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ICC Model International Franchising Contract

ICC Model International Franchising Contract

ICC rules for the use of domestic and international trade terms by International Chamber of Commerce

To take into account latest developments across the world, ICC's experts have now updated the successful ICC Model International Franchising Contract.

Simple, user-friendly, flexible

International direct franchises are a rapidly expanding business instrument and make a considerable contribution to growth in various industry sectors. A lack of uniform international rules complicates matters though. The ICC Model International Franchising Contract responded to a growing need for a simple and user-friendly model contract that reflects the diversity of franchising contracts.

Explanations and Commentary for an even more efficient use

This update includes a significantly expanded introduction. It provides valuable information for users on issues such as anti-trust rules and questions of laws applicable to franchises. A helpful commentary offers alternative drafting solutions adapted to more specific needs and identifies potential pitfalls.

Franchising is based on the notion of replicating success.
In order to grow rapidly, business networks need large infusions of capital.
Rather than invest its own capital, the franchisor enters into agreements with franchisees.

The franchisor grants to each franchisee the right to exploit:

  • all or part of the franchisor's business system;
  • trademarks, logos and distinctive signs, intellectual property; and
  • technical know-how and processes.

 

In return, the franchisee will usually:

  • make a "front money" payment in order to enter the franchise network;
  • invest a minimum amount in setting up and operating the business;
  • pay the franchisor fees and royalties; and
  • adhere to the franchisor's standards for quality of services.
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  • International Chamber of Commerce (ICC)
  • 2011
  • 712E
  • ICC Model International Franchising Contract
  • English

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