In this case the action was promoted by a labour credit of an employee whose salaries and social security payments were unpaid. The reason was that there existed a patrimonial confusion between the bankrupt company and three franchisees penalized under section 161 of Argentine Bankruptcy law, subjecting all of the assets belonging to the bankrupt […]
The Amendment criminalizes bribe-giving by commercial organizations and provides that ‘Commercial Organisation’ shall include any entity which is incorporated in India and which carries on business, whether in India or outside India, or any entity which is incorporated outside India and which carries on business, or part of a business, in any part of India. […]
The Court of first instance, granting the claim filed by Canzian (the franchisee), stated that the agreement signed with Dersuit (the franchisor) had to be qualified as a rental of a business branch, with some clauses belonging to the franchising agreement. From this qualification Italian law no. 129/2004, concerning the franchising agreement, was applicable. According […]
Although the cooperation agreement was not a pure distribution, franchise or agency contract, the court expressly referred to such contracts, their termination and damages in the case of termination period which is not of reasonable length. It may therefore constitute a precedent especially for distributorship and franchising contracts for which there is no legislation in […]
Application of GST on liquidated damages has been acknowledged and discussed through a special court in India. This article provides a brief run through of the development. The Maharashtra Authority for Advanced Ruling (“AAR”), a court constituted for Advanced Rulings under the Goods and Services Tax Act (“GST”), recently provided an advance ruling stating that […]
Initially validated and then deemed inapplicable by French Cour de Cassation (highest court), a trial period of two years had actually been considered licit in a decision of the Commercial Section of the Cour de Cassation on June 23, 2015 (n°14-17.894) but the court turned down the commercial agent’s claim for termination indemnity. However, on […]
Nevertheless, this does not mean that there is nothing happening in the Swedish franchise market. On the contrary. The Swedish franchise industry is estimated to have a total turnover of approximately SEK 277 000 000 000 and an estimated 144 000 people employed. And there have been major developments in the market the last year on initiatives from organizations […]
With the country’s economy highly dependent on hydrocarbons revenues, Algeria is seeking to rely mainly on its own resources to cope with the huge strain on the economy as a result of the slump in oil prices. In this context, a series of measures have been implemented in order to curb expenses in foreign exchange […]
Following 22 years of cooperation the supplier terminated a verbal distribution contract with six months’ prior notice. The parties had not agreed on any notice period or on any compensation upon termination. The distributor, selling Massey Ferguson tractors, had been acting on an exclusive basis within a specific area of Sweden. Referring to the […]
The case concerned the termination by Renault – occurred between 1992 and 1996 – of several distributorship contracts in Italy. The termination was made in conformity with the period of notice contractually provided (as well as with the antitrust rule applicable at the time) and thus without the need to provide reasons for such decision […]
In Australia, the Franchising Code of Conduct (‘Code’) is a mandatory industry code pursuant to Part IVB of the Competition and Consumer Act 2010 (Cth). The Code regulates conduct amongst franchising parties. The Code has been subject to six Federal or State reviews in the past 12 years. Most recently, in 2013, there was a […]
The Court examined the communications sent by the parties to interrupt this limitation of action and the relevant dates in which they were sent and received. The parties ORANGE ESPAGNE (Principal) and MASNOU COMUNICACIONS (Agent), signed an agreement in October 2008 whose termination was foreseen for October 29, 2010. Some days before this date (October […]
The Italian Jobs Act on self-employment (Law 22/05/2017, No. 81 – Measures for the protection of non-entrepreneurial self-employment and measures to encourage flexible articulation in the time and place of subordinate work) introduced some limitations to the contractual freedom, including the ineffectiveness of unilateral contract amendment clauses. In particular, Art. 3 of such law (entered […]
As franchise agreements tend to long term it must also ensure that the franchisor has the ability to evolve the brand and its consumer offering over time. Although most franchisees on a general level expect the franchisor to actively develop and promote the brand, its products and concept, the specific decisions may cause tensions. Within […]
Previously, for investment in Single Brand Retail, foreign investment was allowed up to 49% through the automatic route and up to 100% through the Government approval route along with heavy restrictions. The change in law removing the limit for Foreign Direct Investment (FDI) in this sector is estimated to ease the process for foreign brands […]
The franchisor had started to trade as Caspian Pizza in Birmingham in 1991 and had opened other outlets in the West Midlands. The defendant, Mr Shah opened a Caspian Pizza restaurant in Worcester in 2002 which closed in 2005 and further Caspian Pizza restaurants from 2004 onwards. Mr Shah’s restaurants were opened with the agreement […]
THAI AIRWAYS (principal) and TOP AIRWAYS (agent) signed an exclusive agency agreement in 1987 with the intention to promote the selling of airplane tickets in a specific territory in Spain and Andorra. The agreement contained an ICC arbitration clause. According to TOP, both companies also agreed a verbal distribution contract according to which TOP sold […]
Of interest to franchisors are the proposed amendments that clarify that only the agreement by which the franchise is actually granted (and not merely a deposit, confidentiality or other ancillary agreement) triggers a disclosure obligation on the part of the franchisor (and a potential rescission remedy for the benefit of the franchisee). Therefore, the amendments […]
