{"id":152972,"date":"2026-10-23T12:26:40","date_gmt":"2026-10-23T12:26:40","guid":{"rendered":"https:\/\/www.legal500.com\/guides\/?post_type=comparative_guide&#038;p=152972"},"modified":"2026-10-28T10:56:00","modified_gmt":"2026-10-28T10:56:00","slug":"senegal-franchise-licensing","status":"publish","type":"comparative_guide","link":"https:\/\/www.legal500.com\/guides\/chapter\/senegal-franchise-licensing\/","title":{"rendered":"Senegal: Franchise &amp; Licensing"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-152972","comparative_guide","type-comparative_guide","status-publish","hentry","guides-franchise-licensing","jurisdictions-senegal"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">SCP Legalix Avocats \u2013 Dentons<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/www.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/10\/logo-Legalix_page-0001-1.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">SCP Legalix Avocats \u2013 Dentons<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/www.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/10\/logo-Legalix_page-0001-1.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Franchise &amp; Licensing laws and regulations applicable in Senegal<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a legal definition of a franchise and, if so, what is it?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Neither Senegalese law nor the law of the Organization for the Harmonization of Business Law in Africa (OHADA) defines franchising. Franchise operations fall under the general law of the Code of Civil and Commercial Obligations (COCC, art. 2 and 40) and intellectual property law.<\/p>\n<p>The reference definition is that of the European Code of Ethics for Franchising: \u201ca system for marketing products and\/or services and\/or technologies, based on close and continuous collaboration between legally and financially separate and independent businesses, the franchisor and its franchisees, in which the franchisor grants its franchisees the right, and imposes the obligation, to operate a business in accordance with the franchisor&#8217;s concept. The right thus granted authorizes and obliges the franchisee, in exchange for a direct or indirect financial contribution, to use the brand and\/or trademark\u2026 supported by the ongoing provision of commercial and\/or technical assistance, within the framework and for the duration of a written franchise agreement concluded between the parties for this purpose.\u201d<\/p>\n<p>This code has no normative value in Senegal but the OHADA doctrine retains a similar definition: the contract by which the franchisor grants to the franchisee, in return for a royalty, the right to exploit its brand or its commercial formula, with regular assistance (Encyclopedia of OHADA law, V\u00b0 Subsidiary, branch, group of companies, p. 802-803, n\u00b0 32, J. Gatsi).<\/p>\n<p>The concept is based on three elements:<\/p>\n<ul>\n<li>customer rallying signs (brand, sign);<\/li>\n<li>the know-how, combined with technical, commercial and financial assistance throughout the duration of the contract;<\/li>\n<li>a range of products, services or technologies.<\/li>\n<\/ul>\n<p>Franchising can be for production, distribution, services, or industry. In industrial franchising, common for consumer goods, the franchisee manufactures and sells under the franchisor&#8217;s brand according to a set of specifications, which embodies the know-how.<\/p>\n<p>Within the African Intellectual Property Organization (OAPI) area, franchising is not regulated as such. Only the licensing of the industrial property rights it encompasses is governed by the revised Bangui Agreement and must be registered in the special register to be enforceable against third parties: patent (Annex I, Art. 39), utility model (Annex II, Art. 34), trademark (Annex III, Art. 32), and industrial design (Annex IV, Art. 26). The transfer of know-how and support are governed by general contract law. In practice, franchise agreements are often titled &#8220;license agreements&#8221;; this title does not alter their classification: as long as the contract transfers know-how and provides for ongoing support, it is a franchise.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any structuring considerations for foreign franchisors (e.g. use of master franchisees, local presence requirements)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No local presence or master franchisee is required. Direct franchising, regional master franchising, and subsidiaries are all possible.<\/p>\n<p>Four points guide the choice:<\/p>\n<ul>\n<li>A filing with OAPI, either directly or by designation of OAPI in an international registration according to the Madrid system, protects the trademark in its 17 member states.