Technicals skills

Gast Avocats & Mediation > Technicals skills

Drawing up and negotiating contracts

Our office writes all distribution contacts: franchise, licensing, affiliation, master franchise…As well as their pre-contractual information documents, in French and in English, whatever the stage of creation or Network evolution is.

Since March 2014, our office proposes the electronic pre-contractual information document, the eFDD, for a better visibility from franchised prospects.

Our office also helps customers during negotiation phases (contractual and pre-litigation).

Franchise, licensing and master-franchise contracts are deemed to be complex contracts that need a complete drawing up, thus absolutely nothing must be forgotten. We have a real methodology.

Definition of our methodology:

1. We send to you a detailed questionnaire (around 30 pages).

A clearly asked question necessarily leads to the appropriate answer.

2. Further to your answers to our questionnaire, we proceed to the first draft of the drawing up of the contract.

During the drawing up of this first draft, we bring our know-how and expertise. Indeed, this first draft allows us to expose and comment clauses together. These clauses are the arborescence of 25 years of experience in drawing ups of franchise contracts in all fields.

Once this drawing up is finished, 3 full-time working days are necessary to read over in details each clause.

In a franchise contract, each of the three famous leverages of franchise must be analyzed behind each clause. These three leverages are:

  • – Financial leverage
  • – Marketing leverage
  • – Human leverage

By the end of these three days of re-reading, we are able to proceed to the drawing up of the second draft of the contract. The second draft is the product of our joint efforts.

It is like building a house, the base comes first, then comes the finishing touch.

3. Delivery of the second draft.

Two days of joint reading are needed to analyze and arbitrate clauses that remain ambiguous, and indecisive strategies. One more day will be needed to finish the job.

We apply this method to the drawing up of every “complex” contract (master franchise, master licensing, joint venture). It allows us to determinate from the start whether the concept can be franchised or not, and how.

Besides, we have already seen that franchisors that haven’t been through that methodology take considerable risks towards their future franchisee who could make them pay way more in terms of damages.

Litigation

Our office has been helping and representing its clients for years when it comes to litigation over franchise and distribution, as well as negotiation, mediation and arbitration.

The lawyers of our office handle these legal issues with methods inspired from American offices. They show great rigor combined with real legal strategy, both at the time of institution and defense.

These litigations are often said to be “heavy” issues, in which hundreds of documents are traded. The franchisor is confronted with an abundance of franchisees. Sometimes, the network of franchisors can be destabilized by competition. One or several franchisees can help them to defend themselves.

The team must be compatible with the present case and permanently show real combativeness towards the opponent, show the ability to negotiate as doors to discussion must never be closed, and show tenacity on working.

Our office developed a specific methodology: the three golden rules methodology that allows us to analyze issues very carefully to ensure the best controls and quality.

Negotiation

Our office helps the customer during contractual and prelitigation negotiation phases.

Lawyers from our office like to find amicable solutions before starting a litigation procedure.

Our office benefits from a strong expertise in several fields such as negotiation in franchise agreements, master franchise, master licensing, and joint venture. To date, the firm has helped customers in 25 different law systems, on every continent.

Our attorneys are trained for mediation and regularly appointed as Mediators.