Franchise sector in Mexico will grow +12% in 2019
Source：AMF
From：Taiwan Trade Center Mexico
Update Time：2019/10/23
The franchise industry in Mexico showed a growth of about +9.8% in 2018 and is expected a record growth of +12% in 2019, according to figures from the Franchise Association of Northern Mexico.
The turnover of this sector in the country is about US $4.25 billion per year and more than 1,500 current franchise brands in Mexico directly employ more than 700,000 people. Of these total brands, 84% are Mexican; the rest are foreign.
Franchises are a business model of proven success, as 90% of franchised units exceed the barrier of 5 years of life, while only 20% of other SMEs (micro, small and medium enterprises) in the country do, says the association.
According to figures from INEGI, 50% of businesses that start in Mexico go bankrupt in the course of the first 2 years, and after the third only survive between 20% and 30%, which is not very motivating and contrasts with the favorable figures of between 85% and 90% of businesses belonging to a franchise model continue operating over 5 years and with permanent profits and growth in profits, which encourages and reassures investors, says the association.
Source：https://franquiciasdemexico.org.mx/