Obie L. Moore


This paper analyzes international franchising as it relates to economic and cultural changes that are occurring in Eastern Europe. After consideration of the general legal implications and responsibilities of franchise relationships, certain unique qualities of franchising that lend themselves to the development of a free market economy in Eastern Europe are discussed. Particular attention is given to franchising as a vehicle to foster entrepreneurialism and privatized state-owned enterprises, and the major differences between a joint venture franchise and other forms of international franchising. The advantages and disadvantages to both parties of an international joint venture franchise in Eastern Europe are discussed. Also, key contractual provisions with unique implications for an Eastern European franchise operation are identified.