Germany: The impact of the Act to mitigate the consequences of the COVID-19-Pandemic on franchise systems.

The Act accompanies measures already adopted in the areas of financing, labour law and tax law. Fundamental principles of civil, insolvency and corporate laws will be temporarily suspended or modified.   In addition to a large number of other changes, the following topics should be highlighted, which may have consequences for franchisors, franchisees and franchise […]

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RUSSIA: The Russian Government has adopted rules for digital labeling of new products and order of access to labeling information.

1) The T&T System: overview The T&T System is a new Russian initiative providing for labeling of selected products with printed codes, or attached tags, that needed to be scanned on each stage of turnover of each product unit, from production to transferring of the product to consumers. According to the Russian authorities, the primary […]

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The Coronavirus and distributorship under the new ICC Force Majeure Clauses.

At the outbreak of the coronavirus epidemy recenly declared pandemia by the World Heath Organization, deliveries of goods and contracts of sale are affected in many imaginable or unimaginable ways. The same is inevitably happening with the provision of those services requiring human encounters rather than sheer online connections but we confine ourselves to the […]

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SPAIN: Goodwill indemnity shall include all the remuneration of the agent.

The case involved an agency agreement between Telefonía i Mobilitat Telimo, SL (Telimo, the Agent) and Vodafone España SAU (the Principal). The parties had signed an agency agreement during 1996-2013 and also some documents called “programs and assistance” and “payment post sale service point”. These were adhesion agreements renewed each April. From 2006 objectives and […]

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EU: IDI met with the EU Commission in view of the revision of VBER 330/2010.

The International Distribution Institute (IDI), represented by Fabio Bortolotti, IDI Chair, Silvia Bortolotti, IDI Secretary General and Edward Miller, IDI Advisory Board member, had a meeting at the European Commission on January 24, 2020 with the team in charge of the revision of the VBER 330/2010. The position expressed by IDI during the meeting is […]

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THAILAND: Guidelines on Unfair Trade Practices in the Franchise Business.

There is not specific regulation governing franchise agreement in Thailand. However, within the authoritative power on unfair competition and practices, the Trade Competition Commission issued the Guidelines on Unfair Trade Practices in the Franchise Business in order to deal with unfair practices between franchisor and franchisee. The Article 3 of the guideline prescribes that franchisor […]

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POLAND: Does the conclusion on the contract on the material liability for entrusted property between the principal and the agent create an employment relationship?

The plaintiff initially was employed by the defendant, upon the basis of an employment contract for a limited period of time. Following this, they were employed for another period of time, upon which the parties came to an agency agreement, reserving that the plaintiff does not become an employee of the defendant. The agency agreement […]

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SWITZERLAND: Goodwill indemnity for distributors remains an exception under Swiss law.

1) Background: The landmark decision of 22 May 2008 In its decision of 2008, the Supreme Court held that the agency law provision regarding goodwill indemnity is to be applied by analogy to distributors if the distributor has been strongly integrated in the supplier’s distribution system and, due to his limited economic freedom, the distributor’s […]

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ARGENTINA: Recent Argentine case on labour liability of a local franchising company for dismissal of employee working for franchisee.

FACTS. The Judge of first instance considered that between the plaintiff and the individual co-defendant Cichero and Renosto a clandestine labour relation was maintained between them where plaintiff worked as Chief head of the kitchen of the restaurant operated by the co-defendants and condemned both co-defendants (the franchisees), but rejected the claim of solidarity against […]

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AUSTRIA: The "service commission" is actually part of the regular commission for transmission of business (Austrian Supreme Court April 29, 2019 – 2 Ob 30/19d).

A commercial agent has mediated contracts for the rental of advertising space on trolleys in supermarkets and on dividers at the cash registers. He did this from 2005 to 2014. Due to commission arrears (in particular of “service commissions”), he first declared ordinary termination and then termination without notice. The commercial agent asserted a claim […]

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DENMARK: Franchisor did not breach franchise agreement by allowing the opening of a supermarket close to franchisee’s supermarket.

According to the franchise agreement, the franchisor was obliged to provide the franchisee with a reasonable customer base. In order to provide a reasonable customer base, the franchisor was obliged not to open another supermarket in the immediate vicinity of the franchisee’s supermarket, if such opening would result in a “considerable” reduction of the franchisee’s […]

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ITALY: Amendments to the Italian trademarks rules, with particular reference to agreements concerning the use of trademarks.

Such Legislative Decree amended the Industrial Property Code (Legislative Decree no. 30/2015). Among other amendments such as: – the abolishment of the requirement of “graphical representation” for trademarks, giving therefore the right to apply for the registration of unconventional trademarks; – the introduction of the certificate trademarks besides the collective trademarks; – the fact that […]

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POLAND: Regarding that price is permissible or prohibited does not depend on how it is determined, but on whether the supplier gave the distributor possibility to change the level of prices stated in the price list.

In the decision no. DOK – 1/2013, issued on 25 June 2013 (DOK3-410-4/12/AS), the President of the Office of Competition and Consumer Protection considered as practice restricting competition and violating the prohibition mentioned in Article 6 (1) (1) of the Act on Competition and Consumer Protection, concluding by the company (franchisor) agreement with franchisees operating […]

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