Over the past two months, the EFF has been working closely with a group of leading franchise lawyers to assess and respond to the European Commission’s draft Vertical Block Exemption Regulation (VBER) and Guidelines.

The VBER will apply from June 2022, and sets the legal framework for franchising across the EU. The EFF has serious concerns about the impact of a new set of rules on dual distribution on our sector. Dual distribution is when a supplier sells directly to the customer as well through retailers.

As written, franchise concepts could be obligated to carry out an expensive and complicated market share analysis to determine if they are caught by restrictions on sharing information within a distribution network. Does this mean that franchisors and franchisees cannot share simple information about daily operations?

We are fighting this interpretation, as we believe it is not aimed at franchising, and could seriously disrupt our business model.EFF Response to VBER Public Consultation Sep 2021