<\/li>\n<li>The master franchisee can only sublicense the brand if the contract expressly provides for it (Annex III of the Bangui Agreement, art. 33.3).<\/li>\n<li><strong>Taxation and foreign exchange.<\/strong>In direct franchising, royalties are subject to withholding tax and are processed through an approved bank.<\/li>\n<li><strong>Lease management.<\/strong>The franchisor who owns a point of sale may entrust it to the franchisee under a lease-management agreement (Uniform Act on General Commercial Law, AUDCG, art. 138). The franchisor must have operated the outlet for two years, publish the contract in a legal notices journal within fifteen days, and remain jointly liable for the manager&#8217;s debts until this publication (arts. 139, 141 and 145).<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any requirements that must be met prior to the offer and\/or sale of a franchise? If so, please describe and include any potential consequences for failing to comply.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The law does not subject the franchise offer to any prior approval, registration or experience.<\/p>\n<p>Two precautions are necessary in practice when dealing with a trademark. It must be registered with the OAPI, as ownership belongs to the first applicant (Annex III, Art. 4). Only the holder of exclusive rights arising from the registration can take action for infringement.<\/p>\n<p>A franchisee licensed to a trademark does not have their own right to take legal action for trademark infringement. Unlike a licensee of a patent or design (Appendix I, Art. 63; Appendix IV, Art. 42), Appendix III only grants them the right to seize counterfeit goods if they hold an exclusive right of use (Art. 51). The contract must therefore address trademark protection: informing the franchisor, authorizing them to act, and covering the costs. If a local partner files the trademark before the franchisor, the latter can claim ownership before the African Intellectual Property Organization (OAPI) within three months of publication (Art. 16), and then before a judge (Art. 47). The owner of a well-known trademark can also request its cancellation; this action is subject to a five-year statute of limitations if the filing was made in good faith (Art. 5).<\/p>\n<p>Exclusive supply or distribution clauses must be approved by the administrative authority, otherwise they are void (Art. 275 COCC, Art. 2 Decree No. 70-1335 of December 7, 1970, regulating exclusive sales or purchase contracts). This condition of contractual validity is in addition to, but does not replace, the control of agreements by the West African Economic and Monetary Union (WAEMU).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any registration requirements for franchisors and\/or franchisees? If so, please describe them and include any potential consequences for failing to comply. Is there an obligation to update existing registrations?  If so, please describe.  Are there any practical or timing implications (e.g. typical registration timelines, delays in practice)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The trademark license must, under penalty of invalidity, be in writing and signed (Annex III, art. 30.2 and 32.3). It is only enforceable against third parties after its registration in the OAPI special register and its publication (art. 31 and 32.4).Any modification, as well as expiry or termination, must be recorded.<\/p>\n<p>The same rules apply to patent, utility model, or industrial design licenses: a written and signed contract, a term limited to that of the patent, and enforceability against third parties subject to registration in the OAPI special register and its publication (Annex I, Art. 39; Annex II, Art. 34; Annex IV, Art. 26). For all these titles, the deed granting the right of exploitation must be in writing or it will be void (Annex I, art. 36.2; Annex II, art. 31.2; Annex III, art. 30.2; Annex IV, art. 24.2).<\/p>\n<p>The contracts stipulate that one or the other party must complete the registration. Registration must begin immediately upon signing in order for the license to be enforceable before the opening of the operating outlet.<\/p>\n<p>The contract is also subject to tax registration within one month, at a rate of 2% for intellectual property rights grants (French General Tax Code, CGI, Articles 464 and 472). The franchisee must be registered with the Trade and Personal Property Credit Register (RCCM) and declare its processing of personal data, including its customer files, to the Commission for Personal Data (CDP), from which it must obtain the receipt before their implementation (law no. 2008-12, art. 18).<\/p>\n<p>Registrations must be kept up to date. Any modification to the license (scope, duration, assignment), as well as its expiry or termination, must be recorded with OAPI. The duration of the license cannot exceed that of the trademark registration, which must be renewed every ten years (Annex III, Articles 22 and 32).