Full Description
Now completely updated, the new Third Edition of International Franchise Sales Laws describes rules and regulations covering franchise and distribution law in 23 different countries, including the United States and Canada. Because an increasing number of countries are adopting franchise specific laws but in a variety of formats, this deskbook is an authoritative yet practical resource to help lawyers who must navigate the uncharted waters of international franchise sales laws. It is organized around answers to a number of practical questions that your client will face in each jurisdiction.
Written by a team of knowledgeable franchise attorneys with strong international experience, International Franchise Sales Laws addresses disclosure and other requirements in the countries of Australia, Belgium, Brazil, Canada, China, France, Germany, Indonesia, Italy, Japan, Macau, Malaysia, Mexico, the Netherlands, Romania, Saudi Arabia, South Africa, South Korea, Spain, Sweden, Taiwan, and Vietnam, as well as the United States.
For each jurisdiction, two authors licensed to practice in the jurisdiction address the jurisdiction's disclosure and other requirements in a uniform format. Each country chapter is organized to provide a comprehensive discussion of each of the applicable laws and also a practical and easy-to-use reference for counsel to comply with those laws. Each section addresses the following issues under each jurisdiction's disclosure law:
What is a Franchise?
Who Must Provide Disclosure?
Who Must Receive Disclosure?
When Must Disclosure be Furnished?
Information to be Included in Disclosure Documents
Governmental Filings or Approvals
Other Requirements
Franchisor-Franchisee Relationship Laws
Violations of Franchise Sales Laws
Contents
Contents
About the Editors ...............xi
Foreword .................xiii
Acknowledgments ...............................
xv
Introduction ..................
xvii
I.
Overview..................................................................................................
xvii
II.
Summary of Salient Issues
........................................................................ xx
III.
The Use of International Disclosure Documents
and Compliance with International Franchise Sales Laws..............................................
xxviii
Australia
I.
What Is a
Franchise?.....................................................................................
4
II.
Who Must Provide Disclosure? ....................................................................
6
III.
Who Must Receive
Disclosure?....................................................................
8
IV.
When Must Disclosure Be Furnished? .........................................................
9
V.
Information to Be Included in Disclosure
Document................................. 12
VI.
Governmental Filings .................................................................................
23
VII.
Other Requirements ....................................................................................
24
VIII.
Franchisor-Franchisee Relationship Laws .................................................
25
IX.
Violations of Franchise Sales Laws ............................................................
31
About the Authors
.................................................................................................
34
Belgium
I.
What Is a
Franchise?...................................................................................
40
II.
Who Must Provide Disclosure? ..................................................................
43
III.
Who Must Receive
Disclosure?.................................................................. 43
IV.
When Must Disclosure Be Furnished? .......................................................
45
V.
Information to Be Included in Disclosure
Document................................. 48
VI.
Governmental Filings .................................................................................
57
VII.
Other Requirements ....................................................................................
58
VIII.
Franchisor-Franchisee Relationship Laws .................................................
58
IX.
Violations of Franchise Sales Laws ............................................................
61
About the Authors
.................................................................................................
65
Brazil
I.
What Is a
Franchise?...................................................................................
70
II.
Who Must Provide Disclosure? ..................................................................
71
III.
Who Must Receive
Disclosure?.................................................................. 72
IV.
When Must Disclosure Be Furnished? .......................................................
73
V.
Information to Be Included in Disclosure
Document................................. 74
VI.
Governmental Filings
.................................................................................
82
VII.
Other Requirements ....................................................................................
84
VIII. Franchisor-Franchisee
Relationship Laws ................................................. 85
IX.
Violations of Franchise Sales Laws ............................................................
86
About the
Author...................................................................................................
89
Canada
Introduction.................................................................................................................
94
I.
What Is a
Franchise?...................................................................................
94
II.
Who Must Provide Disclosure? ................................................................
103
III.
Who Must Receive
Disclosure?................................................................ 104
IV.
When Must Disclosure Be Furnished? .....................................................
105
V.
