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90 Tul. L. Rev. 589 (2015-2016)

handle is hein.journals/tulr90 and id is 629 raw text is: 





Franchise Savoir Faire


                        Robert W Emerson*

     Savoir faire is a fundamental concept in European l'stribution law, including franchising.
Judges rely heavily on the application and interplay of the French Commercial Code, Civil
Code, codes of deontolog, and European Union regulations.  Thus, a civil law franchise
contact requires, inter aia, transmission of savoir faire (know-how) that is secre4 substantial,
experimental, and identifiable. US franchise law has little appreciation for savoir fair, but
rather focuses on contract terms. This dfference in perspective poses enormous consequences
for international fianchisors and their franchisees. Incorporation of savoir faie into US
franchise law would benefit franchisors and franchisees alike.

I.   INTRODUCTION OF NETWORK KNow-How: A CANADIAN
     LESSON ABOUT FRANCHISORS SETTING PRIORITIES AND
     STANDARD    S .................................................................................. 590
II.  U.S. FRANCHISE LAW ................................................................... 594
     A.    Know-Howmi the United States ........................................ 594
           1.   A  Preliminary Matter: Granting or Licensing
                the Right To Use a Trademark in the United
                States .......................................................................... 594
           2.   Franchise  Fees ............................................................ 595
           3.   Community of Interest, Marketing Plan,
                Control, or Assistance ................................................ 597
           4.   Secrecy in U.S. Trade Secrets Law          ........................... 599
     B. Protection ofa Francluisor  Know-How in the
           United States, Including Website Postings About
           Franchisee Traming ............................................................ 604
      C    Temination of the US. Franchise Contract: Know-
           How and the Ex-Franchisee f' Goodwill ............................ 611
III. FRENCH FRANCHISE LAW ............................................................ 613
     A. The Required Characteristics of Know-How in
           France .................................................................................. 6 15
           1.   Substantiality in French Law ..................................... 615
           2.   Experimentation in French Law ................................ 618
           3.   Identifiability in French Law ..................................... 622
           4.   Secrecy in French Trade Secrets Law ....................... 624
     B.    Protecting Know-How in France ....................................... 624

     *   © 2016 Robert W Emerson. Huber Hurst Professor of Business Law, University
of Florida; J.D., Harvard Law School.

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