{"id":151270,"date":"2026-10-07T11:20:00","date_gmt":"2026-10-07T11:20:00","guid":{"rendered":"https:\/\/www.legal500.com\/guides\/?post_type=comparative_guide&#038;p=151270"},"modified":"2026-10-08T12:42:34","modified_gmt":"2026-10-08T12:42:34","slug":"peru-franchise-licensing","status":"publish","type":"comparative_guide","link":"https:\/\/www.legal500.com\/guides\/chapter\/peru-franchise-licensing\/","title":{"rendered":"Peru: Franchise &amp; Licensing"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-151270","comparative_guide","type-comparative_guide","status-publish","hentry","guides-franchise-licensing","jurisdictions-peru"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Aguirre Abogados &amp; Asesores<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/www.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/11\/logoaguirreabogadosyasesores.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Aguirre Abogados &amp; Asesores<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/www.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/11\/logoaguirreabogadosyasesores.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Franchise &amp; Licensing laws and regulations applicable in Peru<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a legal definition of a franchise and, if so, what is it?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No, there is no legal definition of a franchising and\/or a franchise under Peruvian law. However, Peruvian business and legal practice has understood franchise agreements to be arrangements through which a franchisor grants a franchisee the right to reproduce, under the franchisor\u2019s assistance, a system previously developed by the franchisor. That system is distinguished by the franchisor\u2019s trademarks.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any structuring considerations for foreign franchisors (e.g. use of master franchisees, local presence requirements)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Structuring considerations will depend in each specific case, considering aspects such as the industry of the franchisee, responsibilities and compliance involved, international structure of the franchisor, tax exposures, among other issues.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any requirements that must be met prior to the offer and\/or sale of a franchise? If so, please describe and include any potential consequences for failing to comply.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no requirements provided by law that must be met before a business can sell a franchise. However, it is recommended that before the franchisor decides to grant rights to develop a franchise business, the relevant trademarks relating to the franchise are registered before the National Institute for the Defence of Free Competition and the Protection of Intellectual Property (Instituto Nacional de Defensa de la Competencia y Proteccion de la Propiedad Intelectual \u2013 INDECOPI).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any registration requirements for franchisors and\/or franchisees? If so, please describe them and include any potential consequences for failing to comply. Is there an obligation to update existing registrations?  If so, please describe.  Are there any practical or timing implications (e.g. typical registration timelines, delays in practice)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Considering that there is no specific franchise law, franchisors and franchisees are not required to register before any regulatory authority.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any disclosure requirements (franchise specific or in general)? If so, please describe them (i.e. when and how must disclosure be made (is there a minimum disclosure period before signing or payment (e.g. cooling-off period)), is there a prescribed format, must it be in the local language, do they apply to sales to sub-franchisees) and include any potential consequences for failing to comply.   Is there an obligation to update and\/or repeat disclosure (for example in the event that the parties enter into an amendment to the franchise agreement or on renewal)? What are the consequences of late or incomplete disclosure?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no disclosure requirements.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If the franchisee intends to use a special purpose vehicle (SPV) to operate each franchised outlet, is it sufficient to make disclosure to the SPVs' parent company or must disclosure be made to each individual SPV franchisee?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>See answer 5 above.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What actions can a franchisee take in the event of mis-selling by the franchisor?  What are the main legal grounds for such claims (e.g. misrepresentation, statutory disclosure breaches, unfair commercial practices)?  To what extent can liability be excluded or limited by non-reliance or entire agreement clauses or disclaimers in the franchise agreement, disclosure document or sales material?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In the absence of a franchise law, the Peruvian Civil Code and the Peruvian Judicial Procedures Code govern this kind of issues. Therefore, the franchisee can issue proceedings against the franchisor trying to obtain adequate remedy, most likely an award of damages against the franchisor in cases of misrepresentation, statutory disclosure breaches, unfair commercial practices, among others.<\/p>\n<p>It is worth noting, that it will be difficult to obtain a fast result before the Peruvian Judicial Power.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Would it be legal to issue a franchise agreement on a non-negotiable, \"take it or leave it\", basis?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, it would be legal. The Peruvian Civil Code recognizes this form of contracts in Article N\u00b01390 (Contrato por Adhesion).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are trademarks, know-how, trade secrets and copyright protected in your country?  Are there any specific requirements or risks relating to the licensing of know-how and trade secrets in a franchise context?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Intellectual Property Rights or IPRs must be registered in Peru to be protected from third parties before the National Institute for the Defence of Free Competition and the Protection of Intellectual Property (INDECOPI).