European Parliament wants harmonized franchising legislation 7 NOVEMBER 2017 -
In September 2017, the European Parliament passed a resolution on the functioning of franchising in the European retail sector.
This resolution has a non-legislative and non-binding nature, but is important since it could pave the way for harmonized franchising legislation across the European Union.
KEY HIGHLIGHTS FROM THE RESOLUTION -
The resolution begins by pointing out the lack of a common European definition of franchising.
According to the resolution, one key feature of a franchising relationship is that it is a contractual relationship, concluded on a voluntary basis, between natural or legal persons that are legally and financially independent of each other. Under the contractual relationship, the franchisor grants to the franchisee the right to operate the franchisor’s franchising formula, name and trademarks. Also, the franchisor shares know-how with the franchisee.
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