mark is ready to be licensed. Before offering franchises in Mexico, you need to establish which rights you hold and what you can authorise others to do. This review protects the shared identity of your future franchise network and avoids promising rights you do not yet control.

1. Check who can authorise use of the trade mark

Start by gathering registration certificates, pending applications and documents relating to any transfers of rights. Check this information against the relevant file held by the Mexican Institute of Industrial Property (IMPI). Do not rely solely on an old copy of the registration certificate.

The key question is: does the person or company that will sign as franchisor have the authority to grant the right to use the trade mark? The registration often belongs to the founder, while a company runs the business and will enter into future contracts. This distinction does not necessarily prevent franchising, but it requires a documented legal structure.

If someone else owns the trade mark, seek specialist advice on the licence or other arrangement that will allow you to use it and, where applicable, authorise franchisees to do so. Permission to operate your own premises does not automatically include permission to sublicense.

Prepare a fact sheet for each mark you intend to license:

• Owner and registration or application number.
• Goods or services covered.
• Application status and relevant dates.
• Existing assignments, licences, restrictions or disputes.
• The document establishing the prospective franchisor’s authority.

A pending application must be clearly identified as such. Do not present it to a prospective franchisee as a granted registration.

2. Check whether the protection matches what you will sell

Having a registered trade mark does not mean you have protection for every activity. The scope depends on the goods or services covered and the mark as registered. Compare the registration details with what each franchised outlet will actually offer.

For example, a café may provide food and drink services while also selling packaged coffee under its own brand. Do not assume that a single registration covers both activities: check the classification and the specific description of goods or services.

Also check whether the name, logo or combination you use differs from the registered version. If you have updated your visual identity, assess whether the changes require new applications. The review should consider both legal protection and how the trade mark is actually used.

A company name, internet domain and social media profiles are not substitutes for trade mark registration. Include them in your inventory so that their management can be coordinated, but distinguish which right each document establishes.

Before investing in advertising to recruit franchisees, carry out a trade mark clearance search and commission an assessment of potential conflicts. A search helps inform decisions; it does not, on its own, guarantee that an application will be granted or that a dispute will never arise.

3. Align the licence with Mexican regulations

Mexico specifically regulates franchising under the Federal Law on the Protection of Industrial Property (LFPPI). Article 245 describes a written licence to use a trade mark accompanied by the transfer of technical know-how or technical assistance, enabling consistent operation in accordance with the owner’s methods.

This distinguishes a franchise from simple permission to display a trading name. Article 246 requires a written agreement and sets out minimum provisions, including training, assistance and supervision criteria. The licence must fit these obligations rather than appear as an isolated clause.

When reviewing permissions to use the trade mark, specify:

• Which trade marks and graphic versions the franchisee may use.
• The goods, services and activities for which use is authorised.
• Who will approve advertising, packaging and digital profiles.
• How potential infringements or claims will be reported.
• What must be removed or no longer used when the relationship ends.

The LFPPI also requires information about the state of the business to be provided at least thirty days before the agreement is entered into. Trade mark details must be consistent with this pre-contractual information.

Review any applicable recordal procedures before the IMPI and their legal effects with your adviser. Do not confuse trade mark registration with general government authorisation to sell franchises.

4. Organise ongoing maintenance before expanding

Assign someone responsibility for tracking renewals, declarations of use where required, and communications from the IMPI. Deadlines must be calculated for each file under the applicable rules, rather than managed through generic reminders.

Keep organised evidence of trade mark use: photographs, packaging, advertising and relevant commercial documents. Establish how to request this evidence from outlets without collecting unnecessary personal data.

Finally, divide your findings into three groups: obstacles to granting rights, matters requiring legal clarification, and administrative improvements. Resolve anything affecting your ability to license the trade mark first.

Practical conclusion: before recruiting franchisees, compile a verifiable trade mark file, confirm who can authorise use and appoint someone to keep the rights valid. A shared identity needs clear rights, not just customer recognition.