Underneath the Golden Boy - Robson Hall Faculty of Law

364 Underneath the Golden Boy
for franchising. 53 It is important to note that although its name alludes to an
international nature, 95% of its members are US companies. 54 Therefore, it may
be regarded as an association similar to Mexico’s AMF while keeping in mind
that, since many US companies have spread internationally, the association does
indeed have an international scope. The IFA’s mission is to enhance and to
safeguard the business environment for franchising worldwide. 55
The IFA upholds its mission through its Code of Ethics. The Code is
intended to provide a set of core values that are the basis for the resolution of
the challenges that may arise in franchise relationships. The IFA promotes the
Code in hopes that its application will result in healthy, productive, and
mutually beneficial franchise relationships. Through the Code, the IFA
encourages members to act sincerely in word and character, exercising mutual
respect as well as open and frequent communication between all parties to a
franchise. 56
6. Venezuela
Venezuela boasts a flourishing chain of franchises, making franchising the
second fastest growing market in the country. In 2004, approximately 270
franchisors had established themselves in Venezuela, increasing the number of
franchised locations to 1500. Venezuela has thus reached a level of importance
in the world of Latin American franchising, becoming comparable to Brazil,
Argentina, and Mexico and surpassing Chile. What distinguishes Venezuela
from other Latin American countries is that the majority of its franchises are
local, with only 40% deriving from the United States and other countries. 57
Moreover, due to the recent growth of franchising in Venezuela, two franchise
bodies were created, the Venezuelan Franchise Chamber and the Venezuelan
Franchise Association. 58
The Venezuelan Franchise Chamber, created in 1998, now boasts
approximately 140 members. The Chamber’s goal is to assist all parties to a
53
International Franchise Association, “Frequently Asked Questions about Franchising,” online:
About IFA – Franchise FAQ [IFA, “Frequently Asked
Questions”].
54
E-mail from Marcel Portmann (31 July 2007) on behalf of the International Franchise
Association.
55
IFA, “Frequently Asked Questions,” supra note 53.
56
International Franchise Association, Code of Ethics, online: About IFA – Mission Statement
and Values [IFA, “Code of Ethics”].
57
Tormo, “El Mercado de la Franquicia en Venezuela,” online: Actualidad – Articulos
.
58
Ibid.