The Law and Regulation of Franchising in the EU

The Law and Regulation of Franchising in the EU

Elgar Intellectual Property Law and Practice series

Mark Abell

The Law and Regulation of Franchising in the EU provides an in-depth analysis of the regulatory environment for franchising in the EU. Franchising in the EU comprises nearly 10,000 franchised brands and over €215 billion (US$300 billion) turnover per annum. However, compared to its scale in the US and Australia, franchising is not realising its full potential in the EU and the author points to the lack of homogeneity across members states as a large part of the problem.

Chapter 6: CONCLUSION

Mark Abell

Subjects: law - academic, commercial law, european law, intellectual property law, law -professional, commercial law, intellectual property law

Extract

Franchising has failed to fulfil its potential in the EU. This is in part due to the regulatory environment. This failure can be remedied by re-engineering the legal eco-systems that comprise the regulatory environment in the EU. This book draws three distinct conclusions. The first conclusion is that although franchising is a specific, distinct and uniform type of commercial activity with a positive influence in the EU which stimulates economic activity by improving distribution, giving business increased access to other activity by offering economic advantages to all those involved and improving distribution and giving businesses increased access to other EU member state markets, it is not fulfilling its potential to contribute to the realisation of the single market. The second conclusion is that the regulatory environment in the EU is, at least in part, responsible for this underachievement of franchising in the single market. The third conclusion is that the regulatory environment in the EU should be re-engineered to enable franchising to better fulfil its potential in the EU. B. THE FIRST CONCLUSION As explained in Chapter 2, business format franchising is the latest incarnation of a long established business structure. Its importance is acknowledged by a wide range of institutions and it has emerged as an important vehicle for entrepreneurship that has appeal to large corporations and small businesses alike.

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