Franchise contract.
Franchisor undertook following obligations under
franchise:
franchise:
– Granted franchisee exclusive right to use Pronuptia
mark for certain area.
mark for certain area.
– Agreed not to open another shop in that area.
– Would provide know-how.
In return, franchisee:
– Paid royalties
– Agreed to buy 50% of wedding dress requirements from
franchisor.
franchisor.
ECJ held that necessary in such a system for know-how
not to fall into hands of competitor, and for trademark to be protected.
not to fall into hands of competitor, and for trademark to be protected.
Hence certain clauses justified.
