In the United States, a franchise agreement is often used to promote and consolidate one’s brand.

It should be noted that this demand is certainly closely linked to the size of the region and to the difficulties which result from it in having a larger presence with points of sale or specific realities. Before Covid-19, there were approximately 2,500 property organizations in the United States that manage approximately 800,000 property owners in 300 different industries. These proprietary companies have created 7 million 600,000 jobs, or about 674 billion US dollars in terms of production value and 2.5% of GDP.

Unfortunately, due to the government, in August 2020, around 32,700 licensed businesses were closed, of which 10,875 remained firm. The homeowners market has lost 1.4 million jobs due to the epidemic, 40% of which are permanent.

Recovery after infection

The ownership system is known for its regression and innovation, but you need to understand how quickly it can recover after an infection is over.

Ten large franchise chains around the world are located in the United States (McDonald’s, Pizza Hut, KFC, Burger King, etc.): they have reached more than $ 300 billion in annual turnover.

The interests of trademarks licensed in the United States are represented International Association of Homeowners, based in Washington, DC, is the world’s largest and oldest property organization.

Differences in uniqueness and ownership agreement

Although having common characteristics everywhere, the United States rights agreement sometimes has some peculiarities and differences between one state and another, so it is a good recommendation to carry out a specific and due diligence. Rules. He is in practice in the region where he wants to operate.

We have said that the regulation of the franchise agreement is not the same and varies from state to state and sometimes it is not.

At the federal level, the organization that manages the property Federal Trade Commission And the relevant law is the FTC Ownership rule 2007, “Disclosure Obligations and Ownership Restrictions ”. In general, these are the rules for the protection of the owner.

Open a Francis Network in the United States

The choice to open a franchise network, particularly in the United States, must be preceded by a precise feasibility study, which takes into account in particular the characteristics of the market and, of course, the habits of potential buyers. Goods or services, labor regulations and tax characteristics, the amount of investment required is certainly not negligible.

First, the owner’s mark is registered and valid in the United States.

The FTC requires that you submit in advance the Franchise Disclosure Document (FDD) that meets the requirements of applicable law and FTC franchise rules.

15 FDD states and 7 other states must register the owner to complete a form before granting or selling the property.

Disclosure and registration obligations are intended to protect owners and potential owners.

The owner can meet the requirements of the supply chain, thus complying with the rules for individual products, including the ability to guarantee all activities related to the goods delivered from production to import in the United States, including customs and logistics fees.

Characteristic elements of this type of contract, as always:

• Brand offer by the Francis in support of the owner for the sale of goods or services;
• A payment Admission fees In favor of the owner;
• To control the activity of the owner by the owner in order to achieve a common interest.

If the owner of the mark is a foreign object, it is preferable for him to create a company or to appoint a legal person in the territory with the mission of acting as the main owner.

In this case, the primary owner’s task is to establish sub-owner agreements with the sub-owners locally.

In this case, the first agreement between subjects of different countries will be governed by the rules of private international law and the second by local rules.

If the Italian owner wants to act directly, he can do so, perhaps by using a Regional representative Local, to help with the opening of the store, to perform certain tasks, and in the early stages.

Sometimes the image is used instead owner developer dell’area Regional exclusivity is granted for the opening of points of sale for goods or services.

It is useful to remember that the precision in the drafting of the clauses of the contract is always very important both for the merits of the contract and the fees to be borne by the parties in order to avoid disputes as much as possible. Explanatory position.