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- Title
GERMANY - PRE-CONTRACTUAL DISCLOSURE REQUIREMENTS AND RELEVANT CASE LAW.
- Authors
Waldzus, Dagmar
- Abstract
As there is no statutory regulation of pre-contractual disclosure requirements in Germany, the obligations of franchisors are based on principles set out by the courts. This article considers the standards and guidelines applied by German courts in cases where one party, usually the franchisee, challenges the validity of the franchise agreement for reason of violation of the franchisor's pre-contractual obligation to inform the franchisee. The author considers the principle of "good faith", the scope and limits of the franchisor's obligation and recent trends in case law. Whereas there is no (general) obligation on a franchisor to advise a prospective franchisee with respect to general risks of selfemployment or to provide a detailed calculation of profitability to him, recent developments show that a high level of duty of care is expected.
- Subjects
GERMANY; RETAIL franchise laws; DISCLOSURE laws; FRANCHISOR-franchisee relationships; OBLIGATIONS (Law) -- Cases; GOOD faith (Law); COURTS
- Publication
International Journal of Franchising Law, 2014, Vol 12, Issue 5, p3
- ISSN
1741-7392
- Publication type
Article