Franchising 2026

FRANCE Law and Practice Contributed by: François-Xavier Awatar and Lina Lahlou, Osborne Clarke

1. An Introduction to Franchising 1.1 Franchise Market Overview The French franchise market constitutes a robust and dynamic sector of the national economy. As of 2025, approximately 2,035 franchise networks were operat - ing throughout France, generating aggregate turno - ver of EUR93.71 billion and accounting for 1,018,038 direct and indirect employment positions. The French franchise market is widely regarded as one of the most mature and well developed in Europe. A significant number of French brands have estab - lished prominent franchise networks across a diverse range of sectors, notably including: • Paul, a bakery chain that has achieved substantial international expansion; • La Mie Câline, a bakery franchise with an extensive presence throughout France; • Yves Rocher, a cosmetics and beauty products brand that has developed a portion of its distribu - tion network through franchise arrangements; • Century 21, a real estate agency franchise currently operating across 82 jurisdictions worldwide; • Fitness Parc, a fitness franchise operating approxi - mately 400 facilities throughout France; • On Air, a fitness franchise operating approximately 200 facilities throughout France and expanding its network internationally; and • Accor, a global leader in the hospitality sector, which has developed an extensive international franchise network encompassing a wide portfolio of hotel brands. France also represents an attractive market for inter - national franchise systems seeking to establish opera - tions within its territory, as evidenced by the following examples: • Burger King, which has established itself as a lead - ing operator in the French fast-food sector; • Starbucks, which has developed its French opera - tions through a master franchise arrangement; • McDonald’s, which operates approximately 1,600 restaurants in France through its franchise model, rendering France its second-largest market globally after the United States;

• The Body Shop, a British brand that has success - fully established a commercial presence in France; and • Engel & Völkers, a prominent international fran - chise in the real estate sector, which has devel - oped a significant presence in the French market. 1.2 Franchise Regulation Under French law, there is no single, dedicated statute governing franchising as such. Rather, the franchise relationship is regulated by a combination of legisla - tive and regulatory instruments drawn from several distinct bodies of law. The General Law of Contract, as Set Forth in the Civil Code (Articles 1101 Et Seq, As Reformed by the Ordinance of 10 February 2016) This constitutes the primary legal framework appli - cable to franchise arrangements. In particular, the principles of good faith in contractual dealings (Arti - cle 1104) and the general pre-contractual duty of dis - closure (Article 1112-1) are of direct relevance. In the absence of franchise-specific provisions, the terms of the franchise agreement itself govern the majority of the rights and obligations arising between the parties. Mandatory Pre-Contractual Disclosure Requirements Pursuant to the Doubin Act (Law No 89-1008 of 31 December 1989) These requirements are codified at Article L. 330-1 of the Commercial Code, which imposes an obliga - tion to provide pre-contractual information upon any person making available a trade mark, trade name or sign subject to an exclusivity or quasi-exclusivity arrangement. The detailed content of the pre-contractual informa - tion document is prescribed by Implementing Decree No 91-337 of 4 April 1991, codified at Article R. 330-1 of the Commercial Code. Additional Legislative Provisions Applicable to Franchising Further provisions of the Commercial Code address related matters, including exclusive supply arrange - ments (Article L. 330-4), post-contractual restrictions applicable to retail distribution networks introduced

12 FRANCHISING 2026

C HAMBERS.COM