If you are in Mexican lands, you like the business world and you want to follow a successful business model, the franchises in Mexico, they are ideal for you. We will talk about them precisely throughout this article.
A successful and safe way to invest your money
Franchises in Mexico: What are they?
A franchise is a profitable business model in which a company or franchisor grants third parties outside the project initially the right to exploit their products or brands. Also, the franchisee or franchisee is granted the right to market the products, in addition to the franchise's patents and production systems.
All this is formally established through a commercial contract, in which the installments to be paid and the royalties that the franchisor will obtain for the commercialization of its brand are established. The great advantage of investing in a franchise is that you will jump into the business world starting from a model that has already been tested and that is surely very well positioned in the market.
According to the Mexican Franchise Association (AMF), this type of business has generated nearly 700 jobs in recent years, positively impacting the Mexican economy. The franchises in Mexico They have become an excellent option for those entrepreneurs looking for success and profitability, contrary to what many believe, they are usually economic investments in many cases.
However, innovation rests with the franchisor and not with the entrepreneur, since each franchise will offer standard products under the same regulations. The success of the new investment, as this will depend on the target audience, the location of the business, the competition, market trends.
In addition, the performance of the franchisee, the proper management of resources and marketing strategies will be key to achieving total success.
About the latter, we invite you to learn much more in the following article, so that you can achieve wide recognition of your products and services, obtaining a good position in the market: Marketing techniques.
The best franchises in Mexico
Pemex
With more than 168 thousand franchises throughout the Mexican territory, Pemex ranks first in franchises in the country, presenting itself as the best option to invest safely. Petróleos Mexicanos or Pemex, is a state company, considered the main producer and marketer of oil, fuel and natural gas throughout the country.
Created in June 1938, the remarkable attraction that this company offers as a franchise lies in the distribution and marketing of fuel used by various types of vehicles, mainly. For the year 2012, it had revenues of more than 120 billion dollars and according to Brand Finance, the company is worth around 7400 billion dollars.
A self-consumption station can be purchased for 160 Mexican pesos, while a fishing boat is around 490 pesos. It must be taken into account that as a franchisor, Pemex regularly requires maintenance fees and that the expenses generated by the construction of a possible self-consumption station, as well as the rental or purchase of the land, will be borne by the franchisee.
7-Eleven
Founded in 1927 and renamed 7-Eleven in 1946, it is an American multinational that offers food products, drugstore services and other products, including those manufactured by its own brand. The company has more than 65.000 stores in some 17 countries in America, Asia, Europe and Oceania, making it the largest supply franchise in the world.
Although it is not of Mexican origin, it is one of the most solid and recognized franchises in Mexico, with approximately 1900 stores. Its main attraction is that its working hours are 24 hours a day, every day. To invest in this company, between 38.000 and 1.000.000 dollars are needed, thus covering all the initial expenses without including those required by the franchisor.
Ahorro Pharmacies
This franchise has more than 1900 stores spread throughout the Mexican territory and 19 years of experience in the market, which makes it one of the most profitable options to invest. As its name indicates, it is a pharmaceutical establishment that also sells other products such as food and cosmetics. In 2018, it recorded sales numbers close to 26.000 million pesos.
It is a good business to start a commercial enterprise, since it has characteristics that make it sustainable and effective over time, providing favorable results.
Steren
Electronic Steren is a company of Mexican origin, founded in 1956, it is dedicated to the commercialization of electronic, technological and security products, with a catalog of more than 4000 elements, currently, it has more than 360 stores in the country and about 1500 points, being 90% of the franchisees, the same ones that started with the project. Likewise, they have about 15 stores distributed among other Latin American countries.
Investing in this franchise has a cost of 1.600.000 dollars and another 200.000 for the entry license. The initial contract will be for 7 years and royalties must be paid annually to the company.
sleeperworld
With more than 200 stores throughout Mexico, Dormimundo is a franchise dedicated to the production and sale of mattresses, furniture and similar products. This company, founded in 1958, offers a more personalized marketing experience compared to others, since it is the same owners who go to the sales sites to promote the products.
To obtain a store of 400.000 dollars, an initial investment of about 25.000 is needed, which will be returned by the company in a period between 10 and 15 months.
Yogen Fruz
Founded in 1986, in Canada, this store chain is especially responsible for the marketing of smoothies and frozen yogurt, which has allowed it to be among the best franchises in Mexico and worldwide.
The strategy of this company is to hire "master franchisees" for a period of 10 to 20 years. These franchisees will have the right to open new stores and sell new licenses, and must annually comply with the number of stores established by the franchise. The investment is 1.500.000 pesos, allowing the placement of small counters inside the stores where food products other than those offered by the brand are displayed and promoted.
McDonald's
McDonald's is undoubtedly one of the most famous and successful franchises worldwide. It is, as is known, a chain of fast food restaurants, whose origins date back to 1940. It is a company with a strongly solid structure, with a perfectly designed logistical and administrative process, obtaining income from real estate by investing in properties that they will then be sold to franchisees.