Information to Be Included in Disclosure
Document............................... 109
VI.
Governmental Filings
...............................................................................
132
VII.
Other Requirements ..................................................................................
133
VIII. Franchisor-Franchisee
Relationship Laws ............................................... 134
IX.
Violations of Franchise Sales Laws ..........................................................
136
About the Authors
...............................................................................................
142
China
I.
What Is a
Franchise?.................................................................................
148
II.
Who Must Provide Disclosure? ................................................................
149
III.
Who Must Receive
Disclosure?................................................................ 150
IV.
When Must Disclosure Be Furnished? .....................................................
150
V.
Information to Be Included in Disclosure
Document............................... 151
VI.
Governmental Filings ...............................................................................
157
VII.
Other Requirements ..................................................................................
160
VIII. Franchisor-Franchisee
Relationship Laws ............................................... 161
IX.
Violations of Franchise Disclosure Laws .................................................
165
About the Author.................................................................................................
167
France
I.
What Is a
Franchise?.................................................................................
172
II.
Who Must Provide Disclosure? ................................................................
179
III.
Who Must Receive
Disclosure?................................................................ 180
IV.
When Must Disclosure Be Furnished? .....................................................
181
V.
Information to Be Included in a Disclosure
Document ............................ 183
VI.
Governmental Filings
...............................................................................
193
VII.
Other Requirements ..................................................................................
194
VIII. Franchisor-Franchisee
Relationship Laws ............................................... 194
IX.
Violations of Franchise Disclosure Laws .................................................
197
About the Authors
...............................................................................................
201
Germany
I.
What Is a
Franchise?.................................................................................
206
II.
Who Must Provide Disclosure? ................................................................
208
III.
Who Must Receive
Disclosure?................................................................ 209
IV.
When Must Disclosure Be Furnished? .....................................................
210
V.
Information to Be Included in Disclosure
Document............................... 211
VI.
Governmental Filings
...............................................................................
217
VII.
Other Requirements ..................................................................................
217
VIII.
Franchisor-Franchisee Relationship Laws ...............................................
218
IX.
Violations of Franchise Sales Laws ..........................................................
220
About the Authors
...............................................................................................
221
Indonesia
I.
What Is a
Franchise?.................................................................................
226
II.
Who Must Provide Disclosure? ................................................................
227
III.
Who Must Receive Disclosure?................................................................
228
IV.
When Must Disclosure Be Furnished? .....................................................
229
V.
Information to Be Included in Disclosure Document...............................
230
VI.
Government Filings
..................................................................................
237
VII.
Other Requirements ..................................................................................
239
VIII.
Franchisor-Franchisee Relationship Laws ...............................................
240
IX.
Violations of Franchise Sales Laws ..........................................................
241
About the Authors
...............................................................................................
242
Italy
I.
What Is a
Franchise?.................................................................................
248
II.
Who Must Provide Disclosure? ................................................................
249
III.
Who Must Receive
Disclosure?................................................................ 250
IV.
When Must Disclosure Be Furnished? .....................................................
251
V.
Information to Be Included in the Disclosure
Document......................... 252
VI.
Governmental Filings
...............................................................................
261
VII.
Other Requirements ..................................................................................
262
VIII.
Franchisor-Franchisee Relationship Laws ...............................................
262
IX.
Violations of Franchise Sales Laws ..........................................................
266
About the Authors
...............................................................................................
269
Japan
I.
What Is a
Franchise?.................................................................................
274
II.
Who Must Provide Disclosure? ................................................................
276
III.
Who Must Receive
Disclosure?................................................................ 277
IV.
When Must Disclosure Be Furnished? .....................................................
279
V.
Information to Be Included in Disclosure
Document............................... 279
VI.
Governmental Filings ...............................................................................
290
VII.
Other Requirements ..................................................................................
291
VIII.
Franchisor-Franchisee Relationship Laws ...............................................
292
IX.
Violations of Franchise Sales Laws ..........................................................
294
About the Authors
...............................................................................................
295
Macau
I.
