CASE COMMENTS: DISTRIBUTION – FRANCE - FRANCHISE – NON-COMPETE OBLIGATION – STIPULATION FOR A THIRD PARTY

Franchise: The Paris Court of Appeal rules that an exclusive supply clause entered into for the benefit of a third party supplier is valid (BMC / BTB)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. Most franchise agreements contain clauses restricting the freedom of supply of franchisees. In fact, whether production, service or distribution franchises are involved, the franchisee is almost always required to obtain all or part of its needs for resold or processed products from the franchisor on a priority or exclusive basis, in order to preserve the identity and reputation of the network. The system of such clauses is now well known, but difficulties still arise in certain specific cases, in particular where the contract provides that supplies are to be made not to the franchisor but to a supplier outside the contract. The ruling handed down by the

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Nicolas Éréséo, Franchise: The Paris Court of Appeal rules that an exclusive supply clause entered into for the benefit of a third party supplier is valid (BMC / BTB), 31 July 2019, Concurrences N° 4-2019, Art. N° 92343, pp. 111-113

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