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U.S.A.: Franchise Anti-poaching Agreements Under Attack in U.S.

USA, 17 September 2018
For more than 40 years, many franchisors have used provisions in their franchise agreements that prohibit franchisees from recruiting or hiring employees of other franchisees of the franchisor or of the franchisor itself.

UK: Colin Ali, Melanie Davis, Owain Golding, Ian Mcgreavy v Abbeyfield VE Limited [2018] EWHC 669 (Ch), 2018 WL 01509193.

UK, 17 September 2018
Four ex Vision Express optician franchisees brought proceedings against Vision Express claiming that they had been induced to enter into their franchise agreements (which, in the case of Vision Express, take the form of joint venture agreements) on the basis of incorrect information provided to them by a Vision Express employee.

ARGENTINA: Extension of bankruptcy of franchisor to franchisees.

ARGENTINA, 17 September 2018
In march of this year the Argentine Commercial Court of Appeals extended the effects of a bankruptcy to franchisees based on the evidence that there existe patrimonial confusion of the involved companies to the detriment of creditors, as allowed under our bankruptcy law.

INDIA: Significant Amendment to Anti – Corruption Regulations; Commercial Bribery made an offence.

INDIA, 17 September 2018
The Government of India has passed the Prevention of Corruption (Amendment) Act, 2018 (“ Amendment ”) amending the current Prevention of Corruption Act, 1988 (“ Act ”), the primary anti-corruption statute in India. One of the major changes to the Act is the recognition of commercial organizations along with criminalizing bribery by commercial organisations in India.

FINLAND: An interesting case-law on a cooperation agreement.

FINLAND, 16 July 2018
The Finnish Supreme Court ruled on 3 May 2018 (KKO 2018:37) on the formation and termination of a long-term cooperation agreement by referring to the provisions of the Draft Common Frame of Reference (DCFR) which might give an extensive protection in the case of termination.

ITALY: The know-how in the franchising agreements.

ITALY, 16 July 2018
The case concerned the correct qualification of a commercial relationship between two enterprises (Canzian and Dersuit Caffe) as a franchising agreement or as a rental of a business branch and the subsequent role of the know-how’s transfer.

INDIA: Impact of recent ruling provides precedent for taxation on liquidated damages.

INDIA, 16 July 2018
Following up on our earlier report detailing the introduction of Goods and Services Tax (“ GST ”) in India and the importance of distributors working with entities in India to acknowledge the said changes by amending the present agreements and pricing of products, there has been another specific development which should alert entities engaged in distribution in India to reevaluate liquidated...

FRANCE: Effects in France of the EUCJ Judgment of April 19, 2018, concerning trial periods in on commercial agent agreements.

FRANCE, 20 June 2018
Trial period provisions in commercial agent agreements were subject to variations over the last 20 years in France.

SWEDEN: Two significant legal news from the Swedish franchise market.

SWEDEN, 20 June 2018
Sweden is traditionally a country where most franchise disputes are resolved through arbitration. Since most arbitration awards are not publicized, case law on franchise matters is scarce.