Wiggin and Dana Attorney Quoted in Skift Table article about International Franchising
Wiggin and Dana Franchise and Distribution Attorney, Robert Burstein, was quoted in the article, "The Tricky Business of International Restaurant Franchising," published by Skift Table.
The article discusses the unique challenges of international franchising illustrated by a major franchisor's experience with one of its two franchisees in India, involving closure (and re-opening) of half of the franchisee's restaurants and on-going legal proceedings.
Mr. Burstein says, "It's [international franchising] similar to issues in the U.S., but aggravated by the long distance, and perhaps the franchisor's lack of knowledge of the territory."
Franchising in the U.S. is governed by the Federal Trade Commission Franchise Rule, state disclosure and registration laws and state relationship laws, which generally are not applicable to international franchises. The franchise agreement between franchisor and franchisee outlines the business relationship.
Burstein adds, "The best franchise agreements in the world, they're not going to overcome the relationship issues or whatever local issues are going on…If it's going to take some action locally in the foreign country, how receptive are those courts or arbitration tribunals to the foreigner?"
To read the full article, please click here.