Franchise Agreements in Belgium

A franchising business can represent an interesting idea for investors who want to open a company in Belgium, because this type of company has already registered financial gains following a certain business plan. A franchising agreement is usually established between a franchisor – the person representing a successful and well-known company, and the franchisee -the person who will further represent that business, and it establishes the way in which the business will be carried out.

Franchise law in Belgium

The law regulating the legal statute of the franchising companies came into effect starting with 1st of February 2006. According to the law, franchising businesses are considered commercial partnerships in which the franchisor must offer to the franchisee a disclosure document and a franchise agreement.

The documents provide information on the way in which the franchisor has been managing his or her business; the disclosure document will offer details on the financial statements of the company, the rights received by the franchisee, terms related to the protection of intellectual rights, the business’ market share or on the number and situation of other franchise business opened under the company.

The law stipulates that the franchise businesses refer to legal entities with the following characteristics:

  • A common brand;
  • A common trading name;
  • The transfer of know-how;
  • Commercial assistance;
  • Technical assistance.

These types of companies are governed by the rules and regulations of the Commercial Code, due to the fact that most of them are incorporated as limited companies.

The disclosure law in Belgium

When establishing a company in Belgium under the form of a franchise business, it is important to know that the franchisor is obliged to provide a set of details related to his company. If the requirements are not met, the agreement will be considered null. In the situation in which the franchisor does not stipulate clear conditions in the disclosure document, the franchisee will not support any legal consequences.

Persons who are interested in receiving more details about the franchising agreement in Belgium can get into “Franchise.be”.