Search Publication

Vol 14 (2016) - Issue 4

Avoiding common mistakes in international franchising

Carl E. Zwisler, Gray Plant Mooty, Washington, D.C., USA and Beata Krakus, Greensfelder, Hemker & Gale, Chicago, USA

This is the second article in the series “Avoiding Common Mistakes in International Franchising.” In the following pages, the authors continue their discussion of legal and business issues that should be addressed in the plans of international franchise parties, in particular the issue of how the choice of franchising strategy affects the cost and viability of an international franchising transaction.

Will franchisors in the EU be subject to a double disclosure requirement?

Dr.Mark Abell, Bird & Bird, London, UK

A new EU law on misleading advertising will impose a further requirement on franchisors in respect of their recruitment campaigns, in addition to the current approach of specific contractual limitations on the franchisor’s liability for misrepresentation and the issuing of disclosure documents. This article addresses the question of whether franchisees can be deemed to be consumers in the EU or not and analyses the likely impact on franchisors of this new legislation.

Franchising and cloud services

Michelle Chan and Clarice Yue, Bird & Bird, Hong Kong

With the advent of cloud services technology, franchisors are increasingly reliant on cloud service providers to store and transfer data within the franchise system. Whilst many of the legal issues surrounding the use of cloud computing services may not be too different from those in the context of other IT related service arrangements, franchisors should always address the specific concerns arising from the nature of cloud services before engaging a service provider. This article examines a number of key legal and regulatory issues relating to the use of cloud services in a franchising operation, and discusses the possible measures that can be taken by a franchisor in addressing such risks.

Structuring joint ventures in franchising

Theodore P. Pearce, Bradley Arant Boult Cummings, Charlotte, USA, María Bacas, formerly Grupo Vips, Madrid, Spain, and Luciana Bassani, Dannemann Siemsen Advogados, Rio de Janeiro, Brazil

Many franchisors choose joint venture structures as the basis for expanding their brand abroad. This article presents an overview of the advantages and disadvantages of using joint ventures for franchise expansion as well as a detailed analysis of contractual and intellectual property considerations.