Synopsis Webinar: «Digging for Gold: Exploring Franchise Opportunities in Major Emerging Economies».

Franchising is a business model in which commercial and civil law instruments are used to increase the socio-economic development of an area, where laws and regulations coexist and are created for the legal and economic strengthening of this business model. 

In the context of the legal and economic management of franchises, it is important to remember that most franchises are governed by private contracts between the franchisor (who grants the franchise) and the franchisee (who acquires the franchise).

Today’s emerging economies are creating the space for franchises to develop with the freedom and legal certainty that only the state can provide. The public policies that have been implemented in countries such as Nigeria, Malaysia, South Africa, as emerging economies, have favored the implementation of programs that help foreign companies to settle in these economies and strengthen domestic trade and tourism. 

Considering the specific situation of each country, foreign investment is seen as an incentive for the internal trade of the countries, creating sources of employment and stabilizing mass migration. The franchises are protected under the legal protection of arbitration clauses, which indicate the legal procedure to be followed in the event of a conflict between the parties. 

In developing countries, structural reforms must be implemented to attract foreign investment, promote training opportunities for franchisees, and create programs to strengthen commercial control measures.

It is well known that franchising in Africa has lagged significantly behind, considering that, public policies have not been adopted by the states in this region of the world, although there are exceptions to the rule.

The example of Domino’s Pizza in Nigeria is a world reference of how franchising generates investment, creates jobs and provides legal certainty for the parties involved, as a result of the policies adopted by the government in relation to the implementation of spaces for franchising to exploit its benefits for the population.