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any disclosure requirements (franchise specific or in general)? If so, please describe them (i.e. when and how must disclosure be made (is there a minimum disclosure period before signing or payment (e.g. cooling-off period)), is there a prescribed format, must it be in the local language, do they apply to sales to sub-franchisees) and include any potential consequences for failing to comply.   Is there an obligation to update and\/or repeat disclosure (for example in the event that the parties enter into an amendment to the franchise agreement or on renewal)? What are the consequences of late or incomplete disclosure?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No text imposes pre-contractual information specific to the franchise: no document, no deadline, no format, no language, no update during the contract or upon renewal, including for sub-franchise.<\/p>\n<p>General law penalizes fraud, including the omission of a decisive element (Articles 61 and 63 of the Commercial Code). A deceived franchisee can obtain annulment and damages within two years of discovering the fraud (Article 87 of the Commercial Code).<\/p>\n<p>The practice, inspired by countries that regulate franchising such as France (art. L.330-3 of the Commercial Code), consists of providing candidates, within a reasonable time before signing, with an information document presenting the company and its history, the products or services, the franchise model, the market of the target country, the financial conditions, the intellectual property rights, the conditions of renewal and termination, as well as the obligations of the parties.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If the franchisee intends to use a special purpose vehicle (SPV) to operate each franchised outlet, is it sufficient to make disclosure to the SPVs' parent company or must disclosure be made to each individual SPV franchisee?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The issue is one of proof, as there is no legal obligation to provide it. Each signatory SPV is a separate contracting party who can invoke fraud.<\/p>\n<p>Each SPV must therefore provide written confirmation of having received the information provided to the parent company. Furthermore, each license must be registered with OAPI.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What actions can a franchisee take in the event of mis-selling by the franchisor?  What are the main legal grounds for such claims (e.g. misrepresentation, statutory disclosure breaches, unfair commercial practices)?  To what extent can liability be excluded or limited by non-reliance or entire agreement clauses or disclaimers in the franchise agreement, disclosure document or sales material?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The franchisee has recourse under common law: nullity for fraud or error has (Articles 61 to 63 of the COCC) liability for breach of contract (art. 118), and termination for serious misconduct (Articles 105 of the Swiss Code of Obligations and Contracts). The provisions concerning unfair terms under Law No. 2021-25 do not protect the franchisee, as they only apply to consumers and non-professionals (Article 15).<\/p>\n<p>Limitation clauses are valid if they do not completely eliminate liability (Art. 151 COCC). They never cover fraud or gross negligence (Art. 152). The entirety clause, which limits the contract to its written stipulations and excludes prior documents and declarations, is not governed by any specific legislation. It is valid under the principle of freedom of contract (Art. 42 of the Swiss Code of Obligations and Contracts), but cannot prevent the franchisee from invoking fraud, nor can it exonerate the franchisor from the consequences of its fraud or gross negligence.<\/p>\n<p>The non-reliance clause is not regulated.,but does not prevent either the cancellation of the contract for fraud, or the action for liability against the franchisor (art. 118 COCC), the rules of which are a matter of public policy and cannot be set aside by a clause.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Would it be legal to issue a franchise agreement on a non-negotiable, \"take it or leave it\", basis?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The adhesion contract is lawful. The parties are free to adopt any clause that complies with public policy and morality (Art. 42 COCC). In the absence of specific legislation, the contract is the law of the parties: the franchisor can duplicate its standard clauses throughout the network, adapting them to the country and sector.<\/p>\n<p>However, the judge has remedies at his disposal. General terms and conditions not brought to the attention of the other contracting party are unenforceable against him (CA Dakar, 20 Feb. 2003, Ohadata J-03-150).