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