ALERTS : DISTRIBUTION - FRANCHISE - NON-COMPETE CLAUSE

Franchise : The French Supreme Court recalls the condition for the validity of a non-compete clause in a franchising agreement (BVD / Bureau Ouest et Simouest)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. Facts Following the termination of their franchise agreement with the franchisor selling office supplies, two companies had affiliated themselves with a competing brand. The franchisor had then argued before the judge in summary proceedings that the post-contractual non-competition clauses binding them both had been breached, and had obtained their condemnation under penalty to deposit the new sign. This measure having been overturned on appeal, the franchisor appealed to the Supreme Court. Decision "As] the lawfulness of a non-competition [clause is subject both to the existence of know-how transmitted by the franchisor and to the

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Régis Pihéry, Franchise : The French Supreme Court recalls the condition for the validity of a non-compete clause in a franchising agreement (BVD / Bureau Ouest et Simouest), 10 January 2008, Concurrences N° 2-2008, Art. N° 27938, www.concurrences.com

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