Arthur Andersen Worldwide Organization helps franchisors enter foreign markets. The company provides financial advice, assists with market surveys, aids franchisor in adapting to country’s culture, and helps locate investors. The program began in 1995 in Madrid. However, it has spread to Singapore, the Philippines and Indonesia (Aguila, 1996). Recruit Co. Ltd. also assists franchisors in expanding overseas. The company holds an annual conference for United States (US) franchisors to network, attend workshops, seek investors, etc.
In fact, the conference is for two days and costs $3,000. While the workshop is conducted entirely in Japanese, the franchisor is encouraged to bring an interpreter. Yet, if one is not available, for a price of $750, Recruit Co. Ltd. will provide the franchisor an interpreter (Aguila, 1996, Tokoyo, para. 5). Another program that exists is 2nd Tuesday. This program was created by the International Franchise Association (IFA) to help franchisors and franchises meet and exchange ideas.
Meetings are held every quarter at various locations across the country. Significantly, Aguila (1996) wrote, Created by Subway sandwich franchise founder Fred DeLuca, the meetings provide an informal atmosphere for discussing franchising issues, from diversity and grass-roots lobbying to financing options and legal trends. Local IFA members host the meetings, held in 30 to 50 cities on the second Tuesday of each quarter. The IFA provides the theme for each meeting, such as how to do your own public relations. (All together now, paras. 2-3).All meetings provide current franchisees, franchisors, suppliers, and others an opportunity to listen to the experts and acquire vital information about franchising, network, exchange tips and information, and so forth (Aguila, 1996, All together now, para. 4). Business law, the franchise agreement and the FTC No matter how badly a franchisor desires to enter a foreign market, before doing so, he or she should understand the franchise agreement. This agreement is one reason why business law is important to the franchisor.
FreeAdvice (2008) mentioned, The franchise agreement is the cornerstone document of the franchisee—franchiser relationship. It is this document that is legally binding on both parties, laying out the rights and obligations of each. A sample agreement may either be attached to the disclosure statement or presented separately. (p. 5) Another reason business law is important in franchising is because a franchise desiring to expand into foreign markets can easily be taken advantage of if they have not learned the rules and regulations govern that country.
That is why the Federal Trade Commission works hard to protect consumers and enforce federal antitrust laws. FTC is designed to monitor the nation’s markets, ensuring they operate assertively; are influential; effective and clear of excessive constraints. FranchisingLaw. com (2003) reiterated, “The FTC also works to improve the steady operation of the marketplace by eradicating practices that are unfair or misleading. ’ ‘Generally, the Commission’s efforts are directed toward stopping actions that threaten consumers’ opportunities to exercise informed choice’” (The function of the Federal Trade Commission, para.
1). Additionally, FTC handles economic analysis which contributes to the strategy negotiations of the Congress, the Executive Branch, and so forth while sustaining the commission’s own law enforcement efforts (FranchisingLaw. com, 2003). Thus, franchising offers many opportunities for growth. In fact, the Franchise Business Review (FBR) (2008) website lists the Top 50 franchises for large systems, midsize systems and systems with under 50 units.
The top three in each category are listed below. Top 50 Franchises—Large Systems 1. Heaven’s Best (Cleaning & Maintenance), located in Canada and National, total investment of $24,900 to $60,000. 2. Home Instead Senior Care (Senior Care), located in Canada, International, and National, total investment of $44,050 to $57,550. 3. FASTSIGNS International (Business Services), located in Canada, International, and National, total investment of $222,251 to $325,860 (FBR, 2008).