A prospective look at the provisions of the advance notice document in the franchise contract

Abstract

Franchise system is a successful system at the global level for the transfer of productive projects and the transfer of (know-how/Le savoir-fair) between all countries of the world, where this system works on the ease of expansion and spread with less capital for companies giving the concession and provide the same quality of product and service and under the same brand of companies granted excellence and here the benefits are realized for both parties.The Franchisor has to provide its prospective Franchisee with all information necessary to allow an educated decision-making process. He has to provide the Franchisee with a pre-contractual information document, "The Franchise Disclosure Document (FDD)/Le document d’information précontractuelle (DIP)" before the signing of the contract, or before any payment related to it.  The document discloses extensive information about the Franchisor and the franchise organisation which is intended to give to the potential Franchisee enough information in its decision-making process.  The document shall give truthful information, allowing the Franchisee to commit to this contract in full knowledge of the business, legal and financial conditions.