Thursday, May 10, 2007

Latvia to Consider Franchise Disclosure Regulation

A regulation requiring franchisors to provide presale disclosures to prospective franchisees and to compensate franchisees for noncompetition provisions in a franchise agreement will be considered by the Latvian Parliament, according to Field Fisher Waterhouse LLP of London.

The Latvian Parliament reportedly plans to adopt a franchise regulation in September of this year. An early draft of the regulation indicates that franchisors will be required to supply the following presale disclosures:

 A general description of the franchise
 Evidence of the validity of the rights to be granted under the franchise
 Information about the franchise network
 The terms of the franchise agreement, including payment terms.

Latvia currently does not specifically regulate franchising.

Further information is available from Mark Abell or Graeme Payne of Field Fisher Waterhouse.

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