CASE COMMENTS: DISTRIBUTION – FRANCE – FRANCHISE – TERRITORIAL EXCLUSIVITY – NEW FRANCHISEE

Absence of territorial exclusivity: The French Supreme Court rules that without territorial exclusivity granted to the franchisee, the franchisor is not compelled to inform its franchisee of its decision to set up new franchisees on its physical trading area (Casino France)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. In the context of a dispute between a franchisee under the Spar name and its franchisor, the former, which did not enjoy any territorial exclusivity, terminated the contract, accusing the latter in particular of having breached its duty of loyalty by not informing it of the installation of three other franchisees under the same name in its catchment area. The Paris Court of Appeal, which had dismissed the complaint (Paris Court of Appeal, 14 December 2016: AJCA 2017, p. 185, note N. Ereseo), was approved by the Court of Cassation which, after noting that there was no exclusivity reserving the use of Casino's signs for the franchisee in this catchment

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Nicolas Ferrier, Absence of territorial exclusivity: The French Supreme Court rules that without territorial exclusivity granted to the franchisee, the franchisor is not compelled to inform its franchisee of its decision to set up new franchisees on its physical trading area (Casino France), 30 May 2018, Concurrences N° 3-2018, Art. N° 87689, pp. 114-116

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