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Franchising SectorOverviewReturn to top2008 2009 2010(estimate)Number of Franchise750 820 900Concepts in Mexico* Source: Asociación Mexicana de FranquiciasIn the last five years the Mexican franchise sector has maintained constant growth ofbetween 10 and 17 percent. Since 2008, the World Franchise Council has rankedMexico as the 7th leading nation in franchise development due to market maturity, legalframework, support from the government, number of franchise concepts in the country,and certification programs.Even with the difficult economic situation, the industry showed a growth of about 8% in2009, proving that it continues to be one of the most important sectors in the country’seconomic growth, generating over 550 thousand jobs and 55 thousand points of salescountrywide.Franchise Concepts in Mexico4% 2%Mexico7%24%70%U.S.24%Spain 4%*Source: Asociación Mexicana de FranquiciasDue to the importance of the franchise industry to the Mexican economy, both in termsof job creation and percentage of GDP, the Mexican government has made numerouslegislative changes to strengthen the legal framework for franchises. In 2006, theMexican Congress amended the Law of Industrial Property to provide a clearer definitionof a franchise, mandate requirements for franchise agreements, and provide standardsfor pre-sale franchise disclosures. These amendments help to protect franchisees whoreport abuse from franchisors when executing or terminating agreements. This hasallowed further expansion of the franchise sector as the previous lack of regulationlimited growth.Because of the economic downturn, the industry expects a conservative growth in 2010,specifically for concepts that require large investments and big operational requirements.Investors will be more cautious analyzing business opportunities, taking intoconsideration investment conditions, finance opportunities, and the franchisor’scommitment and support.