International Franchise

Contract

Pontificia Universidad Javeriana Cali

Contratacin Internacional

Presentado por:

Jos David Gonzlez

Camilo Andrs Caro
Alejandra Montoya
Mariana Valencia

Cali, octubre 30 de 2017


Intellectual property is
understood as all those assets
that are part of the
franchisor's assets, such as
names, trademarks and
commercial symbols, patents,
copyrights and industrial
sectors, among others, which
are protected by national and
international law.
https://whichfranchise.co.za/franchise-2/
Is an agreement of wills
between two nationals of
different countries, by
means of which one of the
parties transmits to the
other the use of know-how
and its intellectual
property, in order to
economically exploit a
business or company within
geographical area.
Has the obligation to provide these
Has the obligation to pay the franchisor
rights and generally support the
certain fees as explained under the
franchisee, both initially and on an
heading Financial implications of
ongoing basis. Is the one that
franchising in exchange for these rights.
transmits the use of know-how and
its intellectual property within the
determined geographical area

Both franchisor and franchisee have a vested interest in the success of the
brand. Ultimately, this can only be achieved by keeping their customers happy.

https://whichfranchise.co.za/franchise-2/
BALANCE
 Nature

Industrial Format

When it concerns to
When Envolved the
the direct commercial
production, or the
activity with the final
distribution process
customer
 Territory

Individual Regional Master

When it is permitted to
When the franchisee Establish a specific offer and sell franchises
operates owns and number of franchise in a to sub-franchises, to
operates only one Determined territory sublicense the
franchise
franchisor's trademarks.
 Franchise

Corner Multiple Franchise of products Franchise of services

Individual franchise, added

The activity takesplace inside
another establishment of
commerce, like chain stores.
the ability to open a certain
number of premises within
an agreed area. this contract
does not accept the
possibility of sub-franchising.
The possibility of selling
certain products of the
franchisor within a local is
transmitted.
It is the franchisor granting
his transfer of know-how in
the provision of a certain
service such as real estate,
training, accounting, legal
advice, etc.
 Of the contract
Franchisor
The initial investment expenses of
the business are paid by the
franchisee.
The international expansion of
your business was made with the
capital and effort of the
franchisee.
Their brands and artists' names
have an international impact.
You will have access to the
international market with low
risks.
Standardize and standardize
methods and processes of
production and commercialization
You can increase your sales
volume.
Of the contract
You will lose control of your
business to some degree
It will depend on the good
management of the
franchisee's business.
Increase your administrative
costs because of the control,
inspection and surveillance
that you must impose on the
franchisee.
Must submit to the risk of
legal, political, social and
economic stability of the
franchisee's country.

Of the contract
Brand Recognition: It takes a
long time to build up a
reputation. With a franchise,
you get instant brand
recognition
Franchisee
Proven Business Model: When you
buy a franchise, youre buying into a
system thats worked for hundreds or
even thousands of other franchisees.
Using a business model thats worked
for others should give you some
comfort.

Of the contract
Training and Support: You can
expect some training, marketing
help, and access to a business
plan. Often youll get advice on
laying out the store, guidance
on operating procedures.
Franchisee
Full Disclosure: When youre
buying a franchise, you have
access to a lot of information
on what it will cost and how
the deal will work.
 Franchisee

Of the contract

Reputation Risk: With a franchise, on

Lack of Control: Same menu,
the other hand, mistakes made by
same food, same packaging, same
the franchisor or by other franchisees
pickles. It also seriously limits the
can leave customers with a bad
independence of each individual
opinion of your store, through no
franchise
fault of your own.

Of the contract
Limited Time: Franchise agreements
usually run for a long time, often ten
years. Whereas an independent
business owner can continue
indefinitely if the companys making a
profit, a franchisee cant always do
the same.
Franchisee
Diluted Rewards: Youre building
someone elses reputation, not your
own, and you may run the franchise
successfully and make substantial
profits, but dont forget that youll
usually pay a percentage of revenue to
the franchisor.
International Franchise Contract Example
Parties to the contract
Main Clauses
Object of the contract
Territorial Exclusivity
Duties of the franchisor
Duties of the franchisee
Franchisee Fees
 Law Applicable

Due to there is no express regulation, the

franchise is what we call an atypical
contract because it is defining elements
and conditions are not in the international
laws. This allows for greater flexibility as
the parties freely decide the conditions
that will govern their relationship
Law Applicable
Law Applicable
http://franchise.org/
 Sources
https://whichfranchise.co.za/franchise-2/
https://smallbiztrends.com/2011/12/introduction-to-
franchising.html
https://www.franchising.com/guides/benefits_of_the_fran
chise_model.html
http://www.thefranchisebuilders.com/different-types-
franchises-business/
https://www.franchise.com/big-opportunities
http://www.thefranchisebuilders.com/types-franchises-2/
http://francity.com/about-franchising/types-of-franchise-
arrangements/