G8 Meeting in Northern IrelandJune 20, 2013
When some of the most powerful leaders in the world get together, the only certainty is that the discussions will be wide ranging and may well not stay on-topic. Certainly this is the case with the current G8 meeting in Lough Erne, Northern Ireland. Pre-meeting publicity centred firmly on matters such as the global economy and tax transparency and yet disagreements on Syria have taken the early headlines.
On a positive note, before the summit began the Prime Minister, David Cameron met with the German Chancellor, the US President and the Prime Ministers of Italy and France to signal the start of talks aimed at creating a joint EU-US free trade deal. According to Mr Cameron, such a deal could be worth £10b to the UK alone.
The existence of free trade or reciprocal trade deals between countries does in theory make expansion into those countries more attractive. However, those looking to expand their franchise or business model overseas will get their fingers burnt if they haven’t researched the local regulations and marketplace in sufficient detail. No matter how many free trade agreements there are between countries, public and social attitudes will be different. This means that a franchise model which works well in one country may fail in another.
The answer for anyone thinking of taking their franchise model overseas is to research the local market, research regulations and research potential rivals. Franchisors would also be well advised to take time to draw up a franchise agreement which not only meets international and local laws but also takes account of the taxation implications of cross-boarder payments. We’ll keep an eye on the progress of the EU-US free trade deal negotiations but we’ll also be aware that the deal doesn’t necessarily mean that we should be any less rigorous in providing cross-border franchise advice.
As a BFA approved franchise solicitor and BFA approved franchise consultant we offer legal advice and consulting services that will help you grow and improve your franchise business.