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are trademarks, know-how, trade secrets and copyright protected in your country?  Are there any specific requirements or risks relating to the licensing of know-how and trade secrets in a franchise context?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The trademark is protected by a single registration with the OAPI, valid for ten years and renewable (Annex III, Art. 22). Use by the franchisee under the proprietor&#8217;s control avoids forfeiture for non-use (Art. 27). The proprietor may take action for infringement and obtain interim relief (Arts. 49 and 50). Two rules are of direct interest to the franchisor. The exhaustion of rights is international: the franchisor cannot oppose the resale, within the OAPI area, of genuine products lawfully sold under the trademark, even in a third country, provided they have not undergone any changes (Art. 7.2). Once the license is registered, the franchisor cannot relinquish the trademark without the franchisee&#8217;s consent, unless the franchisee expressly waives it in the contract (Art. 26.3).<\/p>\n<p>Each granted title (patent, utility model, trademark, design or model) benefits from the same legal actions.<\/p>\n<p>Know-how, however, is not protected by any title of ownership. It is based on contract and on actions for unfair competition for disclosure of confidential information (Annex VIII, art. 6).Information is confidential only if its holder has taken reasonable steps to keep it secret (Art. 6.3 c): the manual, confidentiality clauses and restricted access described below are the very condition of this protection.<\/p>\n<p>The know-how must be recorded in a manual and confidentiality imposed on the franchisee&#8217;s staff. The franchisor may control the quality of the products, in particular restrictions relating to the quality of products or services are not void clauses (Annex III, art. 33.2 a).<\/p>\n<p>The operating manuals, graphic charters, and network software (the works) are protected by copyright from the moment of their creation, without any formality (Law No. 2008-09, Articles 2 and 6; Appendix VII, Article 3). Their license to the franchisee benefits from being written down and specified each right granted, its scope, purpose, territory, and duration, modeled on the rules that protect the author (Law No. 2008-09, Articles 62 and 63).<\/p>\n<p>The franchisor must first hold these rights. Those of its employees are presumed to be assigned to it to the extent of their usual activities, in exchange for compensation separate from their salary (Art. 18). The agency or external developer, however, retains its rights unless a written assignment defines each right transferred (Art. 21, 62, and 63). Finally, the concept and methods of the network are not protected as such by copyright (Art. 10): only their expression, for example, the writing of the manual, is protected.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any franchise specific laws governing the ongoing relationship between franchisor and franchisee? If so, please describe them, including any terms that are required to be included within the franchise agreement.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In the absence of specific regulations, the relationship between franchisor and franchisee falls under common law: COCC, AUDCG for sales between traders, Bangui Agreement, Law No. 2021-25 of April 12, 2021 on prices and consumer protection and UEMOA competition law.<\/p>\n<p>No clause is mandatory. However, the trademark license and penalty clause must be in writing (Appendix III, Art. 32; Art. 153 COCC). In practice, the contract specifies the terms relating to know-how, territorial scope, duration, royalties, controls, assignment, termination, and exit.<\/p>\n<p>The Annexes to the Bangui Agreement, however, prohibit certain clauses, in identical terms for each title (Annex I, art. 40; Annex II, art. 35; Annex III, art. 33; Annex IV, art. 27):<\/p>\n<ul>\n<li><strong>Invalid clauses:<\/strong>Clauses in license agreements or those agreed upon in connection with such agreements that constitute anti-competitive practices and, generally, clauses imposing industrial or commercial limitations on the licensee that do not result from the rights conferred by registration or are not necessary for the maintenance of those rights are null and void. For patents, the text refers to the rights conferred &#8220;by the patent.&#8221;<\/li>\n<li><strong>Assignment and sublicensing:<\/strong>Unless otherwise stipulated, the license is non-transferable and does not permit sublicensing. This rule is not included in Appendix IV.<\/li>\n<li><strong>Observation:<\/strong>The invalidity of these clauses shall be determined by the competent national court, at the request of any interested party (Annex I, art. 41; Annex II, art. 36; Annex III, art. 34; Annex IV, art. 27.2).