For the first time in their histories, the three national franchise associations of North America have formalized their relationship. The International Franchise Association (US), the Canadian Franchise Association, and Mexico’s Asociacion Mexicana de Franquicias signed a Trilateral Cooperation Agreement on August 12, 2026, creating a permanent collaborative framework across a combined ecosystem of more than 1 million franchise establishments and 9 million jobs, supporting the growth of franchise brands and the franchise model across North America.
The signing took place in Mexico City and was announced publicly on August 20. The agreement establishes structured cooperation across six areas: institutional strengthening, education and training, research, the exchange of best practices, information sharing, and cross-border brand development. It is not a trade treaty and creates no legal obligations for any of the three governments. The three associations represent markets with sharply different regulatory environments but a shared interest in making it easier for franchise concepts to cross borders under clearer, better-documented conditions.
Three Markets, One Framework
North America’s three franchise sectors represent very different scales, but each is substantial in its own right. The United States is home to more than 6,000 active franchise concepts and is the world’s single largest franchise market by volume. Canada counts more than 1,100 franchise brands, employs approximately 2 million people in franchised businesses, and contributes an estimated $150 billion annually to the national economy. Mexico’s franchise sector, while smaller, has grown steadily and is increasingly attracting US and Canadian brands looking for a first international step. Together, the three countries account for more than 1 million franchise establishments and over 6,600 franchise concepts.
What the Agreement Covers in Practice
The text of the trilateral agreement focuses on five practical pillars. First, the three associations commit to sharing regulatory and legislative intelligence, including information on franchise disclosure requirements, intellectual property protections, and market-entry rules in each country. Second, the agreement calls for joint research projects and the mutual distribution of industry data, survey results, and economic impact studies. Third, the organizations plan to develop shared education and certification programs, with the goal of raising professional standards across all three markets. Fourth, the framework includes specific provisions for internationalization support, meaning mechanisms to help franchise brands navigate the documentation, cost structures, and consumer differences they encounter when expanding across a border. Fifth, a permanent work agenda will govern regular communication and project coordination between the three bodies going forward.
Implications for US Brands Eyeing Cross-Border Growth
For US-based franchisors already operating or planning to expand into Canada or Mexico, the agreement is primarily institutional: it signals that the three countries’ franchise bodies will now share a common channel for regulatory intelligence and best-practice information. Historically, a US franchisor entering Canada has had to navigate a patchwork of provincial disclosure requirements, while entry into Mexico has involved adapting to a different legal framework and currency dynamics. The cooperation agreement does not change those requirements, but it creates a structure through which the IFA can develop and distribute better guidance to its member brands on what those requirements look like in practice. Industry observers note that franchisors with established compliance and legal support teams are typically the first to test new cross-border opportunities, while emerging brands often enter a second market after reaching a threshold of domestic unit count.
Next Steps and the Road Ahead
The three associations have indicated that a formal work agenda will now begin, with joint projects to be announced through their respective member communications. The IFA is also preparing for its annual Advocacy Summit in Washington, D.C. this September, where franchisee and franchisor representatives are expected to engage directly with members of Congress on domestic franchise legislation, including the proposed American Franchise Act. The trilateral agreement is separate from that legislative effort but reflects a broader period of institutional activity within US franchising. No timeline has been published for the first joint deliverable under the new framework.
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