International Franchise Agreement: An Analysis on Colombian Regulation and General Trade Practices

Abstract

Within the context of globalization and liberation of markets, the international franchise agreement constitutes a useful and efficient legal instrument for the incursion in new markets. However, there is no specific regulation in Colombian law for this agreement, as well as it does not have a uniform international regulation. Whereas private autonomy is a major principle concerning regulation of these agreements, prevails the question to define, due to the absence of pact between the parties and the subsequent regulation by the State which the agreement has a closer connection, which is the regulatory frame for the international contractual relationship, attending to Colombian law, and international law. Therefore, this text shall approach, in its first section, to the Colombian law that may regulate international franchise agreement, and then the general trade practices related to it.