You Should Not Start Your Franchise In Europe Before Knowing These Facts


With the changing paradigm of the franchise business model in Europe, it has become very challenging for the entrepreneurs to work on this. The European Franchisee Attorney is working to find out the ways it will be going to change. The Internal Market and Consumer Protection Committee or IMCO has recently published a study on the challenges and regulatory framework in Europe.
The study has shown that the regulatory environment of the EU has impacted the franchise business module. And it reflects different factors like promotion support or educates the franchise members. According to the experienced European Franchisee Attorney, they are working to achieve the full potential of the franchise business including the following factors:
  • The obligation of the per-franchise disclosure from both the franchisor and franchisee
  • Specialized law for the competition of franchising
  • Clearly defined roles of the national franchisee associations for example BFA (British Franchise Association).
There are some changes which the European Franchisee Attorney has advised to consider.
Use of the Internet: Every European Franchisee Attorney must be aware of the fact that the franchise does not allow the franchisees to have their own website. This rule may be indented to prevent any confusion among the customers. For example, the golf club manufacturer Ping Europe Limited has clearly denied the proposal of its distributors of having a website for the product. According to them every golf club should be ‘fitted’ to the respective customer to find the perfect match. However, the Competition and Market Authority has rejected the argument of Ping and quoted that it is the breach of 1st Chapter of the Competition Act 1998 along with Article 101 of the Treaty On the Functioning of the European Union.
Franchiser Discretion: Discretion among franchiser and franchisee is quite common. And it needs to be sorted before the renewal of the agreements. When the disagreement arises, the court generally asks to imply a term that will restrict both the parties exercising the discretion with the use of different formulas. Along with that, it discourages to have an oral modification of the agreement.

Location: Washington, DC, USA

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