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Mexico Amends Its Franchise Law

By Kendal Tyre
March 01, 2006

On Jan. 26, 2006, an amendment to the Mexican Industrial Property Law (Ley de la Propiedad Industrial) (“IPL”) became effective. The new amendment mandates new requirements for presale franchise disclosure and for franchise agreements. To comply with the law, most franchisors will need to change their existing forms of franchise agreements used in Mexico.

Franchise Agreement Requirement

The new amendment is primarily devoted to issues that must be addressed in franchise agreements. Franchise agreements must be written and must contain information concerning:

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