Franchising in Mexico, Overview & Insights from the International Franchise Fair
Mar 25, 2025
The franchise industry is thriving not just in our country; it has also found fertile ground in many other regions. One of them is Mexico. This is the second most important franchise market in Latin America and one of the top 10 worldwide. Its ecosystem has been growing steadily over the past years, reaching 17% growth last year, according to the official statistics.
This data also highlights that in Mexico, 90% of franchises continue operating after five years, whereas 50% of independent businesses close within their first year, 80% by the second year, and only 10% of these ventures reach the third year.
To learn more about franchising in Mexico, I had a chat with Ilse Maubert, AFA’s Content & Marketing Manager and a very strong member of the franchising scenery in Mexico, who went to this year’s International Franchise Fair (FIF) in Mexico City. This is one of the key meeting points of the industry, where franchisors, franchisees, and entrepreneurs connect, interact, and do business together.
During our conversation, Ilse shared some of the key learnings from that visit as well as other interesting data & insights about the Mexican franchise industry.
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Quick Overview of the Mexican Franchise Industry
- Mexico’s franchise industry is composed of more than 1,300 franchise brands.
- 30% of the brands are within the food service industry.
- Nearly 85% of the franchises that operate in the country are local brands.
- 300 brands are affiliated with the Mexican Franchise Association (AMF).
- There are around 95 thousand units, owned mainly by single-unit franchisees.
- As a whole, franchises give more than 5% of the country’s GDP.
- Franchises generate more than a million jobs in the country.
A Promising Industry
One thing that Ilse highlighted is the diversity of brands within the industry as a whole. Over 1,300 franchise brands are currently operating in approximately 95,000 locations across the country.
Just as it happens here in the US, most of them belong to the food service industry, with everything from coffee shops & pizza places to casual dinner restaurants & bars. The other 30% is divided into 12 sectors, from retail and beauty & health to education, general services, and entertainment.
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Some brands are mature and consolidated, have been around for many decades, and even have an international presence, such as Wings Army, Cassava Roots, Todo para sus pies, Agua Inmaculada, Business Kids, and Kidzania.
There are also many emerging franchise brands that are attracting more and more investors each year, while others are in their early years of franchising with only a couple of units operating. Some require significant investments of millions of dollars, while others are low-cost, quick-entry models that don’t involve complex operations.
That diversity was shown on the exhibition floor of the International Franchise Fair, which exhibited over 250 brands to local franchisees wanting to expand or potential entrepreneurs looking to invest in a franchise for the first time. The estimated number of visitors to this 3-day event was around 14,000 people.
“I saw many families. As I watched these parents with their children looking for an opportunity or a place to invest their savings, I thought about how franchising can truly be your life plan, allowing you to pour all your hopes and dreams into it. Then, hopefully, you'll find success and grow something meaningful for yourself and your family,” said Ilse.
I agree. Franchising is definitely a family world, especially when you start as a franchisee because you are all in, working extra hours and putting all the effort at the beginning so that you and your family can have financial and time freedom and, eventually, a legacy if you go into a multi-unit enterprise.
However, you have to have a strong family support system for you to be successful in the franchising industry.
Where is the Mexican Franchise Industry Heading Into?
Ilse sat down with Betsy Eslava, AMF’s recently elected president, franchisor, and co-founder of Baby Ballet Marbet, a ballet school for children she started with her husband 20 years ago that now has 110 units in the country.
“The franchise sector fosters the growth of our nation. In communities where franchises establish themselves, significant transformations occur," said Betsy.
Large cities such as Mexico City, Monterrey, and Guadalajara have the biggest franchise activity. In Mexico City alone, there are around 6 thousand franchise units. However, the model has found franchise business opportunities in smaller cities, where local populations are looking for new products and brands.
The AMF's president also shared how local franchise brands want to grow not only regionally but also worldwide, opening units in other markets, including the United States. “Mexican franchise brands are not only growing in-country but are also exploring opportunities abroad. We are also eager to discover brands that want to franchise in our country.”
Staying connected with what’s happening in the global franchise industry is crucial to Betsy, as she recognizes that a significant challenge franchises face is innovation. “The United States serves as a prime example of how franchises keep innovating.
