Trilateral Franchise Agreement: Bringing the US, Mexico, and Canada Closer Together
Oct 28, 2026
Unlocking the growth potential in the North American franchise industry takes more than goodwill. It requires genuine, intentional collaboration and a shared commitment to benefit not only the industry but also the Franchisors and Franchisees within it. That's why the Trilateral Franchise Agreement between the United States, Canada, and Mexico was created.
Last week, I had the honor of representing the International Franchise Association (IFA) on a panel about the Trilateral Agreement at the Mexican Franchise Association’s 2026 International Convention in Guadalajara, Jalisco, Mexico.
The panel also featured Betsy Eslava, President of the Mexican Franchise Association (AMF), and Sherry McNeil, President of the Canadian Franchise Association (CFA), and was moderated by Juan Kasuga, AMF Vice President of International Relations.
Juan Kasuga, Aicha Bascaro, Betsy Eslava, and Sherry McNeil
A Collaborative Vision
As Betsy Eslava, President of the AMF, explained during the panel, the Trilateral Franchise Agreement, signed in March 2026, grew out of the three neighboring associations' commitment to strengthen the franchise sector across North America.
- The potential is enormous. Together, these three countries represent a collective market of over 500,000 consumers, 6,600 franchise brands, more than one million franchise units, and 12 million jobs in total.
"We want to strengthen our relationship in the franchise sector with our neighbors because, while we are very different markets, we all have the same goal of achieving a greater expansion of our brands in these three countries. This alliance creates real opportunities to expand our brands in Canada, the United States, and Mexico."
Each country contributes its unique market dynamics, creating a rich landscape for franchises eager to grow beyond their borders.
Understanding Market Differences
We also discussed some of the challenges and opportunities that each market presents.
US Market Challenges
For Canadian and Mexican brands looking to enter the U.S. market, navigating not only our federal franchise laws, but also state-specific regulations adds complexity. Why? As I explained, each state operates almost like a little country (that's why we call it the United States of America), so franchisors must first understand the regulatory landscape.
The franchise environment is also highly competitive: with over 3,200 active brands in the U.S., foreign newcomers must demonstrate strong market presence and establish credibility to compete effectively.
Canadian Market Challenges
Sherry McNeil, President of the CFA, noted several factors Franchisors must consider before entering Canada.
To start, Canada has a large landmass but only 41 million people—much fewer than Mexico's 200 million. Of its 10 provinces and three territories, seven provinces have their own franchise legislation, while the other provinces and territories do not.
And, in regions like Quebec, there are also language laws that must be followed and understood. This regulatory climate means Franchisors must be diligent and informed to meet each province's legal requirements, depending on where they want to operate.
"There is no national framework that can be used, unlike other parts of the world where there's a national or federal framework. And then it's also about understanding the personalities of each province because they are very different from one another."
How Will the Trilateral Franchise Agreement Help?
The alliance between these three franchise associations will open the door for franchise entrepreneurs who want to expand their brands into the U.S., Mexico, or Canada by providing information, training, tools, legal and market intelligence across the three countries.
That way, when someone wants to invest in internationalizing their brand, which can be very expensive, they can plan ahead, build knowledge, and have the right contacts to enter these markets with a softer landing.
As I said during the panel, I think this is the essence of this collaboration. American Franchisors that grow outside the country are already choosing Mexico and Canada first. But thanks to the Trilateral Agreement, Franchisors in our three countries can now do so more easily, efficiently, and effectively, while mitigating the risks of global expansion.
"We want to provide information about Canada's regulations and legislation, taxes, privacy laws, and how the unit economics work, because the cost of goods, real estate, and cost of employment are different here. Also, share best practices and lessons learned from successful companies in Canada", said Sherry. "Understanding those differences, best practices, and providing those resources will make franchise brands expand faster, easier, and be more successful within our market".
The IFA, CFA, and AMF also created an informative brochure outlining key information about the three markets. Next February, at the 2027 IFA Convention in Las Vegas, they will present a more in-depth toolkit featuring market intelligence and cultural and legal insights to support members looking to expand to these countries.
As Betsy pointed out, "This is a permanent agreement, and we aim to get it bigger and bigger every day. These are just the first steps, and we’ll keep scaling up".
Looking Ahead
The Trilateral Franchise Agreement represents more than just a policy initiative; it embodies a shared vision for a robust franchise ecosystem across North America. By leveraging the strengths of each nation, franchise brands can unlock new opportunities for growth and collaboration.
I'm excited to see how franchises from Mexico, Canada, and the United States will work together and find new ways to innovate as the agreement evolves. I'm truly honored to lead the U.S. committee within the IFA, and look forward to working closely with Sherry and Betsy to help bring these efforts to life for our industries.
I think one of the best, most immediate results will be greater success for Franchisors entering these international markets, because they'll now have not only the passion and courage to take that step, but also more knowledge and information to increase their chances of thriving there.
The future of franchising in North America is bright, and the potential for cross-border collaboration is limitless.
Stay tuned for more updates on this Trilateral Agreement!
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