1. Romanian legislation regarding franchise agreements Franchise agreements in Romania are regulated by Government Ordinance No. 52/1997 as amended and completed by Law No. 179/2019. One of the main amendments introduced by Law 179/2019 refers to the creation of the Franchise Registry by the Romanian Association of Franchise, association of public utility. The Franchise Registry […]
1. Attempting to regulate the franchise agreement by law (the statutory regulation of the franchise agreement). 1.1. In October 2020, at the request of the Ministry of Justice a report on franchising in Poland has been prepared. Its main scope was, inter alia, to indicate the directions in which the regulations on the franchise agreement […]
In July 2021, the European Commission invited interested parties to provide comments on the draft revised VBER and Vertical Guidelines by 17 September 2021. IDI, in consultation with its members and gathering input from the business community, drafted a paper which was sent to the European Commission yesterday. You can find attached the relevant document. […]
The key amendments are: – The Amendment Act has introduced additional provisions to the Act which requires the relevant Court to unconditionally stay an arbitration award made in India where the Court is satisfied that a prima facie case is made out that: a. the arbitration agreement; or b. contract which is the basis of […]
According to established German law practice, the distributor is entitled to a claim for compensation upon the termination of the distributorship contract if the legal relationship between the distributor and the principal exceeds a simple seller-buyer-concept and the distributor is integrated tightly into the distribution network of the principal and if furthermore the distributor is […]
Executive summary The case law encompasses all the ingredients of a reflection that the Franchisors and their Counsels usually have when drafting a Franchise contract. The court was severe with regard to SUBWAY, by broadening the scope of Article L. 442-6-I-2 of the French Commercial Code and by adopting often audacious solutions unfavorable to SUBWAY, […]
The draft revised VBER and Vertical Guidelines follow an in-depth review process that started in October 2018. The European Commission has now invited interested parties to provide comments on the draft rules. IDI is working on a paper to be submitted to the European Commission by 17 September 2021. IDI members who would like to […]
The reform space Whilst changes to the Code have been anticipated for some time, the exact detail has only just become legislated. Australia’s Parliamentary Joint Committee on Corporations and Financial Services released its Fairness in Franchising Report in 2019. The Committee’s report identified weaknesses in parts of the Australian franchising sector that particularly impact small […]
Paris commercial court asked for the EUCJ’s interpretation of the EU Directive of December 18, 1986, regarding the notion of “negotiation” of contracts. If the purpose of the negotiation is the conclusion of contracts on behalf of the principal, the EUCJ considers that the directive does not necessarily imply that the commercial agent can himself […]
This decision declared that the liability of franchisor could only be claimed proving that they do not infringe Section 30 and 31 of Argentine Labor Law, which, after reviewing the facts of the case and the involvement of franchisor, were deemed not applicable. The Court of Appeals based its decision on the fact that, under the new Code, franchising is […]
The Court of Appeal in Gdansk (the court of second instance) issued a judgment upholding the verdict of the court of first instance dismissing the agent’s suit for payment against the principal; the agent had filed the suit due to the principal’s termination of the agency agreement without notice. One of the reasons for the […]
In April 2020, the Shanghai No.1 Intermediate People’s Court (the “SIPC”/上海市第一中级人民法院) issued a decision on a recognition and enforcement action ((2019) Hu 01 Xie Wai Ren No. 17/(2019) 沪01协外认17号), recognizing and enforcing a judgment made by the Seoul Southern District Court (the “SSDC”) in South Korea regarding a franchisor-franchisee dispute. This is the first time […]
The IDI website can be a very useful tool for your practice. Once you’ve tried it, you won’t be able to do without it! We’re always working to keep the website up-to-date. We are collaborating with new Country Experts and new reports are already available for Japan, Mexico and Peru. In addition to […]
Through this law, the National Government will promote the franchise model as an alternative for entrepreneurship and expansion of “MiPYMES”. For this purpose, the Government will regulate the technical conditions that define the franchise, the obligations and the liability regime of the franchisor and the franchisee. The technical conditions and strategies defined by the National […]
INTRODUCTION One of the most important challenging legal issue that parties to the distribution agreements might encounter, has always been the question of compensation upon a premature termination, expiration or non-renewal decision of their distributorship, whether it was occurred with or without stating cause that justifies such decision. Hence, the Kuwaiti courts have for so […]
The principal and the agent had agreed to a commercial agency agreement under which the principal could terminate the agreement if the agent took on other brands without the principal’s written consent. Despite the principal having accepted that the agent taking on other brands without the principal’s consent in the past, the principal could still […]
The proceedings arose from a complaint by Miragreen s.r.l., a former franchisee that operated two Benetton shops, which complained of having suffered an abuse of economic dependence, which allegedly led it to cease trading. On the basis of this complaint, the AGCM opened an antitrust investigation, considering that Benetton’s conduct could constitute an abuse of […]
A recent appeal case, Xinjiang Maya Housing Brokerage Co., Ltd. v Zhao Shilei, Urumqi Intermediate, Civil Final No.495[1], provides some useful guidance for franchisor on how to secure their rights on business resources when preparing franchise agreement. In this case, Xinjiang Maya Housing Brokerage Co., Ltd. (hereinafter as “Maya Housing”), as the franchisor, entered into […]
