CLDP organized the US Consultations on Franchising for Georgia in New York from June 16-21, 2014 to assist officials from the Ministry of Economy and Sustainable Development (MOESD) and the Business Association of Georgia to develop a business environment conducive to attracting more franchises in Georgia. The delegation was comprised of the MOESD Head of the Department for Foreign Trade and International Economic Relations, a Chief Specialist of Investment Policy Division, at MOESD’s Department of Investment and Export Policy, the Deputy Chief Executive Officer at the Business Association of Georgia, and the First Secretary of the Economic Affairs Section at the Embassy of Georgia in the U.S. 

The U.S. Consultations featured 2 days of practical and effective training on franchising through interactive exercises and site visits, follwed by participation in the 2014 International Franchise Expo (IFE) and business to business meetings with U.S. franchisors for relationship building, business matchmaking, and communication skills development.  During the first two days, workshop speakers presented on topics pertaining to the legal and commercial framework necessary for franchising, including an introduction to the concept of franchising, how to negotiate and evaluate a master franchise, the fundamental terms and conditions of a master franchising agreement, and completion of a pre-application form for franchising. 

These consultations are the first phase in CLDP’s multi-phase program which aims to improve the franchising framework in Georgia by: (1) providing Georgian delegates insight into the benefits of an established national franchise association, adherence to a code of ethics, and enforceable franchising agreements;  (2) developing the expertise of Georgian delegates in essential franchise concepts, identifying prospective franchisees, negotiating and evaluating a master franchise, and utilizing the legal instruments most commonly used in franchising; (3)
increasing the Georgian delegates’ knowledge of the U.S. market,  U.S. franchising initiatives in the Caucasus, and how to engage U.S. partners; and (4) encouraging the use of franchising as a means of promoting an entrepreneurship culture and economic growth in Georgia.