More than 50 countries around the world have a franchise law that requires franchisors to comply with additional requirements—such as disclosure, registration and other related formalities. Moreover, you will need to consider competition law (mainly to prevent trading restrictions), foreign trade and investment regulations, intellectual property laws, the taxation of franchise fees and royalty fee income, to name the most common related issues.

While developed franchise markets focus on franchising agreements, developing markets may focus more on protecting their economies and regulating foreign investments. Some other jurisdictions have yet taken a different approach by seeking to regulate the sale of franchises through registration and approval of both the sales documentation/prospectus and the content of the franchise agreement.

The demand to franchise at an international level is high, so are the legal implications. In our franchise laws heatmap we have pictured the current situation, which is worth considering before franchising around the globe.

With its global footprint and in-depth knowledge of franchise regulation around the world, the Dentons Franchise Advisory team can help you navigate through the various aspects to take into consideration when expanding your business, and help you shape your franchise business model accordingly.

Franchising around the globe: Levels of regulations

Franchising in Canada: Levels of regulations

Franchising in the U.S.: Levels of regulations

Franchising in the Caribbean: Levels of regulations