Franchise networks of a significant size shall adapt to new regulation arising from the « El-Khomri » Act.
This act imposes the creation of “dialogue committees” consisting of franchisee’s and franchisor’s employees (Article 64 of the Act), despite the strong opposition of market players.
The law reads as follows. First, the obligations below apply when a franchise network contains franchisees whose aggregate number of employees is at least three hundred hired in France, and when the franchise agreement binding on the franchisor and franchisees contains provisions affecting the organization labor and working conditions in the franchisee’s companies. In this case, if a trade union organization which has an activity in the business (e.g. for restaurant franchising, a trade union acting for restaurant employees), the trade union may require from the franchisor to negotiate with the trade union the creation of a dialogue committee gathering representatives of employees of the franchisees and représentatives of the franchisees. This committee shall be chaired by the franchisor. Lire la suite