Consumer Protection Act Franchise Agreements

Spain stipulates that a consumer must be a natural person acting for a different purpose from his company, profession or profession. However, it is clear that “[t]he consumer, within the meaning of this regulation, also acts as legal persons and legal entities without legal personalities in an area separate from his business or commercial activities.” One of the requirements of a franchise agreement is that the contract must be written and at least signed by the franchisee. In addition, the franchisor must ensure that the necessary information is included in the agreement, as required by the regulations. Colombian law is unique in that it is established that a person may (physically or legally) enter the scope of the end user, even if the use of the product or service meets commercial needs, provided that it is not directly related to his or her main economic activity.26 If a franchisee enters into a franchise agreement , but that the franchise is not its main economic activity, the franchise is not its main economic activity. may be considered a consumer and be entitled to all the protections granted under the scheme. In this chapter, we analyze franchise agreements from a consumer protection perspective. Consumer protection issues are dealt with by national or regional courts. For this reason, this chapter has a limited scope; However, we draw attention to certain legal systems which, because of their specificities or the markets involved, are of interest for the purposes of this chapter. Under the franchise rule imposed by the U.S.

FTC, the franchisee must receive the franchise disclosure document at least 14 days before being asked to sign a contract or pay money to the franchisor or a subsidiary of the franchisor. This document contains information on: The United States also deserves a specific analysis, since the Federal Trade Commission (FTC), the country`s consumer protection authority, has created a “Consumer`s Guide to Buying a Franchise” addressed to the franchisee (considered a consumer) to help it decide whether finding a franchise is the right decision. It says that if the damage to the consumer results from the defect or risk of the product or the service delivery, the supplier, manufacturer, importer, distributor, seller and the person who put his mark on the product or service will react. . . . Responsibility is common and several parties can take appropriate recovery measures. With respect to transitional provisions, the law will not apply to existing franchise agreements as of April 1, 2011. It appears to apply to franchise agreements, which will then be renewed. It also appears that from that date, when an existing fixed-term franchise agreement is to expire after April 1, 2013, the law will apply at least to certain transactions between the franchisor and the franchisee pursuant to the transitional provisions.