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12.09.20 | Franchise Agreement In International Law

The applicant was a commercial agent residing near Munich and was involved in the sale of semiconductor components. The sued manufacturer was headquartered in California and manufactured semiconductor components. On the basis of a trade agency agreement concluded in 1998, the sales agent distributed the producer`s products exclusively in Germany and Austria. The agreement was governed by California law. The California courts had jurisdiction under the agreement. In August 2004, the producer terminated the distribution contract. The sales agent challenged the termination and sought appropriate compensation for a commercial representative under Section 89b in the Munich Regional Court. Any legislation or regulation specific to the relevant commercial sector (for example. B health rules for food franchisees) must be carefully reviewed on a case-by-case basis. Ownership must also be taken into account with respect to the franchise`s heritage. It is particularly important in the event of termination of the contract.

It should be noted that, although it cannot be sanctioned by law, there is also an important obligation on the part of the sub-franchisee or potential franchisee to disclose all relevant information to the franchisor so that the franchisor can assess whether the Sub-Franconie or potential franchisee meets the requirements to become a member of the network. This exchange of information is essential to build trust between the parties, which is a prerequisite for the success of the company. ALBANIA A number of franchise associations, both national and international, have adopted codes of ethics to regulate the behaviour of their members. These codes of ethics often deal with disclosure, albeit more summarily: they generally provide that potential franchisees must be informed in a precise and comprehensive manner, but do not contain detailed provisions on what should be understood. It should also be noted that a number of national franchise associations offer mediation and/or mediation assistance to their members.