Europe Franchising has grown rapidly in Europe in recent years, but the industry is largely unregulated. The European Union has not adopted a uniform franchise law. Only six of the 27 member states have a pre-contract disclosure law. They are France (1989), Spain (1996), Romania (1997), Italy (2004), Sweden (2004) and Belgium (2005). Estonia and Lithuania have franchise laws that impose mandatory terms on franchise agreements. In Spain there is also mandatory registration on a public registry. Although they have no franchise specific laws, Germany and those countries with a legal system based upon that of Germany, such as Austria, Greece and Portugal, probably impose the greatest regulatory burden on franchisors due to their tendency to treat franchisees as quasi consumers in certain circumstances and the willingness of the judiciary to use the concept of good faith to make pro-franchisee decisions. In the UK, the recent Papa John case shows that there is also a need for pre-contractual disclosure and the Yam Seng case shows that there is a duty of good faith in franchise relationships.
EUroPe FRanchISiNG hAS grown rapIdLy in euROpe in ReCent yearS, But The inDUstRY IS larGEly UnRegulated. THe euroPEan uNion has Not aDoPTeD A Uniform franchIsE law. onlY sIX of The 27 member stAtEs HAvE A pre-coNtrAct DisclOsurE Law. thEy are FRAncE (1989), SpAIn (1996), rOmAnia (1997), iTalY (2004), SweDeN (2004) and bElGiuM (2005). EsToniA aNd lithuaNia hAvE franchise laws ThAt imPOse mANdAtorY Terms oN frAnchise agreemeNTS. In sPAin ThERe Is alsO maNdatORy ReGIstratiOn oN A pUbLic ReGistry. AlthouGh theY hAvE No FrAnchIse SpecIfiC lawS, gErmanY ANd thoSe COUntriEs wITH A LegAl system bAseD upoN thAT oF GErManY, such as austria, greeCe anD porTUGAL, ProBablY iMPoSE tHE greatest ReGUlAtory buRdEn On franChisoRs duE to TheIr tendEncy to treat FRAncHisEes as quasi ConSumers in ceRtain circuMstaNCEs And the willINgness of thE judiCiaRy To UsE The cONcept of goOd faIth tO make PrO-FranChisee decisiONS. iN tHe Uk, thE reCEnt Papa joHn cAse SHowS ThaT there iS alsO a nEed FOR pre-conTractual DIScLOSure and the YAm seNg caSe ShoWS that thERe Is a duty of GoOD faiTh In fRanChIse RELatiONships.