Are you active in the distribution sector, sales concessions, franchising,…? If so, you may be familiar – e.g. as a franchisor – with the obligation to provide a draft agreement and a pre-contractual information document (\u2018PID\u2019) to the other contracting party (e.g. the franchisee) at least one month before the conclusion of the commercial agreement.<\/p>\n
In a recent article <\/a>we already informed you that the information to be mentioned in the PID has thoroughly changed since September 1, 2024.<\/p>\n However, soon you will have to update your PID again! This is because the information you must mention in the PID will be further expanded. These new rules will come into force on March 1, 2025.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div> The PID consists of two parts. In Part 1, the \u2018person granting the right\u2019 (e.g. the franchisor) must provide information on \u2018important contractual provisions\u2019. In Part 2, \u2018data for the correct assessment of the commercial cooperation agreement\u2019 must be communicated. These data include: the outlook of the network’s market share, the number of commercial cooperation agreements concluded in the last three years, the intellectual property rights whose use is authorised,…<\/p>\n Earlier this year, Part 1 of the PID was substantially amended. These amendments came into force on September 1, 2024. You can read about what exactly was amended here. <\/a><\/p>\n However, the legislature is now announcing additions in relation to Part 2 of the PID.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div> Take into account changes to Part 2 of the pre-contractual information document (\u2018data for the correct assessment of the commercial cooperation agreement\u2019), to avoid invoking the nullity of the agreement.<\/p>\n<\/div><\/div><\/div><\/div><\/div> In Part 2 of the PID, you will soon also have to provide the following information::<\/p>\n Feel free to contact us for any further explanation of these new provisions.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div> The new obligations apply to new commercial cooperation agreements concluded from March 1, 2025, but also to amendments and renewals of current agreements as of that date.<\/p>\n<\/div><\/div><\/div><\/div><\/div> You must include the new information not only in the PID in the context of new commercial cooperation agreements<\/strong> you enter into from March 1, 2025,<\/strong> but also in the simplified PID in the context of amendments and renewals<\/strong> of current agreements from that date.<\/p>\n If the PID does not contain the new disclosure requirements, or these details are incomplete or inaccurate, the \u2018person acquiring the right\u2019 (e.g. the franchisee), can invoke the nullity of the relevant contractual provisions or of the entire agreement.<\/strong><\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div>New disclosure requirements in part 2 of the PID<\/h2><\/div>
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<\/span><\/div>Overview of the new disclosure requirements<\/h2><\/div>
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<\/span><\/div>Entry into force and sanctions<\/h2><\/div>