The franchise agreement is concluded “intuitu personae”, in consideration of the franchisee’s personality.
The franchisee will represent the trademark in its point of sale.
This concept also implies that the franchisor is entitled to validate all shareholders involved in the franchisee’s company.
The franchisor must be informed of any change in the franchisee’s shareholding or any project of transfer, and generally benefits from:
– a right of pre-emption
– a right of approval : the franchisor is not obliged to continue to perform the agreement with partners it has not approved.
The intuitu personae is not reciprocal: on its side, the franchisor undertakes to provide the franchisee with a trademark and a know-how.
This commitment remains unchanged regardless of changes in the franchisor’s entity.
