Mexico is located in North America bordering the US, Belize, Guatemala, the Caribbean Sea, Gulf of Mexico, and North Pacific Ocean. It is about three times the size of Texas covering an area of 1,972,550 sq. kilometers.  Mexico’s total population is 116 million and is growing at a rate of 1.07% with 78% living in urban areas.  The capital of Mexico City has a population of 19.2 million with other main cities including Guadalajara, Monterrey, Puebla, and Ciudad Juarez. The people are governed by a federal republic and are predominately Roman Catholic. The official language is Spanish and the currency used is the Mexican Peso. In January 2009, Mexico assumed a nonpermanent seat on the UN Security Council for the 2009-2010 term.

Mexico has strong economic ties to the US and since the implementation of NAFTA in 1994 trade has tripled to both the US and Canada. Mexico is involved in a total of 12 free trade agreements which support its free market economy and foreign trade.  Mexico’s main trade partner is the US, which accounts for 82% of its exports and 50% of its imports. Other major trade partners include China, Japan, Canada, South Korea, and Germany. Its primary imports are metalworking machines, steel mill products, agricultural machinery, electrical equipment, car parts for assembly and repair, and aircraft. Exports include manufactured goods, oil and oil products, silver, fruits, vegetables, coffee, and cotton. Mexico’s GDP (Purchasing Power Parity) is $1.18 trillion and is growing at a real rate of 3.9% with an inflation rate of 4.1%. Mexico ranked 48 out of 185 countries in the World Bank Group’s Ease of Doing Business Ranking.


Franchising Laws Overview  

Disclosure laws: 

  • The disclosure document (including the completed franchise agreement) must be provided to the prospective franchisee at least thirty business days prior to the execution of the franchise agreement.

Relationship laws: 

  • Franchisor and franchisee may not terminate the agreement unilaterally, unless the agreement is for an indefinite term, or unless there is just cause for termination.

Registration laws: 

  • Either the executed franchise agreement or a summary of the franchise agreement must be filed with the Instituto Mexicano de la Propiedad Industrial (IMPI).

Click the links below for articles with more information on Franchising in Mexico

Mexico Franchise Market Report (2016)

Viva Global Expansion! Trade Mission to Latin America (2012) 

Latin American Market Sizzles With U.S. Franchisors (2012) 

Doing Business in Mexico (2012)

Franchising Laws - Mexico (2010)

US Commercial Service Market Report Mexico (2009)

News From Around the World: Latin America  (2008)

The Future of Latin America (2007)

Mexican Franchising at its Peak (2006)

Amendments to Mexico's Industrial Property Law on Franchising Matters  (2006)


* CPI Score is published by Transparency International and relates to the perceptions of the degree of corruption as seen by business people and country analysts and ranges between 100 (highly clean) and 0 (highly corrupt).  

**Ease of Doing Business Ranking is determined by the World Bank Group and is ranked out of a possible 185 countries.  

Most recent statistics have been taken from the CIA World Factbook unless noted otherwise. 


International Franchising Opportunities

After you have finished researching the international markets, learning international expansion strategies and best practices, and understanding the basics of international franchising law, IFA provides numerous opportunities for franchising internationally.