In Peru, franchises are considered big business because they move well over 1,1 billion dollars a year. However, with little legislation to monitor this sector; can one dub this lucrative business as a high-risk market because of the lack of local regulation to oversee it? According to MONTEBLANCO & ASSOCIATES, yes, one can.
The total franchising market in Peru, according to official figures, consists of 335 franchises made-up of 63% foreign entities that boast an enviable 20% annual growth. Also, numbers show that at least some 100,000 Peruvian companies have the conditions and are waiting for an opportunity to franchise their brands. This system of trade expansion has been re-launched with great force in recent years, so today; the domestic market is experiencing a second boom in franchising. It’s no surprise that over 200 foreign franchises currently operate in Peru with plenty more room for growth.
However odd as it may seem, this lucrative and growing business model that has been operating for over three decades in Peru, has not been properly or timely regulated by the Peruvian State through laws, that aside promoting and protecting private investments, are also equally able to control and monitor both franchisees and franchisers alike, as well as the franchisees.
The attorneys at MONTEBLANCO & ASSOCIATES are experienced in evaluating franchise options either prior to the entry into the country or their current situation in Peru. We can help you as a franchiser or franchisee make the best possible decision based on concrete facts. We also have available franchise options from various clients we represent and are ready to go.
Give us a call and we will give you solutions!