global maeketing

8/7/2019 global maeketing

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Cabo San Lucas bar started out badly. Then it got worse. Back in 1993, Lovell, known asLil, had founded the Coyote Ugly Saloon, a rowdy, honky-tonk dive inNew York City'sEast Village. Seven years later her life as a barkeep changed drastically when CoyoteUgly, a movie set in a Hollywood version of her bar, was released. Seizing on the freepublicity, Lovell ginned up plans to turn Coyote Ugly into an international chain.

She wasn't the only one with the idea, however. Shortly after the movie's release, JorgeManterola, the brother of the well-known Mexican singerPatricia Manterola, set up awebsite claiming to be the "master franchise" for Coyote Ugly in Latin America.

"Just like you have seen in the movie," the website claimed, "there will be very preety[sic] and sensual women from all over the world serving drinks, dancing on the bar, anddoing the most funniest and unimaginable things."

Lovell was not amused. The hard-drinking cowgirl brand that she'd spent years buildingwas being hijacked. "People are taking my hard work, and it's frustrating," says Lovell, a

petite woman who delivers tough talk in a smoky voice. "I put my time in and I paid mydues, and for people to steal things is weak of character." Her lawyers swung into actionand by August 2001 she'd made a deal: She'd help Manterola open a huge Coyote Ugly inCabo as long as he paid license royalties to her.

But Lovell's Baja problems didn't end. She could revoke the license if she wasn't paid,but she had little control over how the bar was run. It was bad enough for Lovell thatManterola wasn't paying all of the rent and taxes on a bar closely associated with hername. What was worse was what she heard from his employees. Manterola hired womenfrom America to bartend with promises of housing and cabs to work, but they were e-mailing Lovell, who they'd met in Cabo, with claims that Manterola was neither paying

them nor living up to his other promises (Manterola denies their claims). And Lovellcould do nothing about it.

"I'm not willing to sit back and let someone else control my company."

Lovell's Cabo experience illustrates a dilemma faced by any small-business woman whowants to turn her first venture into something big. How do you expand and make moneywhile still controlling your brand? In a short-term view, the answer seems simple:License willy-nilly, drive hard, and just go--which is exactly what Lovell did. This pastSeptember the ninth Coyote Ugly opened in BostonforUgly Inc., Lovell's licensingcompany, which brought in $1.5 million in 2002 and is expected to make almost triple

that this year. Together, the bars pull in between $22 million and $24 million annuallyand employ about 300 people. But after her experience in Cabo and after watching otherlicenses stray from the brand she defined, Lovell came to another conclusion: no more.Except for the 14 licenses she's already sold, she will protect her brand by keeping acontrolling stake in all new Coyote Ugly Saloons. "If I license to too many people, it'sgoing to lose its foundation. So I'm just going to stop," Lovell says. "I'm not willing tojust sit back and let someone else control my company."
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To understand Coyote Ugly, you have to understand a basic equation: Lil Lovell=CoyoteUgly. It was late 1992 and Lovell, then 24, had spent nearly three years managing theVillage Idiot, a notorious New York City gin mill where ownerTom McNeil racedcustomers through pints of Guinness, chewed Pabst cans, and peed behind the jukebox.There, Lovell developed the style that became Coyote. "I'd get a few drinks in me and I'd

jump on the bar and get the girls on it too," says the WestchesterCounty, N.Y.-raisedLovell. When the Idiot starting receiving overdue tax notes, Lovell and one of herregulars, Tony Piccirillo, each gave Lovell's then-boyfriend $10,000 to buy up the stockof a foundering baseball card shop that would then be sold for a profit. Instead, theboyfriend leased a shuttered restaurant for $4,200 a month. Lovell and Piccirillo (now herhusband) soon kicked him out and on January 27, 1993, Coyote Ugly was born.

Lovell's genius was to wrap the barfly fantasy in a tough-girl blanket. Her theory: Menwould stay late and spend lavishly if the bartenders were smart enough to sass them andsexy enough to dance on the bar. "The whole concept is girls keeping patrons in the bardrinking," says Jacqui Squatriglia, the chain's choreographer and New Yorkbar manager.

"It's not about the prettiest girl. It's somebody with spark." It wasn't an entirely uniqueproposition--similar bars, like Hogs & Heifers Saloon in New York City's meatpackingdistrict, were popping up--but it worked. Lovell and Squatriglia built a Thelma & Louiseversion of their lives. "Lil was pouring liquor down her body and off her toe. I wassaying, 'I'll arm-wrestle you for a beer," Squatriglia recalls.

Drinkers flocked to the bourbon-and-beer joint--decorated with Harley-Davidson signsand castoff bras--to witness the coyotes (as the bartenders call themselves) insult patronswho ordered "froufrou" drinks, perform fire-breathing tricks, and shimmy atop the bar. Itwas a spontaneous, somewhat combative place, and it bred a fierce loyalty in its regularsand coyotes who fit the ethos.

Then in 1997, GQ published "The Muse of the Coyote Ugly Saloon," a celebratory taleby onetime coyote Elizabeth Gilbert. Soon Disney bought the rights and berproducerJerry Bruckheimercame calling. In 2000, audiences shelled out $61 million to see thePG-13 love story about a New Jersey girl who gains confidence working for a tough-but-fair woman named Lil at a dive where the bartenders wear hip-huggers, light the counteron fire, douse patrons who order water, and dance.

knew right away that I had to be aggressive," Lovell says. "You don't get $40 million offree press [the cost of the movie] and not use it."

How to expand presented a problem. Unlike most chains, Coyote Ugly was not famousfor its decor or signature dishes but for its attitude (the name refers to a man so homelythat a one-night-stand partner would rather chew off an arm to escape his bed--like atrapped coyote--than wake him). "This is about being a strong woman," Lovell says."You're expected to get on the bar and entertain and serve people, do a show and stillmake money at the same time." It was a tough hurdle to clear: Half of the first 400 NewYork coyotes quit or were fired their first night. Piccirillo recalls a new bartender on dutyone quiet evening. When five Wall Streeters stood to leave, Lovell warned the coyote, "If
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they go through that door, you're fired." The bartender ran back, bought the five a round,and danced on the bar. "They stayed for four hours," says Piccirillo. "You don't have toaccept a bad night."

Gilbert says that her fear of getting on Lovell's bad side meant that on slow nights she

would run out onto the street to round up patrons and, if that didn't work, put $10 or $20into the till. "You would steal from yourself," she says.

Lovell's Coyote Ugly is more than a tavern version ofChained Heat, however. At thesame time they sass men, the coyotes must make women comfortable enough to come inand get on the bar. "Women customers mean more men customers mean more money,"says Lovell. And Lovell has specific ideas about music (southern rock), drinks (beer, yes;martinis, no), bartender gender (female), and sales tactics. Coyotes mock patrons intobuying shots for them, pour liquor directly into patrons' mouths (a "penalty shot" fornaughtiness), serve shots in their navels (a "body shot")--and charge for every drop.

"It's a powerful experience to have a woman half your size pull on your hair, tilt yourhead back, and pour tequila up to your teeth," saysBen Choi, a New York bar patron. It'slucrative too: "Body shots cost $20. We give the girl $5, and we get $15 for what costs us50," says licensee John Cestare.

