LEGAL ASPECTS OF LEGAL ASPECTS OF FRANCHISINGFRANCHISING

18 April 2009

ALBERTO ECHARRI

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LEGAL ASPECTS OF FRANCHISINGLEGAL ASPECTS OF FRANCHISING

• Applicable Regulation

• Franchising Agreements

• Pre-contractual Information

• Franchisors’ Registry

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APPLICABLE REGULATIONAPPLICABLE REGULATION

• Regulation (EEC) 4087/1988

• Retail Distribution Act 7/1996

• Royal Decree 2485/1998

• EU Regulation 2790/1999

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RETAIL DISTRIBUTION ACT Art. 62RETAIL DISTRIBUTION ACT Art. 62

• Definition of Franchising

• Registration with the Franchisors’ Registry

• Disclosure Obligation

• Infringement: Minor/ Serious

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ROYAL DECREE 2485/1998ROYAL DECREE 2485/1998

• Pre-contractual Information

• Franchisee’s Obligation of Confidentiality

• Creation of the Franchisors’ Registry

• Functions of the Franchisors’ Registry

• Documents required to be registered

• Franchisor’s Obligations

• Computerization and Coordination of Registries

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MORE APPLICABLE REGULATIONMORE APPLICABLE REGULATION

• Contract Regulation: - Civil Code- Commercial Code

• Corporate Regulation: - Stock Corporations Act- Private Limited Liability Companies Act- Commercial Registry Regulations

• Spanish Competition Law

• Specific Regulations on Business Activity

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FRANCHISING AGREEMENT (I)FRANCHISING AGREEMENT (I)

• Identification of the parties: independent parties

• Object of the Contract: - Trademark Assignment - Know how- Support/ Training

• Intention to join the network

• Exclusive Area/ Location of the Premises

• Term/ Validity/ Extension

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FRANCHISING AGREEMENT (II)FRANCHISING AGREEMENT (II)

• Rights and Obligations

• Causes for the Termination of the Agreement:

• Competition Limitations

• Applicable Regulation and Conflict Resolution

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PRECONTRACTUAL INFORMATIONPRECONTRACTUAL INFORMATION

• Identification of the Franchisor

• Ownership Certificate or Licence of Trademark Use

• General Description of the Business Sector

• Experience of the Franchisor

• Features of the Franchisor

• Structure and Network in Spain

• Essential Provisions of the Franchise Agreement

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FRANCHISORS REGISTRY (I)FRANCHISORS REGISTRY (I)

• Central Registry/ Registries in Autonomous Communities

• Functions of the Registry

• Obligations of the Franchisor

• Documents required for the Registration

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FRANCHISORS REGISTRY (II)FRANCHISORS REGISTRY (II)

• Information regarding the Franchisor

• Intellectual Property Rights

• Business Description: Annual Report

• Master Franchise