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Maybe you don't watch BBB 22, maybe you watch it, but what few people really followed was the revision that resulted in the new Franchise Act (13,966/19).
And Tiago Abravanel's position in the game has a lot to do with the new version of the law.
Just as an actor and singer tried to bring a less confrontational stance, the new Franchise Law seeks to reduce possible friction points between franchisors and franchisees.
A specific law for the activity is a super positive feature of our legislation, which has always been appreciated for the legal security it provides, so much so that several points of the previous law have been preserved.
It turned out that she was no longer enough to curb practices that could tarnish the sector as a whole.
Network cases ill-intentioned, forcing the collection of fees with little or no compensation for franchisees or expanding within the areas of operation of other units, without respecting the economic space essential for good performance, led to the improvement of the law.
In the same way that the intense conflicts of BBB 21 and its consequent cancellations were reflected in the participants' desire for a show that was more charismatic than aggressive, the new Franchise Law reinforces the clarity of expectations between the parties and is more specific to weak points of the previous law.
If Tiago Abravanel innovated by boycotting internal intrigue, the new Franchise Law innovates by requiring more transparency on points such as:
Bullshit from the past: obligation to disclose unresolved franchise situations with its franchisees when including Franchise Offer Circular the list of those who stopped being franchised in the last 24 months.
A poorly thought out expansion could place units in places with low sales potential, leading to an eventual bankruptcy.
Each one in its square: establish rules of coexistence and competition between network units, that is, how it intends to deal with possible cannibalization.
Franchisees exposed to geographical overlap, with their own chain stores close to their own, will have reasons to abandon the contract.
The combined one is not expensive: specify all the costs involved since the opening, such as the franchise fee, the commissions during the operation of the franchise, as well as defining the rules for the termination of the contract, its validity and renewal.
Therefore, among other points, the new Franchise Law provides incentives for franchising networks to be more careful in their geographical expansion and to seek a more harmonious relationship with their franchisees.
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This is not a technical article written by lawyers and is not intended to address every point in the versions of the Franchise Law.
Texts consulted:
Recent changes in the Franchise Act - Law No. 13,966/2019
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