Costa Rica has become an excellent option to establish and acquire franchises, a business model that works to exploit a brand or service, and that in a short time has managed to expand successfully, so much so that currently 278 franchise in Costa Rica operative.

Let´s remember that a franchise is a model of business expansion, where the owner of a brand or business (franchisor) grants another party (franchisee) the right to commercially exploit a brand.

Franchises represent a successful system to make and expand businesses, so today we’ll talk about 7advantages of establishing or buying a franchise.

1. Business growth

Franchises give you the opportunity to become the head of your own business and to grow as an entrepreneur. This person will have the control to expand the business and manage the production and distribution of the product or service.

2. Manageable costs

The down payment to acquire a franchise in Costa Rica is less than $50.000 (about ₡26 million colones), a manageable number considering that in less than two years, according to the National Center for Franchises (Cenaf in Spanish), in 64% of the cases there is a recovery of the initial investment.

3. The risk is lower

Who purchase a franchise can become the owner of a business that is already very well established and, therefore, gets good results. Because it is a successful business it will already have customers.

4. Training and ongoing assistance

The franchisee will receive technical and administrative training by the franchisor on how to successfully manage the business (know how). In addition, the support and accompaniment are continuous while the contract is in force to commercially exploit the brand: Advertising, customer service, strategies, systems, etc.

5. Access to technology

Along with the technical and administrative advice, the franchisee has access to equipment and/or software to properly develop the franchise.

6. Access to advertising

Franchises take advantage of the advertising campaigns and marketing strategies that the brand develops nationally and internationally.

7. New markets

Once the franchise is purchased, it is possible to take it to new markets, expand it, and find new target audiences.

What are the requirements to buy a franchise? How much would cost a local or foreign franchise? Do you need legal advice to start a franchise? You can consult the answers to these and other questions in our article Franchises in Costa Rica: what are they and what is their function?