Pre-contractual franchising obligations

PRE-CONTRACTUAL OBLIGATIONS FRANCHISING

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Transparency is one of the key factors for a profitable relationship between franchisors and franchisees. To facilitate this, the legislation on franchising, and in particular Law 129/2004, provides an obligation to which the franchisor is obliged, which is called pre-contractual information.

What does it consist of? In practice, the law requires the franchisor to provide, 30 days before the signing of the contract for the commercial affiliation, a complete copy of the contract, and then a set of information.

This documentation includes the main data of the franchisor, the indication of the brands used by the brand and above all the documentation that ensures its registration. Furthermore, the franchisor must also include in the information notice a summary of what are the most important aspects that distinguish the activity of his brand.

The other necessary elements of the pre-contract information are the list of affiliates already part of the system, an indication of the growth of the network in the last three years (always relative to the number of affiliates) and finally a description of any judicial proceedings that see the franchisor in the dock, always for the last three years of activity.

  • What happens when a franchisor does not submit documentation 30 days before the contract is signed?

    In legal proceedings, the franchisee may request the cancellation of the contract as well as compensation for the damage.

  • Can I start a franchise project if I have only filed the trademark?

    No, trademark filing is a necessary condition for starting a project. On average, 90 days pass between the registration of the trademark and its registration. While waiting for registration, you can focus on structuring your business model and your affiliate proposal, so you are ready for the official launch as soon as you get the registration.

Legal aspects are of primary importance for the healthy development of a franchise network. To prepare a bomb-proof "legal package", turn to the experience of our consultants.

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