Post by xyz3400 on Feb 20, 2024 10:22:20 GMT
Congress approved Bill updating the legislation that regulates the business franchise system ( franchising ), still pending presidential sanction. Bill 219/2015 repeals the current law, known as the Franchising Law (Law 8,955/1994), and inserts new rules strengthening some guidelines and conditions already practiced by the market. Considering that the previous Franchising Law was already showing signs of wear and tear over time, its update is welcome when considering the maturation and strengthening of this important market in the Brazilian economy. The new Franchising Law improves and updates private relationships between franchisor and franchisee, with the main purpose of being a simple, objective law, with defined and balanced conditions and rules, enabling a relationship between the parties in a transparent and secure manner.
To implement the franchise and complete the business, the legislator chose to insert new obligations and improve those already existing in the previous law, which must be included in the franchise offer circular. The highlights of the Franchising Law are the clarifications of some points not presented in the previous law, either due to legal omission or through innovation introduced by the franchise market during this time, by making a Honduras Mobile Number List broad list of rights and duties that can accelerate , for example, the opening of new units, or the possibility of subletting properties from the franchisor to the franchisee. Another important point of the new law is the insertion of already peaceful understandings in the daily lives of the parties and even in the doctrine and Judiciary, such as, for example, the express provision that there is no employment relationship between franchisees' employees and the franchisor, of validity of the arbitration court election and the absence of a consumer relationship between franchisor and franchisee.
In addition to the possibility of electing an arbitration court, in the case of international franchise contracts, the legislator opted for the autonomy of the will of the parties by allowing the choice of forum, as long as it is the domicile of one of the contracting parties. In the case of opting for a foreign forum, both parties must appoint and maintain a legal representative or attorney, duly qualified and domiciled in the country of the defined forum, with powers for representation, including receiving summons. On the commercial side, the new law creates the possibility for the franchisor to sublease commercial locations to the franchisee, under certain rules, as long as they are expressly defined and clear in the franchise offer circular, facilitating the expansion process. With these changes, the new Franchising Law strengthens the commercial relationship between franchisor and franchisee, bringing greater legal certainty, transparency and simplification.
To implement the franchise and complete the business, the legislator chose to insert new obligations and improve those already existing in the previous law, which must be included in the franchise offer circular. The highlights of the Franchising Law are the clarifications of some points not presented in the previous law, either due to legal omission or through innovation introduced by the franchise market during this time, by making a Honduras Mobile Number List broad list of rights and duties that can accelerate , for example, the opening of new units, or the possibility of subletting properties from the franchisor to the franchisee. Another important point of the new law is the insertion of already peaceful understandings in the daily lives of the parties and even in the doctrine and Judiciary, such as, for example, the express provision that there is no employment relationship between franchisees' employees and the franchisor, of validity of the arbitration court election and the absence of a consumer relationship between franchisor and franchisee.
In addition to the possibility of electing an arbitration court, in the case of international franchise contracts, the legislator opted for the autonomy of the will of the parties by allowing the choice of forum, as long as it is the domicile of one of the contracting parties. In the case of opting for a foreign forum, both parties must appoint and maintain a legal representative or attorney, duly qualified and domiciled in the country of the defined forum, with powers for representation, including receiving summons. On the commercial side, the new law creates the possibility for the franchisor to sublease commercial locations to the franchisee, under certain rules, as long as they are expressly defined and clear in the franchise offer circular, facilitating the expansion process. With these changes, the new Franchising Law strengthens the commercial relationship between franchisor and franchisee, bringing greater legal certainty, transparency and simplification.