What Is a
Franchise?.................................................................................
300
II.
Who Must Provide Disclosure? ................................................................
301
III.
Who Must Receive
Disclosure?................................................................ 302
IV.
When Must Disclosure Be Furnished? .....................................................
302
V.
Information to Be Included in Disclosure
Document............................... 303
VI.
Governmental Filings
...............................................................................
312
VII.
Other Requirements ..................................................................................
313
VIII. Franchisor-Franchisee
Relationship Laws ............................................... 313
IX.
Violations of Franchise Sales Laws ..........................................................
316
About the Authors
...............................................................................................
317
Malaysia
I.
What Is a
Franchise?.................................................................................
322
II.
Who Must Provide Disclosure? ................................................................
323
III.
Who Must Receive
Disclosure?................................................................ 324
IV.
When Must Disclosure Be Furnished? .....................................................
325
V.
Information to Be Included in Disclosure
Document............................... 325
VI.
Governmental Filings
...............................................................................
332
VII.
Other Requirements ..................................................................................
336
VIII. Franchisor-Franchisee
Relationship Laws ............................................... 336
IX.
Violations of Franchise Sales Laws ..........................................................
338
About the Authors
...............................................................................................
339
Mexico
I.
What Is a
Franchise?.................................................................................
344
II.
Who Must Provide Disclosure? ................................................................
345
III.
Who Must Receive
Disclosure?................................................................ 346
IV.
When Must Disclosure Be Furnished? .....................................................
346
V.
Information to Be Included in Disclosure
Document............................... 347
VI.
Governmental Filings
...............................................................................
353
VII.
Other Requirements ..................................................................................
355
VIII. Franchisor-Franchisee
Relationship Laws ............................................... 355
IX.
Violations of Franchise Sales Laws ..........................................................
357
About the Authors ...............................................................................................
359
The Netherlands
I.
What Is a
Franchise?.................................................................................
364
II.
Who Must Provide Disclosure? ................................................................
368
III.
Who Must Receive
Disclosure?................................................................ 370
IV.
When Must Disclosure Be Furnished? .....................................................
370
V.
Information to Be Included in a Disclosure
Document ............................ 374
VI.
Governmental Filings
...............................................................................
383
VII.
Other Requirements ..................................................................................
384
VIII. Franchisor-Franchisee
Relationship Laws ............................................... 384
IX.
Violations of Franchise Sales Laws ..........................................................
390
About the Authors
...............................................................................................
394
Romania
I.
What Is a
Franchise?.................................................................................
398
II.
Who Must Provide Disclosure? ................................................................
399
III.
Who Must Receive
Disclosure?................................................................ 400
IV.
When Must Disclosure Be Furnished? .....................................................
401
V.
Information to Be Included in Disclosure
Document............................... 402
VI.
Governmental Filings
...............................................................................
412
VII.
Other Requirements ..................................................................................
414
VIII.
Franchisor-Franchisee Relationship Laws ...............................................
414
IX.
Violations of Franchise Sales Laws ..........................................................
417
About the Authors
...............................................................................................
418
Saudi Arabia
I.
What Is a
Franchise?.................................................................................
424
II.
Who Must Provide Disclosure? ................................................................
427
III.
Who Must Receive
Disclosure?................................................................ 428
IV.
When Must Disclosure Be Furnished? .....................................................
428
V.
Information to Be Included in Disclosure
Document............................... 429
VI.
Governmental Filings ...............................................................................
435
VII.
Other Requirements ..................................................................................
436
VIII.
Franchisor-Franchisee Relationship Laws ...............................................
437
IX.
Violations of Franchise Sales Laws ..........................................................
438
About the Authors
...............................................................................................
439
South Africa
I.
What Is a
Franchise?.................................................................................
444
II.
Who Must Provide Disclosure? ................................................................
448
III.
Who Must Receive
Disclosure?................................................................ 449
IV.
When Must Disclosure Be Furnished? .....................................................
450
V.
Information to Be Included in the Disclosure
Document......................... 451
VI.