<\/li>\n<\/ul>\n<p>Certain sectors impose their own constraints. Regulated professions are subject to authorization. Similarly, the distribution of hydrocarbons requires a ministerial license (Law No. 98-31 of April 14, 1998, Art. 14). Price ceilings and distribution margins are set by the government (Art. 19 and 20), which deprives the franchisor of any pricing policy on these products.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any aspects of competition law that apply to the franchise transaction (i.e. is it permissible to prohibit online sales or use of online marketplaces (e.g. Amazon, third-party platforms), insist on exclusive supply, fix or set maximum retail prices, operate dual distribution\/hybrid franchisor models)? If applicable, provide an overview of the relevant competition laws.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Regulation No. 02\/2002\/CM\/UEMOA prohibits agreements and abuses of dominant position (Articles 3 and 4). The UEMOA Court of Justice recognizes the Union&#8217;s exclusive jurisdiction in this matter (Opinion No. 003\/2000 of June 27, 2000). The UEMOA Commission may exempt agreements that improve distribution (Article 7).<\/p>\n<p>At the national level, Law No. 2021-25 prohibits imposed minimum prices, discriminatory practices and refusal to sell (Art. 68, 74 and 75).<\/p>\n<p>Exclusive supply requires the approval stipulated in Article 275 of the COCC. No provision addresses online sales or marketplaces, but the territorial exclusivity granted to the franchisee is lawful.<\/p>\n<p>In the absence of UEMOA case law, European case law offers useful insight: franchising is not in itself restrictive of competition, the clauses necessary to protect the know-how and identity of the network being lawful (ECJ, 28 Jan. 1986, Pronuptia, case 161\/84).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any ESG, compliance or supply chain-related legal requirements impacting franchise systems?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No ESG due diligence or reporting obligations specifically target franchise networks.<\/p>\n<p>The franchisee remains subject, like any operator, to social law, environmental law, legislation on the fight against money laundering, the financing of terrorism and the proliferation of weapons of mass destruction, resulting from the uniform law of the UMOA, and to the anti-corruption system entrusted to the National Office for the Fight against Fraud and Corruption (law no. 2012-30 of December 28, 2012 establishing OFNAC, as amended).<\/p>\n<p>Large networks impose their codes of conduct, anti-corruption compliance clauses, and traceability requirements. These clauses are valid if they serve the network&#8217;s image and quality.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are in-term non-compete and non-solicitation clauses enforceable and are there any limitations on the franchisor's ability to impose and enforce them?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A non-compete clause during the term of the contract is valid as consideration for the transfer of know-how. No legislation sets limits on this clause for the franchisee.<\/p>\n<p>Contracts often extend this to any competing product, without limit. Such a clause is liable to be invalidated if it exceeds what is required for the protection of the trademark and know-how (Annex III, Art. 33 and Regulation No. 02\/2002, Art. 3).<\/p>\n<p>Non-solicitation clauses, which prohibit franchisees from poaching staff from the franchisor or other franchisees, or from diverting customers from the network, are not specifically defined by law. They are valid if they are limited and proportionate to the network&#8217;s interests. Their enforcement is achieved through penalty clauses or contractual liability.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there an obligation (express or implied) to deal in good faith in franchise relationships?  If so, what practical effects does this have on the relationship between franchisor and franchisee?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The contract obliges the parties to all the consequences that good faith and equity would give to the obligation (Art. 103 COCC). Abuse of rights is a fault (Art. 122). For sales between merchants, good faith cannot be excluded (AUDCG, Art. 237).<\/p>\n<p>Good faith is of particular importance in franchising, which is based on close and continuous collaboration between independent partners. This translates into reciprocal obligations:<\/p>\n<ul>\n<li><u>for the franchisor<\/u>: to transmit and update know-how, to effectively assist the franchisee, to loyally exercise its unilateral powers (supply price, modification of standards, approval of a transferee, termination);<\/li>\n<li><u>for the franchisee<\/u>: respect the concept and image of the network, inform the franchisor and protect the confidentiality of the know-how;<\/li>\n<li><u>for both<\/u>: to inform each other of any difficulties affecting the execution of the contract.