CASE COMMENT : DISTRIBUTION - FRANCHISING - NON COMPETITION CLAUSE - VALIDITY - PROPORTIONNALITY

Non competition clause : The Paris Court of Appeal rules on a franchise covenant preventing a franchisee from later joining another franchise (Prodim)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. CA Paris, February 25, 2010, Prodim c/ Diapar, Francap and Groupe G 20, RG n°07/06300 Facts A franchisor in the mass retail sector had inserted in the agreement of its franchisee a non-retermination clause prohibiting him, in the event of termination, from using a "nationally or regionally renowned sign" and selling related products for one year and within a radius of one kilometre. As the franchisee had terminated the agreement and changed its name, the franchisor had obtained an award by an arbitral tribunal for breach of its contractual obligations. At the same time, the franchisor had summoned the promoter of the competing network before the Paris

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Dominique Ferré, Non competition clause : The Paris Court of Appeal rules on a franchise covenant preventing a franchisee from later joining another franchise (Prodim), 25 February 2010, Concurrences N° 3-2010, Art. N° 32506, www.concurrences.com

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