LEGAL ASPECTS OF FRANCHISING

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LEGAL ASPECTS OF FRANCHISING
18 April 2009
ALBERTO ECHARRI
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LEGAL ASPECTS OF FRANCHISING

• Applicable Regulation
• Franchising Agreements
• Pre-contractual Information
• Franchisors Registry

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APPLICABLE REGULATION

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

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RETAIL DISTRIBUTION ACT Art. 62

• Definition of Franchising
• Registration with the Franchisors Registry
• Disclosure Obligation
• Infringement Minor/ Serious

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ROYAL DECREE 2485/1998

• Pre-contractual Information
• Franchisees Obligation of Confidentiality
• Creation of the Franchisors Registry
• Functions of the Franchisors Registry
• Documents required to be registered
• Franchisors Obligations
• Computerization and Coordination of Registries

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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

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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

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FRANCHISING AGREEMENT (II)

• Rights and Obligations
• Causes for the Termination of the Agreement
• Competition Limitations
• Applicable Regulation and Conflict Resolution

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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

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FRANCHISORS REGISTRY (I)

• Central Registry/ Registries in Autonomous
  Communities
• Functions of the Registry
• Obligations of the Franchisor
• Documents required for the Registration

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FRANCHISORS REGISTRY (II)

• Information regarding the Franchisor
• Intellectual Property Rights
• Business Description Annual Report
• Master Franchise