Brazil

Franchise regulation

The Brazilian Franchise Law (Federal Law no 13966/2019) governs franchising.

Pre-contractual disclosure requirements

The franchisor must provide a detailed disclosure document containing specified information in Portuguese, at least 10 days before execution of the agreement or payment of any amount by the franchisee.

Registration

International franchise agreements must be recorded at the Brazilian Patent and Trademark Office to (i) legitimise the remittance of payments to foreign countries; (ii) allow, if applicable, tax deductions for the company making payments; and (iii) for the enforcement of trade mark rights against third parties.

Other issues

International franchise agreements shall be either written originally in Portuguese or translated by certified translators into the Portuguese language, at the cost of the franchisor.

If a legal venue is stipulated in the international franchise agreement, the parties must constitute and maintain a duly qualified legal representative or attorney-in-fact domiciled in the country of legal venue, with powers to represent them in the administrative and judicial spheres, including to receive service of process.

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