Using Franchising to take your business international: ICC strategies and guidance

No. @754E

ISBN : 978-92-842-0275-1

Building an international network can bring great rewards, not only in terms of profits, but also by increasing brand awareness. It allows growth and support using local companies’ capital. This book provides practical guidance on why, when and how a franchisor should go international.

Aimed at franchisors that already have a multi-unit operation that has proven successful in one market, this guide will help you to decide whether or not to take the next step. With a truly global perspective, the authors and correspondents from all corners of the globe have taken into account the difference between common law and civil law as well as the amount of legislation in different countries and states.

Written in an accessible style, the text covers the myriad of legal and business questions a franchisor should consider in detail, i.e.

  • The steps to go international through franchising and the different contracts and agreements possible (Master Franchising, Area Development and Sub-Franchising)
  • Potential risks and pitfalls
  • Market and financial research
  • Legal planning (local laws, IP issues, public policy, laws with international application)
  • How to choose a candidate
  • Exit strategy
  • And more

The guide also includes sample country-specific information in a series of annexes and checklists of issues to be included in three of the major contract types used for international expansion.

Code ISBN : 978-92-842-0275-1
Number of pages : 161
Publishing date : 2014
Language : English
Format in cm : 15.9*23.9

Chapter 1 INTRODUCTION

1.1 Scope

1.2 Terminology

1.3 Definitions used in this Guide

1.3.1. Parties

1.3.2. Agreements

1.3.3. Fees

1.3.4. Other definitions

1.4 Country associations, websites

1.5 Disclaimer for freshness of information

Chapter 2 INTERNATIONAL STRATEGY

2.1 Why go international through franchising?

2.1.1 The reasons for international expansion

2.1.2 The risks of international expansion

2.2 When to go international?

2.2.1 Steps Franchisor’s headquarters should take regarding cross-border control, compliance and enforcement

2.3 Where to go international?

2.3.1 Selection of the target market

2.4 How to go international?

2.4.1 The steps to go international through franchising

2.4.2 Master Franchise Agreements

2.4.3 Area Development Agreements

2.4.4 Area Representatives

2.4.5 Joint ventures or subsidiaries

2.5 Exit strategy

2.5.1 How can a Franchisor terminate a Master Franchisee but keep a presence in the market?

2.5.2 How can a Franchisor terminate a Master Franchisee and leave the country?

2.5.3 Does a Franchisor have other means than to terminate a Master Franchisee when breaches of contract occur?

2.5.4 Exit strategy

Chapter 3 BUSINESS STRATEGY

3.1 Market research

3.2 Financial

3.3 Management .

3.4 Training

3.5 Costs

3.6 Need for external resources, financial and personnel

Chapter 4 LEGAL PLANNING

4.1 Relevant laws in the target market

4.2 Internationally mandatory rules/Public policy

4.3 Trademarks and domain names

4.4 Restrictions in the target market

4.5 Tax

4.6 Different approaches to drafting contracts

Chapter 5 FINDING A CANDIDATE

Chapter 6 WHAT TO DO ONCE A CANDIDATE IS FOUND

6.1 Interests of the contracting parties

6.1.1 Protection of Know-how

6.1.2 Competition and integrity of staff

6.1.3 Reservation of the future Territory

6.1.4 Roadmap for the integration of the System

6.2 Agreements protecting the parties’ interests

Chapter 7 MASTER FRANCHISE AGREEMENTS

Chapter 8 AREA DEVELOPMENT AGREEMENTS

Chapter 9 SUB-FRANCHISE AGREEMENTS

Chapter 10 DIRECT UNIT FRANCHISE AGREEMENTS

Chapter 11 POST-CLOSING

Chapter 12 CONCLUSION


ANNEXES

Annex 1 Immigration and visas

1 Entering the United States

2 Entering the European Union and United Kingdom

3 Entering Japan

4 Entering the People’s Republic of China (PRC)

5 Entering the Russian Federation

6 Entering Brazil and Mexico

Annex 2 Antitrust/Competition

1 Application of US antitrust laws to international agreements

2 Application of antitrust laws of the European Union

Annex 3 Privacy/Data protection

1 Application of US privacy laws

2 Application of European Union (“EU”) data protection laws

3 Cross-border data transfer

Annex 4A Checklist Master Franchise Agreement (MFA)

Annex 4B Checklist Area Development Agreement (ADA)

Annex 4C Checklist Sub-Franchise Agreement

Annex 5 International franchise literature

Annex 6 Country franchise associations

Annex 7 Pre-sale disclosure requirements

Emily O’Connor