How Do You Open a Franchise Business in Mexico?
The number of franchises in Mexico have grown in the past 30 years, and in 2008, the country was ranked 7th in franchise development. However, 50 percent of all franchises in the country are in Mexico City. Franchising in the country is made up of both American and Mexican businesses. To date successful franchises have been in the food industry, but those that focus on children, family entertainment, education and personal care also are growing.
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Instructions
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Compare different franchises and choose those that fit your profile, your work needs and the needs of the area where it will open. It is important that you understand the culture and economics of the area in Mexico where you will set up shop. Use franchise-listing businesses, such as Franchising.com, Franquicias.com and Franchisedirect.com, to show you the different types of international franchises available.
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Consider startup costs and requirements. The most successful franchises usually have startup costs of $50,000 or more. There are no bank financing options in Mexico, so if financing is an issue, you need to find franchises that offer their own financing or deferred startup costs. Some franchises don't require money up front, but do require that you own property or commercial real estate in which to start your business.
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Find out more about the franchise you are interested in and identify what technical information and help they offer. If the franchise is 100 percent Mexican, this is even more important because some of the most successful Mexican businesses are very unorganized and based on outdated technology.
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Look into the company's solvency, number of employees and number of franchises. Select a franchise that is a member of the Asociacion Mexicana de Franquicias (Mexican Association of Franchises) and the COF (Circular de Oferta de Franquicia), legal associations that a legitimate corporation must be a member of in order to sell franchises. Be sure to get a contract the moment there is a serious intention to purchase a franchise and read every clause.
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Seek the right location. No matter how attractive the franchise may seem, if you aren't in the right location it will fail.
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Go over every detail of the franchise with your attorney before signing the final purchase contract. A Mexican attorney specializing in commercial law is a good choice.
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