As franchisors continue to aggressively expand their brand, more and more companies are growing internationally to capitalize on emerging markets in many regions of the world. Companies must now rely on foreign franchisees, distributors and suppliers for this expansion. As a result, the franchisor is now exposed to many additional risks.
The U.S. Federal Government and other governmental agencies globally have enacted laws that require companies to know who they are doing business with and to ensure they are conducting business ethically. Any U.S. company that conducts business in foreign markets must be familiar with the Foreign Corrupt Practices Act (FCPA) in order to avoid substantial liability and fines as well as civil and criminal prosecution. Penalties for FCPA violations are severe for both the company and its officers. Violations may include the loss of export licenses, suspension from conducting business with the U.S. government as well as shareholder lawsuits and long-term reputational damage.
Franchisors are also required to comply with laws such as the federally mandated USA Patriot Act, U.S. Bioterrorism Act of 2002 and the California Transparency in Supply Chain Act of 2010 (SB 657).
International screening presents many complex challenges. Companies are required to comply with multiple global government watch lists. Companies must also take into account country specific laws, cultures, data access and privacy regulations. A mistake can result in significant losses to your company.
GRMS offers customizable screening solutions in over 120 countries providing companies with crucial information that can proactively mitigate financial losses, criminal penalties and/or reputational damage. GRMS has the expertise to deliver global solutions that help protect your company wherever you may be conducting business now or in the future.
Learn how the GRMS Supplier Screening Program helps many of the nation’s top franchisors mitigate these issues on a global basis at no cost to your company.