Gilles Menguy franchise lawyer partner with Gast associates

"Even if the purchase price is trivial, the buyer shall inject significant funds to strengthen the company financially."

1 network 10 in delicacy

"There are 10-15 of networks which are by nature in a situation of fragility, even at great risk", said Gilles Menguy, lawyer specialist in the franchise, associated cabinet Gast & associates. Either they are seeking a buyer, or they turn to the commercial court to expose their difficulties. If the judge believes that the return to equilibrium is impossible, he pronounces judicial liquidation. On the other hand, if he considers that the company has a serious chance to be saved, it places the judicial relief. After a period of observation, it will stop either a continuation plan, a plan of assignment to a third party.

Buybacks between competitors are frequent

"When a network is to sell at the helm of the tribunal, judge examines files submitted by companies and individuals interested in the redemption", explains Gilles Menguy. Its role: choose the best candidate to restore the network afloat. So that in this competition, the competing networks have solid assets. "They have a perfect knowledge of the sector of activity but also of the franchise", argues Gilles Menguy. "Compared to a quidam who knows the market concerned, or the franchise industry, they are better armed," he continued.

Gilles Menguy, franchise lawyer partner with Gast & associates.

Required franchise experience

"If the candidate for the redemption of experience in the franchise, as for example CEO of a network or the Director of development, and he demonstrated his abilities, he then enjoys credibility in the eyes of the judge", explains Gilles Menguy. It is allowing Jean-Claude Bourrelier, CEO of Bricorama, to hand in December 2004 on the sign Points frames after the balance sheet. But beyond the profile, there is an element that may be missing: money. "Even if the purchase price is trivial, the buyer shall inject significant funds to strengthen the company financially," said Gilles Menguy.

A high-flying sport

"The resumption of the bar is a perilous exercise, very stressful," warns Gilles Menguy. Need to reschedule all of the debt, return of clients "The major threat to that which takes the reins of a network is of franchisees," Gilles Menguy points. The franchisor's obligations to its franchisees that transmission of know-how and the distinctive signs of the network (sign, commercial name, logos), assistance and the reiteration of the success of the concept. "Or, if he arrived at this stage, it is that it was, a priori, breached one of its obligations." "This is an argument that franchisees can use to organize their departure," explains Gilles Menguy.

Buyback deductible: not necessarily in pain!In September 2008, the Monceau flowers Group acquired the Rapid network ' Flore. Through this operation, he then held 7 of the market of the flower cut in France, through more than 400 points of sale. With signs positioned on complementary niches and developing independently: Happy on the inner city, Monceau flowers on bystanders axes urbanites and Rapid' flora in outskirts of town. Is significant: a large part of the Rapid Management Committee ' Flore then chose to remain in the Monceau flowers group. His co-founder and former President, Patrick Hautot, has become the second shareholder of the group.