Underneath the Golden Boy - Robson Hall Faculty of Law

Franchise Legislation and Associations Around the World 359
The bill has been drafted to emulate franchise legislation in France, Italy, Spain
and Canada (Alberta). 27
2. Brazil
On 15 December 1994 a law relating to franchising contracts was adopted. The
law applies to franchises operated on Brazilian national territory and to master
franchises. 28 Under Brazilian Law No. 8955/94 (“Brazilian Law”), a disclosure
document must be provided to a prospective franchisee at least ten days prior to
the execution of the franchise agreement or “preliminary franchising
agreement,” or the payment of any fee by the prospective franchisee to the
franchisor or any company or individual related to the franchisor. A “preliminary
franchising agreement” includes a letter of intent or option to purchase franchise
rights in Brazil, or the payment of any fee in connection with such a letter or
intent or option. 29
Under Brazilian Law No. 9279, the franchise agreement must be registered
with the Brazilian Institute of Industrial Property to be enforceable as to third
parties. Such filing must include a certified translation of the franchise
agreement in Portuguese, a list of trademarks the franchisee is authorized to use
under the franchise agreement, and a copy of the franchise agreement. 30
The Brazilian Franchise Association (“ABF”) was created in 1987 with the
goal of promoting and defending the technical development of franchising as a
business model. The ABF offers support services to allow franchisees to correctly
investigate franchises and advises franchisors about all necessary steps involved
27
Asociacion Argentina de Franquicias, “El Contrato de Franquicia Comercial y el Proyecto de
Ley a Consideracion del Congreso de la Nacion,” online: Articulos
.
28
Frank Zaid and John Sotos, “Status Report on National Franchise Law Project,” (Paper
Presented to the Uniform Law Conference of Canada Annual Meeting, August 2002) online:
ULCC, Proceedings of Annual Meetings
.
29
Frank Zaid and Kendal Tyre, “A World Tour of the Basics of International Franchising,”
(Paper Presented at the International Franchise Association’s 38 th Annual Legal Symposium,
May 2005) [online: Frank Zaid, Publications
at A-2.
30
Ibid.