How to expand a business without making large capital investments? This question may have many answers, but a simple way is to explore the potential of intellectual property and the Peruvian franchise model.

Franchises are a development model so that a business can expand to different regions of Peru or to any other part of the world quickly and start generating profits for its owners without having to resort to large investments. However, before starting to take advantage of the franchise model, it is necessary to follow a protocol to register and protect everything related to the business from the outset.

What kinds of businesses can take advantage of this model?

Fast food restaurants, cevicherias, coffee shops, chocolate shops and ice cream parlors are some of the businesses called to insert themselves into this formula of Peruvian franchises with greater ease.

Although gyms, beauty salons, opticians and hardware stores can also take advantage of this business model of franchises that arrived in Peru in the decade of the seventies, but that was from the nineties when, really, began to be used by Peruvian businesses.

What are the key elements to register for a Peruvian franchise?

Before any business aspires to create a franchise in the medium term it is important that it uses an intellectual property specialist to register and protect a series of elements related to the business.

The most common is that you register first:

1.- Trademark 

This is the great sign that serves to distinguish a product or a service. It is the commercial brand that has the potential to expand and be recognized not only in the different regions of Peru, but also in other countries internationally.

In the end, the trademark is the seal of quality that will allow it to attract a series of investors interested in acquiring the right to use it in their own businesses.

2.- Trade name  

This is the sign that distinguishes the economic activity that the businessman or businesswoman carries out in a certain geographical area. It is important to note that the commercial name acquires rights from its first use in the market and registration is optional but highly recommended if the entrepreneur wishes to start a franchise.

Finally, this type of regulation is applicable to all the countries of the Andean Community: Peru, Colombia, Ecuador, and Bolivia; However, other countries could have another type of regulation for this legal figure.

3.- Business Name

This involves words, letters, numbers, drawings, images, shapes, colors, logos, figures, symbols, graphics, monograms, portraits, labels, emblems, shields or the combination of all elements that serve to identify the establishment of the business.

This step in the protection of the commercial banner is very important if a business plans to take advantage of the franchise model, because these characteristics will ultimately become the elements that serve to give unity to the different commercial premises that can be opened to the internal of Peru or in other parts of the world of this same business.

Since the chain of grilled chicken restaurants Mediterráneo Chicken (1) began working with this model in 1992, many businesses have opened franchises in Peru. The expansion of Peruvian trademarks today reaches countries such as the United States, Chile, Argentina, Brazil, Mexico, Panama, and Colombia.

The potential of Peruvian franchises is a business opportunity that proves that Intellectual Property is essential to increase the profitability of companies. Taking the first step of registering as soon as a new brand is created or a new service is launched is key to then thinking of a franchise model, which allows that dreamed of every business ambition to be present in many places at the same time.

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    David Edery (2008) Las franquicias peruanas y su internacionalización (Peruvian franchises and their internationalization) Recovered from:  
    Instituto Nacional de Defensa de la Competencia y de la Protección de la Propiedad Intelectual (2020) Derechos que brinda el registro de marcas, licencias y franquicias exitosas. (National Institute for the Defense of Competition and the Protection of Intellectual Property (2020) Rights provided by the registration of trademarks, licenses and successful franchises) Recovered from: