When negotiating franchising contracts abroad, one of the main difficulties parties face is the lack of uniform rules for such contracts. They have to rely on national laws and regulations that were not designed for the specific needs of international trade and may differ substantially from one country to another.
In response, ICC produced a model contract with a set of clauses to help parties prepare their own franchise contract. Updated in 2011 after extensive consultation with all business sectors, the latest version includes valuable information on anti-trust rules and laws applicable to franchises.
“International direct franchises are increasingly popular as a commercial vehicle for distributing products and services: they can help businesses grow considerably… but there are many pitfalls,” said Emily O’Connor, Senior Policy Manager of the ICC Commission on Commercial Law and Practice, who helped an international task force of experts to update the model.
“The ICC Model International Franchising Contract answers a real need from business to cut risks and save time. It’s simple, reliable, and it reflects the diversity of franchise contracts out there,” she said.
Since its launch in 2000, the ICC Model International Franchising Contract has become a reference for companies around the world, thanks to its reliable contractual framework for franchisor and franchisee. It is also flexible enough for users to add their own clauses if need be.
The ICC Model International Franchising Contract is on promotion as Book of the Month until the end of June. Also available is ICC’s new guide on international franchising. Using Franchising to Take Your Business International, ICC strategies and guidance for master franchising, area development and other arrangements, helps franchisors who already have a successful multi-unit operation to consider why, how and when to expand into foreign markets.
All of ICC’s latest rules and standards, including model contracts and Incoterms® 2010, are available to purchase from ICC Knowledge 2 GO. There is also a wide range of practical guidelines and reference works including the ‘Dossier’ series of publications from the ICC Institute of World Business Law. Some of the best-known publications are available in more than 30 languages.
A different ICC publication will benefit from the 20% reduction each month. Keep an eye on the ICC Knowledge 2 GO for further special offers.
Each year ICC offers training to help professionals address the main problems that arise in international contracts and use ICC model contracts to effectively negotiate and draft contracts of quality. The next training is set to take place from 23-26 June in central Paris.