CASE COMMENTS: DISTRIBUTION – FRANCHISING – FRANCHISOR LOYALTY – PRE-CONTRACTUAL INFORMATION – DAMAGE TO BE COMPENSATED

Franchisor loyalty: The French Supreme Court rules that the franchisor who concludes an agreement for developping the implementation of franchisees has to propose new conditions in case of hardship instead of immediate termination and reaffirms that the loss suffered due to breach of pre-contractual information duty is only compensated by the franchisee’s lost of opportunity not to contract or to contract at better conditions, and not by loss of profit (Holder)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. The franchisor has a particular obligation of information specified in Article L. 330-3 C. com., the execution of which is scrupulously controlled by the judges (CA Paris, 13 Feb. 2017, RG n° 15/20233, sanctions the presentation of a disclosure document which complies with the legal requirements but backdated to make it appear that it was issued within the legal time limit). It stems from its eminent position as promoter of a successful business activity. A strong illustration of this is given in a case where the franchisor had entrusted a partner (master franchisee? master franchisee? the qualification is neither sought nor even mentioned by the judges)

Access to this article is restricted to subscribers

Already Subscribed? Sign-in

Access to this article is restricted to subscribers.

Read one article for free

Sign-up to read this article for free and discover our services.

 

PDF Version

Author

  • University of Montpellier

Quotation

Didier Ferrier, Franchisor loyalty: The French Supreme Court rules that the franchisor who concludes an agreement for developping the implementation of franchisees has to propose new conditions in case of hardship instead of immediate termination and reaffirms that the loss suffered due to breach of pre-contractual information duty is only compensated by the franchisee’s lost of opportunity not to contract or to contract at better conditions, and not by loss of profit (Holder), 15 March 2017, Concurrences N° 3-2017, Art. N° 84460, pp. 88-89

Visites 225

All reviews