Franchises: To Regulate or Not to Regulate

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There are entrepreneurs calling for the creation of laws to regulate and protect activities in this business model and for them to be uniform at a regional level. Government representatives affirm that a law is not necessary and that everything is in the signed contract. What is the golden middle?

In an article in elsalvador.com, Morena Azucena reflected the views that employers, business representatives and government officials have on the subject.

Source: elsalvador.com

More on this topic

The Coffee Cup Forays into United States

August 2009

In February, the Salvadoran company will open a store in Austin, Texas.

Samuel Quirós is the president of Quality Grains, holding company for The Coffee Cup stores. He said they intend to open 10 stores in Texas in their first year of U.S. operations.

"At first, the Austin store will operate under a hybrid business model, 50% property of the company and 50% franchise.

The Coffee Cup opens in the U.S.

November 2010

The Salvadoran franchise opened its first store in Austin, Texas, USA.

The company invested $ 400,000 in its first store and expects to open 10 more next year.

Laprensagrafica.com reported comments by Samuel Quiros, president of Quality Grains and owner of The Coffee Cup, "The Coffee Cup chain stores are supplied with 100% Salvadoran coffee. The coffee will be sold in stores and will be exported toasted from El Salvador".

Salvadoran Firms Follow Franchise Model

March 2009

Franchise projects are considered an alternative for expanding operations, strengthening brands and generating more jobs.

The Director of the Finance Ministry's (MINEC) Production Development Fund (FOEX), Vladimir Velasquez, informed Elsalvador.com: "The franchise appeal of investment and profits is already knocking on the doors of Salvadoran small and medium sized businesses which have taken the lead on this issue.

Business rejects changes to arbitration law in El Salvador

June 2008

Salvadorean businessmen fear that a proposed change in the arbitration law might place in danger judicial security and the arrival of investment in their country.

"The deputies take two years to pass a law that encourages economic development of the country and two hours to consider one that's going to ... undermine judicial security," said Jorge Daboub, president of the national Chamber of Commerce.