Negotiating with a Tribe or Tribal Entity: Practical Tips for Franchisors

Snell & Wilmer
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Indian gaming has exploded in the more than twenty-five years since Congress passed the Indian Gaming Regulatory Act (IGRA). According to the 2014 Casino City’s Indian Gaming Industry Report, Indian tribes received $28.1 billion in gaming revenue in 2012.1 Less well documented is the growth and development of non-gaming enterprises supported by casino customers. These enterprises, located on tribal lands, include quick-service restaurants, entertainment, and recreation.

The historical stigma associated with gaming has disappeared,2 and customers view Indian casinos as a destination retreat where they can gamble, shop, eat, and relax. This presents an opportunity for both a franchisor, which can expand its geographic footprint and expose its brand to new customers who may not otherwise visit their local franchisee, and a tribal franchisee, which may value partnering with a franchisor with a strong brand that is widely known to non-Indian customers.

Originally published in the Franchise Law Journal • Vol. 34, No. 1 • Summer 2014.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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