Clauses which limit the freedom to operate of the retailer after the end of the contract must be limited to a period of one year. Otherwise, they must be deemed unwritten, and are therefore not enforceable in accordance with Article L.341-2 of the French Commercial Code.
This is the reasoning applied in a decision dated June 1, 2020 by the Paris Court of Appeals, to a clause obliging the franchisee of a car wash network, without any time limitation, to stop using the blue and white colors appearing in the franchisor’s logo, after the end of the contractual relationship.
Arst Avocats advises its clients in the following matters related to business law:
- Advice on the regulations applicable to the client. Dealing with a wide range of issues relating to Contract Law (contract law or special contract law and contractual or tortious liability) and intervenes at the various stages (negotiation, conclusion, execution and termination) of the contractual relationship between the company and its partners or clients;
- Intervention at all stages of disputes with which the company is confronted within the framework of its activity and represents it, if necessary, before the competent courts or within the framework of alternative dispute resolution procedures (mediation, arbitration, et seq.).
Company law, business creation and transfer of business
Arst Avocats advises its clients in the following matters:
- in the creation of companies;
- at all stages of a company’s life, from its incorporation to its dissolution, for the realization of the simplest to the most complex operations (split, merger, listing on a stock market, et seq.);
- in the context of the acquisition or disposal of a company, whatever its form (transfer of business or corporate rights assignment) as well as operations that precede or follow it;
- in the implementation of agreements organizing relations between the company’s shareholders (shareholders’ agreement, employee shareholding schemes).
PAULINE JACQUEMIN CUNY