General questions about franchising
In this section, experts answer general questions most commonly asked which go beyond the specific subject areas listed above.
What is Franchising?
The European Code of Ethics defines franchising as a system of marketing goods and/or services and/or technology, based upon a close and ongoing collaboration between legally and financially separate undertakings, the franchisor and its individual franchisees, whereby the franchisor grants its individual franchisees the right, and imposes the obligation, to conduct a business in accordance with the franchisor’s concept. This right entitles and compels the individual franchisee, in exchange for a direct or indirect financial consideration, to use the franchisor’s trade name and/or trademark and/or service mark, know-how, business and technical methods, procedural system and other industrial and/or intellectual property rights. The franchisee is supported in this ongoing service by commercial and technical assistance, within the framework and for the term of a written franchise agreement, concluded between the parties for this purpose.