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Latest issue - Vol 17 (2019) - Issue 1

Recent developments in franchising in New Zealand

Stewart Germann, Stewart Germann Law Office, Auckland, New Zealand

New Zealand does not have any franchise-specific legislation. However, for members of the Franchise Association of New Zealand (FANZ) and for non-members who may choose to do so, there is a Code of Practice and Code of Ethics which must be complied with. There are also robust laws to protect important franchising principles.

How social franchising can address global social issues

E. Hachemi Aliouche, PhD, Director, Rosenberg International Franchise Center, Peter T. Paul College of Business and Economics, University of New Hampshire, Durham, USA

Government programs, charitable organisations and the private business sector have not provided lasting and sustainable solutions to the many social, economic and environmental challenges affecting billions of people worldwide. This challenge offers opportunities for innovative social entrepreneurs and social franchisors and franchisees interested in creating businesses that deliver more than a financial return on investment. This article explores how social franchising is starting to make a difference in this struggle to make the world a better place for all.

Resale prices in franchise chains: A lawyer perspective

Dr. Rozenn Perrigot, Graduate School of Management (IGR-IAE Rennes), University of Rennes 1, Rennes, France, Dr. Guy Basset, Graduate School of Management (IGR-IAE Rennes), University of Rennes 1, Rennes, France, Dr. Begoña López-Fernández, Facultad de Economía y Empresa, University of Oviedo, Oviedo, Spain, and Dr. Anna Watson, Hertfordshire Business School, University of Hertfordshire, Hatfield, UK

Franchisees do not have complete independence, but they must have a certain degree of freedom, including in relation to setting resale prices. Franchisors can recommend prices to their franchisees or even impose maximum resale prices, but they do not have the right to to impose a fixed or a minimum resale price. This article explores the issue of resale prices based on a study involving lawyers from France, Italy, Spain and the United Kingdom, who specialise in contract law, competition law and/or distribution law. The authors address the practice as well as the law in relation to pricing policy in franchise chains.

US FTC Franchise Disclosure Rule – Franchising safeguard or unnecessary burden?

Gaylen Knack, Gray Plant Mooty, Minneapolis, US

The United States federal franchise rule (the Franchise Rule), which requires franchisors to provide a pre-sale franchise disclosure document (FDD) to prospective franchisees, has been in place since 1978 and often has served as the basis for franchise regulation in other countries. Because the Franchise Rule was established under the rulemaking authority of the Federal Trade Commission (FTC), and not as statutory law, it is subject to regular review and modification. This article focuses on the current environment in which the FTC is undertaking a review and whether the FTC should heed the general directive of the Trump Administration to eliminate unnecessary regulation and abolish the Franchise Rule.