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.
