Using Franchising to Take your Business International

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. 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 agree-ments 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 includes country-specific information in a series of annexes. It also includes checklists of issues to be included in three of the major contract types used for international expansion.

Details :

Table of contents : 

• 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