The purpose of this paper is to outline the legal issues of BTP’s (Baked to Perfection) market entry in five European cities. Therefore, it will concentrate on four major question. First, what contracts BTP will need to conclude? To answer this question, it is necessary to look, which contracts are required for both launches: the mobile app and the bakery outlets. For the app launch, BTP will need to interact with app developers, customers, bakeries and app stores. For establishing bakery outlets, it is important to define a franchise contract and vertical agreements. Second, how BTP can best protect its brands in the EU? For this purpose, it is necessary to introduce different types of intellectual property protection. Which intellectual property rights like patents, trademarks or copyrights are relevant for BTP and how can they be applied? Third, the paper will give an overview about the regulatory requirements that are necessary for operating the app lawfully and successfully. In this chapter, it will be shown what actions need to be taken regarding the app itself, its distribution and customer data. Finally, the paper will describe how BTP can sell its new European business. The assumption here is that BTP will create a subsidiary, which can be sold in the future.
Baked to Perfection (BTP), an American bakery company, is performing well in two business areas. Mainly, it is operating in a (niche) bakery market as a traditional supplier of high quality bakery products, which are also often gluten free and/or organic. One success factor of its products is its own "Perfection" brand. Even though this business area is delivering good numbers in sales ($200 million) and gross margin ($30 million), the new CEO, Freddie Doe, decided to adopt BTP’s business model by following the digitalization. In the last years, apps for smartphones or tablets became an interesting marketing channel, which allows to target efficiently an audience by delivering personalized (e.g. location sensitive) information. Therefore, BTP launched not a long time ago an app to offer its customers transparency regarding the best bakery shops in their local area. To be part of the “Perfection network”, bakeries are paying a yearly fee. If they wish, they can additionally buy advertisement on the app to promote their bakery.
Table of Contents
1. INTRODUCTION
1.1. STRUCTURE AND PURPOSE OF PAPER
2. REQUIRED CONTRACTS
2.1. PERFECTION APP
2.2. BAKERY OUTLET
3. BRAND PROTECTION
4. REGULATORY REQUIREMENTS FOR PERFECTION APP LAUNCH
5. SELLING THE EUROPEAN BUSINESS
6. CONCLUSION
Objectives and Topics
This report aims to outline the legal challenges associated with the market entry of "Baked to Perfection Inc." (BTP) into five European cities, focusing on the necessary contractual framework, intellectual property protection, and regulatory compliance regarding digital and physical business operations.
- Contractual requirements for mobile applications and franchise agreements.
- Strategies for intellectual property and brand protection within the European Union.
- Regulatory compliance for app distribution and digital data protection.
- Strategic considerations for establishing and selling a European subsidiary.
- Management of supply chains and benchmarking in franchise networks.
Excerpt from the Book
2.1. Perfection app
An app is technically a software (application) program for mobile devices, mobile phones, smartphones, tablets etc. In the last few years, the market for apps exploded and keeps still growing. From a legal point of view, it is largely new field, so it is comparable easy to lose the overview. According to Solmecke, Taeger and Feldmann (2013), there are up to five contractual relationships involved in an app launch.
Since it is unknown, if the European app is going to be standardized or adapted, there is the need to look eventually on the necessary contracts with the app developers. The Perfection app is launching in five different European countries, in which four different languages are spoken, so the apps need to be adapted at least regarding the language in those five countries. Contracts with external app developers should list the major agreements (e.g. purpose, duration, compensation and termination) on which BTP and the app developers agree on. For instance, one major issue could be the existence of several deadlines concerning app development to minimize BTPs’ risks. Furthermore, the contract details should deal with issues like testing, updating, confidentiality, intellectual property and ownership of customer data including data protection. Moreover, it should be clearly stated that BTP owns the Perfection app including the brand, visuals, programming code and the customer data. In these cases, it is important that the contract is always formulated as clearly as possible to eliminate misunderstanding and misinterpretation, so it can be ensured that the app is operating successfully and lawfully. For the app launch in the different app stores, BTP must apply to create app developer accounts that allows to distribute the app.
Summary of Chapters
1. INTRODUCTION: Provides an overview of BTP’s business model and the strategic decision to enter the European market, establishing the scope of the research.
2. REQUIRED CONTRACTS: Examines the legal agreements necessary for the mobile app launch and the establishment of bakery outlets under franchise models.
3. BRAND PROTECTION: Analyzes various forms of intellectual property rights, specifically patents, trademarks, and copyrights, to protect the company's assets in the EU.
4. REGULATORY REQUIREMENTS FOR PERFECTION APP LAUNCH: Discusses usage conditions of app stores and the critical importance of adhering to the General Data Protection Regulation (GDPR).
5. SELLING THE EUROPEAN BUSINESS: Explores the strategic setup of a subsidiary and the considerations for an exit strategy through the management of assets.
6. CONCLUSION: Synthesizes the legal and operational requirements for successful market entry and highlights the reliance on intangible assets as the primary value driver.
Keywords
Baked to Perfection, BTP, European Market Entry, International Law of Distribution, Franchise Agreement, Perfection App, Brand Protection, Intellectual Property, GDPR, Data Protection, Subsidiary, Business Law, Digitalization, Intangible Assets, Supply Chain.
Frequently Asked Questions
What is the primary focus of this report?
The report focuses on the legal challenges and strategic considerations for an American bakery company, Baked to Perfection Inc., entering the European market via a mobile app and franchise model.
What are the central themes discussed in the paper?
Key themes include contractual relationships in app and franchise business, intellectual property strategies, data privacy regulations, and the valuation of subsidiaries.
What is the main objective of the research?
The objective is to outline the necessary legal steps for a lawful and successful market entry into five European cities, ensuring BTP manages risks effectively.
Which legal methodology is primarily applied?
The paper applies a descriptive legal analysis of contracts, intellectual property rights, and regulatory frameworks relevant to US companies operating within the European Union.
What topics are covered in the main body?
The body covers contract structures for apps and franchises, brand protection methods, European regulatory requirements for data processing, and strategies for managing and eventually selling a European subsidiary.
Which keywords characterize this work?
The work is characterized by terms such as franchise, brand protection, GDPR, intellectual property, international distribution, and subsidiary management.
How does the General Data Protection Regulation affect BTP's app?
The GDPR dictates strict standards for collecting, storing, and processing customer data. BTP must ensure its servers meet these standards to avoid heavy fines reaching up to 2% of global turnover.
Why is the "Perfection network" model legally significant?
It involves multi-party contracts between the app owner, developers, bakeries, and customers, necessitating clear definitions of membership, termination, and performance standards.
What role do intangible assets play in BTP's valuation?
Intangible assets, such as software code, customer data, and brand recognition, are identified as major value drivers, potentially accounting for over 80% of the company's business value.
- Quote paper
- Anonym (Author), 2017, The American Bakery Company "Baked to Perfection" and its Digitalization Process. Between Apps and Baking, Munich, GRIN Verlag, https://www.grin.com/document/376737
