What Is The French Doubin Law?

Franchise Key:

There is not really a law on franchise. In order to fix potential problems and protect the franchisee, the Doubin law has been voted in december 1989.

This law compels the franchisor to provide several informations – which content is fixed by the edict – to the future franchisee which hence can make his choice with full knowledge of the facts.

First article of the December 31st 1989 law (Doubin law) : Any person who makes available for another person a commercial name, a brand or a brand name, and which asks to this person an exclusive or quasi exclusive commitment concerning the activity must, prior to the signature of any contract, provide to the other signer a document which gives faithful information in order to commit with full knowledge of the facts.

This document – which content has been decided by an order published on the 1st April 2001 – specifies nthe age and the experience of the company, the development prospects of the market, the importance of the operators channel, the duration, the renewal, cancellation, rights cession and field of exclusivity conditions.

When a payment is demanded prior to the signature of the contract, notably in order to book a location, the services given in counterpart of this amount of money are made clear on a written document, as well as the mutual obligations in case the contract is not signed afterwards.

The document described by the first indent, as well as the contract project must be transmitted at least 20 days before the signature of the contract, or before the payment of the sum which is described in the previous indent.

The effective order of the first article of the 4th April 1991 specifies which information the franchisor has to give the the potential franchisee. Read full article.

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