After the movie release tourists packed the New York bar demanding a re-creation of theHollywood experience. "There was a backlash," says Squatriglia. "The regulars got angrywhen the movie first came out, it was so jammed in here. You couldn't blame them." Butthere was a financial opportunity in creating bars somewhere between the original 1,500-square-foot dive and the sanitized Hollywood version. So Lovell decided to create larger,nicer variations, with dances choreographed to some of the songs in the movie--

ironically, codifying one of the original bar's most spontaneous practices.

Without capital to expand alone, Lovell could either franchise her bar or license thetrademark. While franchising would give Lovell control down to decor and drink sizes--la McDonald's--it involved expensive and time-eating legal filings. So she choselicensing, which let her anoint licensees but did not allow her to dictate operatingprocedures. Lovell wasn't worried. "At first, Liliana said, 'I don't want that much control.If they're coming to me they know what the concept is. They've seen the movie," saysJeff Wiseman, Ugly Inc.'s general counsel and a onetime Lovell regular at the VillageIdiot.

Lovell chose a standard licensing scheme--licensees pay $50,000 up front, plus 5% ofgross sales and a quarter of merchandise sales. Jennifer Worthington, an associateproducer on the movie, bought the rights forLas Vegas, which opened in October 2001(in the New York, New York casino, the Vegas bar is the highest earner--$14 million ayear; Atlanta, at $1.5 million, is the lowest). Around the same time, Cestare, a 31-year-old club promoter, dropped by the Manhattanbar to see if he could cut a deal. He offeredbetween $2 million and $3 million for U.S. rights (Lovell laughed at him), eventuallysettling for four cities--Chicago, Atlanta, Boston, and San Diego. Lovell herself
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renovated a bar of her own at a cost of $1.4 million in New Orleans, where she lives withPiccirillo, a screenwriter, and their four-year-old son.

The lack of franchise regulations made vetting licensees that much more important. Afterdeciding which cities had the right demographics (more than a million people in the area,

a young population), Lovell had potential licensees sign a nondisclosure agreement andvisit her in New Orleans for a personality check of sorts.

Mike Hudson, a partner in the Dallas bar, describes his visit: "I thought, 'I'm a potentiallicensee, I'm a VIP, I'm drinking for free tonight.' But at the end of the night Chantal [acoyote] said, 'Buy me a shot.' All I had was $5. She snatched it out of my hand and did ashot and said, 'Thanks, have a nice night.' I said, 'I can't believe you took my cab fare.'She eventually gave it back."

Once they've inked the contract--which grants exclusivity within a 75-mile radius andallows Lovell access to bar records--they prepare to open. First, they choose a location

with Lee Killingsworth, Ugly Inc.'s director of business development, who scours heavilytrafficked locations for high-ceilinged spaces between 2,500 and 8,000 square feet. Onceone is picked, Lovell offers decorating advice and a line of merchandise.

Then the brand work starts. "The hardest part about licensing is making sure they don'tstray off course," says Killingsworth, who assembled a 200-page manual of proceduresfor everything from hiring coyotes to which celebrity birthdays should be celebrated(thinkKid Rockand the late Johnny Cash).

Then the owners hold tryouts that are judged by Lovell, Squatriglia, and local celebrities.Hundreds of women audition (normally between 300 and 400, though Vegas had 700).

"I'm constantly surprised at how popular the movie is. Girls cry because they didn't getthe job," Squatriglia says. After they winnow down the aspirants to 25 or so, Lovell'screw starts training coyotes and licensees.

At the time of the movie Squatriglia turned the bar-top dancing--which had been left upto the coyotes--into choreographed, copyrighted numbers. For a week the new coyotestoil on three--Def Leppard's "Pour Some Sugar on Me," the Charlie Daniels Band's "TheDevil Went Down to Georgia," and Tom Jones's "Sex Bomb"--and learn clogging,bartending, and attitude. "There's a lot of role-playing on what to do, how to harasssomebody," says Joanna Olsen, a partner in Atlanta and three others. "We pretend thatwe're dudes and have them say something." According to Olsen, a coyote earns on

average between $300 and $400 on a Friday night.

"Licensees do things I wouldn't. Nobody understands Coyote the way I do."

Soon, though, it became apparent that licensing and Lovell didn't mix. Manterola's wasthe first of a number of bars (he eventually closed in summer 2002) that either tried to useher brand without paying (Ugly Inc. spends several hundreds of thousands a year
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stopping unlicensed bars from using the Coyote Ugly name) or, once licensed, ran theirbars in ways that Lovell did not like.

In one instance, Lovell walked into one bar--she won't say which one--and as a testordered a froufrou drink. That she was served it angered her. "That's something I'm

totally against," she says. Atlanta and Dallas both toyed with karaoke nights. All Lovellcould do was complain. "Liliana will call up," says Dallas partner Hudson. "Withkaraoke, it was, 'I don't like it. I don't do that in mine.' She expresses her disapproval."

Atlanta dropped the practice and while Hudson says that Lovell has accepted hisWednesday-night gig--featuring American Idolalso-ran Nikki McKibbin--the inability togive orders gnawed on her. "I have a decent relationship with my licensees, and I'd callthem up and usually they'd change what they were doing. But it's frustrating that theywould do things that I wouldn't," Lovell says. "Nobody understands Coyote the way Ido."

Of course, not every licensee is sanguine about Lovell's close supervision. KevinCallanan, a partner in the Philadelphia bar who calls Lovell "a super control freak,"points to his coyote tryouts. According to Callanan, because Ugly Inc. booked a theaterhe couldn't fill, he decided to put the celebrity judges onstage and give themmicrophones. That way, the media cameras could take in the girls and the judges withoutshowing the partially empty space. Lovell, he says, was "furious, almost to the point ofwalking out," because she wanted the girls to be alone onstage and didn't want the judgesmiked in case they were lewd. "She didn't join us in the judging. I haven't spoken withher since," says Callanan. "When you run a bar for 10 years everybody says yes whenyou say yes. But when you're dealing with other successful businesspeople, they questionyou. I wonder how that is for her." Lovell disputes Callanan's claim that she refused to

take part in the judging.

In early 2003 Lovell stopped selling licenses (there are eight licensed cities still to open).From that point on, Ugly Inc. would take outside investments, even majority stakes, butwould maintain managing rights. The first bar to open under this arrangement wasTampa, with Olsen as a partner. There, Lovell got to install a manager despite the factthat she only has a 10% stake.

"I'm learning that I'm more of a control freak than I originally thought," Lovell says. "It'shard for me to completely commit a project to someone else without being involved insome way."

At some point in her growth, however, Lovell realizes, she will have to trust others to runparts of the show. She plans to do so by hiring people who fit snugly with the Coyoteethos. "You'll have general managers and regional managers trained by me," she says."It's about me hiring the right people who have the same image of Coyote that I do."

Right now, between 35% and 50% of the patrons are regulars, a key sign that the barsstill feel like local hangouts. Lovell says she's not concerned about central control making
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her bars cookie-cutter tourist traps because she's always allowed each bar to reflect itslocation--thus, southern rock on the Dallas jukebox andEminemin Atlanta.

It even appears that Lovell is learning the first lessons in stepping back. In Tampa,Lovell's inner control freak seems soothed by knowing that she is able to get involved,

without her always doing so. "We only talk about once a month," says Olsen. "She's notin on every little thing."

