A franchise agreement is a commercial collaboration system in which a firm – Franchisor – gives the others – Franchisees – the right to use its distinctive signs, and communicates its know-how on a permanent basis.
The French and EC case law focus on the union of three essential elements, without which the legal qualification of the franchise agreement could not be retained. These obligations are the following:
- The use of a name or of a common sign and a uniformed layout of the premises;
- The communication by the franchisor to the franchisee of a know-how;
- The continuing provision by the franchisor to the franchisee of commercial or technical assistance during the period of the agreement ;
(see franchise contract & Disclosure Document at 500 € on the homepage, click here)