A Business Model That Continues to Be Viable
Intellectual Property attorney Danilo Romero Raad was mentioned in an article published by Portafolio about the legal framework for franchising in Colombia. Mr. Romero explained that the country's Constitutional Court declared unenforceable the national government's ability to regulate franchises, which means that their scope and operations depend on the terms of a contract, along with commercial custom. He also clarified that although franchisees can seek innovation, they still have to comply with Colombian commercial and labor regulations. Mr. Romero highlighted the importance of choosing the sector, adapting to the model, raising sufficient capital and staying informed about risks when acquiring a franchise.
"Likewise, commercial custom becomes a source that regulates the elements that make up the obligatory framework of this contract," he said.