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Do Four Proposed Franchise Laws in Belgium Make EU-Wide Laws Inevitable?

By Mark Abell
October 08, 2004

The tide of franchise regulation in Europe continues to flow, as the Belgian parliament is the latest of the EU member state legislatures to consider enacting not one, but four distinct franchise laws. Does this make regulation of franchising on an EU-wide basis inevitable?

Law One ' Disclosure. Following the example of France, Spain, and most recently, Italy, the Belgian Chamber of Representatives is currently considering a bill introduced on Oct. 8, 2003 that will regulate the contents of franchise agreements and provide for precontractual disclosure in a similar manner to the French, Spanish, and Italian legislation. If the bill passes into law, it will oblige franchisors to provide potential franchisees with details of the franchise system and the agreement before they enter into the franchise agreement. Any franchisor who fails to comply with the disclosure requirement will find its franchise agreement to be unenforceable, enabling franchisees to walk out on the franchise at any time, free from any non-compete or other restrictions.

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