Can I cancel a franchise agreement in Paraguay if the franchisor hid real costs?

In Paraguay
Last Updated: Mar 11, 2026
I signed a franchise contract and later discovered extra fees and mandatory suppliers that were not disclosed during negotiations. I want to know if misrepresentation allows termination and whether I can recover what I already paid.

Lawyer Answers

MARPAT Abogados

MARPAT Abogados

Mar 11, 2026

Based on the situation you describe, it would be necessary to review the franchise agreement and the negotiation history in detail to assess your options. In general terms, Paraguayan law may allow termination if essential information was concealed during negotiations. This could constitute fraudulent omission (dolo) under Articles 290 and 291, making the contract voidable due to flawed consent, as well as a breach of the duty of good faith in negotiations under Article 714, which may justify contract termination. If such circumstances are confirmed, you may also seek financial recovery, including restitution of the franchise fee and other payments made, as well as potential compensation for damages and losses. We would be pleased to review the documentation and provide a more precise legal assessment.

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