Underneath the Golden Boy - Robson Hall Faculty of Law

370 Underneath the Golden Boy
any non-compete obligation imposed which extends beyond one year after
termination of the Franchise Agreement. 81
The Irish Franchise Association promotes the development of franchising in
Ireland through exhibitions, seminars, newsletters, awards and networking. All
members of the Association must abide by a Code of Ethics that emulates the
Advertising Standards Authority for Ireland’s Code of Ethics. 82 The Code’s
purpose, as stated by the Association, is:
[T]o protect and further the interests of properly constructed franchising companies and
by these means to establish and maintain a clear definition of ethical franchising
standards to assist members of the public, press, potential investors and government
bodies in differentiating between sound business opportunities and any suspect
investment. 83
Among other things, the Code establishes that the franchise agreement shall
clearly set forth the respective obligations and responsibilities of the parties and
all other terms of the relationship and be free from ambiguity; fairness shall
characterize all dealings between a franchisor and its franchisees; and a
franchisor shall make every effort to resolve complaints, grievances and disputes
with its franchisees with good faith and goodwill through fair and reasonable
direct communication and negotiation. 84
6. Italy
Italy first adopted franchise legislation on 21 April 2004, with the introduction
of the Law on Commercial Affiliation. It is important to note that the European
Franchise Federation translates “commercial affiliation” as the equivalent of
“franchises.” 85 The Law requires that a franchise contract must be in writing or it
shall be declared null and void. Furthermore, to set up a franchise network, the
franchisor must have tested its commercial formula on the market. 86
81
AIB Bank, “A Guide to Franchising,” online:
at 6.
82
Irish Franchise Association, Code of Ethics, online: About
.
83
Ibid.
84
Ibid.
85
European Franchise Federation, “Italy: Law on Commercial Affiliation,” online: Self Regulation
and Regulation – Self Regulation at National Level
[EFF, “Italy: Law on Commercial Affiliation”].
86
European Franchise Federation, Law on Commercial Affiliation, online: Self Regulation and
Regulation – Self Regulation at National Level at Article 3 [EFF, “Commercial Affiliation”].