CASE COMMENTS: DISTRIBUTION - FRANCHISING - UNILATERAL EARLY TERMINATION - TRANSFER OF BUSINESS ASSETS

Franchise: The Paris Court of Appeal grants a claim for compensation for early termination of the franchise contract by the franchisee, even though the franchisee is contractually authorized to terminate the contract in the event of the sale of its business (BCRC / Bagel chef)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. A franchise agreement had been unilaterally terminated prior to its term by the franchisee who had transferred his business. The transferee of the business had in this case not wished the franchise agreement to be transferred to him. The franchisor had then claimed compensation for early termination of the franchise agreement. The Paris Court of Appeal upheld his claim for compensation based on the general law of

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Anne-Cécile Martin, Franchise: The Paris Court of Appeal grants a claim for compensation for early termination of the franchise contract by the franchisee, even though the franchisee is contractually authorized to terminate the contract in the event of the sale of its business (BCRC / Bagel chef), 1 July 2020, Concurrences N° 4-2020, Art. N° 97632, p. 148

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