Negotiating International Development Arrangements in a Franchise System

Stephen Giles, Partner, Norton Rose Fulbright, Australia

International expansion often involves the creation of some form of business relationship with a party that resides in the local market. Yum! Brands is a global success story, with around 52,000 restaurants in more than 150 countries across its KFC, Pizza Hut, Taco Bell brands. Successful and quite sophisticated business partnerships in many countries have underpinned that growth and development. Many other consumer brands have entered new markets using some form of joint venture, area development, master franchise or licence arrangement. This article draws upon the experiences of Sally Glover, Chief Legal & Corporate Affairs Officer of KFC in Australia, and Stephen Giles, a partner with global law firm Norton Rose Fulbright in negotiating and documenting international development agreements