Mandate to trading or purchase the franchisee information, CEPC to say (Opinion No. 15-14).

In a recent opinion, French CEPC (Fair Traide Control Commission) recalls well-known principles of information by purchasing organizations, or franchisors. 

Any purchasing organization or franchisor acting as an agent for negotiations related to discounts and specific conditions from suppliers must provide the franchisee information regarding discounts and remuneration paid by the supplier, as may be « necessary for the defense » of the rights of the franchisee or affiliate. Furthermore, CEPC reminds that one shall distinguish agent for negotiating and purchasing agent. The agent for negotiations « is not party to the sale agreement and may retain some of the discounts linked to the purchases made by the merchant. However, the agent for negotiations can receive discounts and commissions corresponding to distinct benefits he would charge separately to the supplier. The franchisee or affiliated party would not have the right to know the details of these discounts for service delivery if they are not taken into account in the calculation of its discounts obtained based on their purchases. » It is not forbidden to grant more advantages to franchisee or affiliated party, recalls the ECCP.

Frédéric Fournier
Partner