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International journal of franchising law

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Recent Articles

Canada case report: Return to commercial sense in interpreting disclosure obligations

On January 25, 2018, the Ontario Court of Appeal released the closely followed decision in Raibex Canada Ltd. v ASWR Franchising Corp. The decision provides much needed clarity on the pre-contractual disclosure obligations imposed on franchisors under Ontario’s franchise statute, the Arthur Wishart Act (Franchise Disclosure), 2000 (the “Wishart Act”). This article sets out a detailed analysis of the background, arguments and implications of this decision for franchising in Canada.

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The validity of arbitration clauses in franchise agreements in Brazil

The validity of arbitration clauses in franchise agreements is a contentious matter in Brazil linked to the question of whether franchise agreements can be characterized as adhesion contracts. The case law analysed in this article indicates that Brazilian courts take different views depending on the facts of each specific case. This affects not just the validity of the arbitration clause, but also whether a court or arbitral tribunal is competent to determine the validity of such clause.

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UK case law update

Recent cases before the UK courts emphasise the perils of relying on the courts to imply terms into a contract and caution that the remedies available to a franchisor on termination of the franchise relationship should be proportionate to the severity of the franchisee’s acts. These English law cases demonstrate the importance of taking appropriate legal advice at each stage of the franchisor-franchisee relationship.

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From the desk of the GC

An interview with Delli Mireskandari, Vice-President & Deputy General Counsel, Gap Inc.

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German law on general terms & conditions

While Germany has no dedicated franchising laws, franchisors and their advisors entering the German market must contend with a special set of rules concerning general terms and conditions. This article provides analysis and practical advice on these rules as their application, scope and legislative intent vary widely from practice in other jurisdictions, especially common law jurisdictions. The authors conclude that these rules are useful in protecting the weaker party to a contract in cases where an imbalance of power exists.

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Pre-contractual misrepresentation in franchising in the Czech Republic

In the absence of specific franchising regulation in the Czech Republic, the parties to a franchise agreement do not have any specific pre-contractual duty to inform. Franchise agreements are therefore subject to the general regulation contained in the Civil Code. This article analyses both the private and criminal law consequences of pre-contractual misrepresentation in the context of franchise agreements.

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