Schriften zur Europäischen Rechtswissenschaft /European Legal Studies /Etudes juridiques européenes 8 Franchising in European Contract Law A comparison between the main obligations of the contracting parties in the Principles of European Law on Commercial Agency, Franchise and Distribution Contracts (PEL CAFDC), French and Spanish law Bearbeitet von Odavia Bueno Díaz 1. Auflage 2008. Taschenbuch. XXVIII, 292 S. Paperback ISBN 978 3 86653 075 1 Format (B x L): 14,1 x 22,4 cm Gewicht: 421 g Recht > Zivilrecht > Internationales Privatrecht > Europäisches Privatrecht Zu Leseprobe schnell und portofrei erhältlich bei Die Online-Fachbuchhandlung beck-shop.de ist spezialisiert auf Fachbücher, insbesondere Recht, Steuern und Wirtschaft. Im Sortiment finden Sie alle Medien (Bücher, Zeitschriften, CDs, eBooks, etc.) aller Verlage. Ergänzt wird das Programm durch Services wie Neuerscheinungsdienst oder Zusammenstellungen von Büchern zu Sonderpreisen. Der Shop führt mehr als 8 Millionen Produkte. Franchising in European Contract Law Academisch Proefschrift ter verkrijging van de graad van doctor aan de Universiteit van Amsterdam op gezag van de Rector Magnificus Prof. dr. D. C. van den Boom ten overstaan van een door het college voor promoties ingestelde commissie, in het openbaar te verdedigen in de Aula der Universiteit op vrijdag 2 november 2007, te 14.00 uur door Odavia Bueno Díaz geboren te Las Palmas de Gran Canaria, Spanje Promotiecommissie Promotor: Prof. dr. M.W. Hesselink Co-promotor: Dr. J.W. Rutgers Overige leden: Prof. dr. F.A.W. Bannier Prof. dr. J.M. Barendrecht Prof. dr. J. Huet Prof. dr. M.B.M. Loos Prof. dr. E. Roca i Trías Prof. dr. A. F. Salomons Faculteit der Rechtsgeleerdheid Franchising in European Contract Law A comparison between the main obligations of the contracting parties in the Principles of European Law on Commercial Agency, Franchise and Distribution Contracts (PEL CAFDC), French and Spanish law Odavia Bueno Díaz Schriften zur Europäischen Rechtswissenschaft / European Legal Studies / Etudes juridiques européennes Band 8 / Volume 8 / Volume 8 European Legal Studies Institute, Osnabrück Molengraaff Institute for Private Law, Utrecht Amsterdam Institute for Private Law Institute of European and Comparative Law, Oxford Institut für Zivilrecht, Ausländisches und Internationales Privatrecht, Graz Schriften zur Europäischen Rechtswissenschaft / European Legal Studies / Etudes juridiques européennes herausgegeben im European Legal Studies Institute, Osnabrück von Christian von Bar im Molengraaff Institute for Private Law, Utrecht von Ewoud Hondius im Amsterdam Institute for Private Law von Martijn W. Hesselink im Institute of European and Comparative Law, Oxford von Stefan Vogenauer im Institut für Zivilrecht, Ausländisches und Internationales Privatrecht, Graz von Brigitta Lurger ISBN 978-3-86653-075-1 The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie; detailed bibliographic data are available in the Internet at http://dnb.d-nb.de. © 2008 by sellier. european law publishers GmbH, Munich. All rights reserved. No part of this publication may be reproduced, translated, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission of the publisher. Design: Sandra Sellier, Munich. Production: Karina Hack, Munich. Printing and binding: AZ Druck und Datentechnik GmbH, Kempten. Printed on acid-free, non-ageing paper. Printed in Germany. A mis padres Acknowledgements Acknowledgements First I would like to express my deeply felt gratitude towards the supervisor of my doctoral research, Professor Martijn Hesselink. Without his knowledge, guidance and incurable optimism I would have left for Gran Canaria long before my final conclusions were put on paper. I also have to thank Professor Hesselink for having given me the opportunity to join the Study group on a European civil code. I have been able to benefit greatly from the Study group discussions, irrespective of whether they were meetings with the teamworks, with the advisors or with the members of the Coordinating Committee. With them, I began to understand what the law was all about. I am also most grateful to my co-supervisor Jacobien Rutgers whose editing