CASE COMMENTS: DISTRIBUTION – FRANCE – CREATION OF A COMPETING COMPANY – PENALTY CLAUSE – LIABILITY

Franchise: The Paris Court of Appeal confirms the serious and non-wilful wrong of the franchised company and the personal liability of its director for having created, during the franchise contract, a competing company using the distinctive signs of the franchisor’s concept (Buffalo Grill / Val Trappeur)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. While it may be possible for a former franchisee to continue in business after the termination of the franchise agreement in defiance of a post-contractual non-competition clause, much rarer is the situation in which he creates a competing business, using the distinctive elements

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Philippe Vanni, Franchise: The Paris Court of Appeal confirms the serious and non-wilful wrong of the franchised company and the personal liability of its director for having created, during the franchise contract, a competing company using the distinctive signs of the franchisor’s concept (Buffalo Grill / Val Trappeur), 13 November 2019, Concurrences N° 1-2020, Art. N° 93327, pp. 101-102

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