Document background
The Franchise Partnership Agreement is a crucial document used when establishing a franchise business relationship under German law. It serves as the foundational contract between a franchisor who wishes to expand their business through franchising and a franchisee who wants to operate under the franchisor's established business system. This agreement is particularly important in the German market as it must comply with specific requirements of German civil law (BGB), commercial law (HGB), and competition law (GWB), while there is no specific franchise law in Germany. The document needs to address pre-contractual disclosure obligations established through case law, protect intellectual property rights, and ensure compliance with EU regulations, particularly regarding territory restrictions and data protection. The Franchise Partnership Agreement typically includes detailed provisions about operational standards, quality control, training requirements, and financial obligations, all structured to avoid classification as an employment relationship under German law.