Still, don't get Lovell wrong. While she may ease her grip from white-knuckle to firm,the old equation still holds.

"At the end of the day, this is my company and Coyote Ugly is going to be as strong as Imake it," says Lovell. "When I have 100 I want you to be able to go toLondon and haveas good a time as when you went to New Orleans or New York."

And that good time you're having? It will be on her terms.

Ian Mount is a freelance writer living in New York City.

2. Licensing Factory New Europe(Posted: 19-10-2009)

By Richard Latter

Croatia. A funny country in which to stage a licensing show you maythink. But look at it on a map and you can see how well it can servethe region from Slovenia and Hungary to the north, through Serbia tothe immediate east and Romania and Bulgaria even further east. This,together with the other countries making up New Europe, is a hugeregion, encompassing in all some 400 million people. Potentially 400million consumers? Well, it depends how you spin the figure doesnt it,but why not? Certainly there is much business to be done here if both

business and consumers can be educated in the ways of licensing.

Having first been approached by the organisers at Brand Licensing inOctober 2007, I was so pleased to see all their hard work come tofruition in the shape of the Licensing Factory New Europe conferenceand exhibition, held in the beautiful coastal resort of Rovinj on theAdriatic. The conference programme was a full one, well varied andpretty well attended for a first time event. The keynote speaker on day
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one, from the Disney Institute, drew a pre-registered audience ofgetting on for 150. We had a fascinating insight into the economy ofthe region from one speaker, and reasons why you should neverattempt licensing from another! It was also encouraging to see someLIMA officials speaking and supporting the event.

Being a conference first and a trade show second meant that theexhibitors had some down time, but dont we always at a first event.However, where we gained was seeing how and when a lot of businessis conducted in this part of the world socially, out of hours. Everyevening had an event organised, which meant that we all mixedsocially, relaxed and talked to different exhibitors and visitors. Thismeant that the following days were full of waves, and first sentencessuch as nice to see you again and I didnt know you worked withthem. Sure fire ice-breakers all of them. It seemed compulsory toattend these events, and indeed anyone opting out certainly missed

out on a great deal.

There are some great local properties just waiting to burst out of thisregion. Here is an unashamed plug for a few:

Professor Balthazar, an original 60s character, has been updated byUltralink to take advantage of the 90% recognition it enjoys in Croatia.The Balthazar Foundation has been set up to channel profits towardshelping childrens projects, and this business model is getting ready tobe rolled out in other countries.

The Fun Factory Studio / Janus Interactive, headquartered in Serbia, ispushing a modern animated character in an interactive TV programme.The kids can pre-register by phone in the hours before airing tohopefully be selected to take part live on air. A big part of this is thatthe money raised by the calls is also put directly towards helpingchildren.

Lapitch, the Little Shoemaker, is another local animated property thathas already achieved fantastic penetration for its creators CroatiaFilm. With TV series and a film, it is now set to push further afield andbring much deserved recognition.

Hisa Idej / Creano presented UMKO, who in their own words is readyto be a worldstar. Whos to say this wont happen?

Backed up by fellow exhibitors One2Play and Live, two of the biggestlicensees and distributors of licensed product in the region, we got afantastic overview of how big licensing could become out here.


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There are undoubtedly problems to be overcome, especially withregard to licensing into this region. Parallel importing has to be lookedat - we saw an example of 3 different companies importing anddistributing almost exactly the same products and local licensees aregoing to need the crucial support of the licensors and agents. It seems

to be all too easy for the agent to sell a licence into a region thathasnt produced before, and leave the licensee to its own devices,viewing any return as a result. Its going to take time to build brandsout here, but with events like Licensing Factory New Europe willing totake the plunge and put the educational wheels in motion, licensinghas a chance to plough a deep furrow into this area.

New Europe is distinctly different from Eastern Europe, and localknowledge is going to be imperative for those who want to succeedhere. I cant help feeling that those of us who were willing to supportthis new event from the outset have gained a crucial early insight into

the new business opportunities available. The Guide to the LicensingWorld is proud once again to be on the front line supporting thosewilling to further the frontiers of our industry.

3. Franchise or License?1

By Judith Silver, Esq., Coollawyer.com

Q:What is the fundamental difference between franchising vs. licensing someone tooperate my business in another state? I am trying avoid becoming a

franchise, but I have people interested in using my business and my

business model in other states.

Answer:

The line between franchising and licensing is not always a clear one. However, as youevidently know, offering a franchise subjects the offering party to FTC and stateregulations, which require disclosure statements to accompany such an offering.

Most state franchise regulations allow that if a franchisor, the party offering the franchise,has complied with the FTC regulations, then the party has also complied with the stateregulations. Otherwise, the regulations for franchise offerings vary by state.

If you currently have a license agreement where you license your trademark and give orexert control over the licensee's business model and get paid, generally speaking, you areprobably operating a franchise and are subject to franchise regulations. These regulations


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All answers are general in nature, not legal advice and not warranted or

guaranteed. Readers are cautioned not to rely on this information. Because laws

change over time and in different jurisdictions, it is imperative that you consult an

attorney in your area regarding legal matters and an accountant regarding taxmatters.

4. FranchisingFrom Wikipedia, the free encyclopediaJump to: navigation,search

A typical McDonald's franchise.

Franchising is the practice of using another firm's successful business model. The word

'franchise' is of anglo-french derivation - from franc- meaning free, and is used both as anoun and as a (transitive) verb.[1]

Look up franchise in Wiktionary, the free dictionary.

For the franchisor, the franchise is an alternative to building 'chain stores' to distributegoods and avoid investment and liability over a chain. The franchisor's success is thesuccess of the franchisees. The franchisee is said to have a greater incentive than a directemployee because he or she has a direct stake in the business.

However, except in the US, and now in China (2007) where there are explicit Federal(and in the US, State) laws covering franchise, most of the world recognizes 'franchise'but rarely makes legal provisions for it. Only Australia, France and Brazil havesignificant Disclosure laws but Brazil regulates franchises more closely.

Where there is no specific law, franchise is considered a distribution system, whose lawsapply, with the trademark (of the franchise system) covered by specific covenants.
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Contents

[hide]

1 Overview

2 Obligations of the Partieso 2.1 Regulations

o 2.2 The U.S.

o 2.3 Europe

2.3.1 France 2.3.2 Spain 2.3.3 Italy

o 2.4 China

o 2.5 Australia

o 2.6 Russia

o 2.7 UK

o 2.8 Brazilo 2.9 India

o 2.10 Kazakhstan

3 Social franchises 4 Event franchising 5 See also 6 References

7 External links

[edit] Overview

Businesses for which franchising works best have the following characteristics:

Businesses with a good track record of profitability. Businesses which are easily duplicated.

As practiced in retailing, franchising offers franchisees the advantage of starting upquickly based on a proven trademark, and the tooling and infrastructure as opposed todeveloping them.

Although there are franchises around products Chaneland other cosmetics, to name the

prominent by and large, the franchises revolve around service firms. At the sub-$80,000level, they are, by far, the largest number of franchises. [2] These allow a business,combined with family time and a location not far from home. Some franchises areavailable for a few thousand dollars.