suggestions and precise sense of language contributed most significantly to this final result. Thanks to Professor Marco Loos, my boss, for his invaluable assistance in the last period of writing my doctoral research. He did all he could to help me finish my thesis. It has often been said that pleasure and work do not go together, but working with Marco Loos has proven the opposite. I wish to direct many thanks to the members of my doctorate committee for reading my manuscript with care and for providing me with valuable comments which have helped me to develop the present work further. I would especially like to acknowledge the patience, the encouragement, and a great job done by Corinne van den Berg in correcting the English text of this book. Her work has proven to be crucial. I hope she will find time to correct these last written words as well. Thanks to my colleague and friend Chantal for helping me so much during the last phase of my thesis. She helped me find my way in finishing all the details that were left. Furthermore, she translated my summary into Dutch. There are not enough words of recognition and appreciation for her. Grazie Chantal. To my colleagues in the Study Group for a European civil code, especially to the Amsterdam team: Professor Hesselink, Jacobien Rutgers, Muriel Veldman and Manola Scotton. Together with them, I found out about the advantages and disadvantages of team spirit. My special thanks to Manola. I learned from her that one should focus on the good things in life and enjoy them as much as one can. Manola, I did it! I wish you could be here to celebrate with me. Thanks also to my other dear colleagues at the department of the law faculty. It is ideal to work with gezellige mensen. I have always felt welcome and truly part of the group. Especial thanks to “the girls”. Also thanks to the VIII Acknowledgements other people working in the faculty. I could not have wished for a better working environment. To Bas van Zelst en Muriel Veldman, my paranimfen. According to Wikipedia (one of my scientific sources) in the past, emotions sometimes ran high during the promotion ceremony. It therefore was well advised to have two strong, well-built paranimfen who could also serve as bodyguards. This explains why I chose Muriel and Bas!! Bas has been the perfect roommate and colleague. He always had the articles that I needed to read, the books that I needed to borrow, the solutions to my computer problems. Dank je Bas. Dank je Muriel for your patience all these years listening to my complaints about how difficult life is when writing a thesis. Thanks to my friends Dailos, my private ICT friend. Always ready to provide mediation in my continuous conflicts with my computer. Originally from Gran Canaria, he moved to Amsterdam for working reasons. One must be crazy to do that, but I am happy to have a bit of Gran Canaria so close by. And Merci Chiraz, for helping me with the correction of the French texts of my thesis and giving me advice on the beautiful clothes I bought for my defence ceremony. Gracias a mis amigos: a Noelia y Alba. Noelia porque siempre estaba lista para llevarme en su coche a la biblioteca de la Universidad de Las Palmas de Gran Canaria y fotocopiar en un tiempo record todos los manuales que necesité. A mi aventurera amiga Alba, por ser para mí una fuente fidedigna del Derecho español. A Charo y a Michel, por preocuparse tanto de mí y cuidarme tan bien. A Juan Carlos, porque siempre me apoyó, y me dio ánimos y fuerza para que terminara mi tesis. Juan Carlos podía transmitirme la energía positiva que necesitaba para seguir con mi trabajo. Creo que todavía recibo esa energía aunque él ya no esté. Que sepas que te echo mucho de menos. Gracias a mi familia: A Aco, mi hermana favorita, porque me conoce tanto que siempre dice las palabras que necesito oir para darme ánimo y porque fue mi proveedora “24 horas” de material sobre derecho español. A mis padres: Me alegro de tener esta oportunidad de mostrarles mi agradecimiento por escrito, que siempre es más fácil que de palabra. No puedo recompensar sus esfuerzos en dinero (para eso habrá que esperar a la edición commercial de la tesis) pero sí