A webinar presented by the IBA Healthcare and Life Sciences Committee, supported by the IBA International Franchising Committee and the International Distribution Institute (IDI)
This webinar is about the evolving landscape of franchising models in the healthcare sector. Whilst the franchising model has generally been utilised in other industries, growing global demand for accessible, efficient and consumer oriented health services—ranging from telemedicine and pharmacy chains to preventive diagnostics and aesthetic treatments—continues to push healthcare businesses to consider franchising as an expansion strategy. Yet, the legal and regulatory environment remains uniquely complex and it must be ensured that the key principle of medical services by licensed medical professionals (HCPs), namely to act in the best interest of the patients, without influence by non-HCP owners, is followed even in a franchise model.
Against this background, the speakers will touch upon the following challenges and questions:
• Designing a compliant franchising model: In certain jurisdictions, non-HCPs are barred from owning or influencing medical practice entities. How can franchisors design models that clearly separate administrative functions from clinical decision-making and so ensure healthcare compliance?
• The challenge of fee-splitting: As some jurisdictions prohibit financial arrangements between HCPs and non-HCPs that could be perceived as influencing patient care, a careful structuring of the franchising concept is required to avoid revenue flows that could trigger regulatory scrutiny or undermine professional independence.
• Trademark and branding considerations: Extensive brand control—through operations manuals, pricing directives, staff approvals or mandated clinical pathways—may cross the threshold into "substantial control" and therefore trigger franchise regulation even when parties intend a lighter touch licensing model. Furthermore, maintaining brand integrity while preserving clinical autonomy may also be challenging.
• Expansion strategies—such as fractional franchise models allowing localized service add ons, or cross border scaling by private hospital groups. These raise additional regulatory questions concerning territorial rights, equipment tying, pricing authority, and patient liability allocation.
The webinar will be a moderated discussion building on the practical insights provided by the speakers and will explore best practices for structuring healthcare franchise systems that balance brand uniformity, operational efficiency, and regulatory compliance while protecting patient interests. The discussion aims to surface comparative perspectives, innovative structuring trends, and pragmatic risk mitigation strategies for legal practitioners advising clients in this fast developing field.