The following US-listing tabulates[3] the early 2010 ranking of major franchises alongwith the number of sub-franchisees (or partners) from data available for 2004.[4] It willalso be seen from the names of the franchise that the US is a leader in franchising
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innovations, a position it has held since the 1930s when it took the major form of fast-food restaurants, food inns and, slightly later, the motels during the first depression.Franchising is a business model used in more than 70 industries that generates more than$1 trillion in U.S. sales annually (2001 study).[citation needed] Franchised businesses operated767,483 establishments in the United States in 2001, counting both establishments owned

by franchisees and those owned by franchisors:[5]

1.Subway (Sandwiches and Salads | Startup costs $84,300 $258,300 (22000partners worldwide in 2004).2.McDonald's | Startup costs in 2010, $995,900 $1,842,700 (30,300 partners in2004)3.7-ElevenInc. (Convenience Stores) |Startup Costs $40,500- 775,300 in 2010,(28,200 partners in 2004)4.Hampton Inns & Suites (Midprice Hotels) |Startup costs $3,716,000 $13,148,800 in 20105.Supercuts (Hair Salons) | Startup Costs $111,000 - $239,700 in 2010

6.H&R Block(Tax Preparation and e-Filing)| Startup Costs $26,427 - $84,094(11,200 partners in 2004)7.Dunkin Donuts | Startup Costs $537,750 - $1,765,300 in 20108. Jani-King (Commercial Cleaning | Startup Costs $11,400 - $35,050, (11,000partners worldwide in 2004)9. Servo-Pro (Insurance and Disaster Restoration and Cleaning) | Startup Costs$102,250 - $161,150 in 201010. MiniMarkets (Convenience Store and Gas Station) | Startup Costs $1,835,823- $7,615,065 in 2010

The midi-franchises like restaurants, gasoline stations, trucking stations which involve

substantial investment and require all the attention of a business.

There are also the large franchises - hotels, spas, hospitals, etc. - which are discussedfurther in Technological Alliances.

Two important payments are made to a franchisor: (a) aroyalty for the trade-mark and(b) reimbursement for the training and advisory services given to the franchisee. Thesetwo fees may be combined in a single 'management' fee. A fee for "Disclosure" isseparate and is always a "front-end fee".

A franchise usually lasts for a fixed time period (broken down into shorter periods, whicheach require renewal), and serves a specific "territory" or area surrounding its location.One franchisee may manage several such locations. Agreements typically last from fiveto thirty years, with premature cancellations or terminations of most contracts bearingserious consequences for franchisees. A franchise is merely a temporary businessinvestment, involving renting or leasing an opportunity, not buying a business for thepurpose of ownership. It is classified as a wasting asset due to the finite term of thelicense.
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A franchise can be exclusive, non-exclusive or 'sole and exclusive'.

This section requires expansion.

Although franchisor revenues and profit may be listed in a franchise disclosure

document, no laws require the estimate of franchisee profitability, which depends on howintensively the franchisee 'works' the franchise. Therefore, franchisor fees are alwaysbased on 'gross revenue from sales' and not on profits realized. See Remuneration.

Various tangibles and intangibles such as national or internationaladvertising, training,and other support services are commonly made available by the franchisor.

Franchise brokers help franchisors find appropriate franchisees. There are also main'master franchisors' who obtain the rights to sub-franchise in a territory.

According to the International Franchise Associationapproximately 4% of all businesses

in the United States are franchisee-worked.

It should be recognized[citation needed] that franchising is one of the only means available toaccess venture investment capital without the need to give up controlof the operation ofthe chain and build a distribution system for their services. After the brand and formulaare carefully designed,and properly executed, franchisors are able to sell franchises andexpand rapidly across countries and continents using the capital and resources of their'franchisees' while reducing risk.

Franchisor rules imposed by the franchising authority are usually very strict andimportant in the US and most countries need to study them to help the small or start-up

franchisee in their countries to protect them.[citation needed]

Besides the trademark, there areproprietary service marks which may be copyright - and corresponding regulations.

[edit] Obligations of the Parties

Each party to a franchise has several interests to protect. The franchisor is most involvedin securing protection for his trademark, controllingthe business concept and securinghis know-how. This requires the franchisee to carry out the services for which thetrademark has been made prominent or famous. There is a great deal of standardizationproposed. The place of service have to carry the franchisor's signs, logos and trademarkin a prominent place. The uniforms worn by the staff of the franchisee have to be of a

particular shade and colour. The service has to be in accordance to the pattern followedby the franchisor in his successful operations. Thus, for the franchisee he is not in fullcontrol of the business as he would be in retailing.

But there are fault-lines here! A service can be successful by buying equipment andsupplies from the franchisor or those recommended by the franchisor if they are not over-priced. A coffee brew, for example, can be readily identified by the trademark when itsraw materials come from a particular supplier. If the franchisorrequires purchase from
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his stores, it may come underAnti-trust legislation or equivalent laws of other countries.So too the purchase of uniforms of personnel, signs, etc. But it also applies to sites offranchise if they are owned or controlled by the franchisor.

The franchisee must carefully negotiate the license. They, along with the franchisor must

develop a marketing plan or business plan. The fees must be fully disclosed and thereshould not be any hidden fees. The start-up and costs and working capital must be knownbefore taking the license. There must be assurance that additional licensees not crowd the"territory" if the franchise is worked to plan. The franchisee must be seen as anindependent merchant. He must be protected by the franchisor from any trademarkinfringement by third-parties. A franchise attorney is required to assist the franchiseeduring negotiations.[6].

Most often the training period - the costs of which are in great part covered by the initialfee - is too short to operate complicated equipment and the franchisee has to learn on hisown from Manuals. The training period must be adequate but in low-cost franchises it

would be considered expensive. Many frachisors have set up corporate universities totrain staff online. This is in addition to literature and sales documents and reach by email.

Also, franchise agreements carry no guarantees orwarrantiesand the franchisee has littleor no recourse to legal intervention in the event of a dispute [7]. Franchise contracts tendto be unilateral contracts in favor of the franchisor; they are generally protected fromlawsuits from their franchisee because of the non-negotiable contracts that requirefranchisees to acknowledge, in effect, that they are buying the franchise knowing that

there is risk, and that they have not been promised success or profits by the franchisor.Contracts are renewable at his sole option. Most franchisors make franchisees signagreements waiving their rights under federal and state law, and in some cases allowing

the franchisor to choose where and under what law any dispute would be litigated

[edit] Regulations

[edit] The U.S.

Isaac Singer, in the 1850s, who made improvements to an existing model of a sewingmachine, was among the first franchising efforts in the United States, followed later byCoca-Cola, Western Union, etc.[8] and agreements between automobile manufacturers anddealers.[9]

Modern franchising came to prominence with the rise of franchise-based food serviceestablishments. In 1932, Howard Deering Johnson established the first modern restaurantfranchise based on his successful Quincy, Massachusetts Howard Johnson's restaurantfounded in the late 1920s.[10][11] The idea was to let independent operators use the samename, food, supplies, logo and even building design in exchange for a fee.
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The growth in franchises picked up steam in the 1930s when such chains as HowardJohnson's started franchising motels.[12] The 1950s saw a boom of franchise chains inconjunction with the development of the U.S. Interstate Highway System.

