Franchise Law

In this Law, the following terms shall have the meanings assigned thereto, unless the context requires otherwise: 1. Law: Franchise Law. 2. Regulations: Implementing Regulations of this Law. 3. Ministry: Ministry of Commerce. 4. Minister: Minister of Commerce. 5. Franchise: A right granted by a franchisor to a franchisee to run a franchise business on his own account under the trademark or under the brand name of the franchisor or the person licensed to use the same; this shall include transferring technical expertise and specifying the manner of operation. Such right may be granted for a financial or non-financial consideration, excluding the amounts the franchisee pays to the franchisor in return for goods or services. 6. Franchisor: A natural or legal person who grants a franchise under a franchise agreement; this shall include the master franchisee with respect to his relationship with the sub-franchisee. 7. Franchisee: A natural or legal person who is granted a franchise under a franchise agreement; this shall include the sub-franchisee with respect to his relationship with the master franchisee. 8. Franchise Agreement: An agreement between a franchisor and a franchisee, under which a franchise is granted. 9. Franchise Business Model: The manner of operating a franchise business as determined by the franchisor and by which the franchisee shall be bound, including the display of the business trademark. 10. Control: The capacity to directly or indirectly influence another person’s acts or decisions through: a) owning more than 50% of the capital of a company or establishment; b) owning more than 50% of the voting rights of shareholders or partners, as the case may be; and c) having the right to appoint or elect the majority of the members of the board of directors or the board of managers, as the case may be, or the executive board members of a company or establishment, or the right to manage the same. 11. Franchisor's Associates: A person who controls or is controlled by a franchisor, or a third party that controls both, directly or indirectly. 12. Disclosure Document: A document disclosing the key rights and duties of the franchise and the substantial risks relating thereto. Franchise Law