Model Franchise Disclosure Law

General Detail

General Information

  1. Type: Model Law
  2. Date of signature:
  3. Place of signature: Rome, Italy
  4. Depositary:
  5. Date of entry into force: N/A



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What is it about?

This Model Law was adopted under the authority of the International Institute for the Unification of Private Law (UNIDROIT). It is aimed at providing investors with relevant information before concluding or renewing a national or international franchise contract. The model law requires franchisor to disclosure specific information on his/her legal name, legal form, legal address of the principal place of business, criminal convictions or any finding or liability in a civil action or arbitration involving franchises and on the franchise: description of the franchise, goods and services that the franchisee is bound to buy or rent; description of property rights attached to the franchise, full evaluation of the initial investment. The model Law does not require disclosure on the part of the franchisee, only on the part of the franchisor.

Why is it relevant?

The Model Law is aimed at increasing the franchise growth as a means of creating businesses. Franchises provide the adequate potential for major economic growth, particularly among countries that want to gain specific know-how.

Additional Information

This instrument is not a convention. It is a model law offering a template that can be incorporated into legal system. An explanatory report is attached to the Model Franchise Disclosure Law.



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