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Franchisors' disclosure duty: market transparency and franchisee protection

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  • Rosa Lapiedra-Alcamí
  • Isabel Reig-Fabado
  • Carlos Rueda-Armengot

Abstract

The franchisee is usually the most vulnerable part of the franchise relationship, and should therefore receive greater protection from the legal framework. In this regard, the franchisor's pre-contractual disclosure duty has evolved in its legal status. Whereas its original purpose was to ensure transparency in the market, it now serves to protect the franchisee. In this paper, we compare the franchisor's obligations established by the legal framework in Spain with those set out in the Model Law drawn up by The International Institute for the Unification of Private Law.

Suggested Citation

  • Rosa Lapiedra-Alcamí & Isabel Reig-Fabado & Carlos Rueda-Armengot, 2014. "Franchisors' disclosure duty: market transparency and franchisee protection," The Service Industries Journal, Taylor & Francis Journals, vol. 34(9-10), pages 788-795, July.
    • Handle: RePEc:taf:servic:v:34:y:2014:i:9-10:p:788-795
    DOI: 10.1080/02642069.2014.905917
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