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Vol 3 (2005) - Issue 1

Critical issues in acquiring a master franchise from a foreign franchisor

Alex Konigsberg Q.C., Lapointe Rosenstein, Montreal

The author examines some of the issues that must be taken into account by a franchisee considering acquiring a master franchise from a foreign franchisor and concludes that franchising experience is almost indispensable in order to succeed.

EU Report February 2005

James Webber, Solicitor, Eversheds LLP, Brussels

Microsoft will not appeal the rejection by the European Court of First Instance of its claim for an interim injunction, pending appeal against the enforcement of the European Commission’s antitrust findings. EU Report also looks ahead at the European Commission’s new President’s legislative programme, with particular reference to franchising.

Franchising and data protection in Canada

E. Michael Power, Partner and Chief Privacy Officer, Gowling Lafleur Henderson LLP, Ottawa, Canada and Louis R. Benoit, Associate, Gowling Lafleur Henderson LLP, Ottawa, Canada

This article provides an overview of Canadian data protection/privacy laws that can affect franchise operations. Franchisors should be aware that other issues concerning information management, such as data retention, also need to be addressed. The article also stresses that privacy compliance is a dynamic process and franchisors should ensure that future policy or operational changes are consistent with privacy requirements under existing law.

Franchising in China: (Un)Fair competition?

Vivien Chan J.P., Vivien Chan & Co., Hong Kong

China has introduced Measures on Franchising Operations as part of its commitment to open up to the global market. Vivien Chan describes the Measures and assesses their likely impact.

Franchising under Romanian law

Dr. Jörg K. Menzer, Attorney-at-Law/Rechtsanwalt, Nörr Stiefenhofer Lutz, Bucharest and Rusandra Sandru, Attorney-at-Law, Nörr Stiefenhofer Lutz, Bucharest

Franchising is become established in Romania and whilst the laws regulating franchising are still in the process of development, legislation in all key fields is in place and, say the authors of this article, offers stability to those investors interested in establishing franchise systems in Romania.

New franchise law in Belarus

Anton Vashkevich, Law Offices of Borovtsov & Salei, Minsk

The new Belarus franchising provisions come into effect in February 2005. The provisions cover in some detail all aspects of the franchising contract and sub-franchise agreement from the setting up of the contract to cancellation, including terms, rights, duties and liabilities and other miscellaneous provisions.

Grounds for recovering against a franchisor

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

In Carvel Corporation v. Elizabeth A. Noonan, et al., 3 N.Y.3d 182, 785 N.Y.S.2d 359 (N.Y. 2004), New York’s highest court has held that ice cream franchisor Carvel did not tortiously interfere with the prospective economic relations of its franchisees by implementing its controversial ‘supermarket sales program’.

US Report February 2005

Michael G. Brennan and Lauren J. Murov, Piper Rudnick LLP, Chicago

In the first case considered in this Report, the court found that an insurance company was not obligated to defend a franchisor from allegations brought against it, based on the existence in the insurer’s policy with the franchisor of some specific exclusions from coverage. The second case provides an overview of corporate liability for punitive damages and looks at when an award for punitive damages is excessive; and the final case deals with a franchisor’s power to withhold its approval for the renewal of a franchise agreement.