When a business or company wishes to sell its products or services within Nicaragua, franchising or distribution agreements may be the answer. Any size of business – whether a multinational corporation or a small operation – can expand its operations through opening a franchise location or distribution center in Nicaragua. Through franchising agreements, a corporation or other business entity grants certain rights and privileges to another, allowing that other person (or business) to use the business’s products, services, name, image, and other proprietary information to sell certain products and/or services within Nicaragua. Or a company may choose to set up a distribution center in Nicaragua, using the country’s centralized location to distribute goods throughout the Americas.
Franchising or distribution agreements in Nicaragua must be negotiated between the private parties and may require approval from the government. Therefore, it is advisable to retain Nicaragua-based legal counsel with experience negotiating the terms of franchising and distribution agreements as well as drafting these agreements to the satisfaction of the parties as well as government agencies who review them. Failing to do so can mean costly delays, denials of permits, and (in some cases) fines, sanctions, or other penalties.
The franchising and distribution agreement attorneys at Alvarado y Asociados have extensive knowledge and experience of helping businesses who wish to use Nicaragua as a place to sell or distribute their goods and services. Allow us to help minimize the number of obstacles and help make your new franchise or distribution operation in Nicaragua successful.