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International

Dec. 21, 2011

Franchise laws: What you should know before expanding internationally

Don't be fooled, running afoul of international franchise laws can carry severe consequences. By Susan Grueneberg and Joshua Schneiderman of Snell & Wilmer LLP


By Susan Grueneberg and Joshua Schneiderman


Much has been written about the phenomenon known as "inadvertent franchising" in the U.S. - a situation that arises when a company, acting innocently enough, thinks it is granting a simple license but actually crosses the line into franchising. Inadvertent franchising can result in claims against the franchisor for rescission and damages, and can even result in individual liability for control persons.

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