An IBA/IFA Joint Conference – Each year, IFA partners with the International Bar Association's Franchising Committee to develop a program for some of the world's leading practitioners and experienced legal counsel on franchising. One of the sessions will be moderated by our partner Dr. Benedikt Rohrßen, together with the Austrian attorney-at-law Dr. Lars Gläser:
Hot Topic 2: Selected Complex Situation – Do you consider taking over the franchisee’s operation as a practical option in termination situation?
In a termination situation, franchisors may (i) terminate the franchise agreement and resell the franchise to another franchisee, (ii) sell / subrent the outlet, (iii) continue with the franchisee for an interim period (lending money, offering royalty abatement, reduction or waiver, entering into a consulting arrangement to provide focused business consulting) – or (iv) take over the franchisee’s operation by oneself. The latter option is what we will discuss here.