Revenues also come from franchises and the direct operation of 50% of the restaurants. The necessary investment to acquire this franchise is 6.000.000 pesos.
If you want to opt for this type of franchise, which will allow you to develop and manage your own restaurant, go to the following link and learn how to do it correctly: How to manage a restaurant?.
Franchises in Mexico: The cheapest
Chem Dry
Founded in 1977, Chem-Dry is an American franchise with extensive experience within the Mexican territory, dedicated to cleaning and disinfecting carpets and upholstery. It has more than 4000 points of sale around the world, including countries such as Japan, Thailand, Kuwait and India, and offers the possibility of acquiring it through an economic investment of approximately 296.000 Mexican pesos.
When acquiring the franchise, the company provides an initial kit that contains elements and equipment necessary for the start-up of operations. It works as a physical store and as a home delivery service.
Dr Auto & House
If the name does not give you an indication of the activity carried out by this franchise, you should know that it is dedicated to the repair and remodeling of houses, including plumbing services. The company also offers installation services for air conditioning and electrical systems, whether at an industrial, commercial or automotive level.
The franchise can be started remotely, participating for 3 days in a training process offered by the same company, and then continue managing it from the comfort of home, if preferred. The investment will be 150.000 pesos, with which the staff's uniforms are guaranteed. The return on this investment is estimated at 12 months.
Techno Coating
Techno Coating is a franchise that offers protection to surfaces located in different sectors such as real estate, industrial, automotive and commercial, thanks to the use of nanotechnology.
The initial investment that an entrepreneur must make to obtain this franchise is 225.000 pesos, enough money to cover the costs of training, uniforms and initial stock. The only requirement of the company is that the franchisee has computers and a warehouse of no less than six square meters for the reservation of products.
immaculate water
This franchise is in charge of the commercialization of water purification plants, being for some years leaders in the Mexican market. The main advantage of Agua Inmaculada is the ease with which it allows investors to acquire the franchise for a modest and affordable price.
Currently, it has more than 11.000 points of sale in Mexico, requiring an initial investment of 65.000 pesos and close to 80.000 to fully acquire the business, the plants and the license. The company has been recognized by Harvard University and Forbes magazine, thanks to the excellent quality of its services, a fact that has led it to expand to other countries such as Brazil, Colombia, Panama and Peru.
Wings Army
This bar-restaurant is a good option to invest economically, characterized by the sale of chicken wings accompanied by the beer of your choice, national and international. It has more than 100 franchises throughout the country, offering customers a retro experience with a decoration that is reminiscent of the great museums.
It requires an investment of 300.000 Mexican pesos with a return in a period of time not exceeding 12 months. Even though it is not the most well-known franchise, it has shown good profitability.
Rapid wash
One of the cheapest franchise options in Mexico that we can find is Rapid Wash. In charge of cleaning cars, specifically at home, it does not require royalties from its franchisees. The service is provided from a small car designed to have the necessary equipment for cleaning and car maintenance, all through an ecological system.
With an investment of 8.000 pesos, the company guarantees the training and equipment of all its franchisees, giving them the opportunity to start their own business safely, based on a successful model.
Coin City
The Coin City franchise is the cheapest that we will present to you in this article. Founded in 2003, it focuses on the rental and sale of snack vending machines.
The market in which this company competes is known as Vending, where the franchise occupies one of the first positions, thanks to the quality of its machines. By covering the investment with about 6.000 Mexican pesos, the franchisees obtain access to the training course and other elements such as videos, gifts and manuals to make correct use of the products.
Operation of franchises in Mexico
According to the Mexican Franchise Association (AMF), franchises must follow certain steps for their structuring and operation. The first of these steps is the establishment of the relationship between franchisor and franchisee.
Said relationship is framed in a contract that will establish the obligations and rights of each party, with the franchisee receiving greater responsibility, since he must manage his business following the original guidelines of the franchise, including those related to operations and logistics.
The second step consists of setting the royalties and the payments that must be made once the franchise is acquired, within the times agreed upon by consensus between both parties. The last step refers to the respect and support that the franchisor must provide to the franchisee, offering all the necessary information about the company and the methods used in it.
For example, the «know-how», a set of techniques used by each company to carry out the tasks to which they are dedicated and that characterize them, must be transmitted to the franchisees to achieve the development of representative products of the brand. It is also the obligation of the franchisor to provide the training that is required so that the franchisee has the possibility of being successful in his business, thus expanding the brand.
Finally, it is recommended to anyone who is willing to start a business using their own capital, that before making the investment, seek legal advice from a lawyer specialized in the area. Remember that to make a large investment, we must be sure of the responsibility and reliability of the franchise in which we will invest our money to guarantee results that meet our expectations and that they do not represent great risks for our business ideas or for ourselves.
