The Franchise Law aims to regulate the relationship between the franchisor and the franchisee, promoting transparency. Mandatory Disclosure Document: The law legally requires the franchisor to provide the prospective franchisee with a comprehensive Disclosure Document at least 14 days before the contract signing. This document must detail fees, support, past litigation, and required investments. Formal Registration: The franchise agreement must be formally registered with the Ministry of Commerce's dedicated register for the contract to be legally enforceable and provide mutual protection. Termination Restrictions: The law imposes strict limitations on the franchisor’s right to unilateral termination, requiring notification…

The Franchise Law aims to regulate the relationship between the franchisor and the franchisee, promoting transparency.
Mandatory Disclosure Document: The law legally requires the franchisor to provide the prospective franchisee with a comprehensive Disclosure Document at least 14 days before the contract signing. This document must detail fees, support, past litigation, and required investments.
Formal Registration: The franchise agreement must be formally registered with the Ministry of Commerce's dedicated register for the contract to be legally enforceable and provide mutual protection.
Termination Restrictions: The law imposes strict limitations on the franchisor’s right to unilateral termination, requiring notification…