que puedo dedicarles este libro como pequeña muestra de todo el reconocimiento y agradecimiento por todo lo que han hecho por mí. A Marcel y a mis niños: Sara, Charli y Jordi. Por haber aguantado heroicamente mis altos y mis bajos, que son muy altos y muy bajos debido a mi acusado temperamento español, tan distinto al holandés. Especialmente a mi marido, por ser mi director de tesis casero (muchas veces lo llamé Martijn), mi diccionario ambulante, mi cocinero, psicólogo, masajista … Siempre dándome “ánimo, animo”. El haber terminado la tesis se lo debo sin duda a Marcel. Muchas Gracias Corazón. Author’s Preface Author’s Preface My first contact with franchising was as a regular client of a chain of restaurants painted in yellow and red in which I could promptly be served French fries and a hamburger. I was attracted by the fast food but it also drew my attention to the fact that all restaurants looked the same: the same colours, the same tables and chairs, the same funny caps on the employees’ heads. All of them full of clients who were eager to eat their fast food. Were all these restaurant owned by the same businessman? Why else would they all be that uniform? Why were these restaurants so successful? Since then my culinary interest in hamburgers has diminished and has been substituted by an interest as a legal academic in the legal aspects of franchising relationships. Now I know that uniformity and success lie at the heart of franchising because in franchising relationships one businessman, called the franchisor, gives the right to other businessmen, called franchisees, to use the franchisor’s image and business method which has proven to be successful, in exchange for payment. This explains why premises, personnel and products in a franchise business all look the same and why they are (meant to be) successful. My professional interest in franchising arose in 2001 when I started working as a legal academic for the Study Group on a European Civil Code, which is one of the European academic groups that investigate the need for and feasibility of harmonising the national private laws in Europe. In 1999, the Study Group initiated an academic project with the goal of drafting European common principles concerning specific areas of private law on the basis of comparative research among the jurisdictions of the EU. Franchising was one of the subjects of this research. The formulation of European principles as to the contents of franchising relationships was left in the care of the Dutch working team within the Study Group. To be more exact, to the Amsterdam members of the Dutch working team, also called the Amsterdam Group, of which I am a member. The Amsterdam Group was responsible for drafting common principles on commercial agency, franchise and distribution agreements. The outcome of the joint research efforts of the Amsterdam team has led to the formulation of the “Principles of European Law on Commercial Agency, Franchise and Distribution contracts” (PEL CAFDC). Within the Group, I was asked to take the lead concerning the draft of Chapter 3 of PEL CAFDC, which contains the Principles of European law which deal exclusively with franchising contracts. X Author’s Preface The relevance of the PEL CAFDC as the first proposal for a panEuropean comprehensive regulation regarding the main rights and obligations of the parties involved in commercial agency, franchising and distribution contracts inspired in me the wish to deepen my analysis on PEL CAFDC in this, my comparative law doctoral research. Due to my close ties with the issue of franchising I chose to focus my study on the principles on franchising in the PEL CAFDC. This means that I do not describe the Principles as an outsider to the work which has been done. I hope, however, that I have not taken my insider information for granted, as my intention has been to provide the reader with a description of the Principles that is as complete and neutral as possible. In this I hope I have succeeded, but I will let the reader judge for himself. Amsterdam, September 29, 2007 Odavia Bueno Díaz Table of Contents Table of Contents Acknowledgements Author’s Preface Table of Contents (extended) VII IX XVII Chapter I. General Introduction Section 1. The Europeanisation of private law 1.1 European private law at present: sectoral harmonisation by the EU 1.2 The future of European private law 1 2 Section 2. The Europeanisation of the law on franchising 2.1 The law on franchising in Europe at present 2.2 A proposal for a future European regulation on franchising 19 21 Section 3. Aim, scope, method and structure of the research 3.1 3.2 3.3 3.4 Aim of the research Scope of the research Method Structure of the study 27 27 29 31 XII Table of Contents Chapter II. Main Characteristics of the French and Spanish Law on Franchising Section 1. The legal framework for franchising in France 1.1 1.2 1.3 1.4 1.5 1.6 French statutory law on franchising French case-law on franchising French literature on franchising Non-binding regulations on franchising Legal nature of franchising Main obligations of the parties: theory of the causa in French law 33 34 35 35 36 37 Section 2. The legal framework for franchising in Spain 2.1 2.2 2.3 2.4 2.5 2.6 Spanish statutory law on franchising Spanish case-law on franchising Spanish literature on franchising Non-binding regulations Legal nature of franchising Main obligations in franchising: theory of the causa in Spanish law 39 41 42 42 43 44 Chapter III. Description and Comparison of the main Obligations of the Parties in Franchising Contracts in the PEL CAFDC, French and Spanish Law Section 1. Scope of franchising 1.1 1.2 1.3 1.4 PEL CAFDC: Article 3:101 France Spain Comparison 47 48 52 56 Table of Contents XIII Section 2. Franchisor’s obligation to give pre-contractual information 2.1 PEL CAFDC: Article 3:102 2.2 France 58 61 2.3 Spain 2.4 Comparison 83 94 Section 3. Franchisor’s obligation to license Intellectual Property Rights 3.1 3.2 3.3 3.4 PEL CAFDC: Article 3:201 France Spain Comparison 101 104 111 120 Section 4. Franchisor’s obligation to communicate Know-How 4.1 4.2 4.3 4.4 PEL CAFDC: Article 3:202 France Spain Comparison 126 128 140 147 Section 5. Franchisor’s obligation to give Assistance 5.1 5.2 5.3 5.4 PEL CAFDC: Article 3:203 France Spain Comparison 152 154 165 172 Section 6. Franchisee’s obligation to pay 6.1 6.2 6.3 6.4 PEL CAFDC: Article 3:301 France Spain Comparison 177 180 190 193 XIV Table of Contents Section 7. Franchisee’s obligation to follow Business Method and Instructions 7.1 7.2 7.3 7.4 PEL CAFDC: Article 3:303 France Spain Comparison 197 199 205 208 Chapter IV. General Conclusions 1. Introduction 2. Differences and similarities between the compared systems 2.1 A general difference: the sources of the law 2.2 Differences and similarities as to the main obligations of the parties 3. 214 215 Underpinning policies: autonomy-friendliness? Legal certainty? 3.1 Franchisors’ autonomy-friendliness 3.2 Legal certainty 4. 213 221 225 The likely reactions of the parties if the Principles were to apply 4.1 Franchisors 4.2 Franchisees 4.3 Win-win situation 226 227 228 5. 229 Final remarks Summary 231 Chapter I. General Introduction Chapter II. Main Characteristics of French and Spanish Law on Franchising Chapter III. Description and Comparision Chapter IV. General Conclusions 232 232 233 238 Table of Contents XV Samenvating 243 Hoofdstuk I. Allgemene Inleiding Hoofdstuk II. De Belangrijkste Karakteristieken van het Frans an Spaans Recht inzake Franchising Hoofdstuk III. Beschrijvingen en Vergelijking Hoofdstuk IV. Algemene Conclusies 244 Legislation 257 Table of Cases 265 Bibliography 273 Abbreviations 291 244 245 251 Table of Contents (extended) Table of Contents (extended) Acknowledgements VII Author’s Preface IX Table of Contents XI Chapter I. General Introduction Section 1. The Europeanisation of private law 1.1 1.2 1.2.1 1.2.2 1.2.3 1.2.4 European private law at present: sectoral harmonisation by the EU The future of European private law The academic debate 1.2.1.1 Academic projects 1.2.1.2 The Lando Commission and the SGECC The political debate 1.2.2.1 Communication on European Contract Law 1.2.2.2 The Action Plan 1.2.2.3 The Way Forward The CFR 1.2.3.1 Definition, aims, contents, elaboration 1.2.3.2 An academic CFR 1.2.3.3 Political developments: a CFR on consumer