|Information obligation of the franchisor
The franchisor has the obligation to provide fair and precise information on the expectations of the contract.
article 330-3 of the commercial code
Anyone who makes a trade name, a brand or a sign available to another person, by requiring from him an exclusive or quasi-exclusive commitment for the exercise of his activity, is required, prior to the signing of any contract concluded in the common interest of both parties, to provide the other party with a document giving sincere information, which allows it to make an informed commitment.
This document, the content of which is fixed by decree, specifies in particular, the seniority and experience of the company, the state and development prospects of the market concerned, the size of the network of operators, the duration, the conditions for renewal, termination and transfer of the contract as well as the scope of exclusivity.
When the payment of a sum is required prior to the signing of the above-mentioned contract, in particular to obtain the reservation of an area, the services provided in return for this sum are specified in writing, as well as the reciprocal obligations of the parties. in case of withdrawal.
The document provided for in the first paragraph as well as the draft contract are communicated at least twenty days before the signature of the contract, or, where applicable, before the payment of the sum mentioned in the previous paragraph.
The violation of this information obligation and the provision of false information constitutes a fraud vitiating the consent and entailing the nullity of the contract. eg. Cass. com. October 20, 1998 Breaches of the obligation to provide information documents provided for in article 1 of the law of December 31, 1989 only void the agreement in the event of a violation of Cass.com consent . December 5, 2000
Cass. com. January 14, 2003
FRANCHISING OF SERVICES
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