Europe wants legal framework for franchisees

Europe wants legal framework for franchisees

The European Parliament has accepted the “The functioning of franchising in the retail sector” study, which lists several solutions to strengthen a franchisee’s position.

Legal framework

The report, an initiative from Dutch EU Parliament member Denis de Jong, says a franchisee is often in the weaker position and also presents several solutions to deal with that situation. De Jong mainly asks for a legal framework for the national franchise codes, like the Dutch Franchise Code.

 

Several important ideas in the report: a fifteen day period prior to a contract signing; acceptable competition clauses; decent arrangements regarding online sales.

 

The Netherlands as an example

The Dutch Vakcentrum, which represents independent store owners and franchisees, approves the positive signal the European Parliament gives by discussing these issues. “The unbalanced situation, now confirmed by the European Parliament, led to the franchise code in the Netherlands. The NFC answers many of the issues the European Parliament now formulated regarding franchising”, the Vakcentrum said.

 

“It is now essential the code is upheld to avoid dishonest trade practices in the franchising world. Minister Kamp can send the NFC, including the proposal to create a legal foundation, to Brussels as an excellent example.”