Zeidel & Associates Expands Restaurant Brand to Mexico City with Licensing and Consulting Agreement
Situation
Zeidel & Associates represented an innovative and successful hospitality company in expanding one of its iconic restaurant brands into Mexico City, Mexico. The restaurant was to be developed and constructed by the licensee, subject to the client’s approval of all plans and specifications for the same. In addition to licensing the brand, the licensee engaged the client to provide consulting services covering the planning, design, operation, and management of the restaurant.
Approach
The consulting scope included recommending preferred third-party suppliers and vendors for kitchen and back-of-house equipment, products, services, and other operational needs. The agreement preserved the client’s right to require specific purveyors, suppliers, vendors, and ingredients to ensure compliance with its recipes and operating standards. To further ensure brand consistency, the licensee’s executive chef was required to train at the client’s U.S. restaurant of the same brand prior to opening, and members of the client’s culinary team would be on-site after opening to oversee recipe and process implementation.
Because the licensee was leasing the restaurant location, and Mexican law generally does not allow a licensor to step into the shoes of a licensee-tenant in the event of a default, the agreement included protections to mitigate the associated risks. Additionally, while the agreement contained a radius restriction preventing the client from opening another restaurant of the same brand within a certain distance, Zeidel & Associates ensured the restriction did not apply to products, promotions, or events using the brand name.
Although Mexican law governed the agreement, Zeidel & Associates negotiated for all disputes to be resolved under the Rules of Arbitration of the International Chamber of Commerce, with the venue in the United States, providing the client with a more favorable dispute resolution framework.
Result
The finalized agreement gave the client a clear path to brand expansion in Mexico while preserving operational control, protecting intellectual property, and mitigating local legal risks. By combining brand licensing with consulting oversight, and strategically structuring jurisdiction and dispute resolution terms, Zeidel & Associates positioned the client to enter the Mexico City market with both creative integrity and strong legal safeguards.