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Franchising

April 10 2018
Raphael Mellerio Franchisors' assistance obligation is exclusively technical and commercial, not financial

France - Aramis Law Firm

The French courts often address the issue of whether a franchisor has properly fulfilled its assistance obligation. In a recent case, the Paris Court of Appeal held that this obligation is exclusively technical and commercial and constitutes purely a 'best efforts' obligation. This decision has confirmed that franchisors need not provide financial assistance to their franchisees. Instead, the assistance obligation consists only of helping the franchisee to operate the business from a commercial and technical standpoint.

Authors: Raphael Mellerio, Bertrand Baheu-Derras
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