What Does Brexit Mean for Franchisors?

The coming negotiation over the specifics of the UK’s departure from the EU is an unfortunate necessity that follows from the UK’s “leave” vote on June 23, 2016.  It is too early to know what the relationship between the UK and the EU will be once the UK actually leaves the EU, or indeed, whether there might be a way to reverse the vote.  For now, the laws remain unchanged.  The actual changes may take two years or more to work out, depending on when the UK notifies the EU of its departure pursuant to Article 50 of the Lisbon Treaty.

How Brexit will eventually affect franchising in the UK and the EU is anyone’s guess.

If those in the UK who are expressing regret today work to maintain a close relationship with the EU without actually reversing the Brexit vote, the approach might be similar to that of Iceland, Liechtenstein and Norway.  Those countries are not EU members.  They are members of the European Free Trade Association (EFTA) and European Economic Area…