Competition & EU Law
Both European and UK competition law prohibit some of the restrictions common to franchise agreements. However, in both there are ‘Block Exemption’ regulations that relate to vertical agreements including franchises. These effectively exempt franchising from the main controls of competition law on certain conditions.
This is a complex and difficult area of law, and falling foul of the regulations can leave franchisors exposed to legal action and fines, and can also mean that their franchise agreements are unenforceable.
Goldstein Legal are experts in steering our franchising clients around competition law requirements, including the UK Competition Act 1998.
Franchise EU Law
The UK has no statutory framework specifically aimed at regulating franchising, and European competition law treats franchising in a relatively benign way. But the domestic law in European countries differs enormously. Eight EU member states have franchise-specific regulatory regimes, but no two are the same. The remaining 19 member states regulate franchising through their general laws, but again each in a different way.
If you are looking at franchising in the EU, we can provide you with the expert legal advice that you need.