We are also paying attention to Asia, observing how technology, robotics, and automation are entering our sector through ordering vending machines, robotic hands in restaurants, and stores that operate without employees. We have to get our act together to thrive in this era of innovation and technology.”
Are Mexican brands up for the challenge? “Definitely, although that would require a lot of education and training not only for the employees but also for the business owners”, Betsy answered.
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Something else that both Ilse and Betsy highlighted is that even though most of the 95 thousand franchise units that operate in Mexico belong to single-unit franchisees, there’s a growing proportion of franchisees who are going multi-unit.
“I know that in the United States, it is very common to have Multi-Unit Franchisees. This phenomenon has already started here in Mexico with franchisees who buy two, three, four, or many more units, which is excellent because it means that there is trust and credibility in the franchise model. Another interesting stat is that the renewal rate is pretty high in the industry”.
One of these Multi-Unit Franchisees is Gabriela Cejudo. She is actually what we call a MUMBO (multi-unit & multi-brand) who owns 90 restaurants across five different states, from four different brands (only one of them is Mexican), and employs around 2,000 people. Her multi-unit enterprise is called Grupo Nicxa.
Just as we do in the American Franchise Academy, Gabriela believes that in order to grow, business owners must support their Unit Managers and District Managers, so they can understand their roles, perform at their best, and have a better quality of life.
Tips to Invest in a Mexican Franchise Brand
Many of the 1,300 brands that operate in Mexico don’t have a presence in the US. If this is something that you might want to explore, take into account these considerations:
- Visit the Mexican Franchise Association (amfranquicias.mx), which has about 300 affiliated brands. While there are risks involved, belonging to the AMF provides investors with extra trust and security, indicating they are investing in a solid, proven brand with standardized processes and procedures for consistent replication. AMF is even promoting the ISO 17067 standard, which certifies that the franchise is not simply betting on a brand; it is a commitment to a standard of excellence, and it is internationally supported.
- Some brands may be affiliated with other associations, such as the FIAF, which is the Iberoamerican Federation of Franchising (portalfiaf.org) that covers most of Latin America and Spain; or the IFA, which is the International Franchise Association (franchise.org), based out of the United States. These organizations can also give you information about those brands, so inquire with them.
- Do your due diligence on the brands you are interested in, just like you would in the United States. That will allow you to learn for how long they’ve been franchising, who the founders are, what their history is, how many units they operate, if they have closed any store, and what the brand reputation is. Look at their social media and explore their website.
- Reach out to the International Trade Administration to learn about the business conditions in Mexico in terms of commerce, legal framework, and other resources (trade.gov/country-commercial-guides/mexico-franchising).
- Look for Mexican ambassadors who know the local industry and can give you information about the brands you are interested in to really get to know them as part of an industry.
Either way, you need to be very diligent in doing your research to make sure that if you're going to invest in any of these franchises, you know everything about them and how they can support you to be successful.
Keep learning: 10 Tips to Do Your Due Diligence When Choosing a New Franchise
Ilse and I ended our conversation agreeing that franchising is a splendid way to have a business but with a solid base and the help of a proven brand. Yes, of course, you still have to take care of all the business management processes and procedures, but you don't start from zero in franchising.
That's why I fell in love with this industry many decades ago: it is a way for you to accomplish the American dream of business ownership with a higher possibility of success. It is not guaranteed, but definitely much higher than if you go independent in your own business.
Many men and women have spent a lot of time, money, and resources in creating these brands that have been proven successful in the United States, Mexico, Brazil, and all over the world. So, if you're not an innovator or a creator but want to be in business, the franchise model could be a way for you to become an entrepreneur and achieve the time and financial freedom you are looking for.
I hope you learn something new about franchising around the world. If you are already a franchisee who wants to go multi-unit, or maybe you’re struggling, I would like to invite you to think about the American Franchise Academy.
We're here to be your partners and your supporters, providing you with the knowledge, tools, and resources we have accumulated over decades of experience to help you become a successful multi-unit operator. Additionally, we offer training programs for District Managers and Unit Managers on the leadership and management skills they need to help you and themselves be successful.
Click below to explore our programs:
- COMMAND Program, for Multi-Unit Franchisees.
- LEAD Program, for District Managers.
- MANAGE Program, for Unit Managers.
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