Franchise : The Lyon Court of Appeals recalls that the error on the economic profitability of the operation does not constitute an error on substance (Tech’innove expansion / Ecrinh)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. A mundane case in which a franchisee sued for payment of royalties invoked the nullity of the franchise agreement. It alleged, on the one hand, the franchisor's failure to comply with the pre-contractual disclosure obligation imposed on it by Article L. 330-3 C. com. and, on the other hand, the franchisor's submission of an unrealistic forecast operating document which would have concealed an endemic lack of profitability of the franchised business in the provinces. The judges on the merits conduct a precise examination of these grievances which provides the basis for a nuanced and relevant treatment of this type of dispute, taking into account the person of

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