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In Europe, the first country to adopt legislation relating to franchising was France: on 31 December 1989 Law No. 89-1008, concerning the development of commercial and artisanal enterprises and the improvement of their economic, legal and social environment [1] was adopted, the first article of which was relevant for franchising even if the law was not franchise-specific. The details of this law were laid down in Government Decree No. 91-337 of 4 April 1991. [2] The text of this law was subsequently inserted into the Commercial Code as Article L330-3 and the Decree was repealed. Instead, Article A441-1 of the Commercial Code was adopted, although it relates to consumer protection more than to the relationship between franchisor and franchisee.

 

In accordance with the fourth paragraph of Article L330-3, the disclosure document must be delivered at least twenty days before the execution of the contract or, if applicable, before the payment of any sum of money that is required, in particular in order to obtain an exclusive territory.

 

Article A441-1 contains one paragraph, which states that any person who sells products or provides services and is bound to a franchisor by a franchise agreement, shall inform consumers that it is an independent enterprise, in a legible and visible manner, on the totality of its information documents, in particular on publicity, as well as inside and outside its sales premises.

 

 

[1]      Loi n° 89-1008 du 31 décembre 1989 relative au développement des entreprises commerciales et artisanales et à l'amélioration de leur environnement économique, juridique et social, in Journal Officiel, 2 January 1990. This law was more commonly known as the Loi Doubin after the minister who introduced it. For an English Translation, see CCH, Business Franchise Guide, at ¶ 7135.

 

[1]      Décret n° 91-337 du 4 avril 1991 portant application de l'article 1er de la loi n° 89-1008 du 31 décembre 1989 relative au développement des entreprises commerciales et artisanales et à l'amélioration de leur environnement économique, juridique et social, in Journal Officiel, 6 April 1991 (a correction to the Decree was published in the Journal Officiel of 4 May 1991). For an English Translation, see CCH, Business Franchise Guide, at ¶ 7136.

 

  

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