Special regulation of pre-contractual information duty in international franchise agreement Cover Image
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Reglementarea specială a obligaţiei de informare precontractuală în contractul internaţional de franciză
Special regulation of pre-contractual information duty in international franchise agreement

Author(s): Dana Iarina Vartires
Subject(s): Law, Constitution, Jurisprudence
Published by: Asociaţia Ştiinţifică de Dreptul Proprietăţii Intelectuale
Keywords: franchisor; franchisee; pre-contractual stage; information document; obligation as to the result; reservation agreement

Summary/Abstract: The' international' franchise' agreement' is' different' from' any' other' international' commercial' agreement,' in' addition' to' the' much' more' ample' and' complex' content' of' the' cooperation' obligation' to' which' the' contracting' partners' are' bound' and' the' common' interest' in' the' success' of' the' business,' also' by' the' special' importance' of' the' pre-contractual' stage,' due' to' the' preliminary' information' obligation' established' for' the' franchisor,' distinctively' regulated' in' some' legislations' and' also' provided' by' the' codes' of' ethics.' In' the' franchise' agreements,' whether' or' not' international,' the' pre-contractual stage is mandatory and it usually follows the general process of selection of' the' franchisors,' generally' started' with' an' announcement' made' by' the' franchisee' intending to develop its business under franchise system. In essence, the purpose of the pre-contractual stage of the provision of information, as it results from the existing national and international regulations, as well as from the interpretations of case law and doctrine, is to allow each party to' express' its' agreement' to' commit' contractually' in' complete' balance' and' to' confirm its decision to cooperate. In' the' case' of' franchise' agreements,' also' as' a' particularity,' we' should' mention' that,' unlike' the' other' international' commercial' agreements,' the' pre-contractual' information' obligation' encumbers' explicitly' the' franchisor,' which' must provide all the necessary data and information based upon which the future franchisee' will' decide,' completely' aware' of' the' situation,' its' involvement' in' the' contractual relationships and, in the end, in the franchise network. The reason for stipulating such an obligation is, ultimately, the protection of the' potentially' economically' disadvantaged' party,' namely' the' franchisee,' as' well' as' preserving' the' balance' of' negotiations,' which' might' be' influenced' by' the' importance,' the' notoriety' or' the' business' experience' already' gathered' by' the' franchisor.' In' other' words,' it' aims' at' counterbalancing,' from' the' legal' perspective,'what'economists'call'"the'asymmetry'of'information".' The' regulations' appearing' in' various' legislations' in' order' to' establish' explicit' obligations' for' the' franchisor,' mainly' for' the' purpose' of' protecting' the' franchisee, have also been generated by the specificity of the franchise agreement involving' information' not' only' of' a' special' nature,' but' also' secret,' which' could' not' be' acquired' in' other' way,' with' all' the' diligence' and/or' ability' that' the' franchisee'candidate'might'prove.''

  • Issue Year: 2010
  • Issue No: 03
  • Page Range: 120 - 151
  • Page Count: 32
  • Language: Romanian