In accordance with the Intellectual Property Law, franchisors must deliver to potential franchisees before execution of the franchise agreement, technical, economic and financial information regarding the franchise and its system. It is important to avoid geographical distribution of market, agreements to fix prices, and agreements to eliminate competitors from the market. The agreements governing the above relationships may be terminated by either party, in accordance with their terms. Mexican law does not contain specific provisions for the payment of damages or remuneration upon termination of the agreement except as may be provided in the agreement. The vendor may prefer other ways to either enter the Mexican market or expand market penetration by creating a subsidiary or opening a branch in Mexico, in place of, or in addition to having a representative, distributor or franchisee.
Rules are different in each case and give the foreigner different advantages.