Here is a brief report by Frédéric Fournier:
When franchisor’s claim against franchisee caroms off…
Paris Appeals Court (Division 5, 4th Chamber, November 26, 2025, No. 23/13663) ruled on the importance of assistance in franchising for a business subject to technical changes (recycled ink cartridges) . A franchisee terminated their franchise agreement on this basis. The franchisor, which later went into liquidation, sued for performance of the agreement and, in particular, for payment of the amounts withheld by the franchisee. Acquitted at first instance, the franchisor was convicted on appeal.
The franchisee cited the lack of development of the concept, the lack of updates to the operating manual, the lack of new internal training for several years and of promotional visits to personalize the services offered, and the virtually non-existent assistance at the national level.
However, the franchisor explained that the technical standards manual did not need to be updated, as the market had evolved with the refilling of recycled ink cartridges by suppliers rather than distributors. This change had been implemented through a high-performance intranet network accessible to all franchisees, specific marketing, and a service tailored to franchisees. As for training, it had even been implemented during the Covid period, but the franchisee had refused to participate.
The Court’s response was very pragmatic: “The lack of recent updates to this manual is justified by developments in the digital printing market, characterized by the disappearance of refillable cartridges in favor of the sale of pre-filled cartridges by suppliers, which does not require the development of a technical manual.” » The operating manual is therefore not gospel.
However, the franchisee was criticized for not attending promotional visits. The training courses offered were also called into question by the Court, even though the franchisee did not participate in them.
The Court ruled: « in view of the economics of the franchise agreements in question and the importance of assisting the franchisee in adapting its strategy, redesigning its store, and diversifying in a context of change in the ink cartridge distribution market marked by the abandonment of the refill system, a key element of the concept, the franchisor’s breach of its contractual obligations must be considered sufficiently serious to justify the termination of the disputed contracts by the franchisee. »
The assistance provided in a changing market context was therefore deemed insufficient.
Frédéric Fournier-Lawyer