contract law The CFR as the basis for an optional Instrument on contract law? 1.2.4.1 The political debate 1.2.4.2 The academic debate 1 2 3 5 7 9 10 11 12 14 15 16 XVIII Table of Contents (extended) Section 2. The Europeanisation of the law on franchising 2.1 The law on franchising in Europe at present 2.2 A proposal for a future European regulation on franchising 2.2.1 The academic exercise: the PEL CAFDC 2.2.1.1 General 2.2.1.2 Aims and scope 2.2.1.3 Working method 2.2.1.4 Structure 2.2.1.5 The principles on franchising in the PEL CAFDC 2.2.2 The political exercise 19 21 21 22 23 24 25 26 Section 3. Aim, scope, method and structure of the research 3.1 3.2 3.3 3.4 Aim of the research Scope of the research Method Structure of the study 27 27 29 31 Chapter II. Main Characteristics of the French and Spanish Law on Franchising Section 1. The legal framework for franchising in France 1.1 1.2 1.3 1.4 1.5 1.6 French statutory law on franchising French case-law on franchising French literature on franchising Non-binding regulations on franchising Legal nature of franchising Main obligations of the parties: theory of the causa in French law 33 34 35 35 36 37 Section 2. The legal framework for franchising in Spain 2.1 2.2 2.3 Spanish statutory law on franchising Spanish case-law on franchising Spanish literature on franchising 39 41 42 Table of Contents (extended) 2.4 2.5 2.6 Non-binding regulations Legal nature of franchising Main obligations in franchising: theory of the causa in Spanish law XIX 42 43 44 Chapter III. Description and Comparison of the main Obligations of the Parties in Franchising Contracts in the PEL CAFDC, French and Spanish Law Section 1. Scope of franchising 1.1 1.2 1.2.1 1.2.2 1.2.3 1.2.4 1.3 1.3.1 1.3.2 1.3.3 1.3.4 1.4 1.4.1 1.4.2 PEL CAFDC: Article 3:101 France Introduction Case-law Literature ECEF and AFNOR rules Spain Introduction Private law statutory definitions Case-law Literature Comparison Obligations under the provisions on scope Conclusion 47 48 48 49 51 52 52 54 55 56 57 Section 2. Franchisor’s obligation to give pre-contractual information 2.1 PEL CAFDC: Article 3:102 2.1.1 Introduction 2.1.2 Contents and aim 2.1.2.1 Contents 2.1.2.2 Aim 2.1.3 Remedies 2.1.3.1 Remedies for mistake: annulability or adaptation 2.1.3.2 Strict liability in damages 2.2 France 2.2.1 Introduction 58 59 60 60 61 61 XX Table of Contents (extended) 2.2.2 Contents and aim of Article L. 330-3 of the Commercial Code 2.2.2.1 Contents 2.2.2.2 Aim 2.2.3 Application of Article L. 330-3 of the Commercial Code 2.2.3.1 Interpretation in conformity with general contract rules on defective consent 2.2.3.2 Particularities of Article L. 330-3 of the Commercial Code 2.2.3.3 Obligation of means 2.2.4 Sales forecasts 2.2.5 Remedies 2.2.5.1 Nullity for non-compliance with a mandatory rule 2.2.5.2 Annulability for defective consent 2.2.5.3 Defences for the franchisor 2.3 Spain 2.3.1 Introduction 2.3.2 Contents and aim of rules on pre-contractual disclosure 2.3.2.1 Contents 2.3.2.2 Aim 2.3.3 Application of the rules on disclosure 2.3.3.1 Case-law 2.3.3.2 Literature 2.3.3.3 Interpretation of the position of courts and scholars 2.3.4 Sales forecasts 2.3.5 Remedies 2.3.5.1 Nullity for non-compliance with a mandatory rule 2.3.5.2 Annulability for defective consent 2.3.5.3 Defences for the franchisor 2.4 Comparison 2.4.1 Introduction 2.4.2 Contents and aim of the obligations 2.4.2.1 Contents 2.4.2.2 Aim 2.4.3 Application of the rules 2.4.4 Remedies 2.4.5 Conclusion 64 65 67 71 75 76 79 80 81 83 85 86 86 88 88 90 91 92 93 93 94 94 96 97 98 99 Table of Contents (extended) XXI Section 3. Franchisor’s obligation to license Intellectual Property Rights 3.1 3.1.1 3.1.2 3.1.3 3.1.4 3.2 3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 3.2.6 3.3 3.3.1 3.3.2 3.3.3 3.4 3.4.1 3.4.2 3.4.3 3.4.4 PEL CAFDC: Article 3:201 Introduction Necessary intellectual property rights Undisturbed and continuous use of the rights Remedies France Introduction Title to license the intellectual property rights Intellectual property rights as signs to attract clientele Well-known intellectual property rights Protection against third-party infringements or claims Remedies 