<\/p>\n<p>In Peru, protection of intellectual property can be divided into the protection of industrial property and the protection of copyright.<\/p>\n<p>Industrial property protection applies to all economic activities. All natural or legal persons recognized by the constitution and laws of Peru, whether or not domiciled in Peru, are entitled to industrial property protection. The protected components of industrial property are invention patents, certificates of protection, utility models, industrial designs, trade secrets, goods and services marks, among others. Industrial property in Peru is governed mainly by Decision N\u00b0486 of the Andean Community (Comunidad Andina), Legislative Decree N\u00b01075 and international provisions. Product and service marks must be registered with INDECOPI to obtain legal protection. Registration is done according to the International Classification of Goods and Services for the Purposes of the Registration of Marks (i.e., Nice Classification) and can be carried out through a multi-class registration request. Upon completion of the registration procedures, the competent authority issues a certificate that grants the holder exclusive rights to the mark for 10 years. Registration may be renewed six months prior to expiration and up to six months after the expiration date.<\/p>\n<p>Likewise, copyright protection accrues to all intellectual works in the literary and artistic domain, whatever their type, form of expression, merit or purpose.<\/p>\n<p>In the franchise context, there are no specific legal requirements related to the licensing of know-how and trade secrets. However, considering that there is no specific legislation that protects the franchisor\u00b4s rights, clauses regarding confidentiality, permitted use, restrictions, and related matters should be clearly set out in the franchise agreement.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any franchise specific laws governing the ongoing relationship between franchisor and franchisee? If so, please describe them, including any terms that are required to be included within the franchise agreement.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no specific franchise law in Peru. However, the general principles of contract law stated in the Peruvian Civil Code will apply relating to their effects, interpretation, termination, as well as the requirement to exercise rights and perform duties in good faith.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any aspects of competition law that apply to the franchise transaction (i.e. is it permissible to prohibit online sales or use of online marketplaces (e.g. Amazon, third-party platforms), insist on exclusive supply, fix or set maximum retail prices, operate dual distribution\/hybrid franchisor models)? If applicable, provide an overview of the relevant competition laws.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Regarding Peruvian competition legislation, it must be noted that, the purpose of Legislative Decree N\u00b01034 (The Peruvian Competition Law) is to prevent and to sanction anti-competitive behaviour, and to promote economic efficiency, to the benefit of consumers. Accordingly, competition law applies to natural or legal persons, public or private, state-owned or not, profitable or non-profitable that are in the market for the supply or demand for goods or services. The Peruvian Competition Law covers the antitrust enforcement of conducts as abuse of a dominant position, horizontal collusive practices and vertical collusive practices.<\/p>\n<p>On the other hand, Legislative Decree N\u00b01044 (The Unfair Competition Law) contains a set of rules that punish business conducts that undermine the adequate functioning of the competitive process. Thus, the Unfair Competition Law sanctions acts that are contrary to the requirements of good entrepreneurial faith, such as acts of deception, denigration, undue comparison, corporate sabotage, among others.<\/p>\n<p>Although franchise agreements have special characteristics, they are not considered to restrict or distort competition. Under this scenario, it is possible to prohibit online sales of the products, reserve specific sales platforms, state exclusive supply, fix or set retail prices.<\/p>\n<p>Lastly regarding Peruvian competition regulations, it is important to highlight the Act on Prior Control of Business Concentration Operations, better known as \u201cAct on Control of Mergers and Acquisitions\u201d, Act N\u00b031112, which established a regime of prior control of business concentration operations, with the purpose of promoting effective competition and economic efficiency in markets for consumers\u2019 welfare. In that sense, under certain circumstances, acts of business concentration that produce effects in Peru, including mergers, purchase of assets, acquisition of rights, as well as the incorporation of a new economic agent or the signing of a joint venture agreement or any other similar contractual modality implying the acquisition of control over one or several economic agents, will be within the scope of the regulation. Therefore, although it is not common, a franchise agreement could come within the scope of Act N\u00b031112 and require prior authorization, requiring a specific analysis of transaction and sector.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any ESG, compliance or supply chain-related legal requirements impacting franchise systems?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no specific ESG, compliance, or supply chain-related legal requirements that impact franchise systems. However, the franchise agreement must require franchisees to comply with the applicable legal framework for the specific industry.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are in-term non-compete and non-solicitation clauses enforceable and are there any limitations on the franchisor's ability to impose and enforce them?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Local courts will enforce in-term and post-term restrictive covenants against the franchisee, such as non-compete and confidentiality restrictive covenants. There are no limitations on the duration and geographical scope of such restrictions, but they must be in full accordance with the provisions concerning freedom of business and commerce and free competition.