With decision of October 13, 2022 (in the proceeding C-593/21, NY v. Herios Sarl) the European Court of Justice decided on the right of a sub-agent to receive the goodwill indemnity from its principal, in a case where the sub-agent, after the end of the contract with its principal, continued to represent the same customers […]
On 19 October 2022, the Paris Court of Appeal ruled on a case concerning the conditions of resale of products covered by selective distribution in a discount retail chain. The head of a sports and leisure goods network accused the chain of having sold its products as part of a promotional operation during which it […]
The judgment was issued in a dispute as to whether, in connection with the conclusion between an entrepreneur and a person performing services for him of a contract bearing the title: “work contract”, it was necessary for the entrepreneur to pay social security contributions. In Poland, not all contracts under which an individual who is […]
The Indian Government recently released the latest in a series of draft privacy laws in November 2022. There are provisions within the draft law on restrictions on overseas transfers to countries other than those that will be notified by the Indian Government, which may prove to be a hurdle to foreign franchisors that may require […]
The Commission has launched a public consultation and has invited all interested parties to submit their comments on the Draft Revised Market Definition Notice by 13 January 2023 (EU Comm., IP/22/6528, 8 Nov. 2022). The revision process started in April 2020 and the draft submitted for consultation is one of the last steps to modernize […]
In relation to distribution, franchising and agency matters in New Zealand, please note that the Fair Trading Amendment Act 2021 (“Amendment Act”) extends the existing prohibition on unfair contract terms in consumer contracts to standard form small trade contracts worth under $250,000 (including GST). The Amendment Act also introduced a new prohibition on unconscionable conduct. […]
Pending amendments to the Competition Act will soon criminalize no-poach and no-hire provisions (including non-solicits) in certain circumstances. This is an important development for franchisors as provisions relating to hiring and solicitation are common in franchise agreements in Canada. While many such provisions will continue to be defensible once the new law takes effect in […]
The new IDI website was launched and documents have been also organized by subject. You can now find three new sections: – Antitrust – Applicable Law & Jurisdiction – Arbitration Under the Antitrust and Applicable Law & Jurisdiction sections, you will find the respective special reports on the subject, namely: – the IDI Report on […]
SUMMARY It is a common fact that commercial cooperation agreements were always of great concern to Greek entrepreneurs, and especially to Greek franchisors. The adoption of Presidential Decree 219/1991 that regulates exclusive commercial agency agreements, highlights the evidence of this concern. Further, the enactment of Law No 3557/2007 followed, of which article 14 par. 4 […]
Merger-acquisition affecting the company of the commercial agent allows the termination of the agreement by the principal (Appeals Court of Bordeaux, September 21, 2022). Under French law, the commercial agent agreement is deemed by ARTicle L134-2 of French commercial code “of common interest” and thus traditionally considered to have been concluded intuitu personae, in consideration of […]
The Dutch Franchise Act (the “Act”) went into effect on January 1, 2021. The Act is mandatory law for franchise undertakings in the Netherlands and franchisors and franchisees were required to conduct themselves in accordance with the Act as of that date. Specific contractual adjustments also had to be implemented immediately in new franchise agreements […]
ABUSE OF ECONOMIC DEPENDENCE – FRANCHISE AGREEMENTS Article 9 of law No. 192 of 18/06/1998 on subcontracting prohibits the abuse of economic dependence, i.e., the situation which exists when a party is able to determine an excessive imbalance of rights and obligations for the other party. Namely, Art. 9 Law 192/1998 provides: “Abuse of economic […]
Following the issuance of the Saudi Franchise Regulations by Royal Decree M/22 of 9/2/1441H. on 25 October 2019, the Saudi government is preparing a new law on commercial distribution and agency contracts; a draft of the law, which will, for the first time, contain provisions on the contractual relationship between the parties, was recently published […]
The Standing Committee of the National People’s Congress has issued recently the decision of amending the Anti-Monopoly Law of the People’s Republic of China (AML Amendment), effective from August 1, 2022. Key takeaway The AML Amendment introduces the “safe harbour” rule to make the conditions concerning the fixation of price less restrictive. If companies […]
A short reminder on these issues is necessary. The Paris Court of Appeal has followed the lead of the Paris Commercial Court. A judgment of October 13, 2020, following a referral from the Minister of Economy (which was appealed), has shaken up the peaceful climate of franchising, as it had been spared until then from […]
Factual background Double F Group LLC (franchisor) has concluded a franchise agreement with a private entrepreneur Mrs Mostova (franchisee). Under the franchise agreement, the franchisor has granted the franchisee a set of intellectual property rights, including the trademark “Cheese Kingdom”, for developing a cheese shop within the franchisor’s chain. The franchise agreement has set out […]
The initial success of every foodservice-and-hospitality business begins with product offerings and services that resonate with its target audience. Eventually, its growth and rates of expansion become very dependent on its marketing and branding strategies. For a franchisor or any business thinking about franchising, having a protected name and protected logo(s) is a fundamental requirement. […]
The Supreme People’s Court has issued recently the Interpretation on Several Issues Concerning the Application of the General Principles of the Civil Code of the People’s Republic of China (Interpretation), effective from March 1, 2022. Key takeaway The Interpretation mainly specifies the legal effect of violating rules related to joint agency, and the conditions […]