3.2.6.1 Nullity 3.2.6.2 Remedies for non-performance Spain Introduction Contents of the obligation regarding intellectual property rights 3.3.2.1 Distinctive signs 3.3.2.2 Title to license the intellectual property rights 3.3.2.3 Adequate for the agreed use 3.3.2.4 Undisturbed use of the intellectual property rights Remedies 3.3.3.1 Nullity 3.3.3.2 Remedies for non-performance 3.3.3.3 Specific remedies Comparison Introduction Contents and form of the obligation to license intellectual property rights 3.4.2.1 Requirements as to contents 3.4.2.2 Form requirements 3.4.2.3 Pragmatic approach Remedies Conclusion 101 102 102 103 104 106 107 107 108 109 110 111 113 114 115 116 117 118 119 120 120 121 122 123 123 124 125 XXII Table of Contents (extended) Section 4. Franchisor’s obligation to communicate Know-How 4.1 4.1.1 4.1.2 4.1.3 4.1.4 4.2 4.2.1 4.2.2 4.2.3 4.3 4.3.1 4.3.2 4.3.4 4.4 4.4.1 4.4.2 4.4.3 4.4.4 PEL CAFDC: Article 3:202 Introduction Necessary know-how Relation to Assistance Remedies France Introduction Pertinence of the know-how 4.2.2.1 Requirements as to contents 4.2.2.2 Form requirements 4.2.2.3 L’avantage concurrentiel Remedies 4.2.3.1 Nullity 4.2.3.2 Remedies for non-performance 4.2.3.3 Defences for the franchisor Spain Introduction Contents of the obligation regarding know-how 4.3.2.1 Requirements as to the contents 4.3.2.2 Requirements as to form 4.3.2.3 Differentiation from competitors Remedies 4.3.4.1 Nullity 4.3.4.2 Remedies for non-performance 4.3.4.3 Defences for the franchisor Comparison Introduction Contents and form of the obligation to communicate know-how 4.4.2.1 Requirements as to contents 4.4.2.2 Form requirements 4.4.2.3 Pragmatic approach Remedies Conclusion 126 127 128 128 128 131 135 136 136 137 138 140 142 144 145 145 146 147 147 148 149 149 149 150 151 Section 5. Franchisor’s obligation to give Assistance 5.1 PEL CAFDC: Article 3:203 5.1.1 Introduction 152 Table of Contents (extended) 5.1.2 Necessary assistance 5.1.2.1 Requirements as to contents 5.1.2.2 No form requirements 5.1.2.3 Costs included 5.1.3 Additional assistance at reasonable cost 5.1.4 Remedies 5.2 France 5.2.1 Introduction 5.2.2 Assistance as agreed in the contract 5.2.3 Judicial interpretation as to the contents of the obligation to assist 5.2.3.1 Restrictive interpretation 5.2.3.2 Extensive interpretation: implied obligations 5.2.4 Scholars’ interpretation of the contents of the obligation to assist 5.2.5 Remedies 5.2.5.1 Nullity 5.2.5.2 Remedies for non-performance 5.2.5.3 Defences for the franchisor 5.3 Spain 5.3.1 Introduction 5.3.2 Assistance as agreed 5.3.3 The courts´ interpretation of the contents of the obligation to assist 5.3.4 Scholars’ interpretation of the contents of the obligation to assist 5.3.5 Remedies 5.3.5.1 Nullity 5.3.5.2 Remedies for non-performance 5.3.5.3 Specific remedies 5.3.5.4 Defences for the franchisor 5.4 Comparison 5.4.1 Introduction 5.4.2 Contents of the obligation to assist 5.4.2.1 Requirements as to contents 5.4.2.2 No form requirements 5.4.2.3 Franchisee’s independence as a limitation 5.4.3 Additional costs for assistance 5.4.4 Remedies 5.4.5 Conclusion XXIII 153 153 153 154 154 154 156 159 161 162 163 163 164 165 167 168 169 170 170 171 172 172 173 174 174 174 175 176 XXIV Table of Contents (extended) Section 6. Franchisee’s obligation to pay 6.1 6.1.1 6.1.2 6.1.3 6.1.4 6.1.5 6.2 6.2.1 6.2.2 6.2.3 6.2.4 6.2.4 6.3 6.3.1 6.3.2 6.3.3 6.3.4 6.4 6.4.1 6.4.2 6.4.3 6.4.4 6.4.5 PEL CAFDC: Article 3:301 Introduction Payment as agreed in the contract Unilateral determination of the price Additional costs Remedies France Introduction Form and contents of the obligation to pay Determined price 6.2.3.1 Indirect remuneration 6.2.3.2 Direct remuneration Control of abusive pricing Remedies Spain Introduction Form and contents of the obligation to pay Determined price Remedies Comparison Introduction Contents Unilateral determination of the price by the franchisor Remedies Conclusion 177 177 178 179 180 180 181 182 187 188 189 190 190 192 192 193 194 194 195 196 Section 7. Franchisee’s obligation to follow Business Method and Instructions 7.1 7.1.1 7.1.2 7.1.3 7.1.4 7.2 7.2.1 7.2.2 PEL CAFDC: Article 