He very rarely has the opportunity to modify the terms

The major principles to be respected

The precontractual period is a period of time especially well framed by law, including through the Doubin law and the DIP. Conversely, the contract period is governed by an agreement between the parties which organise the rights of each and other. This is a contract that can be described, in which the franchisee signs, and membership is committed to respecting the terms of the contract, or does not sign. He very rarely has the opportunity to modify the terms. Are all clauses to be acceptable If there are as many contracts as networks, a few major principles must be respected and other. Particularly concerning the duration of the contract and the non-compete clauses that can be integrated.

The duration of the contract

1 year, 3 years, 5 years, 7 years or more All these durations are in themselves acceptable legally. The key is elsewhere. The duration of a contract must be long enough so that the franchisee can amortize the costs of starting. In practice, it also aligns the duration of the contract on the estimated time to enable the franchisee to recoup its investment. Then, everything depends on the activity. It is not surprising that long contracts found in the hotel taking into account the heaviness of the original investment. Attention therefore too short contract which, if they seem to get greater latitude of start failure, you would not amortize your investment.

The non-compete clauses

"A man one vote" said traditionally in cooperative. But also "a participant a cooperative", which would mean the ban for the same entity to belong to two different cooperatives. In fact, the rule is more loose. It forced only the co-operators, the same as franchisees, do not belong to two competing networks. Thus, it is possible to be a member both of a sales network of flowers and bread, but of two networks of ready-to-wear for children rarely. This provision, which is common to almost all of the contracts, is not the law but is based only on the good sense. The essence of a network concept and the transmission of know-how of the franchisor, a member of several competing signs franchisee may disclose to direct competitors. Not to mention all the confidential information to which it has access, such as the future communication campaigns or promotional offers. The non-compete clauses in contracts are only a means for signs to protect their know-how to their competitors. A bias quite legal to circumvent this clause, and organize its own competition in its trading area by multiplying the stores of the same activity under different signs, is to join a group multi-enseignes. In this framework, not only the adoption of a concurrent another sign of the group will be legal but it will be even highly recommended by your franchisor.

Produced in collaboration with Serge Meresse, lawyer specializing in the defence of the franchisees, and François - Luc Simon, associate counsel Manager of cabinet Simon Associates (a quarantine of counsel) and member of the College of experts of the FFF.