The nature of the human being is to fear the unknown, and Nicaraguans are no exception. Although the franchises really had their origin in the Middle Ages, when in the Crusades the gentlemen were granted the right to conquer certain territories and then impose compensation, in our country, this is still a system little exploited.
If we look for the concept of Franchise in the dictionary, we will undoubtedly find a number of definitions, but the most accurate is: ¨The franchise is defined as a system of collaboration between two legally independent parties, linked to each other through a contract, whereby one of the parties, (the franchisor company) gives, in return for some economic remuneration, the right to use its trademark and their know-how, for a limited time and in a given territory¨, in other words it is; Allowing one or more people to use your brand, image and business model according to your guidelines, which were previously discussed, in exchange for an economic remuneration.
In other countries in the region, such as Mexico, El Salvador and Guatemala, this business concept has been working its way since the 1990s, not being the case of Nicaragua, and that is why the legal firm CENTRAL LAW Nicaragua, together with Gallastegui Armella Franchises (GAF), have begun the arduous work of opening our way in a world where this business model is not very well known, working from scratch in a transformation in the way of seeing Nicaraguan businesses.
What are we afraid of? Do not be afraid to grow in the right direction! Franchising is the most profitable business model of the 21st Century.
Gabriela Román Prado
CENTRAL LAW Nicaragua