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French Commercial agreement
Commercial agreements are present in every law system around the world, whether or not they are written.
Agreements are at the center of trade, the respect of validity is therefore vital.
Franchising in France has an average 10% growth since 2000; in 2013 the total turnover from franchises was about EUR47.4 billion. Franchising systems are mainly used in, but not limited to, the following sectors:
- food (8.73%),
- personal equipment (20.71%),
- hairdressing and aesthetics (8.67%),
- supply of other services to individual customers (10.47%),
- household equipment (7.39%)
- and fast food (8.84%).
Furthermore, approximately 30% of French franchised networks have expanded to many foreign countries. Franchising can be a suitable model for the activities of a foreign company, it provides many advantages that will be discussed in this article which aims at giving you the basic knowledge regarding French regulations so that you can decide wether a franchise is the best solution for your business model.
French national law allows a foreign franchisor to enter into a franchise agreement without establishing a wholly-owned subsidiary or a branch office in France and there are no rules that restrict the setting up of branches, subsidiaries or joint ventures by a foreign-owned business. Moreover, France does not currently enforce any exchange control regulations against any currency, therefore making payments to a foreign franchisor in any currency simple. That being said, certain rules do apply.