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Vol 7 (2009) - Issue 3

When insolvency strikes

Mark Abell, Partner, Field Fischer Waterhouse LLP, London; André Lombart, Partner, CMS De Backer, Brussels; Dean C. Waldt, Partner, Ballard Spahr Andrews & Ingersoll, Voorhees, and; Rocío Belda de Mergelina, Partner, Garrigues, Madrid

It is imperative that franchisors understand the nature and effects of the insolvency procedures in the jurisdictions that their franchisees operate in. Franchisors must consider a number of major issues when faced with insolvency risks or situations within their franchise networks at three distinct stages of the process: when drafting a franchise agreement, when a risk of insolvency arises in any or some of the franchisees and after a franchisee falls in an insolvency situation under the insolvency framework applicable in three distinct jurisdictions.

EU report – Competition update

Cathy McKenna, Associate, Field Fisher Waterhouse LLP, London

A summary of recent developments in European Union competition law and enforcement regarding dominant undertakings, merger control and the new Vertical Agreements Block Exemption.

Navigating rough financial seas in international franchising

Andrew Loewinger, Partner, Nixon Peabody LLC, Washington, D.C.; Remi Delforge, Partner, Donald Manasse & Remi Delforge Avocats Associés, Nice, and; Andrew Wiseman, Partner, Allens Arthur Robinson, Sydney

The world-wide economic distress is now quite well-known. The financial and economic wreckage of the storm has left no quarter undamaged. This article addresses the issues facing franchisors and franchisees in the international and domestic marketplace, highlighting those issues that distinctly or disproportionately affect international franchisors and their operations. The authors identify business and legal problems, and propose approaches and solutions with an emphasis on legal issues, legal analysis, and legal solutions.

New York amends its tax law – Franchisors now required to report franchisee sales

David W. Oppenheim, Partner, Kaufmann Gildin Robbins & Oppenheim LLP, New York

A recent amendment to New York Tax Law requires franchisors to report the gross sales of each of their New York franchisees directly to the New York Department of Taxation and Finance (“the Department”) regardless of their domicile. This report summarises the amended law, considers how this change impacts franchisors and franchisees, and sets forth the reporting requirements and penalties for non-compliance.