"Naked" License vs. "Accidental" Franchise
How much control should the owner of a trademark exert over the licensee? Fail to impose a sufficient level
of controls and you may end up losing your trademark rights through a so-called "naked license". Too much
control and the court may rule that a franchise relationship has been created.
Franchise Disclosure Laws in the European Union
Franchising has grown rapidly in Europe in recent years and should continue to grow in the foreseeable future. In Europe, the franchise industry is largely unregulated. Unlike the United States, in which the offer and sale of franchises is regulated by the Federal Trade Commission and by the legislatures of half of the states, the European Union has yet to adopt a uniform franchise disclosure policy. The law of franchising in most individual EU member states is mainly controlled by traditional contract law and the concept of good faith. However, the trend appears to be toward the specific regulation of franchises.
