Activities of Richard SULÍK related to 2016/2244(INI)
Shadow reports (1)
REPORT on the functioning of franchising in the retail sector PDF (320 KB) DOC (66 KB)
Amendments (21)
Amendment 7 #
Motion for a resolution
Recital B
Recital B
B. whereas in its resolution of 11 December 2013, Parliament welcomed franchising as a business model which supports new business and small-business ownership, but noted the existence of unfair contract terms in certain cases and called for transparent and fair contract terms; moreover, it drew the attention of the Commission and Member States, in particular, to problems faced by franchisees wishing to sell their business or change their business formula, whilst remaining active in the same sector and requested that the Commission examine the ban on price-fixing mechanisms in franchise systems and the effects of long- term competition clauses, purchase options and the prohibition of multi-franchising, and to reconsider in this respect the current exemption from competition rules for contracting parties having a market share of less than 30 %;
Amendment 35 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Considers that for the completion of the single market in the retail sector, franchising can play an important role, provided that effective protection of both franchisors and franchisees against unfair trading practices is offered throughout the EU;
Amendment 38 #
Motion for a resolution
Paragraph 1 a (new)
Paragraph 1 a (new)
1 a. Recalls that both franchisor as well as franchisee are two entrepreneurs voluntarily involved in business activity, which is understood to be systematic activity independently carried on for the purpose of making a profit by an entrepreneur in his own name, and at his own responsibility; recalls, further, that the essential idea of franchising is a unified system of co-operation; customers of the franchise system rely upon the unity of the system and of the products and services supplied and sold by the members of the system;
Amendment 43 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Emphasises that franchisees are often the weaker contracting party, as the franchise formula has normally been developed by the franchisor, and that franchisees tend to be financially weaker and less well-informed than the franchisor and therefore heavily dependent on the expertise of the franchisorter into a contractual relationship with the franchisor on a voluntary basis;
Amendment 48 #
Motion for a resolution
Paragraph 2 a (new)
Paragraph 2 a (new)
2 a. Stresses the fact that franchise systems are heavily dependent upon the functioning co-operation of franchisor and franchisees; in many cases, even a single franchisee may damage the whole franchising system beyond repair;
Amendment 53 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. States that franchisors and franchisees have organised themselves both at national and European level for the representation of their interests, whereas often due to a lack of resources, franchisees often lack such representativand that their membership in those organiszations and are under-representedshall remain optional;
Amendment 59 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Calls on the Commission and Member States to promote the creation of associations representingencourage dialogue between franchisors, franchisees, and to make sure that their voices are heard,decision-makers whenever policies or legislation are prepared that may affect them;
Amendment 66 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Emphasises that there is a persistent lack ofnumber of national and international franchise associations that have the necessary information on the functioning of franchising in the retail sector and calls on the Commission to open a contact point f; however, this information has not been collected in a coor dinated formati on oan problems encountered by franchisees, whilst guaranteeing the confidentiality of the information thus acquiredEU-wide scale, and so far, there has been no need to do so;
Amendment 70 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Calls on the Commission to actively examine the functioning of franchising in the retail sector, and, in particular, the existence of unfair contract terms or other unfair trading practices, and to request Eurostat to devote special attention to this model when collecting statistical information on the sector, without any additional administrative or other burdens for entrepreneurs;
Amendment 78 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Takes note of the European Code of Ethics for Franchising, developed by the European Franchise Federation, but also notes that the Code has been unilaterally drawn up by franchisors and has met with fundamental criticism from franchisees pointing, inter alia, to the fact that the code preceding the 2016 revision of the Code was worded more strongly in respect of the commitments of thewhose members are national associations or federations which are, in most cases, open to both franchisors and franchisorees;
Amendment 81 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. Expresses its concern with the lack of an independent enforcement mechanism accompanying the European Code of Ethics and recalls that in some Member States this lack of independent enforcement prompted the introduction ofRecalls that in some Member States legislation preventing and addressing unfair trading practices in franchising has been introduced;
Amendment 85 #
Motion for a resolution
Paragraph 8 a (new)
Paragraph 8 a (new)
8 a. Recalls that the Code of Ethics is a set of rules accepted by franchisors in addition to legally-required rules; the Code of Ethics should always remain as added value for anyone willing to abide by these rules;
Amendment 87 #
Motion for a resolution
Paragraph 9
Paragraph 9
9. States that franchise agreements should fully respect the principles of balanceda contractual business partnership, under which the franchisor and franchisee must be reasonable and fair towards each otherhave within the law and resolve complaints, grievances and disputes primarily through frank, reasonable and direct communication, and in accordance with their written contract;
Amendment 92 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Calls on the Commission to examine complaints itMember States to submit complaints or other relevant information they receives through aexisting contact points or otherwise and to draw up a non-exhaustive list of unfair trading practices based on this informationto the Comission for further examination, which could help to draw up a non-exhaustive informative list for working purposes of unfair trading practices and to update guidelines on best practices;
Amendment 96 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Calls on the Commission to examine complaints it receives through a contact point or otherwisethe situation related to franchising within the EU and to draw up a non-exhaustive list of unfair trading practices based upon this information from franchisees, franchisors and other stakeholders;
Amendment 103 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Points, in particular, to the need for correct and comprehensive pre-contractual information, including information on the franchise formula’s performance, both general and targeted towards the franchisee’s envisaged location, to be available in writing at least 15 working days prior to nd withe signing of the agreement, and the introduction of a five-day cooling- off period after executionufficient notice prior to the signing of the agreement;
Amendment 104 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. Emphasises the need for specialised initial training and appropriate guidance by the franchisor for franchisees during the term of the agreement to the extent necessary;
Amendment 112 #
Motion for a resolution
Paragraph 14
Paragraph 14
Amendment 117 #
Motion for a resolution
Paragraph 15
Paragraph 15
15. Emphasises that non-competition clauses should be clearly formulated, reasonable and proportionate and should not apply for a longer duration than what is strictly necessary, considering, in particular, the potential need for franchisees to change their franchise formula, if their neighbourhood and therefore the demand for products or services changes;
Amendment 120 #
Motion for a resolution
Paragraph 16
Paragraph 16
Amendment 129 #
Motion for a resolution
Paragraph 17
Paragraph 17
17. Requests the Commission to draft guidelines reflecting best practices on the functioning of franchising in the retail sector; invites the Commission in this respect to make an analysis of the existing self-regulatory instruments as well as of legislative practices of Member States in the field of franchising in the retail sector and to submit its findings to Parliament, including recommendations for further action, focusing on the need for effective enforcement;