In the U.S. the FTC requires that the franchisee be furnished with a Disclosure

Agreement by the Franchisor, at least ten days before money changes hands. The finalagreement is always a negotiated document setting forth the fees and other terms.Whereas elements of the disclosure may be available from third parties only thatprovided by the franshisor can depended upon. The U.S. Disclosure Document (FDD) isvery lengthy (300-700 pp +)and detailed (see UFOC for elements of disclosure), andprovides audited financial statements of the franchisor in a particular format. It willinclude data on the names, addresses and telephone numbers of the franchisees in thelicensed territory (who may be contacted and consulted before negotiations), estimate oftotal franchise revenues and franchisor profitability. The States may require the FDD tocontain specific requirements but the requirements in the State disclosure documentsmust be in compliance with the Federal Rule that governs federal regulatory policy.

There is no private right of actionof action under the FTC Rule for franchisor violationof the rule but fifteen or more of the States have passed statutes that provide this right ofaction to franchisees when fraud can be proved under these special statutes. The majorityof franchisors have inserted mandatory arbitration clauses into their agreements with theirfranchisees, in some of which the U.S. Supreme Court has dealt with.

There is no federal registry of franchises or any federal filing requirements forinformation. States are the primary collectors of data on franchising companies, andenforce laws and regulations regarding their presence and their spread in theirjurisdictions.

Where the franchisor has many partners, the agreement may take the shape of a businessformat franchise - an agreement that is identical for all franchisees.

[edit] Europe

Franchising has grown rapidly in Europe in recent years, but the industry is still largelyunregulated. Unlike the United States, the European Union has yet to adopt a uniformfranchise disclosure policy. Only five countries in Europe have adopted pre-saledisclosure obligations. They are France (1989), Spain (1996), Italy (2004), Belgium(2005) and Romania (1997).[13]

The Code of Ethics of the European Franchising Federation is self-enforced in seventeenEuropean states where their national franchise associations are members of EFFmembers, and UNIDROIT.

All formal disclosure countries are require to give Contract Summaries to befurnished, highlighting:

the object of the contract
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the rights and obligations of the parties the financial conditions the term of the contract

Legal consultation is a must to enter and finalize the agreement(s) as it in all regions.

Most often one of the principal tasks in Europe is to find retail space, not so significant afactor in the US. This is where the franchise broker, or the master franchisor, plays asignificant role. Cultural factors are also significant as the populations tend to behomogeneous.

[edit] France

France is one of Europes largest market. Similar to the United States, it has a longhistory of franchising, dating back to 1930s. Growth came in the 70s. The market isconsidered tough for outside franchisors because of its cultural angularities; yet,McDonalds and Century 21 are to found everywhere. There are some 30 US Firms

involved in franchising.

[14]

.

There are no government agencies regulating franchises. The Loi Doubin of 1989 was thefirst European Franchise Disclosure law. Combined with and Decree No. 91-337 theyregulate disclosure although it applies to any person who provides to another person acorporate name, trademark or trade name other business arrangements. The law applies toexclusive or quasi-exclusive territory.

In brief, the disclosure document must be delivered at least 20 days before the executionof the agreement or any payments are made.

The specific and important disclosures to be made are

[15]

a) the date of the founding of the franchisor's enterprise and a summary of itsbusiness history and all information necessary to assess the business experience ofthe franchisor including bankersb) a description of the local market for the goods or servicesc) franchisor's financial statements for the previous two years,d) a list of all other franchisees currently in the networke) all franchisees who have left the network during the preceding year, whether bytermination or non-renewal, andf) the conditions for renewal, assignment,termination and the scope of exclusivity.

Initially, there was some uncertainty whether any breach of the provisions of the Doubinlaw would enable the Franchisee to walk away from the contract. However, the SupremeCourt (Cour de cassation) eventually ruled that agreements should only be annulledwhere the missing or incorrect information affected the decision of the franchisee to enterinto the Agreement. The burden of proof is on the franchisee.[16]
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specific inclusion of foreign investors. Today the Franchise Law is much clearer by virtueof the 2007 law [20], a revision of the 2005 Law.

The laws are applicable if there are transactions involving a trademark combined withpayments with many obligations on the franchiser. The Law comprises 42 Articles and 8

chapters.

Among the franchisor obligations are:

the FIE (foreign-invested enterprise) franchisor must obtainregistration by the regulator The franchisor (or its subsidiary) must have operated at leastoperated two company-owned franchises in China (revised to

anywhere)for more than 12 months ("the two-store, one-year rule) the franchisor must disclosure any information requested by thefranchisee

cross-border franchising, with some caveats, is possible (2007law).

The franchisor must meet a list of requirements for registration, among which are:

the standard franchise agreement, working Manual and workingcapital requirements, track-record of operations, and ample ability to supply materials,and the ability to train the Chinese personnel and provide them long-term operational guidance.

the franchise agreement must have a minimum three-year term

Among other provisions is:

the franchisor will be liable for certain actions of its suppliers monetary and other penalties apply for infractions of theregulations.

The Disclosure has to take place 20 days in advance. It has to contain:

Details of the franchisors experience in the franchised business

with scope of business identification of the franchisors principal officers litigation of the franchisor during the past five years full details about all franchise fees the amount of a franchisees initial investment a list of the goods or services the franchisor can supply, and theterms of supply the training franchisees will receive
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information about the trademarks,including registration, usage, andlitigation demonstration of the franchisors capabilities to provide trainingand guidance statistics about existing units, including number, locations, and

operational results, and the percentage of franchises that have beenterminated; and an audited financial report and tax information (for an unspecifiedperiod of time)

Other elements of this legislation are:

the franchisees confidentiality obligations continue indefinitelyafter termination or expiration of the franchise agreement if the franchisee has paid a deposit to the franchisor, it must berefunded on termination of the franchise agreement; and, upon

termination, the franchisee is prohibited from continuing to use thefranchisors marks.

[edit] Australia

In Australia, franchising is regulated by the "Franchising Code of Conduct", a mandatorycode of conduct made under theTrade Practices Act 1974.

The Code requires franchisors to produce a disclosure document which must be given toa prospective franchisee at least 14 days before the franchise agreement is entered into.

The Code also regulates the content of franchise agreements, for example in relation tomarketing funds, a cooling-off period, termination and theresolution of disputes bymediation.

The federal government is currently considering recommended changes to the Code ofConduct contained in the report, "Opportunity not Opportunism: Improving conduct inAustralian Franchising" tabled by a Parliamentary inquiry into franchising on 4December 2008.[21]

Some experts have warned that any push to increase regulation of the franchising sector,could make it a less attractive means of doing business.[22]

[edit] Russia

In Russia, under chapter 54 of the Civil Code (passed 1996), franchise agreements areinvalid unless written and registered, and franchisors cannot set standards or limits on theprices of the franchisees goods. Enforcement of laws and resolution of contractualdisputes is a problem: Dunkin' Donuts chose to terminate its contract with Russian
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franchisees that were selling vodka and meat patties contrary to their contracts, ratherthan pursue legal remedies.[23]

[edit] UK

In the United Kingdom, there are no franchise-specific laws; franchises are subject to thesame laws that govern other businesses. For example, franchise agreements are producedunder regular contract law and do not have to conform to any further legislation orguidelines.[24] There is some self-regulation through the British Franchise Association(BFA).

However there are many franchise businesses which do not become members, and manybusinesses that refer to themselves as franchisors that do not conform to these rules. [citationneeded] There are several people and organisations in the industry calling for the creation ofa framework to help reduce the number of "cowboy" franchises and help the industryclean up its image.[who?]

