Underneath the Golden Boy - Robson Hall Faculty of Law

358 Underneath the Golden Boy
and development of the franchisor’s know-how. In case of non-respect of the
concept by the franchisee, the franchisor must allow the franchisee, when
appropriate and following due notification, a reasonable delay to conform to his
obligations. Moreover, the franchisor must ensure that each franchisee respects
their obligations and commitments for the general interest of the network. The
WFC also imposes obligations pertaining to the franchise contract itself,
including termination, and outlines obligations that are common to the
franchisor and franchisee. 23
2. COUNTRIES
A. North & South America
1. Argentina
The Argentinean Franchise Association (“AAF”) was founded with the goal of
educating franchisees in order to facilitate their involvement in the world of
franchising. 24 The Association offers courses to its members and the community
at large on topics addressing the advantages of franchising, how to expand a
business, customer service, advertising, and trademarks and patents.
Furthermore, it demands that all of its members adhere to a Code of Ethics.
Among other things, the Code requires pre-contract disclosure of material facts
pertaining to the franchise. 25 More importantly, the AAF presented a bill titled
“Franchises Act” to the Senate in 2004 that is currently being considered. 26
The bill’s main goal is to protect franchisees by requiring pre-contract
disclosure and good faith in the performance of the agreement. Once passed, the
bill will oblige a franchisor to disclose its prior history, its business plan
(proposal), all investments required from the franchisee and a summary of the
operations manual ten days prior to the signing of the franchise agreement. A
clause shall be included nullifying any contract that violates these requirements.
23
Ibid.
24
Asociacion Argentina de Franquicias, “Nuestro Objectivo,” online: Quienes Somos
.
25
Asociacion Argentina de Franquicias, “Codigo de Etica,” online: Asociacion
.
26
Asociacion Argentina de Franquicias, “Que es y que hace la Asociacion Argentina de
Franchising,” online: Articulos
.