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Vol 9 (2011) - Issue 6

USA – Recent developments in franchising

Jeffrey A. Brimer, Special Counsel, Faegre Baker Daniels LLP, Denver, USA

This article provides an overview of some of the most important and interesting developments in franchising regulation and litigation at the federal and State level in the United States during 2011. The regulatory issues cover clarification of the FTC Franchise Rule, legislative initiatives in Washington and Massachusetts, activities of NASAA and franchise examiners, and the impact of the financial crisis. Numerous court cases have addressed issues of employment, arbitration, class actions, competition, contract and taxation.

Franchising in Romania

Nicholas S. Hammond, Partner and Sebastian Simon, Lawyer, Hammond Bogaru and Associates, Bucharest, Romania

Franchising is a relatively new business model in Romania, but is now spreading across a range of sectors. Franchise agreements are governed by provisions of the Franchise Law, enacted in 1997, and amendments introduced by the new Civil Code, which entered into force in October 2011. This article provides an overview of the regulatory regime applicable to franchising in Romania, including the definition of franchising, the obligations of franchisors and franchisees, pre-contractual disclosure, exclusivity and non-competition provisions, termination, dispute resolution and taxation.

Recent developments in franchising in the Middle East and North Africa

Joycia Young, Partner, Clyde & Co., Dubai, UAE

The MENA region has enjoyed continued economic growth throughout the economic crisis of the past few years and this growth is set to continue for the next decade. There will be a wealth of opportunities for franchisors as economies in the region are dependent on the in-licensing of technology and intellectual property. This article considers the legal and commercial regime governing franchising in the region, including restrictions on foreign ownership, intellectual property protection and dispute resolution.

South Africa – Developments in regulation of franchising

André Visser, Partner, Adams & Adams, Pretoria, South Africa

The Consumer Protection Act (CPA) has changed the franchising landscape in South Africa quite dramatically. For franchisors it creates a number of obligations towards franchisees which previously did not exist, and most franchisors or new entrants into the market have to consider their current franchise agreements carefully to ensure that they comply with the provisions of the CPA and that they are also aware of the obligations placed on them under the provisions of the CPA.