FRANCHISING, LICENSING, DISTRIBUTION, AGENCY AGREEMENTS: CONSUMER PROTECTION ACT REGULATIONS AT LAST - BY EUGENE HONEY
Wednesday, August 10, 2011
As you may be aware the definition of a franchise agreement in terms of the Consumer Protection Act is fairly broad and this includes a full business concept franchise arrangement, as well as similar arrangements such as license, distribution and agency arrangements or contracts.
EFFECT OF THE DRAFT CPA REGULATIONS ON FRANCHISE AGREEMENTS – DISCLOSURE DOCUMENTS AND UNREASONABLE CONTRACTING TERMS - BY EUGENE HONEY & ANDRÉ J MARÉ
Wednesday, August 10, 2011
Following on the article published in the February edition of the SA Franchise Warehouse magazine, it is prudent to discuss the contents of Regulations 3 and 56 of the Draft Regulations of the Consumer Protection Act (CPA).
These Regulations specifically deal with the Disclosure Document of a franchise agreement (Regulation 3) and a List of Contracting Terms which are presumed to be not Fair and Reasonable (Regulation 56). At the time of writing, the final Regulations had not been published and this article is therefore based on the latest version of the Draft Regulations. The final Regulations should be published and be in force before 1 April 2011, when the CPA comes into force.
PROMOTIONAL COMPETITIONS IN TERMS OF THE CPA - BY EUGENE HONEY & ANDRÉ J MARČ
Wednesday, August 10, 2011
For this month’s article we have decided on a slight departure from the franchise specific provisions of the CPA in order to concentrate on another topic which we believe to have far reaching effects for franchises, namely promotional competitions. These competitions, which used to be regulated by the Lotteries Act, have since 1 April this year been regulated by the Consumer Protection Act 68 of 2008 (the CPA) and its regulations. Other relevant topics will also be covered in future articles.
REGISTRATION OF BUSINESS NAMES IN TERMS OF THE CONSUMER PROTECTION ACT – PART 2 - BY EUGENE HONEY & ANDRÉ J MARÉ
Wednesday, August 10, 2011
Following on our article of last month dealing with to an introduction to the registration of business names in terms of the Consumer Protection Act (the “Act”), this month we will delve a little deeper into the registration process and limitations.
Section 80 sets out the registration and cancellation procedure, while section 81 sets out the registration criteria.
KEY ASPECTS OF COPYRIGHT AND KNOW-HOW IN FRANCHISING - BY EUGENE HONEY
Wednesday, June 15, 2011
In addition to the brand, another two types of the intellectual property which are commonly licensed in a franchise system and which are also extremely valuable assets are copyright and know-how. Copyright is the right, broadly speaking, given to the creator, developer or author who may own the copyright, not to have the work copied or reproduced without authorisation.
REGISTRATION OF BUSINESS NAMES IN TERMS OF THE CONSUMER PROTECTION ACT – PART 1 - BY EUGENE HONEY AND ANDRÉ J MARÉ
Tuesday, June 07, 2011
One of the more contentious chapters of the Consumer Protection Act (the Act) deals with the registration of business names. Sections 79 to 82, which deal with business names, have received significant exposure in the media and in academic circles with a number of prominent commentators expressing diverging opinions on the interpretation and potential implementation of these sections.
THE CONSUMER PROTECTION ACT: THE DUTY TO REGISTER NAMES - BY EUGENE HONEY, PROF WIM ALBERTS
Friday, July 23, 2010
The Consumer Protection Act sets up an extensive administrative structure for the protection of consumers, with numerous provisions dealing with the obligations that businesses have, and, also, actions that they may not take. One of the obligations that will apply is that a person providing goods or services to consumers will be allowed to conduct business only under specific names (section 79(1)). A number of scenarios are envisaged by Act.
THE FRANCHISOR'S DUTY OF CARE TO POTENTIAL FRANCHISEES - BY EUGENE HONEY, PROF WIM ALBERTS
Friday, July 23, 2010
In a recent decision in the United Kingdom, MCB Printing and Design Limited v Kall Kwik UK Limited, the existence of a duty of care owed by franchisors in dealing with franchisees, including potential franchisees, was confirmed. In the course of the court's judgment, it dealt with a description of the nature of a franchise. It was stated that although franchised businesses operate with a large degree of independence, there is, as part of the framework, the offer of assistance and services to franchisees for the benefit both of the franchisee and the franchisor. The franchisee has the benefit of the association with a well known name, and of access to an established business framework, and the franchisor inevitably benefits from a business run successfully which reflects well on its brand name. The bases of the franchisee’s case were the following.
UNDERSTANDING IMPORTANT LEGAL ASPECTS OF FRANCHISING
Tuesday, July 20, 2010
A Franchise Agreement is a sophisticated form of Licence Agreement. It is therefore necessary to first look briefly at what a license is and what can be licensed. The graph below sets out the essentials of a License Agreement. You will note that at the core, it is a contractual business relationship between a licensor and licensee. The licensor is either the proprietor or a holder of certain intellectual property rights or technology which he allows the licensee to use in return for some sort of remuneration or other advantage.
MEMORANDA ON DISCLOSURE DOCUMENT OPERATIONS MANUAL
Tuesday, July 20, 2010
Memoranda on Disclosure Document Operations Manual
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