Model international franchising contract will open up markets
Paris, 25 September 2000 - ICC has published a model contract on international franchising agreements. Available in hard
copy accompanied by a diskette, use of the contract overcomes difficulties caused by a lack of uniform international rules in this field.
The model contract is the latest in a series of widely used model contracts for international trade published by ICC, the world business organization. All may be ordered from ICC Publishing SA in Paris, from ICC's online Business Bookstore, and from ICC national committees throughout the world.
Franchising is increasingly being used as a means of rapid market penetration without the burden of the capital costs of international expansion. However laws and regulations that differ from country to country have hampered its progress.
The ICC Model International Franchising Contract (ICC Publication No 557) facilitates international franchising by offering franchisors and franchisees a framework agreement within which their rights and responsibilities can be protected.
The Model Contract applies to all international franchise agreements that govern the distribution of goods or provision of services. It does not apply to master franchise agreements where the master franchisee, in exchange for financial compensation, is granted the right to exploit a franchise for the purposes of concluding agreements with third parties.
What it does
The Model Contract strikes a fair balance between the interests of the franchisor and franchisee.
In doing so, the Contract:
- takes into account the most commonly used clauses in franchise agreements
- suggests alternative clauses where no single solution is possible
- allows the parties to insert their own requirements on certain points
- provides annexes which the parties can modify without changing the basic text of the agreement
- provides a system to resolve disputes
- includes a detailed commentary explaining the various provisions
The Contract, therefore, provides a uniform framework for agreement along with the flexibility to account for the parties' individual needs.
ICC model contracts protect the interests of all the parties and combine a uniform framework of rules with flexible provisions that allow the parties to insert their own requirements.
Other ICC model contracts:
· ICC Model Commercial Agency Contract
· ICC Model Distributorship Contract
· ICC Model International Sale Contract
· ICC Model Occasional Intermediary Contract
For more details, visit the ICC Business Bookstore