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Vol 15 (2017) - Issue 2

The challenges that country of origin labelling rules raise for food based franchises entering new markets

Nicolas Carbonnelle, Bird & Bird LLP, Brussels, Amy Cowper, Bird & Bird LLP, Sydney, Adele Lim, Bird & Bird LLP, Singapore, Dr. Francesca Lotta, Bird & Bird LLP, Milan and Michaela Tarr Oldfield, Michigan State University, East Lansing

Franchisors need to take account of the obligations that the law in their target jurisdictions place upon them and their franchisees in relation to country of origin labelling. This is particularly important if the franchise system ties the sourcing of food products to the franchisor or foreign approved suppliers. Compliance with these laws can have a material impact on both operational issues and the financial viability of the franchise. This article considers the manner in which this key legal requirement impacts on the way that franchisees carry on their business in a number of different jurisdictions in Europe, the USA and Asia-Pacific. It aims to assist franchisors develop an appropriate approach to dealing with these potentially burdensome and costly legal requirements when they are planning to enter new markets.

Should international disclosure documents be the norm or "best practice" for international franchise transactions?

Brian Forgas, Hilton, McLean, USA, Robert A. Lauer, Haynes and Boone, LLP, Austin, USA, Brenda B. Trickey, Popeyes Louisiana Kitchen, Inc., Atlanta, USA

Less than 30 countries have laws governing the sale of a franchise and requiring franchise disclosure or registration. While many franchisors will refrain from providing any type of formal pre-sale disclosure document or legal-compliance document when not required to do so, others have long since thought it a best practice to provide all franchise prospects with some form of disclosure or information for reasons ranging from the information being readily available, to the information being requested, to the information being provided to hopefully avoid a lot of questions from the franchise prospect during the pre-sale process. This paper discusses the underlying pre-sale franchise disclosure and risk-related issues that franchisors have to consider when franchising into a country that does not have an express statutory, franchise specific disclosure obligation.

Making life easier for franchise operators in Russia: modernization of legislation

Dr. Natalya Babenkova, Noerr OOO, Moscow, Russia

Over the last few years the commercial titles of the Russian Civil Code have been modernized so as to more closely align them with international commercial practices, and Russian courts are enforcing the new standards. These improvements are noticeable in the area of franchise law.