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any employment or labour law considerations that are relevant to the franchise relationship? Is there a risk that the staff of the franchisee could be deemed to be the employees of the franchisor? What level of operational control may a franchisor exercise without creating employment or agency risk?  What steps can be taken to mitigate this risk?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>An employment contract is characterized by the performance of work under the direction and authority of another (Labor Code, art. L.2). The franchisor risks being considered an employer if they recruit, manage, or discipline the franchisee&#8217;s staff.<\/p>\n<p>It can impose performance standards, but not manage the teams. The risk is reduced by operating as a company, HR recommendations, and asserting the franchisee&#8217;s independence. In the event of a takeover of a point of sale, the employment contracts are transferred to the new owner (art. L.66).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a risk that a franchisee could be deemed to be the commercial agent of the franchisor? What steps can be taken to mitigate this risk?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A commercial agent negotiates in the name and on behalf of another (AUDCG, art. 216). A franchisee, who buys and resells for their own account, is generally not subject to this classification.<\/p>\n<p>The risk arises from a sale made on behalf of the franchisor in exchange for a commission. Reclassification of this arrangement would entitle the agent to compensation for termination of the contract (Art. 229), which OHADA case law grants provided the agent has not committed serious misconduct (Court of Appeal, Centre Region, Cameroon, No. 04\/civ, January 6, 2010). The franchisee must act in their own name, at their own risk, and without the power to bind the franchisor.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any laws and regulations that affect the nature and payment of royalties to a foreign franchisor and\/or how much interest can be charged? Are there any requirements for payments in connection with the franchise agreement to be made in the local currency?  Are there any restrictions on structuring payments (e.g. royalties vs service fees vs mark-ups)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The amount of royalties is unrestricted (Law No. 2021-25, Art. 4). Contracts stipulate a percentage of turnover or, in industrial franchises, a fixed annual royalty excluding taxes.<\/p>\n<p>The transfer of royalties to a foreign franchisor falls under Regulation No. 06\/2024\/CM\/UEMOA relating to the external financial relations of the member states of the UEMOA, replacing Regulation No. 09\/2010.<\/p>\n<p>Royalties are routine transactions, freely transferred by an authorized bank upon presentation of supporting documents (Regulation No. 06\/2024, Articles 2, 4, and 9). The Central Bank of West African States (BCEAO) sets the list of required documents.<\/p>\n<p>Between residents, payment is made in CFA francs. With regard to a foreign franchisor, the contract may be denominated in foreign currency: the franchisee pays in CFA francs and his approved bank handles the conversion and transfer (Regulation No. 06\/2024, Art. 7).<\/p>\n<p>Contractual late payment interest is freely determined, up to the limit of the usury rate set by the Council of Ministers of the West African Economic and Monetary Union (Law No. 2021-19 of January 21, 2021, defining and penalizing usury). In the absence of a specific stipulation, default interest is calculated at the legal rate, set annually by order of the Minister of Finance based on the rates of the Central Bank of West African States (BCEAO).<\/p>\n<p>From a tax perspective, interest paid to a related company is deductible only at the BCEAO rate plus three percentage points (CGI, art. 9). Reclassifying a royalty as a service charge does not reduce the withholding tax, which also applies to services (CGI, art. 202).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to impose contractual penalties on franchisees for breaches of restrictive covenants etc.? If so, what requirements must be met in order for such penalties to be enforceable?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The written penalty clause is valid (art. 153 COCC). It is binding on the parties and the judge, who can only reduce it in proportion to partial performance (art. 154).<\/p>\n<p>The creditor must formally demand payment from the debtor and prove non-performance, without having to demonstrate harm. The clause is invalidated if it limits the liability of a debtor guilty of fraud or gross negligence (Art. 155).