Franchising is an effective solution to develop your business whilst limiting financial risks. Creating a franchise allows you to transmit your expertise by investing a minimum of means, as the franchisees, being independent contractors, invest their own funds in the creation and implementation of the expertise provided. This way of development implies a prior experimentation of the concept, and an adequate legal preparation of the franchisor before the creation of the network.
Franchising can intervene in various fields (contract law, competition law, intellectual property law but also at a European level). The franchisor must respect the pre-contractual information obligation framed by a French law of December 31st 1989 known as the Doubin Law (codified under article L.330-3 of the French Commercial Code).
HAROCHE AVOCATS specializes in monitoring, advising and assisting its clients in the creation and development of their franchise network, particularly in support of the franchisor and the master-franchisee.
The firm’s expertise in this field was sharpened by dealing with international clients who have a high reputation in the restaurant and fast-food sector. The firm offers its clients support at all stages of franchise creation and development, such as:
- the registration of trademarks in intellectual property,
- the drafting of franchise agreements and various contracts with business partners,
- the drafting of the pre-contractual information document (“DIP” in French),
- assistance in writing the expertise operating manual (“bible” in French),
The firm advises its clients, franchisors or master franchisees, with a pragmatic approach at all stages of their development:
- setting up a foreign franchise network in France,
- the franchisee’s recruitmentphase,
- drafting of area reservation agreements,
- training of the franchisor’s teams and coaches,
- improved communication and management of problems with franchisees,
- advising on the establishment of forums for dialogue between franchisor/master-franchisee and franchisees,
- development of a process for the collection of franchise and advertising royalties,
- proceedings for the recovery of outstanding debts, interim measures and measures for the enforcement of decisions,
- advice and representation during pre-litigation and litigation phases regarding franchisees or commercial partners,
- assistance during disputes brought by a franchisee seeking the requalification of franchise contracts in employment contracts or to enforce the status of branch manager,
- management of the delicate period of a franchisee’s exit from the network,
- monitoring the evolution of the franchisor’s expertise,
- protection of the trademark, the concept and the expertise before courts and arbitration bodies (notably ICC and American Arbitration Association).
The firm also assists franchisees when they enter the network and once they are in the network:
- Study of the pre-contractual information document,
- Analysis of the draft franchise agreement drawn up by the franchisor/master franchisee, and negotiations,
- Assistance in pre-litigation and litigation that may arise between the franchisee, franchisor and master-franchisee.