Business

New franchising law opens the door to more foreign investments

A quarter of a century on, Brazil updates its franchising legislation and companies in the sector are delighted

A quarter of a century on, Brazil updates its franchising legislation and companies in the sector are delighted
Photo: Casa da Photo/Shutterstock

In the newest development of Brazil’s wave of reforms, an update of the country’s franchising legislation has just been signed into law. Representatives of the sector say that the new rules for franchisees and franchisors—which will come into effect from March onward—are clearer and more effective, increasing legal security and opening the door to more foreign investment.  

According to Marcelo Maia, the executive director of the Brazilian Franchising Association (ABF), the update was a necessary addition to fulfill the sector’s needs 25 years after the first legal framework came into place.

“It is a very positive law, it brings...

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