However, the Norwegian Competition Act section 10 prohibits cooperation which may prevent, limit or diminish the competition.  The 1950s saw a boom in franchise chains in conjunction with the development of the U.S. Interstate Highway System and the growing popularity of fast food. Besides this, as there is a certain restriction due to which the franchisee lacks freedom in conducting business. The franchisee acquires franchise by paying initial startup and annual licensing fees to the franchiser, who in return provides training and assistance to the franchisee at regular intervals. Scholars in economics and management have noted how differences in the framing of contractual obligations (promotion-framed vs. prevention-framed) can foster distinct perceptions and levels of trust.  They want the consumer to experience the same quality regardless of location or franchise status. The new Code applies to conduct on or after 1 January 2015. prohibits franchisors from imposing significant capital expenditure except in limited circumstances. 2.  The franchisee's confidentiality obligations continue indefinitely after termination or expiration of the franchise agreement. Involves the chances of friction between two parties due to payments, agreement, and surprise inspections by the franchiser . That may have been one of the first times a franchisor failed, but it was by no means the last. 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. There are more than 300 franchise systems and the number of franchised outlets approaches 2000. It is very useful content for me. In finer terms, franchising is an arrangement, in which the manufacturer, permits another firm, the right to use its diverse intellectual property rights such as trademark, brand name, technical know-how, designs, etc., in addition to the proven name, goodwill and marketing strategies, for a certain sum. In recent years, the idea of franchising has been picked up by the social enterprise sector, which hopes to simplify and expedite the process of setting up new businesses.  Only six of the 28 member states have a pre-contract disclosure law. The growth in franchising accelerated in the 1930s when such chains as Howard Johnson's started to franchise motels. ). When adopting a European strategy it is important that a franchisor takes expert legal advice. The regulations also ensure their right to form associations and launch collective action, even if they signed contracts prohibiting such moves. Under the existing contract, Singer could neither withdraw rights granted to franchisees nor send in its own salaried representatives. By the end of 2012, about 2,031 franchise brands were operating in Brazil, with approximately 93,000 locations, making it one of the largest countries in the world in terms of number of units. The start-up costs and working capital must be known before the license is granted. But there are certain demerits attached to it such as there is always a fear that franchisee may open the same business with a different name, after the expiry of the said term. The conditions for renewal, assignment, termination and the scope of exclusivity. 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