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Lawyers |
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Franchise and Distribution
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Aspects of Franchising Law in Israel |
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The franchising phenomenon started in the United States and Europe; however it is not
geographically limited thereto and is now a growing part of Israel's economy and in recent
years has become a significant part of the market. Over two hundred and fifty
franchised small-medium businesses are operating in Israel, in thirty seven different
areas of business[1]. The most dominant
franchise businesses in Israel
are in the fields of: Beverage & Alcohol, Fast Food, Retail Food Industry,
Real Estate, Life style, Cosmetics & Health, Pets, Clothing and
Accessories. The fact that more and more large corporations revert to franchising
for promoting and expanding their operations has indeed influenced the entire
market, however franchising is no longer in the hold of large corporations.
Small medium sized businesses also use this structure to expand their
operations with only a small number of branches. At the same time, one might
find corporations such as: "McDonald's", "Domino's Pizza"
(Fast Food), "Zara", "Mango" (fashion & clothing),
"Remax" (Real Estate), "Toys-R-Us" (Children) - with dozens
of branches all over Israel
- all using the franchise implementation.
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International Franchise Transaction - How Will it be Affected by Amendment for UFOC Disclosure |
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On 22 January 2007 the Federal Trade Commission (FTC) approved an amended Franchise Rule.
The new regulations change the scope of disclosure in Franchise Transactions. U.S companies get the advantage of limited disclosure while foreign companies, who whish to penetrate the U.S market, carry the burden of excessive disclosure obligations.
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