THE FRANCHISE AGREEMENT – COMPARATIVE ASPECTS BETWEEN DCFR REGULATION AND ROMANIAN LEGISLATION
THE FRANCHISE AGREEMENT – COMPARATIVE ASPECTS BETWEEN DCFR REGULATION AND ROMANIAN LEGISLATION

Summary/Abstract: Franchising is a system of marketing products or services, widely used in modern economic activity, being a technique that represents numerous advantages for the actors involved. In our country, the franchise has experienced a rapid growth as a mean by which large companies could easily enter the Romanian market but also due to the fact that it was an opportunity for local entrepreneurs to conduct low risk business activities by using business methods and techniques, brands or products already tested and recognized. Regarding the legal framework, the franchise is regulated by Government Ordinance no. 57/1997 on the legal regime of the franchise. From the perspective of European law, in the context of the trend to harmonize and standardize legislation, the franchise operations were subject to regulatory proposals (we consider PECL), strictly academic proposals, which could though compete with the already recognized UNIDORIT rules. The latest and the most extensive work to achieve a common regulatory framework at European level is the DCFR - Draft Common Frame of References, a legal instrument that fits in the notion of soft law. The special value of this work is that it manages to include principles and rules from almost all systems of law and existing regulations in the EU member states. The proposed regulation by DCFR for franchise operations has many practical advantages, covering most aspects involved by these complex legal operations. This article aims to make a presentation of franchise regulation in DCFR, highlighting the aspects that are missing from GO 57/1997, and could be an improvement in the internal regulatory framework regarding the franchise operations.

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