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Regulations

California amended its franchise relationship law in October, giving more rights to franchisees. How might these changes affect your brand, and will they spread nationwide?
  • By Cheng Cohen
  • 2,298    0
Litigation resulting from mandatory system changes can be eliminated (or at least reduced significantly!) by following these four tips.
  • By Cheng Cohen
  • 2,097    5
On July 29, 2014, the General Counsel of the National Labor Relations Board (NLRB) announced in a very brief statement that he was authorizing the issuance of formal unfair labor practice complaints against McDonald's...
  • By Marlén Cortez Morris
  • 6,457    376
The Affordable Care Act has introduced widespread changes to the healthcare landscape. It has increased the availability, quality, and affordability of health insurance for the general population, regardless of age, gender, or pre-existing medical conditions.
  • By Benjamin Geyerhahn
  • 6,399    0
Email is dominating business communications, and social media is replacing much of what previously was done through print advertising.
  • By Cheng Cohen
  • 2,678    0
What you don't know, you can't measure. And what you can't measure, you can't improve!
  • By Steve Olson
  • 1,794    94
We now have all of the requirements of the FTC's Amended Franchise Rule being implemented. All franchisors should be complying with the Amended Rule's disclosure requirements, and most franchisors who have sales activities in the registration states are now doing battle with the state examiners, as they test the procedures and borders of the revised disclosure requirements. That brings to mind two topics of discussion, one of which I will address below, and the other (a look at the overall system for regulating franchise sales disclosure) I will save for another column.
  • Rupert M. Barkoff
  • 4,217    20
The Government of Afghanistan is currently reviewing a bill that would reform and modernize the country's contract law. Afghanistan is a civil code jurisdiction and, currently, contracts are governed by sections of the country's Civil Code (dating from 1976) and Commercial Code (dating from 1955). Both the 1976 Civil Code and the 1955 Commercial Code are based on the laws of Egypt, which in turn are based on French civil law. During the period following the Soviet invasion, and the subsequent civil war in Afghanistan, little attention was paid to updating or modernizing these Afghanistan statutes.
  • By Herbert S. Wolfson
  • 6,207    457
Korea's first franchise law, the Fair Franchise Transactions Act (the "FFTA") was adopted May 2002, effective Nov. 2002. Its Presidential Enforcement Decree - setting forth detailed information to be provided in the franchise information disclosure statement and a description of concrete types of unfair transactions broadly prohibited under FFTA - was promulgated Nov. 2002 (last amended June 2003). In the Korean system, Enforcement Decrees provide detailed instructions for statutory compliance; therefore, it is to be expected that 2004's changes to applicable law will be found in future amendments to the Enforcement Decree.
  • By Hyun-Sang Youn & Brendon Carr
  • 3,566    31
The past decade saw an acceptance by the Romanian market of the Western concepts of doing business, a new perception of the value of brands and the creation of an entirely new market - the one for franchisers. Seven years have passed since Romania enacted a franchise law. During this period, the market has evolved, and the pioneering period in franchising during which major companies entered the market only for market testing - first performing distribution operations (Coca Cola) or establishing a subsidiary (McDonald's) and only afterwards developing their franchise concepts - has come to an end. Indeed, 60 of the 107 franchises currently operating in Romania have been established during the last two years.
  • By Roxana Negutu
  • 4,123    332
California has long been a key market for franchising. Its consumer-oriented culture has also made it one of the most active venues for regulatory and legal issues. Legal developments over the past year affecting the franchise community include 1)...
  • By Mary Beth Trice and Dawn Newton
  • 5,285    157
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During the last few years, franchising has experienced an impressive growth in Spain, from 634 franchise systems in 2002 to almost 900 in January 2006, with over 54,000 franchised outlets now open. Accordingly, having access to accurate and relevant information regarding franchisors is very important for a growing number of prospective franchisees, consumers and future franchisors.
  • By Laura Montoya Teran
  • 4,408    290
Last year, while many Canadians and Americans alike were considering a summer vacation to experience all that Canada's Atlantic Coast has to offer, legislators in Prince Edward Island and New Brunswick, two of Canada's maritime provinces, were setting their minds to franchising.
  • by Lawrence Weinberg and Jayne Westlake
  • 3,564    5
On January 25, 2006, an amendment ("Amendment") to the Mexican Industrial Property Law ("IPL") was published in the Federal Official Gazette. The Amendment was published after a long discussion initiated by Congress in early 2005, and became effective on January 26, 2006. The Amendment's final provisions were the result of a very effective lobbying campaign by major players in the franchising sector and, fortunately for the industry, Congress eliminated many of the overly restrictive aspects of the initial bill that could have unnecessarily hampered the industry. In the end, Congress' objective of providing more protection to franchisees was well balanced with the legitimate rights of franchisors. For example, certain ultra-protectionist provisions for franchisees originally contained in the bill, such as certain rights of first refusal in franchisees' favor and the right to request cancellation of registration of franchisor's trademarks in certain cases, were not incorporated into the Amendment.
