2010 Conference Program—Symposium 4


SELECTING AND NEGOTIATING A MASTER FRANCHISE

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If you want to acquire or grant franchise rights for a country or a region, you likely will do so through a master franchise structure. How does a master franchise model operate? What are the responsibilities of each of the parties? How do you analyze the economics of a master franchise model to insure success? How do you select a master franchise partner and negotiate a master franchise agreement in an international setting? This symposium will address these challenging issues and draw on the diverse experience of our panelists, all veterans in the franchise industry, to assist you to pursuing a master franchise opportunity. All symposium attendees receive admission to the exhibits on all three days.

Date
Saturday, April 10, 11:00am – 1:00pm


Rates
Advance: $175 includes exhibit hall admission and seminars
On-Site: $225 includes exhibit hall admission and seminars

Individuals enrolled in the Certified Franchise Executives program will earn 100 education credits towards completion or recertification of the Certified Franchise Executive (CFE) designation by attending Selecting and Negotiating a Master Franchise. For more information about the Certified Franchise Executives program, please call or email Rose DuPont (202-662-0771 -- rdupont@franchise.org) or visit www.franchise.org/certification.aspx.

Who Should Attend
International investors seeking franchises which they can expand into their countries; U.S. investors desiring to acquire master franchise rights in the U.S. from a foreign franchisor, franchisor executive team leaders desiring to expand their knowledge of master franchising (vs. other models of franchise development); and owners of master franchisees seeking a better understanding of common issues that arise in a master franchise relationship.

In This Symposium We Will Discuss

Key elements to the success of a master franchise relationship: the planning, selection and negotiation process.

Planning Stage and Selection Process
  • Identifying the most common challenges master franchisees face in an international setting.
  • Determining the role of the franchisor and the master franchisee in understanding and adapting to the local market.
  • Evaluating the franchisor’s resources and experience needed to carry out an international strategy and assist the master franchisee achieve its goals.
  • Establishing an appropriate level of due diligence and identifying methods to gather accurate information on foreign parties.
  • Identifying which factors must be addressed in developing a successful business plan for a master franchise?
  • Examining the role the franchisor should play in crafting the business plan for developing the master franchisee’s business?
  • Determining the resources the master franchisee must have to implement the business plan?
The Negotiation Process
  • Establishing reasonable franchise and related fees in an international master franchise relationship.
  • Establishing balance in a master franchise agreement to allow the master franchisee a fair opportunity to succeed while enabling the franchisor to maintain control over the franchise system and recover a reasonable profit from the relationship.
  • Establishing a development schedule that makes sense in light of the local market, the product or service involved and other factors.
  • Understanding issues at the end of a master franchise relationship.
An international master franchise involves multiple parties—franchisor, master franchisee and unit franchisees in the territory—as well as multiple agreements, and often, different laws, cultures, and languages. This symposium will identify the skills and resources necessary to manage a complex relationship and guide you in determining the attributes of successful master franchise relationships while avoiding the pitfalls of failed relationships.


Presented by:
Gaylen Knack and Carl Zwisler, Partners, Gray Plant Mooty (www.grayplantmooty.com)

Panelists: Peter Holt, Chief Operating Officer, Tasti D-Lite; Leonard Swartz, Senior Consultant, iFranchise Group, Inc.

As a principal in Gray Plant Mooty’s 25 person franchise group, Gaylen has devoted over 20 years in assisting franchisors in structuring domestic and international franchise and distribution programs and advising clients on related business and regulatory issues. He also assists franchisors in developing domestic and foreign supply chains and advises clients on related international trade, due diligence, trademark, and Internet matters.

Gaylen’s combined experience in private practice and as a franchise executive provide him with a unique understanding of the complex business and legal issues that franchisors face. He has been active in various IFA activities and committees and has spoken and authored numerous articles on a variety of franchise and distribution-related topics. In the past six months, Gaylen has been recognized in International Who’s Who of Franchise Lawyers, Chambers USA (Leading Franchise Lawyer) and as a "Legal Eagle" by Franchise Times.

Carl is a principal in GPM’s Franchise & Distribution practice group and focuses his practice on the representation of franchisors, manufacturers, and investors in structuring, negotiating, and enforcing domestic and international franchise, licensing, distribution, and acquisition agreements. He also assists executives and general counsel in more than 65 industries or industry segments with creative solutions for developing and implementing business expansion strategies. With more than 35 years experience, Carl has worked with clients in every phase of domestic and international franchising, licensing, and distribution programs, frequently advising companies entering the U.S. market and U.S. companies expanding abroad.

He is the author of the book, Master Franchising: Selecting, Negotiating and Operating a Master Franchise and has lead the IFE Master Franchising Symposia for over fifteen years. A former IFA General Counsel, he has been consistently recognized by Who’s Who Legal as a leading international franchise lawyer and as a "Legal Eagle" by Franchise Times. He was the 2005 recipient of IFA’s Distinguished Service Award.