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Vol 6 (2008) - Issue 5

Changes in state franchise registration and disclosure laws as a result of the Federal Trade Commission’s revised franchise rule

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

The revised FTC Franchise Rule has had and, for the foreseeable future, will continue to have a dramatic impact on the various state franchise registration and disclosure laws. While some changes have been swiftly implemented at the state level, it will take time before all states have acted to make their laws consistent with the revised FTC Franchise Rule. This article analyses the relationship and remaining conflicts between federal and state laws, and details State responses to date. The author expresses the hope that when the process is concluded, state franchise registration and disclosure laws will contain many, if not all, of the benefits available to franchisors and franchisees under the revised FTC Franchise Rule.

Brazil - Termination of master franchise agreements

Cândida Ribeiro Caffé, Dannemann, Siemsen, Bigler & Ipanema Moreira, Rio de Janeiro

The termination of master franchise agreements in Brazil is governed by general rules of civil law. This article provides an overview of the ways in which master franchise agreements can be terminated and of the various issues franchisors need to consider in this context, and it details the consequences of such termination, in particular with regard to sub-franchisees.

Canada – Termination of a master franchise agreement

Leonard H. Polsky, Gowling Lafleur Henderson LLP, Vancouver

This article provides an authoritative overview of the consequences of the termination of a master franchise agreement under the general common laws of Canada, where the parties to the agreement have not fully contemplated all of such consequences. The author analyses in detail the fate or disposition of the contracts entered into by the master franchisee under or pursuant to the master franchise agreement. Finally, he considers whether it might be conceptually possible for the franchisor to gain third party beneficiary rights of enforcement of the sub-franchise agreements based on specific wording contained in these agreements.

Greece - Termination of master franchise agreements

Yanos Gramatidis, Partner and Nikolas Iliopoulos, Associate, Bahas, Gramatidis & Partners, Athens

This article provides a detailed overview of Greek law as regards the termination of master franchise agreements and considers the parties’ obligations post termination and the consequences of termination with regard to the sub-franchisees.

New Zealand – Proposed franchising regulation

Stewart Germann, Stewart Germann Law Office, Auckland, New Zealand

In New Zealand there is currently no specific law governing franchising. Franchise Agreements are subject to a range of generic laws and there is self-regulation of business format franchising through the Franchise Association of New Zealand. This article considers in detail the Discussion Document in relation to a proposed review of Franchising Regulation published by the New Zealand Government in August 2008.

Poland - Competition law update: Can a service be resold?

Andrzej Krawczyk, Akademia Rozwoju Systemów Sieciowych Sp. z o.o., Warsaw

The Regulation of the Council of Ministers of 19 November 2007 on the exemption of certain types of vertical agreements from the prohibition on agreements containing restrictions of competition took effect on 1 January 2008. As opposed to Commission Regulation (EC) No. 2790/1999, the Regulation does not include services in the category of vertical agreements exempted from the prohibition on agreements restricting competition.

UK - Update on recent franchise cases

Victoria Hobbs, Partner, Field Fisher Waterhouse, London

This article reviews two recent decisions of the High Court in England in which the franchise relationship was examined. Whilst neither case has made new law, the cases are interesting in that they reinforce views commonly held by English franchise lawyers and because, as the writer explains, it is fairly unusual for a franchise dispute to proceed to a full-blown trial in England.