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Greece is looking to follow the lead
of France, Spain, Italy and Belgium in preparing
to issue a franchise disclosure law. It is
thought that the law will require franchisors to
disclose 30 days before the conclusion of the
franchise agreement the following
items:
- a
copy of the agreement
- certain information about the
trademark
- a
system summary
- information about disputes;
and
- and
certain other information.
Furthermore, a proposal has been
tabled to also introduce a franchisor register.
Whilst there are voices which argue against a
registration requirement, citing the example of
Spain, it is feared that the register will also
be introduced. Furthermore, we understand that
the current plans for a new legislation involve
definitions of key terms including a definition
of "franchising" and a special provision which
will ensure that the substantial investment made
by master franchisees is
protected.
Following the lead of Italy,
there will be certain requirements which must be
met before the company will be permitted to
franchise in Greece. We understand that these
may include:
- A
requirement to have a pilot unit for a minimum
period of 2 years. It is hoped that it will be
sufficient if the franchisor has had a pilot
unit anywhere in Europe.
- It
is likely that there will also be some provision
dealing specifically with franchisee rights in
improvements and inventions.
- Finally, it is expected that some of
the provisions which are to be contained in the
agreement will be regulated in the law. To that
extent, the law looks likely to go beyond a pure
disclosure law and to contain to some extent
relationship law provisions.
We
will keep you updated on further developments.
However if you would like any further
information now please contact Babette
Marzheuser-Wood or Mark
Abell
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