<\/p>\n<p>Regarding limitations on the franchisor&#8217;s ability to impose and enforce them, it must be noted that, in some cases, such clauses could be considered by judges as a violation of the constitutional right to work, and therefore, unenforceable.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there an obligation (express or implied) to deal in good faith in franchise relationships?  If so, what practical effects does this have on the relationship between franchisor and franchisee?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Peruvian Civil Code establishes in Article N\u00b01362 that agreements must be negotiated, agreed and executed according to rules of good faith and the common intention of the parties. Good faith is a General Principle of Law and it must be fully considered by the parties. If not, they could be liable for caused damages.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any employment or labour law considerations that are relevant to the franchise relationship? Is there a risk that the staff of the franchisee could be deemed to be the employees of the franchisor? What level of operational control may a franchisor exercise without creating employment or agency risk?  What steps can be taken to mitigate this risk?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>According to Supreme Decree N\u00b0003-97-TR, two elements must exist for an employment relationship to be formed, namely, subordination and remuneration as defined by Peruvian Labour Legislation. Under the franchising business model, neither of these two requirements exists and therefore, a franchisee cannot be regarded as an employee of the franchisor. Therefore, no operational control should create an employment relationship or any associated risk.<\/p>\n<p>However, it is common to include provisions in the agreements stating that franchisor and franchisee are not economically or operational related. Moreover, franchise agreements include an indemnity provision under which the franchisee agrees to hold the franchisor harmless against all claims.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a risk that a franchisee could be deemed to be the commercial agent of the franchisor? What steps can be taken to mitigate this risk?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The parties will typically include in the franchise agreement an independent contractor provision stating that the franchisee is an independent company. This clause usually includes an indemnity provision under which the franchisee agrees to hold the franchisor harmless against any and all claims arising from any breach of the franchise agreement, including the independent contractor clause.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any laws and regulations that affect the nature and payment of royalties to a foreign franchisor and\/or how much interest can be charged? Are there any requirements for payments in connection with the franchise agreement to be made in the local currency?  Are there any restrictions on structuring payments (e.g. royalties vs service fees vs mark-ups)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no laws or regulations that affect the nature and payment of royalties to a foreign franchisor. In addition, there are no exchange control or currency regulations applicable to payments to a foreign franchisor. The Peruvian Civil Code establishes in Article N\u00b01243 that interests can be charged on overdue payments but must be limited to the maximum conventional interest rate, which is fixed by the Central Reserve Bank of Peru.<\/p>\n<p>Commonly, currency is agreed in the franchise agreement, but payments can be made in local or foreign currency and there are no additional requirements or restrictions<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to impose contractual penalties on franchisees for breaches of restrictive covenants etc.? If so, what requirements must be met in order for such penalties to be enforceable?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, it is possible to impose contractual penalties on franchisees for breaches of restrictive covenants and others. Penalties are enforceable in Peru as an exclusive remedy or in addition to damages for breach of contract, depending on the provisions of the agreement (Article N\u00b01341 of the Peruvian Civil Code).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What tax considerations are relevant to franchisors and franchisees? Are franchise royalties subject to withholding tax?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In general terms, there is a withholding obligation on payments made to an overseas franchisor. However, the rate of the withholding will depend on the nature of the underlying payment and the applicability of any double taxation treaties. Currently, Peru maintains treaties to avoid double taxation with Brazil, Canada, Chile, Japan, Mexico, Portugal, Switzerland, among others. Therefore, specific tax advice should be sought in each case.<\/p>\n<p>Regarding royalties, there currently is a withholding tax obligation on any payment made to an overseas franchisor that amounts to 30% of the total royalty.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is e-commerce regulated and does this have any specific implications on the relationship between franchisor and franchisee?  For example, can franchisees be prohibited or restricted in any way from using e-commerce in their franchise businesses?  Are there any rules regarding online sales within or outside a franchisee\u2019s territory?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no specific regulations for franchises and e-commerce in Peru. However, there are currently regulations governing, for example, the use of digital signatures and certificates, consumer protection and defence, personal data protection, among others that could impact the relationship between the franchisor and the franchisee.<\/p>\n<p>Taking into consideration the above and that there are no regulations directly governing franchises, franchisors may establish in the franchise agreement liabilities and limitations to the franchisee to create, facilitate, regulate, modify or, in some cases, restrict or prohibit the use of e-commerce within or outside a franchisee\u2019s territory.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the applicable data protection laws and do they have any specific implications for the franchisor\/franchisee relationship?   