MEXICO
Franchises around the world
With a population reaching 80 million, it is regrettable that the unemployment rate in Mexico has risen to almost 25%. With an unemployment figure of more than 20 million, it is no wonder that Mexico is regarded as a third word country.
From another perspective, Mexico is viewed as a beautiful and unforgettable holiday destination endowed with plentiful sunshine, and mysterious civilizations (the Mayans and the Aztecs). In spite of the unemployment situation, which is close to being catastrophic, the warmth of the Mexican people and their attitude in general is the component for their family spirit and survival. It isn’t surprising to see a Mexican family of more than three generations living under the same roof…
These are the precise findings of your author during a week’s stay near Mexico City, while attending the LA FERIA INTERNACIONAL DE FRANQUICIAS (International Franchise Fair of Mexico) held March 5-7 at the World Trade Center. To be more specific, I was warmly welcomed by a Mexican family in Cuernavaca, which in a way was equal to the time one might spend at a private school where one would learn Spanish.
From a franchising industry perspective, Mexico does not have to envy any other industrialized country, since 2007, a governmental program makes it possible to support the principles of franchising according to Mexican Laws, which is much appreciated by business people in this sector.
This program stipulates, among other things, that the government will invest more than $170 million U.S. over a 5 year period with the possibility of an extension. From a practical point of view, a new franchise can obtain financing over a period of 3 years, for 50% of the franchising fee.
Mexicans are also encouraged to franchise their concept, meaning, to become a franchiser, inasmuch as professional and legal fees would be financed, i.e., between 150,000 et 500,000 pesos (exchange rate being 12 pesos per $1 Can.).
According to Mr. Carlos Roberts Avalos, the Franchise Association president, his native country ranks 7th in the franchising world, with 850 banners (of which 270 are regular members within his organization). The overall total comes to over 60,000 branches in all activity sectors, including the food service industry, services, the automobile sector and retail sales.
By working closely with different government authorities responsible in the application of this franchising law, he feels he will be able to increase the number of franchisers to more than 2,000 by the year 2012! At the moment, 45% are situated in Mexico City, with more than 25 million inhabitants, 21% in Monterrey and 18% in Guadalajara. 70% of the franchises are of Mexican origin, while the rest come from the U.S.A., South America, Spain, France, Canada, England, Italy, Australia and China.
It was no surprise see many concepts well-known by our south of the border neighbors such as Villa Pizza, Popeyes, Re-Bath, Wendy’s, Shakey’s Pizza, Crestcom, Denny’s, Fatburger, Subway, Re/Max, Midas, Chem-Dry, Snap Fitness 24-7 and Cartridge World at this Franchise Fair
Before establishing this program, Mexico was seriously lagging behind in franchising. Today, it like a thing of the past, and this is due to the fact that the jobs being created will only advance the economy further.
HERE IS A HIDDEN FOREIGN MARKET THAT COULD BENEFIT CANADIANS GREATLY.
If you are interested in being part of the Canadian Delegation that will visit the Franchise Fair in Mexico in March 2010, please contact Jacques Desforges: 1-888-575-0034.
GENERAL INFORMATION
- Mexico has around 820 brands of franchises
- 60% of the independent businesses do not complete the 2nd year of life
- 95% of the franchise businesses are alive at least until 5th year
- In Mexico, near 15 cents of each peso it’s spent in franchises
- The sales of the sector exceed 80 billions of pesos represeting 6% of the National Gross Domestic Product
- Mexico is located in 70 place at the ranking of franchises in the Word Franchise Council
From another perspective, Mexico is viewed as a beautiful and unforgettable holiday destination endowed with plentiful sunshine, and mysterious civilizations (the Mayans and the Aztecs). In spite of the unemployment situation, which is close to being catastrophic, the warmth of the Mexican people and their attitude in general is the component for their family spirit and survival. It isn’t surprising to see a Mexican family of more than three generations living under the same roof…
These are the precise findings of your author during a week’s stay near Mexico City, while attending the LA FERIA INTERNACIONAL DE FRANQUICIAS (International Franchise Fair of Mexico) held March 5-7 at the World Trade Center. To be more specific, I was warmly welcomed by a Mexican family in Cuernavaca, which in a way was equal to the time one might spend at a private school where one would learn Spanish.
From a franchising industry perspective, Mexico does not have to envy any other industrialized country, since 2007, a governmental program makes it possible to support the principles of franchising according to Mexican Laws, which is much appreciated by business people in this sector.
This program stipulates, among other things, that the government will invest more than $170 million U.S. over a 5 year period with the possibility of an extension. From a practical point of view, a new franchise can obtain financing over a period of 3 years, for 50% of the franchising fee.
Mexicans are also encouraged to franchise their concept, meaning, to become a franchiser, inasmuch as professional and legal fees would be financed, i.e., between 150,000 et 500,000 pesos (exchange rate being 12 pesos per $1 Can.).
According to Mr. Carlos Roberts Avalos, the Franchise Association president, his native country ranks 7th in the franchising world, with 850 banners (of which 270 are regular members within his organization). The overall total comes to over 60,000 branches in all activity sectors, including the food service industry, services, the automobile sector and retail sales.
By working closely with different government authorities responsible in the application of this franchising law, he feels he will be able to increase the number of franchisers to more than 2,000 by the year 2012! At the moment, 45% are situated in Mexico City, with more than 25 million inhabitants, 21% in Monterrey and 18% in Guadalajara. 70% of the franchises are of Mexican origin, while the rest come from the U.S.A., South America, Spain, France, Canada, England, Italy, Australia and China.
It was no surprise see many concepts well-known by our south of the border neighbors such as Villa Pizza, Popeyes, Re-Bath, Wendy’s, Shakey’s Pizza, Crestcom, Denny’s, Fatburger, Subway, Re/Max, Midas, Chem-Dry, Snap Fitness 24-7 and Cartridge World at this Franchise Fair
Before establishing this program, Mexico was seriously lagging behind in franchising. Today, it like a thing of the past, and this is due to the fact that the jobs being created will only advance the economy further.
HERE IS A HIDDEN FOREIGN MARKET THAT COULD BENEFIT CANADIANS GREATLY.
If you are interested in being part of the Canadian Delegation that will visit the Franchise Fair in Mexico in March 2010, please contact Jacques Desforges: 1-888-575-0034.
GENERAL INFORMATION
- Mexico has around 820 brands of franchises
- 60% of the independent businesses do not complete the 2nd year of life
- 95% of the franchise businesses are alive at least until 5th year
- In Mexico, near 15 cents of each peso it’s spent in franchises
- The sales of the sector exceed 80 billions of pesos represeting 6% of the National Gross Domestic Product
- Mexico is located in 70 place at the ranking of franchises in the Word Franchise Council