Costa Rica is well known for its political stability, favorable business climate, and transparent legal framework for foreign investment. These factors, along with steady growth in domestic consumption, have turned the country into fertile ground for franchise development.
Currently, more than 380 franchise brands, both national and international, are operating in Costa Rica, which demonstrates the strong acceptance of this business model among local consumers. In fact, the franchise sector has grown at an average annual rate of 6% over the past decade, and a further 4% growth is expected in 2025, driven especially by micro-franchises and low-investment models.
Why invest in franchises in Costa Rica?
- A proven and replicable model
Franchises provide a well-established structure, standardized processes, brand recognition, and ongoing support—significantly reducing the risks of starting a business from scratch. - High demand in key sectors
The most attractive sectors include food and beverage (41%), specialized services (21%), health (17%), and retail (13%). From cafés and restaurants to academies, clinics, beauty salons, and retail stores, there are options to suit a wide range of investor profiles and experience levels. - Wide range of initial investment
According to CENAF data, 62% of Costa Rican franchises require an initial investment under $50,000, and only 4% exceed $500,000. This accessible entry point—compared to other countries—makes Costa Rica especially appealing to international investors looking to start with lower financial risk. - Flexibility for foreign investors
The country hosts franchises from over 25 countries, with the majority coming from the United States, Spain, and Mexico. Many operate under the master franchise model, which grants exclusive rights to manage the brand nationally and sub-franchise to third parties. Additionally, regional or individual licenses options are available, providing flexibility to align with different investment strategies. - A supportive business ecosystem
Costa Rica has institutions that promote franchise growth, such as the Centro Nacional de Franquicias (CENAF), as well as specialized platforms that provide detailed access to investment opportunities. These resources enable for well-informed decision-making and strategic planning.
When investing in a franchise, proper legal guidance is crucial. Reviewing the franchise agreement, verifying licenses, registering the brand, and addressing tax and labor obligations are all essential steps for ensuring a secure and profitable operation.
At ERP Lawyers, we assist foreign investors interested in acquiring or establishing franchises in Costa Rica. Our team specializes in corporate and commercial law, providing support from the evaluation of opportunities to the complete legal setup of your business.
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