WHAT IS A FRANCHISE CONTRACT ?

A franchise contract is an agreement between two independent companies, the franchiser and the franchisee, by which the franchisee offers to its clients the sale of the goods or services of the franchiser.
The franchiser transfers to the franchisee his trademarks, copyrights, trade dress, technologies, know how and technical assistance, and in return the franchisee pays royalties to the franchiser.
The franchisee must also cover all investments necessary for the exploitation of it?s business.

TARGETED COMPANIES

? Foreign and multinational companies wishing to enter the French and European market without engaging substantial costs or obligations.

THE ADVANTAGES OF FRANCHISING

? A quick development of franchiser?s trademarks and good-will on the French and European territory by engaging minimum costs and responsibilities.

? Cut down on costs of publicity in the territory.

? Obtaining a competitive edge by creating a large number of franchising contracts.

? Controlling all franchising activities.

RISKS TO AVOID BY PROPER LEGAL ASSISTANCE

? The franchising contract may be qualified as an employment contract or as a proxy or exclusive representation contract.

? The choice of a franchiser can be abolished by the court if it?s discriminatory.

? A franchisee may transfer the franchise to any other company without prior authorization of franchiser.

? Negotiating royalty prices and their means of payment, determining the terms of use of franchiser?s Intellectual Property rights, know how and technical assistance, as well as defining publicity investments, level of service and the territory and way of use of the franchise within France and the European community, are submitted to special French and European laws as well as market practice.

? Any exclusivity or quasi exclusivity franchising contracts can be cancelled by the court if the franchisee isn?t informed by the franchiser of the scope of the franchiser?s business in a manner conform to French particular legal procedures, or if the franchise isn?t limited in time.
Furthermore, ending such contracts should be done in timely manner according to special French and European rules and procedures.

? The clients of the franchisee can be qualified as its clients and not as those of the franchiser, thus preventing the latter from freely transferring the franchise to a different franchisee.

MECANISMS

? Careful drafting of franchising contracts in taking into account all aspects of the commercial context and the aims of the franchiser.

? Application of French and European laws and regulations in the field of company, distribution and competition law, methods that the law firm of Gérard PICOVSCHI masters.