Stipulates, among others:
- setting the duration of the franchise agreement of such manner that the franchisees has the time to get the return of his/her investments,
- setting clearly and without any ambiguities the termination clauses,
- setting the financial obligations of the beneficiary,
- protection of the know-how conveyed by the franchiser by including non-competition clauses and precisely ruling the terms in which the shares can be assigned.
The franchiser has to own the intellectual and/or industrial copyrights that make the subject of the franchise and has to provide permanent technical and commercial assistance, for the whole duration of the existence of the agreement rights.
Because the law doesn’t set any sanctions, the franchise agreements have to regulate this issue in detail.
Competition Law completes the Franchise law with the provision that the Competition Committee has to be made aware of if any franchise system grows to a market share of 10% and, cumulative, a margin of Euro 10 billion.
n order to not fall under the incidence of the anti-trust legislation and to avoid sanctions due to breaking the legal dispositions, the signers of the agreement can approach the Competition Committee to be granted an exception, individually or collective, from the provisions of the Competition Law. These exceptions are granted when the positive effects of the agreement exceed the negative effects.
The adhesion to the EU made it necessary for businesses to own recognized certifications by EU: HACCP (for food industry). These certifications are also a condition required to companies that want to participate to the auctions organized by Government or private own companies; this is also the case of companies in cleaning industry, as they are required ISO quality certifications, ISO environment certifications and ISO personnel certifications so they can fully enjoy the trend of cleaning services externalization.
