CASE COMMENTS: RESTRICTIVE PRACTICES – FRANCHISE – SIGN MODIFICATION – ABUSE (NO) – EXEMPTION REGULATION – PROPORTIONNALITY

Non-competition clauses: The French Supreme Court approves the trial court to have considered that a franchisor could change the sign of its network without abuse and require the execution of a non-competition clause yet not covered by the exemption regulation (vertical agreements), but proportionate to the franchisor’s interest in preserving the existing network (International Esthétique)

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Cass. com 19 janv. 2016, International Esthétique, n° 14-16.272

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. The company International Esthétique operated a franchise network under the Epil center banner. The contracts contained a clause prohibiting the creation of a competing network

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Jean-Louis Fourgoux, Non-competition clauses: The French Supreme Court approves the trial court to have considered that a franchisor could change the sign of its network without abuse and require the execution of a non-competition clause yet not covered by the exemption regulation (vertical agreements), but proportionate to the franchisor’s interest in preserving the existing network (International Esthétique), 19 January 2016, Concurrences N° 2-2016, Art. N° 79246, p. 133

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