From 2025 onwards, franchisees in Belgium – particularly in the food retail sector – will benefit from enhanced legal protections. The aim is to restore a fairer balance between franchisors and franchisees, through greater transparency before signing and the prohibition of certain unfair terms.
Greater pre-contractual transparency
From 1 March 2025, the pre-contractual information document (PID) has to contain more details. New features include:
- the duration of the contract, its renewal and termination conditions;
- the financial consequences in the event of termination, including for investments made;
- an estimated operating account over several years to assess profitability;
- the typical investments expected from the franchisee;
- information on the geographical exclusivity zone and any plans to expand the network.
These measures will enable franchisees to anticipate their obligations and financial prospects more clearly before committing themselves.
Prohibited unfair terms
A Royal Decree of 20 June 2024 supplements the ‘B2B’ law and adds prohibited clauses in food franchise agreements. These include:
- requiring the franchisee to run a business that is structurally loss-making for 12 months, without allowing the franchisee to terminate the agreement with a maximum notice period of four months and without compensation;
- allowing for almost immediate termination (e.g. within 48 hours) without a comprehensive review of the situation;
- depriving the franchisee of the right to claim damages if the franchisor fails to meet its commitments;
- requiring disputes to be heard before the courts of the franchisor’s region, to the detriment of the franchisee.
Other clauses will be deemed unfair, such as rights to buy back the business at an unfavourable price or excessive advertising costs.
A step forward for franchisees
These reforms represent a major turning point for franchising in Belgium. They aim to:
- give franchisees greater visibility before committing themselves;
- limit contractual imbalances that often penalised operators;
- establish more sustainable and equitable relationships between franchisors and franchisees.
Franchisors will need to adapt their contracts and documents quickly, while franchisees would be well advised to have the new provisions analysed by a specialist lawyer.
Published by Lexena (Belgium)
