NETHERLANDS: Amending the Franchise Formula, a court decision by the Amsterdam Court Of Appeals.

In that case, an amendment to the franchise agreement and/or the manual is often necessary. In principle, a minor unilateral formula amendment by the franchisor is admissible. Besides, these amendments will not cause problems because as a rule they do not cost the franchisee money, and they favour the formula. But, in court rulings minor […]

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SPAIN: Distribution agreement – exclusion of the goodwill indemnity. Elements and evidences.

In order to calculate this compensation, all the circumstances should be considered. The Court has then stated that it cannot be calculated only on the gross margins (difference between purchases prices and resale prices) and granting automatically one year average, but it should also be taken into account that the Supplier will be obliged to […]

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U.S.A: New labor laws target franchise systems.

During the past year, four states and at least 14 municipalities have enacted, or are considering enacting, legislation to increase the minimum wage and/or to provide workers with additional rights or benefits. Many of these laws exempt small businesses or allow small businesses to phase-in compliance over time. [1]  However, in at least five jurisdictions, lawmakers […]

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SPAIN: Distribution contract – Non-attainment of the agreed minimum turnover.

The parties were Agco Iberia S.A. (Massey Ferguson) as Supplier, and the Distributor Agrícola Madrileña who asked for a global indemnity of 1 723 112 euros [including lack of previous notice, non-amortized stock, dismissal of personnel, damages in goods and goodwill (clientele) compensation]. First Instance Court accepted partially the amount claimed (60 % for the […]

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UKRAINE: the registration procedure of franchise agreements is approved.

Requirement of state registration The state registration of franchise agreements, amendments thereto and termination thereof is required by the Civil Code of Ukraine and the Commercial Code of Ukraine. Even though failure to register the franchise agreement does not entail either nullity or invalidity thereof, absence of the state registration results in the following negative […]

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HUNGARY: a new Civil Code entered into force in Hungary

The new Civil Code incorporated the legal developments and court practice of the past decades and takes into consideration the European legislation as well. The new Code affects the activity of companies widely as it introduced some substantial changes and reforms in certain legal institutions and adopted several completely new legal institutions and incorporated also […]

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KUWAIT: The new draft Bill of commercial agencies … Says goodbye to «exclusivity»

The new bill will introduce some significant concepts and changes to the industry of the commercial agencies in Kuwait, in particular it provides new definition for an agent which includes for the first time the Franchisee and licensee where they will be treated as agent and be subject to the same  provisions and sets out […]

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U.S.A.: franchise business model threatened by shifting interpretations of wage and labor relations laws.

The NLRB is a federal agency charged with investigating and remedying unfair labor practices under the National Labor Relations Act.  The NLRB’s General Counsel investigates and prosecutes complaints.  If the General Counsel’s office elects to prosecute a case, it is heard before administrative law judges at regional NLRB offices, who decide the merits of the […]

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IDI Conference 2014: Workshop on the Corman Collins judgement of the EU Court of Justice

When does a purchaser/reseller become a distributor? Considerations after the Corman – Collins judgment of the European Court. The first presentation (cf. presentation by Didier Ferrier) has distinguished three types of situations corresponding to the matter: An occasional relationship corresponding to an occasional sale or sales, A regular relationship corresponding to successive sales in a […]

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EU: Expedia judgement of the EU Court of Justice.

Analyzing Expedia : how can § 37 of the Expedia judgment be reconciled with earlier case law (e.g. Völk/Vervaecke) ? The Court of Justice in Expedia clearly states (§ 16) that Völk/Vervaecke is « settled  case law ». Consequently agreements restrictive by object which have only an insignificant effect on the market fall outside the prohibition of article 101 […]

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TURKEY: Recent interpretation of post non-competition terms in vertical agreements by the Turkish Supreme Court.

As such reasoning would have a negative impact on dynamics of the commercial and business life, it has been deemed necessary to analyse the issue by taking the relevant regulations of the Turkish Law into account.   1. Regulation Relating to Post Non-Competition Terms in Employment Agreements within the Turkish Code of Obligations Post non-competition […]

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SPAIN: Termination of agency agreement for breaching of agents’ obligations in a linked agreement.

The Provincial High Court (Audiencia Provincial) of Madrid in a judgement of June 17, 2014 has analysed the termination of an agency agreement due to the breaching of the Agent’s obligations. In this case, the interesting point was that the not respected obligation was agreed in a separate agreement different to the agency agreement but connected to […]

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UK: Choice of Texan courts may not oust UK jurisdiction; UK Agency Regulations can apply to sale of software.

1.       Jurisdiction of English Court in claim for termination payment where Texan law and jurisdiction is expressly chosen The court considered whether the UK court would have jurisdiction to hear a claim for compensation on termination of an agency agreement under the UK regulations where the agreement included a well drafted Texas law and jurisdiction […]

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IDI Conference 2014: Compliance Programs.

  Setting up and managing a compliance program in antitrust and anti-corruption   Speakers of the session: Raimondo Rinaldi (PresidentAIGI, General counsel Esso italiana); Fabio Bortolotti (Buffa Bortolotti & Mathis, Torino; President IDI); Andrea Montanari (General Counsel FATA, Sezione AIGI Piemonte-Valle d’Aosta); Annarita Sofia (Confindustria, Rome); Marco Hero (PF&P Rechtsanwälte, Munich, IDI franchising country expert […]

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