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Risks to franchisors when franchisees are in serious financial difficulties
Aramis Law Firm
  • Franchising
  • France
  • 22 July 2014

Difficult economic conditions have led to a surge of insolvency proceedings in recent years. In this context, franchisors should be aware of the extent of their potential liability if the financial difficulties of one or several franchisees are serious and may lead to insolvency. This update outlines the various risks incurred by franchisors – both to franchisees and to shareholders, creditors and third parties – in light of recent cases.

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