The economy of Mexico is the 12th largest in the world. Since the 1994 crisis, administrations have improved the country’s macroeconomic fundamentals. Mexico was not significantly influenced by the recent 2002 South American crisis, and has maintained positive, although low, rates of growth after a brief period of stagnation in 2001. Moody’s (in March 2000) and Fitch IBCA (in January 2002) issued investment-grade ratings for Mexico’s sovereign debt. In spite of its unprecedented macroeconomic stability, which has reduced inflation and interest rates to record lows and has increased per capita income, enormous gaps remain between the urban and the rural population, the northern and southern states, and the rich and the poor. Some of the government’s challenges include the upgrade of infrastructure, the modernization of the tax system and labor laws, and the reduction of income inequality.

CURRENCY EXCHANGE RATE

05/14/09 $1 = 13.3 MXN

Franchising Laws Overview

Disclosure laws:

• The disclosure document (including the completed franchise agreement) must be provided to the prospective franchisee at least thirty business days prior to the execution of the franchise agreement.

Relationship laws:

• Franchisor and franchisee may not terminate the agreement unilaterally, unless the agreement is for an indefinite term, or unless there is just cause for termination.

Registration laws:

• Either the executed franchise agreement or a summary of the franchise agreement must be filed with the Instituto Mexicano de la Propiedad Industrial (IMPI).