I've been approached by some folks in another country about the possibility of starting a version of my sanctioning body in their country. They'd like to use the name & logo, though they'd tweak the rules to better fit their vehicles.

I'm thinking this could be a good thing, and that I'll probably work out some sort of licensing arrangement that'd give me a small commission on souveniers sold with my logo, etc. That being said, I'm wondering what sort of legal ramifications there could be with this or other concerns.

Thoughts????


TEX

Spreading a sanctioning bodies wings can work both ways....bad and/or good.
You say they will alter rules a bit but you need to be sure that they understand that YOU must approve all changes. This keeps them from making changes that affect safety concerns in a negative way. If they have an accident, you're still on the line as you are sharing some responsibility. At the same time, you need some idemnity as you are not there to oversee things. This would be tough to word, but needs to be considered.
Obviously, you will want to work with them and be flexible, but you need them to understand the identity is still held by you. You need to consider what happens if this thing really takes off. What if they are picked up by a multi-million dollar sponsor? Do you get anything for this? On the flip-side, are they expecting anything from you beyond giving them a "franchise" to your association?
That's what I have off the top of my head...another thing you can ask for is 1 or 2 trips (paid by them) per year to meet with them at an event so you can see first-hand that they are following the ideals of what you have put together. This is not alot to ask for and it will make them feel as if they have to hold to certain standards if "the BOSS" is coming to visit now and then.
Best of luck!

Other than the you need to own your Identity thing... I would think that you would need a contract that would withstand their legal system. How much liability risk would you assume? Is your current Insurance coverage enough? would it cover foreign claims? If you do the % thing with the money you'll need to find a trust worthy auditor. you'll probablly need to set some rules for them to keep books by etc... It sounds like a good way to expand your brand though. Good Luck.