Franchise Law

1. Unless otherwise provided for in the franchise agreement, if the franchisee is a natural person, the franchise agreement shall expire upon initiating any liquidation procedure under the Bankruptcy Law, or if the franchisee dies, becomes incompetent, or has a health condition impeding him from operating the franchised business. The franchise agreement may provide for the transfer of the agreement to one or more of the franchisee's heirs or to a third party if the franchisee dies, becomes incompetent, or has a health condition. 2. Unless otherwise provided for in the franchise agreement, if the franchisee is a legal person, the franchise agreement shall expire upon issuing a decision of voluntary liquidation of the franchisee, or by the initiation of any liquidation procedure under the Bankruptcy Law, or by the termination of the franchisee. A franchisee’s conversion or merger with another legal person shall not result in the expiry of the agreement.