Governmental Filings
...............................................................................
457
VII.
Other Requirements ..................................................................................
458
VIII.
Franchisor-Franchisee Relationship Laws ...............................................
458
IX.
Violations of Franchise Sales Laws ..........................................................
461
About the Authors
...............................................................................................
466
South Korea
I.
What Is a
Franchise?.................................................................................
472
II.
Who Must Provide Disclosure? ................................................................
474
III.
Who Must Receive
Disclosure?................................................................ 475
IV.
When Must Disclosure Be Furnished? .....................................................
475
V.
Information to Be Included in Disclosure
Document............................... 476
VI.
Governmental Filings
...............................................................................
485
VII.
Other Requirements ..................................................................................
487
VIII. Franchisor-Franchisee
Relationship Laws ............................................... 487
IX.
Violations of Franchise Sales Laws ..........................................................
494
About the Authors
...............................................................................................
498
Spain
I.
What Is a
Franchise?.................................................................................
502
II.
Who Must Provide Disclosure? ................................................................
504
III.
Who Must Receive
Disclosure?................................................................ 504
IV.
When Must Disclosure Be Furnished? .....................................................
505
V.
Information to Be Included in the Disclosure
Document......................... 506
VI.
Governmental Filings ...............................................................................
512
VII.
Other Requirements ..................................................................................
514
VIII. Franchisor-Franchisee
Relationship Laws ............................................... 516
IX.
Violations of Franchise Sales Laws ..........................................................
519
About the Authors
...............................................................................................
521
Sweden
I.
What Is a
Franchise?.................................................................................
526
II.
Who Must Provide Disclosure? ................................................................
528
III.
Who Must Receive Disclosure?................................................................
528
IV.
When Must Disclosure Be Furnished? .....................................................
529
V.
Information to Be Included in Disclosure
Document............................... 530
VI.
Governmental Filings
...............................................................................
536
VII.
Other Requirements ..................................................................................
537
VIII. Franchisor-Franchisee
Relationship Laws ............................................... 537
IX.
Violations of Franchise Sales Laws ..........................................................
538
About the Authors
...............................................................................................
539
Taiwan
I.
What Is a
Franchise?.................................................................................
544
II.
Who Must Provide Disclosure? ................................................................
546
III.
Who Must Receive
Disclosure?................................................................ 547
IV.
When Must Disclosure Be Furnished? .....................................................
548
V.
Information to Be Included in Disclosure
Document............................... 550
VI.
Governmental Filings
...............................................................................
557
VII.
Other Requirements ..................................................................................
558
VIII. Franchisor-Franchisee
Relationship Laws ............................................... 559
IX.
Violations of Franchise Sales Laws ..........................................................
560
About the Authors
...............................................................................................
562
United States
Introduction...............................................................................................................
568
I.
What Is a
Franchise?.................................................................................
569
II.
Who Must Provide Disclosure? ................................................................
578
III.
Who Must Receive
Disclosure?................................................................ 579
IV.
When Must Disclosure Be Furnished? .....................................................
580
V.
Information to Be Included in the Disclosure
Document......................... 583
VI.
Governmental Filings
...............................................................................
594
VII.
Other Requirements ..................................................................................
601
VIII.
Franchisor-Franchisee Relationship Laws ...............................................
601
IX.
Violations of Franchise Sales Laws ..........................................................
604
About the Authors
...............................................................................................
608
Vietnam
I.
What Is a
Franchise?.................................................................................
612
II.
Who Must Provide Disclosure? ................................................................
614
III.
Who Must Receive
Disclosure?................................................................ 615
IV.
When Must Disclosure Be Furnished? .....................................................
616
V.
Information to Be Included in Disclosure
Document............................... 617
VI.
Governmental Filings ...............................................................................
623
VII.
Other Requirements ..................................................................................
624
VIII.
Franchisor-Franchisee Relationship Laws ...............................................
625
IX.
Violations of Franchise Disclosure Laws .................................................
627
About the Authors
...............................................................................................
629
