Chapter

Interfirm Networks

pp 149-170

Date:

The Impact of European Legislation on Franchising: A Focus on Know-How, E-Commerce and Resale Prices

  • Rozenn PerrigotAffiliated withIGR-IAE Rennes – University of Rennes 1, CREM UMR CNRS 6211ESC Rennes School of Business Email author 
  • , Guy BassetAffiliated withIGR-IAE Rennes – University of Rennes 1, CREM UMR CNRS 6211IGA School of Management Email author 

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Abstract

Within Europe, there are very few national laws that regulate the franchise sector (e.g., the Doubin Law in France). However, the European Commission legislation does apply; for instance, the Commission Regulation (EU) No. 330/2010 of 20 April 2010 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to categories of vertical agreements and concerted practices, and the Guidelines on Vertical Restraints—Text with EEA relevance—2010/C 130/01. In this paper, we provide a synthesis of the impact of both texts—the regulation and the accompanying guidelines—on the behaviors and practices of franchisors and franchisees, mostly in terms of know-how, e-commerce, and resale prices. We highlight the elements that franchisors and franchisees have to take into consideration in order to comply with European and French laws and to prevent networks from potential conflicts.