This book provides a wide-ranging review of the European rules relating to distribution: exclusive purchase and exclusive supply, exclusive and selective distribution, motor vehicle distribution, franchises, commercial agents.

French Distribution Law

The franchise agreement may provide for territorial exclusivity in favor of the franchisee which allows it to enjoy the franchisor's know-how and distinctive signs on a given territory. The territorial exclusivity clause is however not a constituent element of the franchise contract: the classification of the contract as a franchise is not conditional upon its existence .
European law legitimizes  …

Context.

The franchise agreement may provide for territorial exclusivity in favor of the franchisee which allows it to enjoy the franchisor's know-how and distinctive signs on a given territory. The territorial exclusivity clause is however not a constituent element of the franchise contract: the classification of the contract as a franchise is not conditional upon its existence .

European law legitimizes the solution. In effect, the guidelines on vertical restraints define franchising as a vertical agreement that contains “licenses of intellectual property rights relating in particular to trade marks or signs and know-how for the use and distribution of goods or services”, without referring to any exclusivity . The exclusivity clause is subject to the general exemption system of Regulation No 2022/720 .

Where there is no territorial exclusivity, the setting-up of a second distributor in a sector close to that granted to another franchisee is not, in principle, wrongful  although in some judgments it has been held that in a difficult commercial area, it could constitute a breach of the franchisor's duty of loyalty . The territorial exclusivity clause must however be distinguished from the customer exclusivity clause. The latter does not preclude other stores from setting-up in the franchisee's area .

Cass. com., 16 January 1990, LawLex200200005766JBJ; 9 November 1993, LawLex200200004361JBJ.

Guidelines on Vertical Restraints 2022/C 248/01, par. 165.

Guidelines on Vertical Restraints, par. 167.

Cass. com., 19 November 2002, LawLex200200006252JBJ, quashing on this point CA Lyon, 10 May 2001, LawLex200200006335JBJ; CA Montpellier, 14 May 1996, LawLex200200005566JBJ upheld by Cass. com., 6 April 1999, LawLex200200004394JBJ; CA Douai, 4 July 1996, LawLex200200005589JBJ upheld by Cass. com., 11 January 2000, LawLex200200004383JBJ; 30 May 2018, LawLex201800000834JBJ, where the franchisee has no territorial exclusivity, the franchisor is not obliged to inform it of new franchises it has approved in the same catchment area.

CA Versailles, 8 March 2016, LawLex201600000581JBJ.

CA Lyon, 10 March 2009, LawLex200900001692JBJ.

French Distribution Law

399. Context.

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Les décisions de justice citées dans ce paragraphe :

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399. Context.

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Les décisions de justice citées dans ce paragraphe :

Sous parties

Les notions juridiques connexes

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