Franchise Laws: What You Should Know Before Expanding Internationally


Much has been written about the phenomenon known as “inadvertent franchising” in the U.S. — a situation that arises when a company, acting innocently enough, thinks it is granting a simple license but actually crosses the line into franchising. Inadvertent franchising can result in claims against the franchisor for rescission and damages, and can even result in individual liability for control persons.

While most articles on this topic focus on domestic inadvertent franchising, international franchise laws can be just as complex as U.S. franchise laws, and the implications of running afoul of international franchise laws can be just as severe. In fact, in many countries, there are few, if any, exemptions from these obligations. As a result, when a company considers international expansion, it is particularly important for the company’s officers and advisors to be aware of which countries regulate franchising, what these laws require and what the implications are for violating them.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Joshua Schneiderman | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.