DaudPota

Franchising & Distribution

Contacts

Our Franchising & Distribution practice group is led by Junaid Daudpota, the Partner of our firm. He can be reached at junaid@daudpota.com

Our Expertise

We have coordinated consultation on franchise compliance issues for Saudi Arabia, Pakistan, UAE, Egypt, Qatar, Oman, Kuwait, Jordan, Tunisia, Bangladesh, Sri Lanka, Nepal, India, etc.

The Middle East and South Asian population is hungry for western brands. With plenty of disposable income in tax concession regimes, locals are keen to spend on branded goods and services – from cupcakes to fitness clubs, or from restaurant chains to designer clothing.

These regions are not only witnessing growth for incoming brands but are also producing local brands that are making in-roads into countries out of the Middle East and South Asia.

Daudpota International understands that the decision to buy or sell a franchise is often taken lightly despite the fact that usually significant investment and risk are involved. We have experience in many business segments, products and services.

The role of Daudpota International during franchise or distribution agreement negotiation, due diligence, and compliance, is to encourage and assist in conducting thorough due diligence of the franchisor, the vendor, the business and the client himself or herself, to ensure the right business is married to the right person.

Our Services

We assist and advise our Franchising & Distribution client with respect to the following:

- Advising on International Franchise Agreements
- Advising on International Distribution Agreements
- Advising on Non-Disclosure and Confidentiality Issues
- Advising on Withholding Taxes and Foreign Exchnage Issues
- Advising on Regulatory Compliance and Competition Laws
- Guidance on Foreign Cultural Adaptations and Customary Practices
- Advising on Mergers & Acquisitions, and Joint Ventures
- Registration and Enforcement of Trademarks
- Representing in and coordination of Litigation and Arbitration

Our Experience

Highlighted below are some of the recent assignments handled by our lawyers:

- Advised a US based business specializing in extracurricular education activities, as to franchising structure and compliance issues in the UAE;
- Advised a Australia based business specializing in indoor trampoline arenas and playgrounds, as to franchising structure and compliance issues in Pakistan;
- Advised a US based chain of specialized gyms, fitness centers & health clubs dedicated to boxing & kickboxing fitness training, as to franchising structure and compliance issues throughout Middle East;
- Advised a US based fast-food restaurant’s chain as to its franchisee contracts, and as to foreign exchange remittance laws, competition laws, taxation laws of in Pakistan;
- Advised an Italy based fine dining restaurant’s chain as to franchising structure and compliance issues in the UAE;
- Advised a another US based fast-food restaurant’s chain as to its franchisee contracts, and as to foreign exchange remittance laws, competition laws, taxation laws of in Pakistan;
- Advised world’s largest chain of hamburger fast food restaurants as to franchising structure and compliance issues in Pakistan;
- Advised one of Pakistan’s most famous snacks restaurants as to its franchising structure in Pakistan;
- Advised a major Czech Republic company engaged in consumer electronics, and home appliances, as to franchising structure and compliance issues in Pakistan;
- Act for a US based world’s largest fast food restaurant company as to its franchising compliance and intellectual property infringements matters throughout the Middle East;
- Advised a major Japanese haircare and cosmetics company as to its franchising deal with a master distributor throughout GCC Countries; and
- Advised a Qatari business conglomerate as to its multiple franchising and distribution deals in automobile, luxury clothing, and cosmetics sectors throughout GCC Countries

Memberships

Our lawyers are members to the following prestigious organizations pertaining to franchising and distribution:

- International Distribution Institute (Italy)
- Franchising Committee of the International Bar Association (Switzerland)
- Distribution and Franchising Committee, Antitrust Law Section, American Bar Association (United States of America)
- International Commercial Transactions, Franchising and Distribution Committee, International Law Section, American Bar Association (United States of America)

Publications

Limitation on Repatriation of Royalties out of Pakistan – An Imprudent and Unlawful Measure that Hinders Development of Franchise Markets
(International Franchising Newsletter of the International Bar Association Legal Practice Division), Volume 17 No. 1 (May 2013, page 20)