3:303 Introduction Following the business method and instructions Reasonable care not to harm the franchise network Remedies France Introduction Obligation to follow the business method as agreed in the contract 7.2.3 Obligation not to damage the reputation of the network 7.2.4 Limits to the obligation to follow the business method 7.2.5 Remedies 197 198 199 199 199 200 201 202 204 Table of Contents (extended) 7.3 7.3.1 7.3.2 7.3.3 7.3.4 7.3.5 7.4 7.4.1 7.4.2 7.4.3 7.4.4 7.4.5 Spain Introduction Contents of the obligation to follow the business method Obligations not to damage the reputation of the network Limits to the obligation to follow the business method Remedies Comparison Introduction Contents of the obligation to follow the business method Limits to the obligation Remedies Conclusion XXV 205 205 206 207 207 208 208 209 210 210 Chapter IV. General Conclusions 1. Introduction 2. Differences and similarities between the compared systems 2.1 2.2 A general difference: the sources of the law Differences and similarities as to the main obligations of the parties 2.2.1 Scope rule 2.2.2 Obligations of the franchisor 2.2.3 Obligations of the franchisee 3. 213 214 215 216 219 Underpinning policies: autonomy-friendliness? Legal certainty? 3.1 Franchisors’ autonomy-friendliness 3.1.1 Characteristic obligations in franchising 3.1.2 Requirements as to the form and contents of the obligations 3.1.3 Remedies 3.1.4 Legal outcome in case-law after balancing the interests of the parties 3.2 Legal certainty 221 221 222 223 224 225 XXVI Table of Contents (extended) 4. The likely reactions of the parties if the Principles were to apply 4.1 4.2 4.3 Franchisors Franchisees Win-win situation 226 227 228 5. Final remarks 229 Summary Chapter I. General Introduction 232 Chapter II. Main Characteristics of French and Spanish Law on Franchising 232 Chapter III. Description and Comparision Scope rule Obligation of the franchisor to provide pre-contractual information Obligation of the franchisor to license intellectual property rights Obligation of the franchisor to communicate his know-how Obligation of the franchisor to assist Obligation of the franchisee to pay Obligation of the franchisee to follow the business method of the franchisor 233 233 235 235 236 237 238 Chapter IV. General Conclusions Differences and similarities as to scope of application, contents and form of the obligations, remedies for non-performance and outcome of judicial decisions Underpinning policies: autonomy-friendliness? Legal certainty? The likely reactions of franchisors and franchisees if the Principles were to apply 238 240 241 Table of Contents (extended) XXVII Samenvating 243 Hoofdstuk I. Allgemene Inleiding 244 Hoofdstuk II. De Belangrijkste Karakteristieken van het Frans an Spaans Recht inzake Franchising 244 Hoofdstuk III. Beschrijvingen en Vergelijking 245 Reikwijdte Precontractuele informatieplicht van de franchisegever Verplichting van de franchisegever om een licentie op intellectuele eigendomsrechten te verlenen Verplichting van de franchisegever om zijn know-how door te geven Verplichting van de franchisegever om begeleiding te geven Betalingsverplichting van de franchisenemer Verplichting van de franchisenemer om de bedrijfsformule van de franchisegever te volgen 245 246 Hoofdstuk IV. Algemene Conclusies 251 Verschillen en overeenkomsten met betrekking tot toepassingsbereik, inhoud en vorm van de verplichtingen van partijen, rechtsmiddelen tegen niet-nakoming en de uitkomst van rechterlijke uitspraken Onderliggende beleidsdoeleinden: nadruk op autonomie? Rechtszekerheid? De te verwachten reacties van franchisegevers en franchisenemers in geval de Principles van toepassing zouden zijn 247 248 249 250 251 251 253 255 Legislation a) Principles of European Law on Commercial Agency, Franchise and Distribution Contracts (PEL CAFDC) 257 b) French Law 260 c) Spanish law 262 XXVIII Table of Contents (extended) Table of Cases European Court of Justice 265 French case-law Cour de Cassation Cours d’appel Tribunal de Grand Instance Tribunal de Commerce 265 267 268 269 Spanish case-law Tribunal Supremo Audiencias Provinciales 269 270 Bibliography 273 Abbreviations 291