The franchise in Australia began in the early 1970s significantly under the influence of U.S. fast food systems such as KFC, Pizza Hut and McDonald`s. [17] However, it was underway before that and a decade earlier in 1960 Leslie Joseph Hooker, as a franchise pioneer, founded Australia`s first national real estate network of real estate agencies Hooker. [18] [19] Although many entrepreneurs allied themselves with cooperatives of one kind or another, until the early 20th century, there was little growth in franchising, and the form of the franchise was not as it is today. When the United States moved from an agricultural economy to an industrial economy, manufacturers allowed individuals to sell cars, trucks, gasoline, beverages and a variety of other products. However, franchisees have done little more than sell the products. The division of responsibilities under the current franchising agreement did not exist on a large scale. Therefore, franchising was not a growth industry in the United States. In Canada, recent legislation has required better information and fair treatment of franchisees.

Regulations also guarantee their right to create associations and take collective action, even if they have signed contracts prohibiting such actions. Franchising in Canada includes 1,300 brands, 80,000 franchised units that account for about 20% of total consumer spending. [34] A franchise may be exclusive, non-exclusive or “exclusive and exclusive.” The existence of written or electronic material describing how franchisees are required to manage their operations is critical to a franchise system. This information is contained in an “operating manual.” This can often work on many volumes and it can contain different forms that a franchisee has to fill from time to time. The operating manual contains the smallest details of the franchise system and the policies and processes to follow in daily life. The Brazilian Franchise Act (Law 8955 of December 15, 1994) defines the franchise as a system in which the franchisor grants the franchisee, against payment, the right to use a trademark or patent, and the right to exclusive or semi-exclusive distribution of products or services. The provision of a “franchised offer circular” or disclosure document is mandatory before the contract is executed and applies to the entire Brazilian territory. Non-disclosure cancels the agreement, resulting in refunds and heavy compensation. The franchise law does not distinguish between Brazilian and foreign franchisors. The National Institute of Industrial Property (INPI) is the registration authority. The essential documents are a delivery statement (disclosure documentation) and a registration certificate (INPI).

The latter is required for payments. Not all amounts can be converted into foreign currency. Certification may also involve compliance with Brazil`s antitrust rules. Since a franchise agreement must reflect the uniqueness of each franchise offer and explain the dynamics of the proposed franchise relationship, copying the agreement from another franchise system is probably the biggest mistake a new franchisor can make.