2016 Conference Program - Workshop 4

 INTERNATIONAL EXPANSION: MASTER FRANCHISING AND OTHER STRUCTURES

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Partners from DLA Piper and an experienced franchise development executive discuss master franchising, and other commonly used expansion structures. Drawing from their work with multiple industries and brands, they will review the pros and cons of different structures, and why many franchisors choose to master franchise, while others choose to expand via corporate outlets, joint ventures, management programs, single unit development, multi-unit development and area representative structures. They will also explore the unique business and legal issues related to master franchising.

All course materials are presented in English only. All attendees receive admission to the exhibits and seminars on all three days.

Date

Friday, June 17, 2:00pm - 5:00pm
Room: 1B03

Rates

Advance: $210 includes exhibit hall admission and seminars
On-Site: $260 includes exhibit hall admission and seminars

CFE Accreditation

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 International Expansion: Master Franchising and Other Structures. 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

Franchisors seeking to understand how master franchising and other development models can better serve their needs. Prospective master franchisees and developers. US franchisors seeking to determine how to go about master franchising in foreign markets. International investors seeking master franchisors to expand into their countries.

This Workshop Will Look At

What it takes for master franchising to succeed and prosper, at home and abroad, and when another model might be a better approach, including

  • When is master franchising the best approach? When is it not? What are the alternatives?
  • Identifying the markets best suited for master franchising.
  • Matching the right franchisor with the right prospect.
  • Structuring the relationship.
  • Determining the fees and other charges.
  • Establishing development schedules for the local market.
  • Administering advertising and promotional programs in the local market.
  • Capital requirements for the master franchisee and other funding considerations.
  • Dealing with local market conditions and cultures.
  • Maintaining system standards and protecting the brand.
  • Managing a network of master franchises.
  • How to avoid the pit falls of master franchising.
  • How to handle disputes.
  • Exit strategies.

Master franchising can be a very effective vehicle for expanding internationally. This workshop will consider the elements of successful master franchising from the perspective of the franchisor and master franchisee, with particular attention to the special advantages this technique may offer in the context of cross-border franchising. It will also discuss some alternative approaches to master franchising and when they might be preferable.


Presented by:
Richard Morey and Tao Xu, Partners, DLA Piper

Richard Morey is a partner in DLA Piper's Franchise and Distribution practice group and in the Corporate practice group, based in Chicago. Mr. Morey's franchise and distribution practice is focused on working with both experienced and start-up franchise companies, helping them structure new franchise programs and determine the most appropriate methods of single- and multi-unit franchising. He counsels franchisors on everyday compliance and other franchise-related issues, such as registration and disclosure matters, negotiating agreements, maintaining good franchisee relations and resolving disputes with franchisees. He also works extensively on international franchising and licensing transactions, including master franchise, area development and single-unit licensing deals in Asia, Europe, Central America, the Middle East and the Caribbean, in addition to structuring other methods of international product distribution such as manufacturing and bottling arrangements.

In his corporate practice Mr. Morey handles all aspects of small- and mid-market mergers and acquisitions transactions, with a special focus on representing franchisors in M&A transactions. He also represents non-franchise clients on corporate, organizational and contract-related matters, including financing arrangements, workouts and management arrangements.


Tao Xu devotes his practice to franchising and distribution matters, especially international franchising, licensing and distribution transactions. He counsels a broad range of clients in their international expansions, including master franchising, multi-unit licensing, area development, single-unit licensing and direct investment (both joint venture and wholly foreign owned). He provides clients with legal background briefing, general corporate advice, contract drafting, negotiation and other services. Mr. Xu has helped clients with transactions in countries and regions that include Australia, Austria, Brazil, Canada, China, Cyprus, the Czech Republic, France, Germany, Hong Kong, Hungary, India, Indonesia, Italy, Japan, Malaysia, Mexico, the Netherlands, New Zealand, the Philippines, Poland, Portugal, Qatar, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Turkey, the UAE, Ukraine and the UK.

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