CASE COMMENTS: DISTRIBUTION - FRANCHISE - TERRITORIAL EXCLUSIVITY - NON-COMPETE OBLIGATION

Franchising: The Paris Court of Appeal strictly interprets a territorial exclusivity clause benefiting a franchisee and confirms the immediate applicability of article L. 341-2 C. com. by deeming unwritten a non-compete obligation extending to several departments (Gold Cash market 38 / Comptoir National De L’or)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. The crises of the last few decades have favoured the gold trade and in particular the development of shops specialising in the purchase of this metal from private individuals; shops which are often franchises or dealerships of a national brand, as illustrated by the present case. In this case, , a company had signed several franchise agreements with Comptoir National de l'Or, which operates a network of some fifty stores. Believing that it had been subjected to obligations creating a significant imbalance and then victim of the violation of the territorial exclusivity that had been granted to it, the franchised company had summoned the franchisor before

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Nicolas Éréséo, Franchising: The Paris Court of Appeal strictly interprets a territorial exclusivity clause benefiting a franchisee and confirms the immediate applicability of article L. 341-2 C. com. by deeming unwritten a non-compete obligation extending to several departments (Gold Cash market 38 / Comptoir National De L’or), 3 February 2021, Concurrences N° 2-2021, Art. N° 100531, pp. 106-107

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