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What tax considerations are relevant to franchisors and franchisees? Are franchise royalties subject to withholding tax?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Royalties and service fees paid to a franchisor not established in Senegal are subject to a 25% withholding tax on the net amount of taxable income. This net amount is determined after a 20% deduction on gross receipts (CGI, art. 156.2 and 202). Tax treaties may reduce this rate.<\/p>\n<p>The 18% VAT is payable on services used in Senegal, through a tax representative or, failing that, by the franchisee (CGI, art. 355, 357 and 369). Contracts often stipulate that all taxes are the responsibility of the franchisee.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is e-commerce regulated and does this have any specific implications on the relationship between franchisor and franchisee?  For example, can franchisees be prohibited or restricted in any way from using e-commerce in their franchise businesses?  Are there any rules regarding online sales within or outside a franchisee\u2019s territory?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Law No. 2008-08 of January 25, 2008, on electronic transactions establishes the freedom of e-commerce and mandates customer information, identifiable advertising, and prior consent for marketing (Articles 9, 10, 13, and 16). Law No. 2021-25 governs distance selling to consumers (Articles 21 to 24).<\/p>\n<p>The franchisor can regulate online presence to protect the brand image. Prohibiting all online sales or responding to customers outside the territory would expose them to a charge of collusion.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the applicable data protection laws and do they have any specific implications for the franchisor\/franchisee relationship?   In particular, what are the key data protection considerations in a franchise relationship, including: (a) allocation of controller\/processor roles; (b) use of customer databases; (c) cross-border data transfers; and (d) marketing and CRM activities?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Law No. 2008-12 of January 25, 2008 on personal data and its implementing decree no. 2008-721 of June 30, 2008 are implemented by the Commission for Personal Data (CDP), an independent administrative authority (art. 5).<\/p>\n<p><strong>(a) Roles:<\/strong>The franchisee is generally responsible for their customer data, while the franchisor is responsible for the network&#8217;s shared tools. Any subcontracting requires a written contract (Art. 39). When the franchisor determines the purposes of a data processing operation common to the network (loyalty program, centralized CRM), both parties may be jointly responsible (Art. 4.15). The subcontracting agreement specifies the subcontractor&#8217;s security and confidentiality obligations, which require the subcontractor to act only on the instructions of the responsible party (Art. 39, 70, and 71).<\/p>\n<p><strong>(b) Customer databases:<\/strong>The processing must be declared to the CDP before implementation and be based on consent or a contract (art. 18 and 33). The data controller informs customers, at the latest at the time of collection, of the purpose, the recipients, the retention period, and any planned transfers abroad (Art. 58). The data is only kept for as long as necessary for this purpose (Art. 35).The processing of biometric data, for example for staff timekeeping or access control, is subject to prior authorization by the CDP (art. 20).<\/p>\n<p><strong>(c) Transfers:<\/strong>They are only free to travel to a country ensuring sufficient protection, after notification of the CDP (art. 49). Otherwise, a derogation or authorization from the CDP is required (arts. 50 and 51). Article 50, however, only covers one-off and not massive transfers: regular transfers of customer data to a franchisor established in a country not offering sufficient protection therefore fall under the authorization of the CDP (art. 51).<\/p>\n<p><strong>(d) Marketing:<\/strong>Direct marketing requires the prior consent of individuals (art. 47). Furthermore, individuals must be informed before their data is first disclosed to third parties or used on behalf of third parties for marketing purposes, and must be able to object to this free of charge (Art. 68, para. 2). Failure to comply exposes the data controller to a warning, a formal notice, and then a fine of 1 to 100 million FCFA (Art. 29 and 30). In addition, the following constitute offenses: processing without prior formalities, even through negligence, lack of security, unfair collection, marketing despite objection, excessive retention, or misuse of data are punishable by imprisonment of one to seven years and a fine of 500,000 to 10,000,000 FCFA, or one of these penalties (Penal Code, Art. 431-17, 431-21 to 431-23, 431-27, and 431-29). The fine incurred by a legal entity can reach five times (art. 431-62).