Appendix: Disclosure Law Questionnaire

• Pages: 565-574

Appendix

Disclosure Law Questionnaire

In answering questions, please refer to any relevant legal authority such as cases,

administrative rulings, or other interpretations.

I. What Is a Franchise?

A. Do the laws or regulations specify what is a “franchise” subject to your

country’s franchise law?

1. If so, how is it defined?

2. If not, how is it generally interpreted?

B. Do they apply to a Master Franchise (i.e., a grant of territorial develop-

ment obligations or a contractual right/obligation to open and operate

more than one franchised unit) granted by a foreign Franchisor?

C. Do the laws or regulations provide for any exemptions, exclusions, or

exceptions as to what is a “franchise”?

1. If so, please describe them.

2. Are any of the following arrangements exempt from the franchise

laws in your country? (Circle Yes or No)

a. partnership relationships Yes No

b. trademark licenses Yes No

c. wholesale distribution arrangements Yes No

d. credit card services arrangements Yes No

e. specific industries (e.g., petroleum dealers

or automotive dealers) Yes No

D. Do the regulatory authorities in your country that regulate franchising

have any discretion to determine whether a particular distribution or

licensing arrangement is or is not a “franchise”?

E. Jurisdiction. Does the franchise law apply to:

1. Sales to citizens of your country? Yes/No/Unclear

2. Sales for franchised business to operate in your

country? Yes/No/Unclear

3. Sales occurring in your country? Yes/No/Unclear

4. Offers to citizens of your country? Yes/No/Unclear

5. Offers for franchised business to operate in your

country? Yes/No/Unclear

6. Offers occurring in your country? Yes/No/Unclear

7. Offers or sales originating in your country to

citizens of foreign countries for a franchised

business to be operated outside of your country? Yes/No/Unclear

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