Charles Seroude advised management of franchisor

1. What made the Doubin law to the franchise

General ignorance

"In 1989, since 20 years, despite the efforts of the FFF, the franchise grew in the anarchy of General ignorance." Europe was invaded by number of franchisors, in particular, the American franchises masters, who saw in the franchise as a way to get rich quickly at the expense of the franchisees. The Doubin law brought a pre-contractual regulation a minimum which limited the most frequent abuses as false verbal promises. It was a great success for the French Federation of the Franchise which, by obtaining a text useful and effective, has avoided that Act cut the wings to innovation and the freedom to do duty-free. It was quickly followed by the major countries of the European Union. (1) 

2. What is what is missing the Doubin law

Inaccuracies and intentions

"The Doubin law is incomplete, more by its inaccuracies by its intentions." Which reduces its effect. It does not specify how the franchisor must account for the results of the pilot, or even if it is to hold a. It does not, nor the information to be provided by the franchisor on its company, its activities and those of its network, or even services agrees to provide to its franchisees. She asked "a State of the market", a term that leaves far too much latitude in its interpretation.

Delaying formula

"Finally, it imposes on the parties a dilatory formula which opens all possibilities of trial for various deceptions by action or omission:"the franchisor must give all the necessary information for the franchisee's decision with knowledge".". Do not exaggerate! The Doubin law is a pale copy of the American "Disclosure Act", it is to clarify and supplement. 

3. How will evolve the field of the franchise in the next few years

Attitude of the banks

"Everything will depend on the evolution major factors of growth marketing and financial systems of franchise in its three areas of choice - industrial franchise, franchise services and distribution franchise." I.e. including overall economic growth, the confidence of creative entrepreneurs, creativity released creative entrepreneurs of concepts, the evolution of case law and regulations. But also the attitude of the banks, their understanding and their ability to assess the virtues and the vices of franchise systems, allowing more informed and necessary financing including new creative franchisors.

Curious and unfortunate deficiency

"Another great growth factor: the emergence of real advice in management who know and understand the functioning of the economic levers of systems franchise, the rules and customs of hierarchical management of the industry and jurisdictions of their very specific management, broken with the us.". Note in this regard, the deficient curious and unfortunate business and school sections economics of European universities to teach economic principles, marketing, legal and financial systems of franchises. Most American universities teach for over 50 years "the development of contract marketing systems", the franchise, which has addition to a Direction to the U.S. Department of Commerce and the Small Business Administration. This is probably what explains that franchises account for more than 40 of the activity of the services and the distribution in the USA, against 20 in Europe.

Precipitation in the development

"Last growth factor: the rehabilitation of the role of franchise contracts in order." Too franchisors, equipped with a standard franchise agreement believe that they can engage with precipitation in a rapid development without "pilot" confirmed by a positive balance, without modelled expertise, without appropriate structure, without philosophy positive of the franchise, without preparation of selective and sequenced development, or without operational monitoring organization, assistance and control. Their inevitable failures affect the renowned franchise and hinder development.

4 Far can go to the contribution of the free economy

Exceptional virtue

"Since 1890, date of the creation of Coca-Cola, franchise systems are vectors of growth and innovation, highly creative jobs and wealth. Their limits are bounded only by the creativity, inadequate regulations and autism of certain banks, fed fears a priori born of ignorance and misunderstanding. The franchise has exceptional virtue to self-finance its growth acceleration, and to be the only model for capital-intensive growth "self-righteous." Indeed, no network cannot survive if its economic and financial inputs are not balanced in all its stakeholders and customers. 

The potential of Web 2.0

"Do not limit the franchise to the distribution, and therefore to the future of downtowns, for which she has already played an important life-saving role.". Indeed, services franchises are in France than 50 of franchises, 80 in the United States. They have an exponential potential with the arrival of Web 2.0, which will allow the development of many networks for franchisees from an apartment or Office, including for services at home interactive or collaborative. In addition the industrial franchise has a strong potential, especially in export of technologies but the knowledge manager. Emerging countries are very claimants, particularly in the agricultural and agri-food, fields in which the France is very powerful. Frankly, well designed and well managed has enormous potentials of shared wealth creation.

(1) In 1978, Charles Seroude already negotiated on behalf of the European Federation of the Franchise, which he was Vice President - Founder, a "first exemption regulation on the franchise", which authorized and regulated the practice of granting of exclusive territories primarily. This practice known as "exclusive open", in violation with article 82 of the Treaty of Rome, remained legal because no one can deny the franchisor of autolimiter its rights. So today, the franchisor is committed to not open to other points of sale on the territories that it concedes to franchisees, but future customers are free to go to the dealer of their choice.