  • By: Alberto de la Peña
  • 1,940    0
Belgium's new franchise law (the "Law"), which was the subject of several legislative delays during 2005, has now been formally adopted. Originally, the Law was set to go into effect as of September 1, 2005; however, on January 23, 2006, a Decree published in the Belgian Official Gazette notified the public that the Law had been amended to establish an initial effective date of February 1, 2006.
  • By: Ryan Whitfill
  • 3,021    127
The franchising industry in Vietnam has been gradually developing over the past few years with the products and services of a number of well-known local and foreign brand names achieving higher market profile. However, this development has taken place in the absence of any regulations directly governing franchising activities. The current franchising industry in Vietnam has relied on regulations on related issues, such as those to do with licensing of intellectual property rights and technology transfer coupled with general contractual obligations.
  • By Andrew Terry
  • 2,148    14
The Mexican Congress is reviewing a bill ("Bill") intended to amend the Mexican Industrial Property Law ("IPL") to regulate franchise agreements and to add new disclosure procedures. It is still uncertain whether the Congress will approve the Bill. Currently, the IPL franchise regulations are very limited, and do not regulate the content of franchise agreements. The Bill adopts a very different approach in order to protect franchisees from perceived franchisor abuses.
  • By Alberto de la Peña
  • 1,670    6
If adopted, the recently published Unfair Contract Terms Bill ("UCTB") will significantly change the way franchise agreements are viewed by English courts and could create headaches for franchisors with franchises in the United Kingdom ("UK"). The UCTB was published by the Law Commission in draft form earlier this year. The bill will not become effective unless it is formally adopted, but the draft reflects the views of the current government so it is likely that the bill will be adopted sometime in 2006.
  • By Ryan Whitfill
  • 2,097    99
Ninety days after the effectiveness of China's new franchise regulations, foreign franchisors and their lawyers are trying to sort out whether they can comply with the law, and if so, how. The Measures for the Administration of Commercial Franchising ("Measures") were adopted as a part of China's commitment to the World Trade Organization to open the Chinese economy to foreign investment. Although rumors about the forthcoming regulations had been emanating from Beijing for nearly two years, in late November the world was given 12 days to comment on draft Measures which would apply to "Foreign Invested Enterprise" ("FIE") franchisors. By the end of December, the Ministry of Commerce ("MOC") had promulgated revised franchise regulations which apply to both domestic and foreign invested enterprises, but which failed to address whether foreign companies may franchise directly into China.
  • By Carl E. Zwisler
  • 6,857    963
Home of Merengue and a rich baseball tradition, the Dominican Republic covers 48,730 square kilometers, has a population of approximately 8.8 million people living on the island, and has more than one million nationals living in the United States.
  • By Larry B. Pascal and Patricia Mastropierro
  • 2,305    38
The IMPI is an agency of the Federal government created in 1993 which has its own assets, personality and budget. IMPI has over a 1,000 employees in Mexico, most of them are concentrated in our headquarters in Mexico City, but we also have regional offices in Guadalajara, Mérida, Monterrey and León. In terms of our human resources, around 63% of our employees have a bachelor degree, 25% have technical education, and 2% masters or PHD degrees which allows us to provide high-quality services to users.
  • By Alberto de la Peña
  • 3,284    16
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Despite recent economic turmoil, franchising in Argentina has rebounded at a surprising rate. In the 1990s, many foreign franchisors (particularly from the U.S.) expanded to Argentina. At the height of the economic turmoil in 2002, the sector shrunk by 4% and the expectations for 2003 were very low. However, contrary to expectations, in 2003, the sector grew by 70%, generating approximately US$1.9 billion in sales in 2003, and adding twenty-nine (29) new franchises. Today, franchising in Argentina represents 20% of the total retailer sector, accounts for more than 13,000 retail stores, and employs more than 100,000 employees. Furthermore, the national franchising association (Asociacion Argentina de Franchising), an organization affiliated with the International Franchise Association, estimates that the sector will continue to enjoy strong growth, projecting sales volume to reach US$2.35 billion in 2005 and for the sector to account for 30% of the retail sector in the next decade.
  • By Patricia Mastropierro
  • 3,564    190
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