LEGAL ASPECTS OF FRANCHISING 18 April 2009 ALBERTO ECHARRI.

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Presentation transcript:

LEGAL ASPECTS OF FRANCHISING 18 April 2009 ALBERTO ECHARRI

2 LEGAL ASPECTS OF FRANCHISING Applicable Regulation Franchising Agreements Pre-contractual Information Franchisors’ Registry

3 APPLICABLE REGULATION Regulation (EEC) 4087/1988 Retail Distribution Act 7/1996 Royal Decree 2485/1998 EU Regulation 2790/1999

4 RETAIL DISTRIBUTION ACT Art. 62 Definition of Franchising Registration with the Franchisors’ Registry Disclosure Obligation Infringement: Minor/ Serious

5 ROYAL DECREE 2485/1998 Pre-contractual Information Franchisee’s Obligation of Confidentiality Creation of the Franchisors’ Registry Functions of the Franchisors’ Registry Documents required to be registered Franchisor’s Obligations Computerization and Coordination of Registries

6 MORE APPLICABLE REGULATION Contract Regulation: -Civil Code -Commercial Code Corporate Regulation: -Stock Corporations Act -Private Limited Liability Companies Act -Commercial Registry Regulations Spanish Competition Law Specific Regulations on Business Activity

7 FRANCHISING AGREEMENT (I) Identification of the parties: independent parties Object of the Contract: - Trademark Assignment - Know how - Support/ Training Intention to join the network Exclusive Area/ Location of the Premises Term/ Validity/ Extension

8 FRANCHISING AGREEMENT (II) Rights and Obligations Causes for the Termination of the Agreement: Competition Limitations Applicable Regulation and Conflict Resolution

9 PRECONTRACTUAL INFORMATION Identification of the Franchisor Ownership Certificate or Licence of Trademark Use General Description of the Business Sector Experience of the Franchisor Features of the Franchisor Structure and Network in Spain Essential Provisions of the Franchise Agreement

10 FRANCHISORS REGISTRY (I) Central Registry/ Registries in Autonomous Communities Functions of the Registry Obligations of the Franchisor Documents required for the Registration

11 FRANCHISORS REGISTRY (II) Information regarding the Franchisor Intellectual Property Rights Business Description: Annual Report Master Franchise