Originally from: International Franchising - 3rd Edition
Chapter 11 - Preview Page
International Franchising - 3rd Edition
Alexander S. Konigsberg
The different vehicles that are described in Chapter VI are, for all intents and purposes, the “classic methods” used by franchisors for international expansion. It should, however, be recognized that these so called “classic methods,” may still not be appropriate in every situation given the number of diverse countries where franchising has recently become popular. For example, a traditional form of master franchise agreement or even a development agreement may not be suitable in a country where franchising is relatively unknown, or in a country that does not have an established system of commercial laws and practices or where the judicial system may be unreliable. Thus, alternative methods of distribution, such as a “bare bones” license agreement, a “hybrid development/master franchise” agreement, “a scaled down version of a master franchise agreement,” a “hybrid franchise/license” agreement, an area representation agreement or even a distribution agreement, may be better suited under certain circumstances and for certain countries.
II. "BAREBONES" LICENSE AGREEMENT
III. SCALED DOWN VERSION OF A MASTER FRANCHISE AGREEMENT
IV. HYBRID FRANCHISE/LICENSE AGREEMENT
V. HYBRID FORM OF DEVELOPMENT/MASTER FRANCHISE AGREEMENT
VI. AREA REPRESENTATION AGREEMENTS
About The Author:
Alexander S. Konigsberg, Q.C. is Senior Partner, Lapointe Rosenstein (Montreal, Canada) and Former Chairman of Committee X (International Franchising), International Bar Association (1990-1994); Associate Editor, The Journal of International Franchising and Distribution Law (1986- ). Mr. Konigsberg has negotiated international franchise agreements in over 35 countries and has written over 50 legal and business articles on franchising which have been published worldwide.
Mr. Konigsberg was the only non-American who was asked to appear as an expert witness before the US House of Representatives Committee on Small Business in their hearings on franchise legislation in 1990. In addition, in 1996 he was the only non-American to appear before the U.S. Federal Trade Commission in its workshop on the international application of the Federal Franchise Rule. In 1990 he was named "Franchising Personality of the Year" by the Quebéc Franchise Association. In addition, in 1993 he was honored with the Merit Award by the Canadian Franchise Association.