Costa Rica: New Franchise Law

In brief

On 12 February 2026, Costa Rica's Legislative Assembly approved the Law for the Regulation and Promotion of Franchises (Ley para la Regulación y Promoción de las Franquicias) ("Franchise Law"), marking the country's first franchise-specific statutory framework. The Franchise Law is not yet in force. It will only become effective once it is (i) signed by the Executive Branch (including the President) and (ii) published in the official gazette, both mandatory steps under Costa Rican law. These formalities are expected to be completed within one to two months from the date of this alert. Once effective, the Franchise Law will require both domestic and foreign franchisors to reassess how they structure market entry, disclosure, and franchise documentation.

Download the full version of Costa Rica: New Franchise Law.