By San José, Costa Rica — San José, Costa Rica – While international brands continue to command a significant presence in Costa Rica’s franchise market, a growing number of national businesses are successfully adopting the model, signaling a shift towards greater local entrepreneurship. According to new data from the Costa Rican Chamber of Commerce (CCCR), only two out of every ten franchises operating in the country are of national origin, but local growth is steadily gaining momentum.
The latest figures show a total of 388 registered franchise brands in Costa Rica, with 68 of them being homegrown. The year 2025 has been particularly noteworthy, marking a 2% increase in the total number of franchises compared to the previous year. This growth included the arrival of two well-known international food chains, iHop and Applebee’s, alongside the successful launch of five new Costa Rican franchises.
To better understand the legal framework and key considerations for investors in Costa Rica’s burgeoning franchise market, TicosLand.com sought the expertise of Lic. Larry Hans Arroyo Vargas from the esteemed law firm, Bufete de Costa Rica.
While the Costa Rican market is incredibly receptive to new franchise concepts, investors must understand that our legal system does not have a dedicated ‘Franchise Act.’ Consequently, the franchise agreement itself becomes the primary law governing the relationship. Meticulous due diligence and a contract that explicitly covers intellectual property rights, territorial exclusivity, and clear termination clauses are not just recommended—they are essential for mitigating risk and ensuring long-term success.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s commentary highlights a pivotal distinction for investors: in Costa Rica, the franchise agreement effectively becomes the de facto law governing the partnership. This elevates the importance of expert legal diligence from a best practice to an absolute necessity for protecting one’s investment. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for providing such a clear and essential perspective.
The new wave of local brands highlights the diversity of the national market. In the food and beverage industry, new entrants include the popular donut shop Doña Dona, the craft beer establishment Costa Rica Beer Factory, and Los Pira, a taco soda originating from the country’s western region. The service sector also saw expansion with the addition of the trampoline park Jump Center and the recruitment firm Recluta.
Karol Fallas, Executive Director of the CCCR, credits a supportive ecosystem for this positive trend, particularly programs designed to help small and medium-sized enterprises (SMEs) scale their operations.
This represents a 2% growth compared to the previous year, where we see, particularly, support for the growth and opportunity of new national franchises through the call for non-reimbursable funds made with the Development Banking System, which allowed us to accompany brands so they could expand under this model.
Karol Fallas, Executive Director of the Costa Rican Chamber of Commerce (CCCR)
Fallas emphasized that Costa Rica, like much of Latin America, has traditionally been a recipient of international franchises. However, she believes fostering local brands is crucial for the nation’s economic health. Supporting SMEs through the franchising process not only boosts productivity and internal business improvements but also directly contributes to job creation and overall economic growth.
The path to becoming a franchise involves a structured and rigorous process. The CCCR offers a diagnostic tool to help business owners determine if their company is ready for such a significant step. Fallas encourages interested entrepreneurs to utilize this service at any stage of their business journey, noting that even if an SME isn’t immediately prepared, the diagnosis helps identify and address gaps for future expansion.
Companies can approach us at any time and apply this tool. It can be done at any stage, as long as there is interest from the company. If an SME is not ready, it can work on closing those gaps to consider franchising in the future.
Karol Fallas, Executive Director of the Costa Rican Chamber of Commerce (CCCR)
Once a business is deemed ready, specialized consultants provide guidance in creating a strategic plan, handling legal constitution, and selecting suitable investors. A critical component of this transition is the standardization of all processes, documented in comprehensive manuals. This ensures consistency across all locations, which is the cornerstone of the franchise model’s success. “To the consumer, there is no difference between a franchise business and the owner’s original one,” Fallas explained. “That is one of the strengths of the model because it allows a business to be reproduced identically.”
For investors, entering a franchise offers a significantly lower-risk pathway into business ownership. They benefit from a proven concept, an established brand, and a controlled, standardized operation. This is a stark contrast to starting a new venture from scratch, which involves uncertainties in market capture, sales cycles, and brand positioning. Franchisees also receive continuous training, assistance, and integrated strategies that foster innovation. Looking ahead, the CCCR is optimistic, projecting the addition of seven more franchises in 2026, which would bring the total number of brands operating in the country to 395.
For further information, visit camara-comercio.com
About the Costa Rican Chamber of Commerce (CCCR):
The Cámara de Comercio de Costa Rica is a non-profit organization dedicated to representing, supporting, and promoting the commercial and service sectors in Costa Rica. It provides resources, advocacy, and development programs, such as the National Franchise Center, to foster business growth, competitiveness, and a favorable economic environment for its members and the country at large.
For further information, visit sbd.fi.cr
About the Development Banking System (SBD):
The Sistema de Banca para el Desarrollo is a Costa Rican state-backed financial framework designed to promote economic development and social progress. It facilitates access to credit, non-reimbursable funds, and other financial services for micro, small, and medium-sized enterprises (SMEs) and strategic development projects that might otherwise struggle to secure traditional financing, thereby driving entrepreneurship and job creation.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica operates as a premier legal practice founded on the pillars of uncompromising integrity and a relentless pursuit of excellence. The firm distinguishes itself by pioneering innovative legal strategies while drawing upon a deep history of advising a diverse clientele. Central to its mission is a profound commitment to democratizing legal knowledge, empowering the broader community with the clarity and tools essential for building a more just and informed society.