On 22 May 2007, hearings were held in the UK Parliament concerning citizen initiatedpetitions for special regulation of franchising by the government of the UK due to lossesof citizens who had invested in franchises. The Minister of Industry, Margaret Hodge,conducted hearings but resisted any government regulation of franchising with the advicethat government regulation of franchising might lull the public into a false sense ofsecurity. The Minister of Industry indicated that if due diligence were performed by theinvestors and the banks, the current laws governing business contracts in the UK offeredsufficient protection for the public and the banks.[25]

[edit] Brazil

In 2008, there were about 1,013 franchises[26]with more than 62,500 outlets, making itone of the largest countries in the world in terms of number of units. Around 11 percentof this total are foreign-based franchisors.

The Brazilian Franchise Law (Law No. 8955 of December 15, 1994) defines thefranchise as a system in which the franchisorlicenses the franchisee, for a payment, theright to use a trademark/ patent along with the right to distribute products or services onan exclusive or semi-exclusive basis. The "Franchise Offer Circular" or disclosuredocument is mandatory before execution of agreement and is valid for all of Brazilianterritory. Failure to disclose voids the agreement with refunds and serious damages.The

Franchise Law does not distinguish between Brazilian and foreign franchisors. TheNational Institute of Industrial Property (INPI) is the registering authority. Indispensabledocuments are the Statement of Delivery (of disclosure documentation) and Certificationof Recording (INPI). The latter is necessary for payments. All sums amounts may not beconvertible into foreign currency. Certification may also mean compliance with Brazil'santitrust legislation.
http://en.wikipedia.org/wiki/Franchising#cite_note-22http://en.wikipedia.org/w/index.php?title=Franchising&action=edit&section=12http://en.wikipedia.org/wiki/Franchising#cite_note-23http://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Avoid_weasel_wordshttp://en.wikipedia.org/wiki/Wikipedia:Avoid_weasel_wordshttp://en.wikipedia.org/wiki/Wikipedia:Avoid_weasel_wordshttp://en.wikipedia.org/wiki/Franchising#cite_note-24http://en.wikipedia.org/wiki/Franchising#cite_note-24http://en.wikipedia.org/w/index.php?title=Franchising&action=edit&section=13http://en.wikipedia.org/wiki/Franchising#cite_note-25http://en.wikipedia.org/wiki/Franchising#cite_note-25http://en.wikipedia.org/wiki/Franchising#cite_note-25http://en.wikipedia.org/wiki/Franchising#cite_note-22http://en.wikipedia.org/w/index.php?title=Franchising&action=edit&section=12http://en.wikipedia.org/wiki/Franchising#cite_note-23http://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Avoid_weasel_wordshttp://en.wikipedia.org/wiki/Franchising#cite_note-24http://en.wikipedia.org/w/index.php?title=Franchising&action=edit&section=13http://en.wikipedia.org/wiki/Franchising#cite_note-25


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Parties to international franchising may decide to adopt the English language for thedocument, as long as the Brazilian party knows English fluently and expresslyacknowledges that fact, to avoid translation (but it follows). The Registrationaccomplishes three things:

*It make the agreement effective against third parties* Permits the remittance of payments* Qualifies the franchisee for tax deductions

Page reference in franchising in this country: Guide of Franchising - Guia do Franchising(http://www.guiadofranchising.com.br)

[edit] India

Franchising of goods and services, foreign to India, is in its infancy. The firstInternational Exhibition was only held in 2009.[27]. India is, however, one of the biggest

franchising markets because of its large middle-class of 300 million who are not reticenton spending and because the population is entrepreneurial in character. In a highlydiversified society, (seeDemographics of India) McDonalds is a success story despite itsfare differing from the rest of the world.[28]

Thus far, a franchise agreement is a contract between the franchisor and the franchiseegoverned by the Contract Act 1872 and the Specific Relief Act, 1963 which provides forboth specific enforcement of covenants in a contract and remedies in the form of damagesfor breach of contract.

[edit] Kazakhstan

In Kazakhstan franchise turnover for 2010 is 1 billion US$ dollars per year. Kazakhstanis the leader in Central Asia in franchising market. There is a special law on thefranchising of 2002, there are about 300 franchise systems and franchises near the 2000outlets [29] Kazakhstan franchise begins with the emergence of a factory "Coca-Cola",open to sublicense Turkish licensor same brand. The plant was built in 1994. Also inpresented through franchise system country presented Pepsi, Hilton, Marriott,Intercontinental, Pizza Hut etc.

[edit] Social franchises

In recent years, the idea of franchising has been picked up by thesocial enterprise sector,which hopes to simplify and expedite the process of setting up new businesses. A numberof business ideas, such as soap making, wholefood retailing, aquarium maintenance, andhotel operation, have been identified as suitable for adoption by social firms employingdisabled and disadvantaged people.
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The most successful example is probably the CAP Markets, a steadily growing chain ofsome 50 neighborhood supermarkets in Germany. Other examples are the St. Mary'sPlace Hotel in Edinburgh and the Hotel Tritone in Trieste.

Social franchising also refers to a technique used by governments and aid donors to

provide essential clinical health services in the developing world.

[edit] Event franchising

Event franchising is the duplication of publiceventsin other geographical areas, whileretaining the original brand (logo), mission, concept and format of the event. [30] As inclassic franchising, event franchising is built on precisely copying successful events.Good example of event franchising is the World Economic Forum, or justDavosforumwhich has regional event franchisees in China,Latin Americaetc. Likewise, the alter-globalistWorld Social Forum has launched many national events. When The MusicStops is an example of an events franchise in theUK, in this case, runningspeed dating

and singles events.

[edit] See also

Franchise consulting List of franchises

[edit] References

1. "franchise"Online Etymology Dictionary2. http://www.franchising.com

3. http://www.entrepreneur.com/franchise500/index.html4. Patterns of Internationalization for Developing Country Enterprises (Alliances

and Joint Ventures) United Nations Industrial Development Organization,Vienna, 2008, ISBN 978-92-1-106443-8, pp 65

5. "Econ Study"franchise.org6. Manual on Technology Transfer Negotiation (A reference for policy-makers

and practitioners on Technology Transfer), 1996, United Nations IndustrialDevelopment Organization, Vienna, 1990, ISBN 92-1-106302-7

7. http://www.nolo.com/legal-encyclopedia/article-29512.htmlnolo.com8. Franchising"9. http://findarticles.com/p/articles/mi_m0FJN/is_n8_v30/ai_18728418

10. Allen, kolin chakma.Foodservices theory of evolution: Survival of the fittest(1998). Nations Restaurant News 32(4), pp.14-17