In particular, what are the key data protection considerations in a franchise relationship, including: (a) allocation of controller\/processor roles; (b) use of customer databases; (c) cross-border data transfers; and (d) marketing and CRM activities?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Personal data protection in Peru is regulated by the Personal Data Protection Act N\u00b029733, its regulation and several directives issued by the National Authority of Personal Data Protection (ANPDP, by its Spanish acronym) of the Department of Justice.<\/p>\n<p>In this sense, the franchise agreement must state that both parties are obliged to comply with the regulations related to personal data protection and clearly define the roles and duties of data controller and data processor, if applicable.<\/p>\n<p>It is important to highlight that the use of customer databases requires the prior and full authorization of the data owners.<\/p>\n<p>Even more so when there is a cross-border flow of information to the foreign franchisor, such as in the case of referral of information on employees, suppliers, marketing, CRM activities, as well as other related aspects.<\/p>\n<p>Authorization procedures for the use of personal data, privacy and cookie policies, registration of personal data banks with the ANPDP and the adoption of organizational, legal and technical security measures should be mainly implemented.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the franchisor permitted to restrict the transfer of (a) the franchisee's rights and obligations under the franchise agreement or (b) the ownership interests in the franchisee?  Can the franchisor impose conditions on transfers (e.g. approval rights, fees, qualification criteria)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Contractually, the franchisor may regulate or limit the transfer of rights and obligations of the franchisee, as well as the transfer of the franchised company. According to our experience, franchise agreements always contain these limitations (approval rights, fees, qualification criteria, among others), even establishing the methodology for the valuation of the franchised company at the time of a possible acquisition by the franchisor.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent can a franchisor impose audit rights, reporting obligations, and operational controls on a franchisee, and what legal limits apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under currently legislation there are no limits, so through the franchise agreement the franchisor could impose audit rights, reporting obligations, and operational controls on a franchisee in order to protect the franchise system. The franchisor must exercise this kind of rights in a proportionate, reasonable, and good-faith manner.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does a franchisee have a right to request a renewal on expiration of the initial term? In what circumstances can a franchisor refuse to renew a franchise agreement? If the franchise agreement is not renewed or it if it terminates or expires, is the franchisee entitled to compensation? If so, under what circumstances and how is the compensation payment calculated?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no local law that obliges the franchisor to renew a contract, unless it has been included as an obligation under the original franchise agreement. Under Peruvian legislation, there is no mandatory compensation payable to the franchisee at the end of the term established by the parties. However, one party can terminate an agreement before its expiration in the event of a material breach of contract by the other party. The specific procedure must be stated in the agreement, according to the Peruvian Civil Code.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any mandatory termination rights which may override any contractual termination rights? Is there a minimum notice period that the parties must adhere to?  Are there any requirements regarding notice periods and opportunities to remedy breaches before termination?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no mandatory termination rights that may override any contractual termination rights. The Peruvian Civil Code states that the parties can freely determine the content of the agreement, provided that it is not contrary to current legislation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any intangible assets in the franchisee's business which the franchisee can claim ownership of on expiry or termination, e.g. customer data, local goodwill, etc.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No. However, it will be important for the franchisor to include this kind of representations in the franchise agreement<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What post-termination obligations are typically enforceable (e.g. de-branding, return of confidential information, non-compete, non-solicitation) and how readily are such post-term restrictions enforced in practice?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Upon the termination of the franchise agreement, the franchisee may remain subject to certain post-termination obligations, as agreed by the parties. These may include the prohibition on using the franchisor&#8217;s industrial property rights, the franchise system&#8217;s know-how, confidentiality obligations, non-compete obligations, non-solicitation obligations, among others.<\/p>\n<p>Such provisions are enforceable based on the franchise agreement and may be executed, if necessary, through judicial or arbitral proceedings, as determined by the parties in the agreement.<\/p>\n<p>Additionally, it should be noted that the regulation and enforcement mechanisms established under Peruvian Competition legislation may also apply.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a national franchising association? Is membership required?  If not, is membership commercially advisable? What are the additional obligations of the national franchising association?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Peru, there is a national franchise association, the \u201cPeruvian Chamber of Franchises\u201d (C\u00e1mara Peruana de Franquicias), which is for franchisors and master franchisees, an added value tool, where it is possible to find information about franchising companies, franchise consultants, training courses, events and information about franchises.