Territorial Exclusivity Clause In Franchise Agreement

Abstract

Territorial Exclusivity Clause is one of the conditions that have been included in Franchise Agreements. This clause is important for the success of the franchise activity for the Franchisee is the exclusive representative of the brand in a specific area; it enables him to guarantee the customers of the exploited - usually well known- brand, and therefore, parts him from competition, which results in achieving a high turnover. However, the Algerian Competition Law prohibits all explicit or implicit practices and agreements that aim to impede, limit, or violate the freedom of competition in the market or part of it. Exclusive practices are among the practices prohibited by Article 10 of Order 03-03, amended and supplemented. On the other hand, the legislator points out some exceptions for some agreements that can be approved by the Competition Council despite the violation of the provisions of the free competition’s rules given its benefits to the public interest. Key Words