Discusses opportunities for U.S. franchisers and legal requirements in the market.
Last Published: 6/28/2019
According to the Belgian Franchise Federation, Belgium’s franchising system represents 6% of the Belgian retail, about 100 franchisors, 3,500 franchisees, 30,000 jobs and a market of € 2.4 billion. This places Belgium, along with Denmark and Finland, among the European countries with the lowest number of franchise units per capita.  The largest part of the franchise concepts are in D-I-Y, distribution and confection.  Over the past 10 years the franchising of services has grown slowly.  The largest increase is found in in-house, electrical household equipment and fast-food.

In 2005, Belgium adopted a law on pre-contractual information in the framework of commercial agreements. Franchise agreements fall under this law.  In the case of a franchisor–franchisee relationship proposal, the franchisor is obliged to provide a pre-contractual information document (PID) and a draft of the proposed agreement one month before concluding the agreement.  This document must contain all the necessary information, as described in the law, to allow the franchisee to accurately evaluate the consequences of the contract. Disrespect for the required “cooling-off” period, of the required content and even of the accuracy of the information provided, result in the nullity of the agreement. 

In the long-standing market economies governed by Civil Codes, there is very limited franchise specific legislation. Franchising, which is not usually distinguished from commerce in general in national economic statistics, is governed in each EU country by the many laws that usually govern mainstream commercial and distribution contracts. These include the general principles of contractual and civil law, specific commercial regulations, IPR protection laws, fiscal and social laws, etc. as well as national or European jurisprudence.  http://www.eff-franchise.com/

Since its foundation in 1972, the European Franchise Federation has promoted its European Code of Ethics for Franchising.  The EFF’s Code of Ethics for franchising has been recognized as an industry reference both by the European Commission, the European Court of Justice, and in franchise jurisprudence in countries like France and Germany.  Its purpose is to promote a self-regulatory set of ethical standards by which the actors of the industry themselves define the means by which to protect its practice from behavior which could otherwise be detrimental to its image and ultimately to its business development.


 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.