11. Howard, T. (1996). Howard Johnson: Initiator of franchised restaurants.Nations Restaurant News, 30(2), pages 85-86.

12. Brief History (Franchise)13. http://www.peralaw.com/EU_Franchise_Disclosure.html14. http://www.franchise.org/franchise-news-detail.aspx?id=33190 franchise.org15. ^ abEU Franchise Disclosureperalaw.com
http://en.wikipedia.org/wiki/CAP_Marketshttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/w/index.php?title=St._Mary%27s_Place_Hotel&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=St._Mary%27s_Place_Hotel&action=edit&redlink=1http://en.wikipedia.org/wiki/Edinburghhttp://en.wikipedia.org/w/index.php?title=Hotel_Tritone&action=edit&redlink=1http://en.wikipedia.org/wiki/Triestehttp://en.wikipedia.org/wiki/Triestehttp://en.wikipedia.org/wiki/Social_franchisinghttp://en.wikipedia.org/w/index.php?title=Franchising&action=edit&section=17http://en.wikipedia.org/wiki/Media_eventhttp://en.wikipedia.org/wiki/Media_eventhttp://en.wikipedia.org/wiki/Media_eventhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Logohttp://en.wikipedia.org/wiki/Franchising#cite_note-29http://en.wikipedia.org/wiki/World_Economic_Forumhttp://en.wikipedia.org/wiki/World_Economic_Forumhttp://en.wikipedia.org/wiki/Davoshttp://en.wikipedia.org/wiki/Davoshttp://en.wikipedia.org/wiki/Davoshttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Latin_Americahttp://en.wikipedia.org/wiki/Latin_Americahttp://en.wikipedia.org/wiki/Latin_Americahttp://en.wikipedia.org/wiki/World_Social_Forumhttp://en.wikipedia.org/wiki/World_Social_Forumhttp://en.wikipedia.org/wiki/When_The_Music_Stopshttp://en.wikipedia.org/wiki/When_The_Music_Stopshttp://en.wikipedia.org/wiki/UKhttp://en.wikipedia.org/wiki/UKhttp://en.wikipedia.org/wiki/Speed_datinghttp://en.wikipedia.org/wiki/Speed_datinghttp://en.wikipedia.org/w/index.php?title=Franchising&action=edit&section=18http://en.wikipedia.org/wiki/Franchise_consultinghttp://en.wikipedia.org/wiki/Franchise_consultinghttp://en.wikipedia.org/wiki/List_of_franchiseshttp://en.wikipedia.org/wiki/List_of_franchiseshttp://en.wikipedia.org/w/index.php?title=Franchising&action=edit&section=19http://en.wikipedia.org/wiki/Franchising#cite_ref-0http://en.wikipedia.org/wiki/Franchising#cite_ref-0http://www.etymonline.com/index.php?http://en.wikipedia.org/wiki/Franchising#cite_ref-1http://en.wikipedia.org/wiki/Franchising#cite_ref-1http://www.franchising.com/http://en.wikipedia.org/wiki/Franchising#cite_ref-2http://en.wikipedia.org/wiki/Franchising#cite_ref-2http://www.entrepreneur.com/franchise500/index.htmlhttp://en.wikipedia.org/wiki/Franchising#cite_ref-3http://en.wikipedia.org/wiki/Franchising#cite_ref-3http://en.wikipedia.org/wiki/Special:BookSources/9789211064438http://en.wikipedia.org/wiki/Franchising#cite_ref-4http://en.wikipedia.org/wiki/Franchising#cite_ref-4http://www.franchise.org/Files/EIS6_2.pdfhttp://en.wikipedia.org/wiki/Franchising#cite_ref-5http://en.wikipedia.org/wiki/Franchising#cite_ref-5http://en.wikipedia.org/wiki/Special:BookSources/9211063027http://en.wikipedia.org/wiki/Franchising#cite_ref-6http://en.wikipedia.org/wiki/Franchising#cite_ref-6http://www.nolo.com/legal-encyclopedia/article-29512.htmlhttp://en.wikipedia.org/wiki/Franchising#cite_ref-7http://en.wikipedia.org/wiki/Franchising#cite_ref-7http://www.referenceforbusiness.com/encyclopedia/For-Gol/Franchising.htmlhttp://en.wikipedia.org/wiki/Franchising#cite_ref-8http://en.wikipedia.org/wiki/Franchising#cite_ref-8http://findarticles.com/p/articles/mi_m0FJN/is_n8_v30/ai_18728418http://en.wikipedia.org/wiki/Franchising#cite_ref-9http://en.wikipedia.org/wiki/Franchising#cite_ref-9http://findarticles.com/p/articles/mi_m3190/is_n4_v32/ai_20199526http://en.wikipedia.org/wiki/Franchising#cite_ref-10http://en.wikipedia.org/wiki/Franchising#cite_ref-10http://findarticles.com/p/articles/mi_m3190/is_nSPEISS_v30/ai_18091886http://en.wikipedia.org/wiki/Franchising#cite_ref-11http://en.wikipedia.org/wiki/Franchising#cite_ref-11http://www.wdfi.org/fi/securities/franchise/history.htmhttp://en.wikipedia.org/wiki/Franchising#cite_ref-12http://en.wikipedia.org/wiki/Franchising#cite_ref-12http://www.peralaw.com/EU_Franchise_Disclosure.htmlhttp://en.wikipedia.org/wiki/Franchising#cite_ref-13http://en.wikipedia.org/wiki/Franchising#cite_ref-13http://www.franchise.org/franchise-news-detail.aspx?id=33190http://en.wikipedia.org/wiki/Franchising#cite_ref-EUFD_14-0http://en.wikipedia.org/wiki/Franchising#cite_ref-EUFD_14-0http://en.wikipedia.org/wiki/Franchising#cite_ref-EUFD_14-1http://www.peralaw.com/EU_Franchise_Disclosure.htmlhttp://en.wikipedia.org/wiki/CAP_Marketshttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/w/index.php?title=St._Mary%27s_Place_Hotel&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=St._Mary%27s_Place_Hotel&action=edit&redlink=1http://en.wikipedia.org/wiki/Edinburghhttp://en.wikipedia.org/w/index.php?title=Hotel_Tritone&action=edit&redlink=1http://en.wikipedia.org/wiki/Triestehttp://en.wikipedia.org/wiki/Social_franchisinghttp://en.wikipedia.org/w/index.php?title=Franchising&action=edit&section=17http://en.wikipedia.org/wiki/Media_eventhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Logohttp://en.wikipedia.org/wiki/Franchising#cite_note-29http://en.wikipedia.org/wiki/World_Economic_Forumhttp://en.wikipedia.org/wiki/Davoshttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Latin_Americahttp://en.wikipedia.org/wiki/World_Social_Forumhttp://en.wikipedia.org/wiki/When_The_Music_Stopshttp://en.wikipedia.org/wiki/When_The_Music_Stopshttp://en.wikipedia.org/wiki/UKhttp://en.wikipedia.org/wiki/Speed_datinghttp://en.wikipedia.org/w/index.php?title=Franchising&action=edit&section=18http://en.wikipedia.org/wiki/Franchise_consultinghttp://en.wikipedia.org/wiki/List_of_franchiseshttp://en.wikipedia.org/w/index.php?title=Franchising&action=edit&section=19http://en.wikipedia.org/wiki/Franchising#cite_ref-0http://www.etymonline.com/index.php?http://en.wikipedia.org/wiki/Franchising#cite_ref-1http://www.franchising.com/http://en.wikipedia.org/wiki/Franchising#cite_ref-2http://www.entrepreneur.com/franchise500/index.htmlhttp://en.wikipedia.org/wiki/Franchising#cite_ref-3http://en.wikipedia.org/wiki/Special:BookSources/9789211064438http://en.wikipedia.org/wiki/Franchising#cite_ref-4http://www.franchise.org/Files/EIS6_2.pdfhttp://en.wikipedia.org/wiki/Franchising#cite_ref-5http://en.wikipedia.org/wiki/Special:BookSources/9211063027http://en.wikipedia.org/wiki/Franchising#cite_ref-6http://www.nolo.com/legal-encyclopedia/article-29512.htmlhttp://en.wikipedia.org/wiki/Franchising#cite_ref-7http://www.referenceforbusiness.com/encyclopedia/For-Gol/Franchising.htmlhttp://en.wikipedia.org/wiki/Franchising#cite_ref-8http://findarticles.com/p/articles/mi_m0FJN/is_n8_v30/ai_18728418http://en.wikipedia.org/wiki/Franchising#cite_ref-9http://findarticles.com/p/articles/mi_m3190/is_n4_v32/ai_20199526http://en.wikipedia.org/wiki/Franchising#cite_ref-10http://findarticles.com/p/articles/mi_m3190/is_nSPEISS_v30/ai_18091886http://en.wikipedia.org/wiki/Franchising#cite_ref-11http://www.wdfi.org/fi/securities/franchise/history.htmhttp://en.wikipedia.org/wiki/Franchising#cite_ref-12http://www.peralaw.com/EU_Franchise_Disclosure.htmlhttp://en.wikipedia.org/wiki/Franchising#cite_ref-13http://www.franchise.org/franchise-news-detail.aspx?id=33190http://en.wikipedia.org/wiki/Franchising#cite_ref-EUFD_14-0http://en.wikipedia.org/wiki/Franchising#cite_ref-EUFD_14-1http://www.peralaw.com/EU_Franchise_Disclosure.html


