Ms Etsuko Hara

Etsuko Hara

Updates

Franchising

Non-compete clauses and liquidated damages in franchise agreements
Japan | 12 October 2010

In preparing a franchise agreement, a franchisor must carefully consider whether the extent of restrictions in the relevant non-compete clause is reasonable in proportion to the need to protect its commercial rights or know-how. A liquidated damages clause serves as an added layer of protection in the event of the franchisee's violation of the non-compete clause.

Telling it like it is: a franchisor's disclosure obligations
Japan | 06 July 2010

When a franchisor considers entering the Japanese market, one of its first concerns is whether any disclosure obligations govern the proposed franchise in Japan. Voluntary and proper disclosure of franchise-related information reduces the likelihood of disputes with franchisees and is advantageous for franchisors in defending lawsuits brought against them by franchisees.