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Vol 14 (2016) - Issue 5

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 third article in the series “Avoiding Common Mistakes in International Franchising.” In the following pages, the authors continue their discussion of planning for international expansion, focusing on the benefits and detriments of alternative franchising strategies, including how different strategies affect legal costs and timelines.

Anatomy of a franchise dispute: Lessons for transactional lawyers drafting franchising agreements

Francesca R. Turitto, Roma Legal Partners, Rome, Italy, Olivia Gast, Gast Avocats, Paris, France, Eduardo Damião Gonçalves, Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados, São Paulo, Brazil and Craig Tractenberg, Fox Rothschild LLP, New York, USA

This article attempts to distil the secrets of drafting franchise documents in an effort to pre-emptively avoid disputes, bringing together the insights litigators, dispute resolution and transactional lawyers, including lawyers who have been arbitrators in franchise disputes. The authors identify recurrent issues in the franchise relationship which should be addressed by drafting. Recognizing the differences from country to country, state to province, industry to industry, will help transactional lawyers limit the opportunities for disagreement. To the extent that disputes occur, as is inevitable, careful drafting will render the outcomes more predictable. This article aims to identify the risks and the possible drafting techniques to address the risks, and to minimise the chance that certain contractual provisions are unenforceable.

Uber – A 'fare' deal for franchisees?

Elizabeth Lang and Mark Abell, Bird & Bird, London, UK

On 28 October 2016 the UK Employment Tribunal ruled in favour of two Uber drivers seeking to establish their status as 'workers' as the first of a number of such cases backed by the GMB union. The decision has implications for the increasing number of businesses and workers who operate within what has become called the 'gig' economy and could potentially impact upon low entry threshold "gig" franchises like contract cleaning and other service based franchises. This article assesses the likely impact of the decision.