Franchise Law

Unless otherwise provided for in the franchise agreement, the franchisor’s approval must be obtained prior to changing the person controlling the franchisee or assigning the franchise agreement. If the franchisor grants his approval, he may not revoke it nor object to the change or assignment, except in the following cases: 1. If the assignee is unlikely to have sufficient funds for carrying out the obligations borne by the Franchise Law franchisee under the franchise agreement. 2. If the assignee is unable to meet the franchisor’s reasonable requirements with respect to the assignment of the franchise agreement and franchised business. 3. If the assignee fails to meet the franchisor’s criteria for the selection of franchisees. 4. If the assignee does not agree, in writing, to bear the franchisee’s obligations under the franchise agreement from the date of assignment thereof. 5. If the franchisee does not pay the franchisor any due amounts. 6. Any other case specified by the Regulations.