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16. Franchise disclosure in Europeffw.com17.

http://www.eurofranchiselawyers.com/pdf/Comparative_Table_08_06_09%20printable.pdfEuroFranchiseLawyers.com

18. ^ ab"Franchising in China"franchise.org

19. "China franchise regulations"20. http://www.franchise-update.com/article.php?id=31621. "Opportunity not Opportunism: Improving conduct in Australian Franchising"22. "Over regulation would harm franchising sector inquiry warned"

dlaphillipsfox.com

23. Anttonen, Noora, Mika Tuunanen, Ilan Alon (2005), The InternationalBusiness Environments of Franchising in Russia, Academy of MarketingScience Review, (5), 1-18.

24. Franchise agreements subject to European Code of ethics {blog)25. "Franchise Industry". Daily Hansard: Column Pyramid Schemes were outlawed

in the UK by The Trading Schemes Act 1996. However, the legislation was so

worded that legitimate Franchise Schemes were caught by the legislation andfollowing lobbying by the British Franchise Association a memo was issued to theBritish Franchise Association by the Department of Trade and Industry on the 19July 1997 which amended the wording of the legislation. The law on statute isnow impossible to follow without reference to the memo. 363WH. 22 May 2007.http://www.publications.parliament.uk/pa/cm200607/cmhansrd/cm070522/halltext/70522h0001.htm.

26. http://www.allbusiness.com/legal/international-law/8887771-1.html27. "Franchise laws in India"28. Patterns of Internationalization for Developing Country Enterprises (Alliances

and Joint Ventures) United Nations Industrial Development Organization,Vienna, 2008, ISBN 978-92-1-106443-8,

29. B.Kissikov "Franchising in Kazakhstan", Central-Asian Association ofFranchising and Licensing-Association/Franchise-laws-in-India-n863929

30. Kissikov Beknur. Franchising.

[edit] External links

International Franchise Association American Association of Franchisees and Dealers Franchise Brokers Association Canadian Franchise Association

Franchising Association of India The British Franchise Association The Australian Franchise Association The Central-Asian Franchise Association The Franchise Association of Southern Africa The Franchise Association (Ukraine) Asia-Pacific Centre for Franchising Excellence ,Griffith University, Nathan,

Queensland, (Australia)
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ising#cite_ref-22http://en.wikipedia.org/wiki/Franchising#cite_ref-23http://www.selectyourfranchise.com/franchise-blog/2009/10/franchise-agreements-subject-to-european-code-of-ethics/http://en.wikipedia.org/wiki/Franchising#cite_ref-24http://www.publications.parliament.uk/pa/cm200607/cmhansrd/cm070522/halltext/70522h0001.htmhttp://www.publications.parliament.uk/pa/cm200607/cmhansrd/cm070522/halltext/70522h0001.htmhttp://www.publications.parliament.uk/pa/cm200607/cmhansrd/cm070522/halltext/70522h0001.htmhttp://en.wikipedia.org/wiki/Franchising#cite_ref-25http://www.allbusiness.com/legal/international-law/8887771-1.htmlhttp://en.wikipedia.org/wiki/Franchising#cite_ref-26http://www.franchisebusiness.in/c/Franchising-Association-of-India/Franchise-laws-in-India-n863929http://en.wikipedia.org/wiki/Franchising#cite_ref-27http://en.wikipedia.org/wiki/Special:BookSources/9789211064438http://en.wikipedia.org/wiki/Franchising#cite_ref-28http://www.franchise.cafla.com/franchisinginkazakhstan.htmhttp://en.wikipedia.org/wiki/Franchising#cite_ref-29http://en.wikipedia.org/w/index.php?title=Franchising&action=edit&section=20http://www.franchise.org/http://www.aafd.org/http://www.franchiseba.com/http://www.cfa.ca/http://www.fai.co.in/http://www.thebfa.org/http://www.franchise.org.au/http://www.cafla.com/http://www.fasa.co.za/http://www.franchising.org.ua/http://www.franchise.edu.au/http://en.wikipedia.org/wiki/Griffith_Universityhttp://en.wikipedia.org/wiki/Nathan,_Queenslandhttp://en.wikipedia.org/wiki/Nathan,_Queensland


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International Association of Franchisees and Dealers

5. About the origin of 'Franchise'

The origin of Franchise does seem to be old French. This pagehttp://www.etymonline.com/index.php?search=franchise&searchmode=none gives thefollowing etymology: "c.1290, from O.Fr. franchise "freedom," from variant stem offranc "free" (see frank). Sense narrowed 18c. to "particular legal privilege," then "right to

vote" (1790). Meaning "authorization by a company to sell its products or services" isfrom 1959". Another page http://www.franinfo.com/history.html provides a longerhistory of the evolution of the concept. There too, it mentions the original meaning to be'privilege or freedom'. Priyatu 07:38, 23 January 2006 (UTC)

That's pretty much it, though franc still exists with the same meaning in ModernFrench, notably in the term franc-maon, 'freemason'. -- Blisco 09:07, 8 June2006 (UTC)

I removed the following from the entry: "from the [[French language|French]] ''franchir'':'''vt''' to clear an obstacle or difficulty)"Harrap's shorter French and English

dictionary" ISBN 0-245-55046-1". The origin of the word is very clearly"franchise" in the sense of freedom and this is not reflected in the paragraph I removed.Rdavout (talk) 03:17, 17 June 2008 (UTC)

I've yet to see any strong reference from aWP:RS for the etymology that coulddistinguish which stem-word's meaning was behind the application of the word tothe modern commercial concept. Certainly there are lots of unreliable websiteswith a POV to push, usually ones (like the franinfo above) trying to sell franchisesor consulting services. Not good enough.LeadSongDog(talk) 13:36, 20 June 2008(UTC)

6. Franchises can be small businesses, too!

As an employee of a family-owned and -operated franchise, I disagree with peopledenigrating franchised busin

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