July 12, 2010

Franchise Report

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Chambers USA 2010:
Nationwide - Franchising
Chambers USA 2010 recognizes Baker Botts for its Franchising Practice for the first time in the firm's history, calling the growing eight-partner interdisciplinary team “quick and responsive” and “a top-drawer team that is tapped into legislative changes in DC and is at the forefront of franchise issues.” Further information is available here.

Preparing for International Franchise System Expansion - Key Considerations For Every Franchisor

As franchisors and their counsel well know, franchise system expansion in the U.S. has been significantly hindered by the economic conditions over the past 24 months, including the lack of readily available financing and general softness in consumer demand.

However, as the U.S. and global economies recover, franchisors are looking forward to better times, and many franchisors will consider expansion opportunities outside of the U.S. borders as the global economy continues to become more interconnected and demand for international brands increases. Although not every franchise system is a good candidate for international expansion and some systems simply need more time developing their concept domestically before expanding internationally, franchisors that are ready should be proactive in planning for expanding their brands outside of the U.S.

Whether a franchisor is venturing outside of the U.S. for the first time or a franchisor that has already begun expanding internationally is going into new countries, there are some key issues that every franchisor must consider before pursuing new international franchising opportunities.

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