This website uses cookies

This website uses cookies to ensure you get the best experience. By using our website, you agree to our Privacy Policy

International In-house Counsel Journal logoInternational In-house Counsel Journal logo

One Size Doesn’t Fit All: The Importance of 'Right-Sizing' Contracts with International Suppliers

January 2018
ContractRetail

Abstract

Supply chain and vendor relationships are a crucial component to the success of companies with a global footprint. Those relationships hinge on the contract terms that uphold the pillars of transparency, predictability, and stability. Lawyers may be drawn to the idea of drafting a global template supplier agreement, but a global “one-size-fits-all” template agreement is not practical, particularly when dealing with suppliers of different levels of sophistication and size. This can lead to delays in negotiation, resulting in wasted time and effort. At the core of any international negotiation, lawyers need to understand the market in which they are negotiating, and the cultural and business norms that may affect the agreement’s terms. A failure to do so and insisting on using a global template agreement can have catastrophic effects on the negotiation’s success. As scholars have recognized, “there are many differences in attitude and practice that distinguish international dealings from the domestic dealings.. . . . Many of those differences are purely mechanical or procedural differences. Nevertheless, a failure to be aware of them and to act on them can, and often has, resulted in disaster.”

Read Paper

Author

Portrait image of Jessica Buchok
Jessica Buchok
Managing Attorney, Franchise World Headquarters, LLC, USA

Jessica Buchok is managing corporate counsel at Franchise World Headquarters, LLC, the service company to the global Subway® franchise chain and works in the headquarters office located in Milford, Connecticut. Jessica’s practice focuses on international transactional matters, including those related to the negotiation and drafting of international food, packaging, and equipment supplier agreements, as well as international leasing contracts. Jessica has experience drafting contracts for all different types of markets, varying in size and sophistication, as the Subway® franchise has a presence in over 100 countries and is the largest quick-service restaurant chain worldwide.

Company

Franchise World Headquarters, LLC logo

Franchise World Headquarters, LLC

Franchise World Headquarters, LLC is the service organization to the global Subway franchise system, the largest quick service restaurant in the world.

Related Papers

Worlwide Consumer Warranty Policy
The purpose of this paper is to provide general rules to be considered by a worldwide retail company when granting consumers warranty on its products. The paper has been drafted on...Read more
Portrait image of Giorgia Armanni
Giorgia Armanni
General Counsel, Furla S.p.A., Italy
Negotiating and Drafting an Agreement from a Swedish Law Perspective in Comparison with Agreements Drafted in Common Law Jurisdictions
As in-house counsels working in an international environment, we face the daily challenge of drafting agreements in English that may be ruled under the law of a foreign jurisdiction. Combining...Read more
Portrait image of Silvina Peñaloza Isacson
Silvina Peñaloza Isacson
Head of Legal Northern Europe, BSH Home Appliances, Sweden
Contract Mapping: Taking the Diligence Room and Contract Transparency to the Next Level
Traditional methods of tracking contracts miss the opportunity to provide meaningful context and insight relating to the contracts of the company to management, the board members, auditors, and investors. ...Read more
Portrait image of Gunnar Wieboldt
Gunnar Wieboldt
Former SVP, General Counsel, Vestaron Corporation, USA
Negotiating IT Service Contracts – In House v Private Practice Legal Models
I have been privileged to work over my career as a partner in private practice with leading City firms in London and as a senior in-house lawyer in global companies....Read more
Portrait image of Clive Davies
Clive Davies
Senior Counsel and Professional Development Manager Legal & Commercial, UK&I, Fujitsu Services Limited, UK