Pros and cons of using a uniform international disclosure document

This article explores the feasibility of using a standard international franchise disclosure document, as a starting point, containing the information about the franchisor, franchise offerings, franchisees and franchisor outlets, which would normally be provided in most disclosures. The international franchisor would then work with local counsel to conform or add to the document for specific transactions and use in a country to comply with local franchise disclosure law requirements, if any, through specific addenda or statements of material changes, or by using the contents of the international franchise disclosure document in preparation of a locally compliant franchise disclosure document. The authors discuss the relative advantages and disadvantages of this approach, versus other approaches, from the perspective of various countries and regions having existing and mature franchise disclosure laws in place.
 

Co-author: Leonard Polsky, Philip Colman and Remi Delforge

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