Italy: franchising contracts and minimum duration of three years

The Italian Supreme Court has finally confirmed an important principle, previously expressed by some lower courts, which remedies a probable mistake made when approving Law 129/2004. Article 3.3 of Law 129/2004 provides that franchise contracts must have a minimum duration of three years in order to allow the franchisee to amortise the investment made; however, this provision only refers to the case of a contract concluded for a fixed term.

Released on Jul 9, 2024

A contract to enter into a future contract of franchising does not fall under the notion of ‘provision of services’ provided by Regulation Brussels I bis

With judgment of 14 September 2023 in EXTÉRIA sro v Spravime sro, the European Court of Justice (ECJ) decided on the interpretation of Article 7(1) of Regulation (EU) 1215/2012 (‘Regulation Brussels I bis’), in the context of a contract to enter into a future contract of franchising.

Released on Feb 14, 2024

Franchising in Denmark—Selected Topics

Franchising, as a business model and business expansion concept, has grown significantly in Den-mark over the recent decades as a result of foreign franchise systems being established in Denmark as well as Danish companies expanding globally via the use of the franchise model. The franchise model is therefore now a commonly used business model in Denmark.

Released on Dec 7, 2023

Franchising in Brazil

Since the Covid-19 pandemic, Brazilian contractual law has evolved considerably, by removing certain legal formalities and regulations that no longer have a place in a virtual and globalised world. Franchising legislation has undergone a similar evolution.

Released on Sep 3, 2023

Encroachment in franchising: the application of the good faith principle by Italian courts

One of the most critical aspects in drafting and managing franchise agreements concerns encroachment. This article will explore the different approaches followed by Italian courts with respect to: (i) the competing activity of the franchisor, selling through parallel sales channels; and (ii) the indirect liability of the franchisor for competing activities enacted among its franchisees.

Released on Sep 3, 2023

Franchising in Pakistan

While there are no laws in Pakistan specific to franchising, the practice is highly prevalent and derives its validity from the general principles of contracts, intellectual property and foreign exchange. This article will explore the legal franchising landscape in Pakistan and discuss the technicalities of repatriating royalties abroad in compliance with regulatory requirements.

Released on Jun 13, 2023

How to handle privileged communications in international arbitration

When parties come together to negotiate International Master Franchise Agreements they focus on royalty splits, development schedules and the boundaries of the territory granted to the master franchisee. Alternative dispute resolution provisions are usually only given little consideration, much less how privileged communications are to be handled if a dispute arises.

Released on Jun 1, 2023

Fixing sales prices in franchising: an update from China

In Europe, although the block exemption for vertical agreements may enable franchisors to protect their legitimate interests, fixing resale prices is usually considered as a ‘no go’ zone. A recent case in China demonstrates a similar administrative approach towards the issue in the context of franchising.

Released on Oct 25, 2022

News from around the world – Australia

Australia’s franchising sector has recently undergone a period of change. With the intention to promote fairness and transparency in the sector, Australia’s Franchising Code of Conduct has been updated by the Australian government three times since May 2021. This has resulted in a need for franchisors to ensure their franchise agreements and Disclosure Documents are compliant with the amended Code and that they following all processes and requirements set out in the Code.

Released on Sep 12, 2022

A brief overview of the 2020 Thailand Franchise Guidelines

This article provides a summary definitions, conditions, rights and responsibilities outlined by the 2020 Thailand Franchise Guidelines.

Released on Jun 7, 2021

Dutch Franchise Act into force!

This article examines the Dutch Franchising Act that went into effect 1 January 2021, providing an overview of its definitions, concepts, and content.

Released on Jun 7, 2021

Saudi Arabia - franchise update, May 2021

Given the new requirements in Saudi Arabia under its Franchise Law, many franchise deals are now taking much longer than before, as franchisees in the region are grappling with the new requirements. This article provides an update on the jurisdiction.

Released on Jun 2, 2021