The Block Exemption Regulation What is it
The Block Exemption Regulation - what is it? This is a question which is often asked. To most franchisors, it is a legal regulation with which they must comply. To most franchisees, it is probably a bit of incomprehensible jargon which they believe is tehre to confuse them. In practice, it is a regulation which has something in it for both franchisors and franchisees. The regulation is part of the Competition Law of the EU and the UK. Competition law is designed to protect the consumar against practices by businesses which have or can have the effect of preventing or restricting competition. Common practices which offend against this law are price-fixing and market sharing. The regulation sets out what the competition authorities in the EU Concession and in the UK (as well as other EU Member States) if complied with, will not infringe the Competition Laws. The European Commission has also issued guidelines to assist businesses in assessing what offends and what does not offend against the law. For example, setting a minimum price for goods and services which the franchisee can charge is anti-competitive because the re-seller cannot compete by reducing his price. On the other hand, setting a maximum price does not have the effect of preventing such competition. Although franchising includes some practices which could be anti-competitive, however the Regulation enables franchisees to operate within the law without too many problems. Make no mistake, this is a serious law and legal advice is necessary to avoid its pitfalls. Martin Mendelsohn

For further information on this subject, you can contact Martin Mendelsohn using the contact form below.

UK - Martin Mendelsohn Franchise Resources