<\/p>\n<p>In this regard, membership is not required, but commercially recommended, since its objective is to ensure the interests of the Franchise Industry in Peru, offering its associates services and benefits that raise their quality standards and reduce costs, through participation in various government and private forums, as well as the organization and development of events.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are foreign franchisors treated differently to domestic franchisors? Does national law\/regulation impose any debt\/equity restrictions?  Are there any restrictions on the capital structure of a company incorporated in your country with a foreign parent (thin capitalisation rules)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No, the Peruvian Constitution establishes that domestic and foreign investments are subject to the same conditions.<\/p>\n<p>The General Companies Act (LGS, by its Spanish acronym), Act N\u00b026887 is the act that regulates companies in Peru and only requires a minimum of two (2) partners to form a company, which may be national or foreign, natural or legal persons. The mentioned regulation does not establish restrictions of any kind for the concepts of debt\/equity in the companies, and there is no limitation in the structure of the capital stock for a company with foreign investment.<\/p>\n<p>Notwithstanding the above, from a tax perspective, there are sub-capitalization tax rules that limit the deductibility of interest for Income Tax (IR) purposes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Must the franchise agreement be governed by local law?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The franchise agreement does not necessarily have to be regulated by Peruvian legislation. The parties will freely choose the law that will govern the franchise agreement.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What dispute resolution procedures are available to franchisors and franchisees?  Are there any advantages to out of court procedures such as arbitration versus litigation, in particular if the franchise agreement is subject to a foreign governing law?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Parties in Peru can choose the forum to hear and resolve their dispute. They can opt in the agreement to resolve their disputes before a civil court or before arbitration. Commonly, parties choose arbitration.<\/p>\n<p>Litigation before civil courts is less expensive than arbitration, but it is time-consuming, as it often takes many years to obtain a final decision.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Must the franchise agreement and disclosure documents be in the local language?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Not necessarily, parties are free to choose the language of the agreement and complementary documents.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to sign the franchise agreement using an electronic signature (rather than a wet ink signature)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>According to Act N\u00b027269 and its Regulation, it is possible to sign the franchise agreement using an electronic signature. However, in Peru it is not common use electronic signature in commercial transactions. In addition, taking into consideration that disputes may arise and that it can be difficult to document the sufficiency and effectiveness of an electronic signature, we recommend not to destroy the franchise agreement with wet-ink signatures, even if they have been signed using electronic signature.<\/p>\n<p>Therefore, it is recommended to use a wet ink signature, and then, legalized it before a Notary Public.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do you foresee any significant commercial or legal developments that might impact on franchise relationships over the next year or so?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Peru is beginning a new phase following the election of President Keiko Fujimori and the commencement of the 2026\u20132031 presidential term. This transition presents a meaningful opportunity to strengthen market trust, preserve institutional stability, and foster productive cooperation between the public and private sectors. From an international investor\u2019s standpoint, the country\u2019s democratic transfer of power takes place in a backdrop of enduring economic advantages, including an independent and reputable central bank, robust foreign-exchange reserves, sustainable public indebtedness, extensive access to international trade and investment networks, and broad potential across sectors such as mining, infrastructure, energy, agribusiness, logistics, technology-based services, and franchising.<\/p>\n<p>The incoming Fujimori administration has an important opportunity to advance policies that enhance predictability, reduce administrative burdens, and encourage long-term investment. By emphasizing clearer and more streamlined regulation, effective infrastructure execution, social cohesion, and responsible fiscal management. Investors with a medium- and long-term strategy may therefore view Peru as a market with favourable prospects, where political change, macroeconomic growth, and increased private investment could converge to generate sustainable business opportunities and broader economic benefits.<\/p>\n<p>Within this context, franchising has become an increasingly relevant mechanism for Peru\u2019s economic expansion. It offers opportunities not only to Peruvian and foreign investors participating in established or emerging franchise networks, but also to local business owners seeking to develop their own concepts and eventually take them abroad. Moreover, in June 2026, the Peruvian Chamber of Franchises (CPF) appointed Walter Aguirre, Managing Partner of our Firm, as Peru\u2019s legal representative before the Ibero-American Franchise Federation (FIAF). We are enthusiastic to continue working alongside the new Peruvian authorities to promote a suitable legal and regulatory environment that supports the sustained growth of franchising and protects the interests of franchisors and franchisees.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">4164<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/151270","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=151270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}