The globalization of American franchise networks is one of the hallmarks of franchising's explosive growth during the past three decades. The International Franchise Association (IFA) notes that during the past decade, almost half of all units established by U.S. franchisors were situated outside of this country.
No 'Doublemint' Pleasure for Global Franchisors
The globalization of American franchise networks is one of the hallmarks of franchising's explosive growth during the past three decades. The International Franchise Association (IFA) notes that during the past decade, almost half of all units established by U.S. franchisors were situated outside of this country. Approximately 500 U.S. franchise networks have a global presence. McDonald's, now in 119 countries, features more than 10,000 foreign franchises; 7-Eleven, more than 18,000; YUM! Brands Inc. (Pizza Hut/KFC/ Taco Bell/A&W/ Long John Silvers) more than 11,000 (adding 1,000 new restaurants a year during the past 3 years); and, InterContinental Hotels Group (the franchisor of Holiday Inns, InterContinental Hotels, and Staybridge Suites) nearly 1,000. <br/>However, a recent intellectual property decision handed down on Oct. 23, 2003 by the European Court of Justice threatens not only established American franchisors doing business on that continent, but those thinking of joining their ranks.
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David J. KaufmannThis premium content is locked for LawJournalNewsletters subscribers only
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