Protecting future franchisees: the pre-contract information document

If you want to build your own franchise, and especially a franchise in real estate, you already know that a good franchisor is a key factor for your project to be successful. But to be able to come to an informed decision, you must of course have a certain amount of vital information. This is why your franchisor is required to provide you with the pre-contract information document or the P.I.D.

The P.I.D

This document contains all the essential information for your project, such as the address of the head office, the amount of money to be invested in the franchise, the annual accounts, the duration of the contract and much more. To receive it, you simply need to get in touch with the franchisor. Given the importance of this document, you should know that the franchisor is legally required to provide it to you at least twenty (20) days before the signing of the contract.

The Ruelle Law

Whatever happens, the franchisee is protected by this law, which is called the Ruelle Law in Belgium and the Doubin Law in France, since it goes beyond the case of the franchise. It covers any type of new member to a network, providing them the opportunity to operate using their brand and in return requests a certain number of exclusive or quasi-exclusive conditions concerning the activity of the member. So whether you are a franchisee, dealer, co-operator or affiliate, you are always entitled to receive a pre-contract information document. In Belgium, it is therefore impossible to circumvent the law, even if the franchisor is a foreigner or if they say it is to establish the partnership, the concession, the license or any other form of contract.

In conclusion

If you are interested in the franchise system, or any form of partnership similar to this one, you are legally covered in Belgium. So, all you need to do is carry out some research on potential franchisors and ask for the P.I.D. Now that you’re well informed, use all this information wisely and throw yourself into this large company without fear.