What applies to these arrangements.
WHAT TO ESTABLISH
Whether franchising is specifically regulated in your jurisdiction.
WHY IT VARIES
Some jurisdictions impose disclosure and registration requirements, and others do not.
WHAT GENERALLY APPLIES REGARDLESS
Contract law Trademark and intellectual property law Competition law, in some respects Consumer protection, where applicable Tax treatment of fees and royalties
WHAT TO ESTABLISH ABOUT DISCLOSURE
What you must tell prospective franchisees.
WHY IT MATTERS EVEN WITHOUT A REQUIREMENT
Misrepresentation produces claims, and honest disclosure prevents disputes.
WHAT TO AVOID PROVIDING
Financial projections you cannot substantiate.
WHY
They are the basis of most franchisee claims.
WHAT TO PROVIDE INSTEAD
Actual results, with their basis stated.
WHAT TO ESTABLISH ABOUT COMPETITION LAW
Whether restrictions you impose are permissible.
WHAT RESTRICTIONS DESERVE CARE
Resale price requirements Exclusive supply obligations Restrictions on competing after termination
WHY
Some are restricted, and unenforceable terms provide no protection.
WHAT TO ESTABLISH ABOUT TAX
How fees and royalties are treated Whether withholding applies to cross-border payments
WHAT TO ESTABLISH ABOUT CROSS-BORDER ARRANGEMENTS
Which law governs Where disputes are resolved How payments move
WHY GOVERNING LAW MATTERS
Enforcement across jurisdictions is difficult and expensive.
WHAT TO REGISTER
Trademarks, in every territory involved.
WHAT TO HAVE REVIEWED
Every agreement, by a solicitor experienced in these arrangements.
WHAT TO KEEP
Every agreement, disclosure and communication.
