KUWAIT: an interesting judgement on exclusive distribution.

The plaintiff is a Kuwaiti company acting as an exclusive distributor since 1977 for a US pharmaceutical company, the latter terminated prematurely the distribution agreement without valid justification and sufficient prior notice, to this extent the distributor has sued the principal / manufacturer claiming for a fair compensation as per the local laws and front […]

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FRANCE: an interesting case law on selective distribution.

Well-known brands have always sought to protect their image by controlling the distribution of their products…. The system of selective distribution networks has been developed to meet this end. In such networks, only distributors selected by the brand owner, based on such criteria as good standing and skill, are authorized to resell the products and, […]

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CANADA: The International Franchise Lawyer’s Guide to adapting foreign franchise documents for expansion to Canada.

With a diversified consumer base, a stable economy, and a well established legal system, Canada has also become a receptive jurisdiction for foreign franchise systems based in many other countries. Foreign franchisors and their advisors must appreciate that Canada is a highly regulated country in terms of franchise specific legislation, and there are a number […]

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U.S.A.: Girl scouts local chapter protected as a ‘Franchise’ under Wisconsin Fair Dealership Law.

The Seventh Circuit held that the Girl Scouts violated the Wisconsin Fair Dealership Law by dissolving a local Wisconsin chapter of the organization (‘Manitou’) ‘without good cause.’ In this case, the Girl Scouts attempted to dissolve its affiliate, the Manitou council, as a part of its nationwide reorganization. Manitou refused to participate in the reorganization […]

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U.S.A.: Court rules holdover franchisee’s continued unauthorized use of franchisor’s trademark constitutes counterfeiting.

In Century 21 Real Estate, LLC v. Destiny Real Estate Properties, No. 4:11-CV-38 JD, 2011 U.S. Dist. LEXIS 147075 (N.D. Ind. Dec. 19, 2011), the franchisor, Century 21, terminated its relationship with the franchisee after the franchisee failed to make the payments required by the franchise agreement. Century 21 then sued to recover monetary damages […]

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CHINA: MOFCOM Releases new Franchise Disclosure Guidelines.

The revisions are a mix of good news and bad news for franchisors. Significant provisions have been added to protect the Franchisor from the disclosure or misuse of any confidential information that has been obtained by a prospective franchisee during the process of negotiation and agreement. On the other hand the amendments require significantly more […]

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FRANCE: an interesting case law on abrupt termination of a commercial relationship.

Considering itself the victim of an abrupt termination of a commercial relationship, a distributor brought an action against its German supplier before a French court. In defense, the supplier pointed to a clause in its general conditions of sale, written on the back of its invoices, which attributed jurisdiction to the German courts ‘for any […]

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U.S.A.: Lost future royalties recoverable following franchise termination.

Shortly after their abandonment, Hardee’s, the franchisor, terminated the franchise agreement and subsequently started a lawsuit seeking damages in the form of the royalties that the franchisees would have paid had they completed the term of their agreement. Hardee’s submitted two reports from an expert who estimated that such damages would total around $50,000. The […]

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RUSSIA: Global amount of supplies provided by some purchase and sale contracts.

Providing in the standard purchase and sale contracts global amount of the supplies for the entire duration of the contract or for a certain period depends on (1) technical features of the procedure of customs declaration of goods, and (2) requirements of the Russian currency control.   1. Customs declaration of goods 1. By the […]

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TURKEY: Turkish Competition Board decision fining Turkcell – the GSM operator – for abuse of dominant position in the GSM market.

The Turkish Competition Board has been carrying out an investigation on the matter for some while. Finally, the Turkish Competition Board in its meeting dated 06.06.2011 and nr. 11-34/742-230 has come to the conclusion that Turkcell is in breach with Article 6 of the Law on the Protection of Competition which regulates the abuse of […]

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CHINA: Regulatory Developments – More Enforcement Coming.

MOFCOM also released a statement on how it plans to promote the healthy development of commercial franchising in accordance with the current five year plan, and the National Development and Reform Commission issued a revised version of the Foreign Investment Catalogue that affected franchise investments. Revised Commercial Franchise Registration Measure. While there were hopes that […]

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