Must a US Based mostly Franchisor Let a Foreigner to Use Their Brand name Identify in Their Country?

Building a deal to allow a overseas entity to use your manufacturer title could be a massive blunder if not done effectively, not to mention they could use your brand name identify approximately anyplace when you gave them authorization and declare in court docket they experienced your authorization.

So, what ought to you say to a overseas inquiry to use your manufacturer title? Perfectly, as a franchisor you have to imagine about the legal guidelines in that country with regards to franchising and then you require to contemplate your Brand’s intrinsic and potential value.

On top of that, you have to have to get a lot more info on these a transaction, as in how substantially dollars will be paid for the use of your brand name. Until finally you can do that you have to have to again off, most likely be straightforward and say

“I do not have adequate facts to make a determination on that. You see, 1.) We do not have a business partnership but and brand name names and name are pretty crucial. 2.) Some Nations around the world have rules in franchising (definitions) that have to do with the use of a prevalent manufacturer identify.

As a result, without the need of finding out your legislation there, which is time consuming, and/or expenditures cash to speak to an in-region Attorney, I are not able to make an knowledgeable choice, but considering that it expenditures me to obtain out, and the added benefits to me are very low or nil, it does not make feeling for us to pursue this until, you would like to make an offer to us in creating and post a letter of intent together with your money skill to shell out.”

A franchisor in this posture should understand that there is absolutely nothing in it for them apart from risk (authorized, legal responsibility, regulatory, track record, brand title) without the need of financial achieve to compliment that hazard. Many situations the lawful concerns in the country in concern avert undertaking enterprise there for a franchisor.

This is seriously a terrific circumstance research in how governments, legal professionals, regulators ruin the “ideal to no cost deal” and prevent employment, economic advancement and in the stop price those incredibly companies and legal professionals tax base and future operate. Generally over regulation hurts a nation’s economic progress, and you must as a franchisor not permit it to harm your franchise expansion software. Consider on this.