2016 marked the 25th anniversary of the arrival of the franchise business model in Mexico. In 1991, with the Industrial Property Law, franchises were foreseen and defined in the law.
After the speculative bubble, which ended the 1995 crisis, the business model entered a phase of maturity that allowed the sector to grow continuously by 10% annually. Although this year the rate has only reached 4 % , it is still almost double the rate of the rest of the Mexican economy .
The six-year term of Felipe Calderón (president of Mexico from 2006 to 2012) was a particularly complex and unproductive period, in which the National Franchise Program distorted the system’s checks and balances. There were companies that were not qualified to franchise, but were forced to do so, pushed by the financing offered by the Program. At the same time that investors received loans to buy franchises, they received poorly designed and failed business models.
Fortunately, the system was able to absorb the damage and continued to trust in the franchise model , which was essential for its growth. The sector was therefore able to regain the high expectations of the population, which requires successful business models as a destination for investments and legitimate aspirations.
Today, franchises continue to prove their flexibility and maturity, entering new areas and adapting to challenges that were not predictable 5 or 10 years ago.
Some sectors, such as funeral services, have broken through the barriers that limited them in the country, becoming a business model for well-known brands.
On the other hand, in sectors such as service stations , some foreign brands are already known to enter Mexico, to share their brand with those investors who, under the franchise regime, intend to enter this market.
Overall , the opening of the Mexican economy to the franchise business experience has been very positive, allowing many Mexican companies to embrace and optimize it. To the point where 85% of the brands that offer franchises in Mexico are of national origin .
