The Franchise business model in Costa Rica has reached an unprecedented point of maturity in 2026. With the consolidation of Law 10867, known as the Law for the Regulation and Promotion of Franchises, the country is transforming “verbal trust” into absolute legal certainty for both local and international investors.
The Franchise Market in 2026: Key Data
The Costa Rican ecosystem is projected to reach 395 active brands this year, maintaining a steady annual growth rate of 2%. While 80% of the market consists of international brands, national franchises (20%) have gained significant ground thanks to support from the Development Banking System (SBD).
| Franchise Origin | Market Percentage (2026) |
| International | 80% (Approx. 327 brands) |
| National | 20% (Approx. 68 brands) |
Success stories such as Doña Dona, Costa Rica Beer Factory, and Jump Center prove that local models are now competing under global standards.
The Franchise Offering Circular (FOC): Mandatory Transparency
One of the pillars of Law 10867 is the creation of the Franchise Offering Circular (FOC). This legal document aims to eliminate information asymmetry between parties:
- Delivery Deadline: It must be delivered at least 30 calendar days prior to the signing of any agreement or any payment.
- Mandatory Content: It must include the franchisor’s experience, closure history, current litigation, and realistic financial projections.
- Sanction: Omitting or falsifying data in the FOC can lead to the nullity of the contract.
Labor Shielding and Investor Security
For multinational corporations, the most relevant milestone of the new law is the explicit labor independence. The regulations state that there is no hierarchical relationship or labor solidarity between the franchisor and the franchisee’s employees. This eliminates the historical risk of a parent company being sued for employer contingencies at local points of sale.
Non-Compete Limits and Fair Clauses
Current legislation protects know-how while preventing contractual abuses:
- Validity: Non-compete restrictions during the contract cannot exceed 5 years.
- Post-contract: They are limited to a maximum of 1 year, except in specific cases involving trade secret protection.
- Passive Sales: Clauses preventing franchisees from serving customers who spontaneously arrive from other territories are prohibited.
At ERP Lawyers, we don’t just review contracts; we audit your business model under the new legislation to ensure your investment is protected from day one.
📩 Write to us to schedule a franchise diagnostic session.
