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Law No. 79 Of 9 April 1998 On Approval Of The Government Ordinance. 52/1997 Concerning The Legal Regime Of The Franchise

Original Language Title:  LEGE nr. 79 din 9 aprilie 1998 pentru aprobarea Ordonanţei Guvernului nr. 52/1997 privind regimul juridic al francizei

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LEGE no. 79 79 of 9 April 1998 for approval Government Ordinance no. 52/1997 on the franchise legal regime
ISSUER PARLIAMENT
Published in OFFICIAL MONITOR no. 147 147 of 13 April 1998



The Romanian Parliament adopts this law + Article 1 Approval Government Ordinance no. 52 52 of 28 August 1997 on the legal regime of the franchise issued pursuant to art. 1 lit. c) of Law no. 134/1997 for the empowerment of the Government to issue ordinances and published in the Official Gazette of Romania, Part I, no. 224 of 30 August 1997, with the following amendments: 1. Article 1 shall read as follows: "" Art. 1. -For the purposes of this ordinance, the following notions shall be defined as follows: a) The franchise is a trading system based on a continuous collaboration between natural or legal persons, financially independent, whereby a person, referred to as a franchisor, grants another person, referred to as a beneficiary, the right to to exploit or develop a business, a product, a technology or a service. b) The franchisor is a trader who: -is the holder of the rights to a registered trademark; the rights must be exercised for a duration at least equal to the duration of the franchise contract; -confers the right to exploit or develop a business, a product, a technology or a service; -provide the beneficiary with an initial preparation for the exploitation of the -uses personal and financial means to promote its brand, research and innovation, ensuring the development and viability of the product. c) The beneficiary is a trader, natural or legal person, selected by the franchisor, who adheres to the principle of homogeneity of the franchise network, as defined by the franchisors. d) Know-how is the set of formulas, technical definitions, documents, drawings and models, networks, processes and other analogous elements, which serve in the manufacture and marketing of a product. e) The franchise network comprises a set of contractual relations between a franchisor and several beneficiaries, in order to promote a technology, product or service, and to develop the production and distribution of a product or service. " 2. Article 2 shall be repealed. 3. The title of Chapter II shall read as follows: "" CHAPTER II Rules on relations between the parties. Pre-contractual, contractual, post-contractual relations " 4. Title "Section I-Pre-contractual relations; post-contractual relations" shall be deleted. 5. Article 3 (3)-the introductory part-is amended and shall read as follows: "The franchisor undertakes to provide the beneficiary with information about:" 6. The title "Section II-Franchise Contract" shall be deleted. 7. Article 6 shall read as follows: "" Art. 6. -The franchise agreement must include the following clauses: -object of the contract -the parties ' rights and obligations -financial conditions; -contract duration; -conditions for modification, extension and termination. ' 8. Article 8 shall read as follows: "" Art. 8. -The franchisor shall notify the beneficiary in writing of any breach of contractual obligations and shall grant him a reasonable period of remediation. " 9. Article 9 shall read as follows: "" Art. 9. -Upon termination of contractual relations, post-contractual relations will be based on the rules of fair competition. The franchisor may impose firm obligations on the former beneficiary, thus ensuring the protection of the confidentiality of the business and, in particular, the non-use of know-how by a competing network. " 10. The title "Section III-Exclusive contract" shall be deleted. 11. The title "Section IV-The reports between the parties in the franchise network" shall be deleted. 12. Article 12 shall read as follows: "" Art. 12. -Under contractual relations with its beneficiaries, the franchisor will establish a franchise network, which must be exploited so as to allow the preservation of the identity and renown of the network for which the franchisor is guarantor. " 13. Article 13 shall read as follows: "" Art. 13. -The franchise network consists of franchisor and beneficiaries. Through organization and development, the franchise network must contribute to the improvement of the production and/or distribution of products and/or services. " 14. Article 14 shall read as follows: "" Art. 14. -Advertising for the selection of beneficiaries must be unambiguous and contain no erroneous information. " 15. Article 15 shall read as follows: "" Art. 15. -Advertising documents showing a beneficiary's forecast financial results will have to be objective and verifiable. " 16. Article 16 shall be repealed. 17. Article 17 shall read as follows: "" Art. 17. -The franchisor selects the beneficiary who proves the requested skills, namely: managerial qualities and financial capacity for the exploitation of the business. The franchisor, as the initiator and guarantor of the franchise network, must watch to preserve the identity and reputation of the franchise network. " 18. The title "CHAPTER IV-Sanctions and contraventions" is deleted. 19. Article 18 shall be repealed. 20. The title "CHAPTER V-Final provisions" shall be deleted. 21 articles 19 and 20 shall be repealed. + Article 2 Government Ordinance no. 52/1997 on the legal regime of the franchise, with the amendments made by this law, will be republished in the Official Gazette of Romania, giving the texts an appropriate numbering. This law was adopted by the Chamber of Deputies at the meeting of November 25, 1997, in compliance with the provisions of 74 74 para. (2) of the Romanian Constitution. p. ROOM PRESIDENT DEPUTIES VASILE LUPU This law was adopted by the Senate at the meeting of March 10, 1998, in compliance with the provisions of art 74 74 para. (2) of the Romanian Constitution. p. SENATE PRESIDENT CRISTIAN DUMITRESCU --------