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Belgium - Franchise Legislation
Law relative to pre-contractuel information in the framework of agreements of commercial partnership
Article 5
In case of the non-respect of one of the provisions of Article 3, the party receiving the right may invoke the nullity of the agreement of commercial partnership within two (2) years following the conclusion of the contract.
If the particular document does not comprise the elements detailed in Article 4.1.1, the party receiving the right may invoke the nullity of the provisions in question in the agreement of commercial partnership.
Article 6
The parties are held to the confidentiality of the information that they obtain in view of the conclusion of the agreement of commercial partnership, and may not use this information, directly or indirectly, outside of the agreement of commercial partnership to be concluded.
Article 7
The clauses of the agreement of commercial partnership and the elements to be provided in the particular document as defined in article 4, will be written in a clear and comprehensible manner. In case of doubt on the meaning of a clause or an element to be disclosed, the interpretation that will prevail is that which is in favour of the receiving party.
Article 8
The provisions of the present law are applicable irrespective of any contractual clause to the contrary.
Article 9
The pre-contractual phase of the agreement of commercial partnership is governed by Belgian law and is subject to the jurisdiction of Belgian courts when the party receiving the rights exercises the activity which is the object of the agreement principally in Belgium.
Article 10
The present law enters into force on September 1st, 2005. (Amended on Dec. 27, 2005 to enter into force on February 1, 2006)
The government will submit an evaluation report to the Chamber of Representatives before July 1, 2006.
This evaluation will carry, at least, on the following points:
a) the measure by which pre-contractual information contributes entirely to the clarity and balance of agreements of commercial partnership;
b) the presence in these agreements of provisions that create a manifest imbalance between the parties, including the non-compete clauses, the clauses that determine the value (of the franchisee’s business) in case of re-purchase, the conditions of resolution and of termination of the contract, and the obligations of result.
In addition, the King will constitute an Arbitration Commission composed of an equal number of organisations representing the interests of each of the parties.
This Commission will also submit, before September 1, 2006 an evaluation report to the Chamber of Representatives.
In the report, article 10, paragraph 3 will be taken into account.
Brussels, 19 December 2005
First Vice President of the Chamber of Representatives.
Free translation into English by the EFF (in green: words added by the EFF for clarity)
