Franchisor undertook following obligations under
– Granted franchisee exclusive right to use Pronuptia
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
ECJ held that necessary in such a system for know-how
not to fall into hands of competitor, and for trademark to be protected.
Hence certain clauses justified.