The Colombian government recently issued Law 2069 of December 31, 2020, which aims to establish a regulatory framework that favors entrepreneurship, growth, consolidation and sustainability of companies, in order to increase social welfare and generate equity.
Through this law, the National Government will promote the franchise model as an alternative for entrepreneurship and expansion of “MiPYMES”. For this purpose, the Government will regulate the technical conditions that define the franchise, the obligations and the liability regime of the franchisor and the franchisee.
The technical conditions and strategies defined by the National Government to promote the franchising model as an entrepreneurial alternative, at no time may represent greater benefits than those implemented to promote the creation of new companies.
The foregoing is of utmost importance since, until now, in Colombia there are no specific rules governing commercial franchising agreements and it’s the technical conditions that define the franchise, the franchise is known as an atypical contract, because it reflects a legal business that is not regulated by any code and its clauses are, in principle, negotiated freely by the parties.
Juan Carlos Uribe, IDI franchising country expert for Colombia