Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Belgium Implements New Franchise Disclosure Law

By Mark Abell
November 01, 2005

The tide of franchising regulation continued to sweep across Europe as Belgium brought its new franchise disclosure law into effect.

After several years of contemplating a wide variety of proposals ' some bordering upon the bizarre ' the Belgian Parliament decided to follow the lead of France and Spain by requiring franchisors to make formal pre-contractual disclosure to their potential franchisees 1 month before entering into the franchise agreement. The new franchise law came into force on Oct. 18, with retrospective effect from Sept. 1, 2005.

The new law requires franchisors to deliver a formal disclosure document to potential franchisees 1 month before the franchise is signed. Failure to do so will potentially render the franchise agreement unenforceable. The law sidesteps the problems posed by attempting to define franchising by referring to “commercial partnerships” instead. These are defined as “agreements made between two persons, each of whom is acting in his/her own name on his/her own behalf, by which one person grants to the other, in return for a consideration of any nature whatsoever, whether directly or indirectly, the use of one or more commercial formulae for the sale of goods or the provision of services in one or more of the following forms: a common sign; a common trade name; the transfer of know-how; commercial or technical assistance.” One wonders whether this means that franchise agreements with third-party guarantors will fall outside of this definition. If so, this is quite a loophole. One assumes that it means “at least two people.”

Read These Next
Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

Legal Possession: What Does It Mean? Image

Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.

The Anti-Assignment Override Provisions Image

UCC Sections 9406(d) and 9408(a) are one of the most powerful, yet least understood, sections of the Uniform Commercial Code. On their face, they appear to override anti-assignment provisions in agreements that would limit the grant of a security interest. But do these sections really work?