Distinction between subordination franchise and cooperative franchise – Corporate Law, Switzerland

Introduction

In Switzerland, the legal rules applicable to franchise agreements are not specified in the Code of Obligations. Instead, courts must determine for each particular franchise relationship whether it is based on all its economic characteristics, a partnership franchise (to which the rules on partnership contracts in Articles 530ss of the code may apply by analogy) or a subordination franchise (to which the rules for work or agency contracts in Articles 319ss or 418a ss of the code may apply by analogy in favour of the franchisee).

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