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the franchisor permitted to restrict the transfer of (a) the franchisee's rights and obligations under the franchise agreement or (b) the ownership interests in the franchisee?  Can the franchisor impose conditions on transfers (e.g. approval rights, fees, qualification criteria)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>(a)<\/strong>The franchisor may prohibit any assignment of rights and obligations under the contract without its prior consent due to its personal nature. Furthermore, the trademark license is non-transferable unless otherwise stipulated (Appendix III, Art. 33.3).<\/p>\n<p><strong>(b)<\/strong>Since the franchisor is not a party to the transfer of shares, it cannot directly oppose it. The contract therefore makes any change of control subject to its express agreement, failing which it may terminate the agreement. Approval, fees, and qualification criteria are valid, subject to the prohibition of abuse of rights (Art. 122 of the Swiss Commercial Code).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent can a franchisor impose audit rights, reporting obligations, and operational controls on a franchisee, and what legal limits apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The collaborative nature of franchising justifies the franchisor&#8217;s right to oversight. The contract may freely stipulate reporting, access to point-of-sale systems, visits, and audits.<\/p>\n<p>These controls must remain proportionate. They must not deprive the franchisee of their independence, nor be used to impose minimum prices, nor disregard data protection. The franchisor&#8217;s access to the franchisee&#8217;s cash register systems or customer file constitutes a communication of data to a recipient: it must be based on a legal basis (law no. 2008-12, art. 33), be included in the declaration to the CDP (art. 22) and be brought to the attention of customers (art. 58).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does a franchisee have a right to request a renewal on expiration of the initial term? In what circumstances can a franchisor refuse to renew a franchise agreement? If the franchise agreement is not renewed or it if it terminates or expires, is the franchisee entitled to compensation? If so, under what circumstances and how is the compensation payment calculated?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The franchisee has no right to renewal: the contract expires at its term (Art. 96 COCC). In practice, many contracts exclude tacit renewal and make renewal conditional upon a new written agreement.<\/p>\n<p>Refusal to renew is at the company&#8217;s discretion. No termination compensation is due, unless the contract is reclassified as a commercial agency.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any mandatory termination rights which may override any contractual termination rights? Is there a minimum notice period that the parties must adhere to?  Are there any requirements regarding notice periods and opportunities to remedy breaches before termination?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The law does not impose any specific right of termination for franchises, nor any minimum notice period. The parties may stipulate a termination clause (Art. 106 COCC); failing that, judicial termination is available in the event of serious breach (Art. 105).<\/p>\n<p>Franchise contracts are often asymmetrical: termination without notice for broad reasons, such as:<\/p>\n<ul>\n<li>Violation of the terms of the contract.<\/li>\n<li>A change of control<\/li>\n<li>The loss of confidence of the franchisor towards the franchisee due to actions that damage the reputation or image of the brand<\/li>\n<li>The suspension of the franchisee&#8217;s activities over a long period.<\/li>\n<li>The franchisee&#8217;s failure to fulfill commitments regarding payment terms or conditions.<\/li>\n<li>The dissolution of the franchised entity.<\/li>\n<\/ul>\n<p>These clauses are valid, but their implementation remains subject to abuse control (art. 122).<\/p>\n<p>Prior formal notice is required only for the penalty clause (art. 154), but it is recommended before any termination.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any intangible assets in the franchisee's business which the franchisee can claim ownership of on expiry or termination, e.g. customer data, local goodwill, etc.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A business presupposes a customer base and a brand or trade name (AUDCG, art. 135 and 136). The brand belongs to the franchisor, but the franchisee operates under their own trade name.<\/p>\n<p>The OHADA doctrine (Encyclopedia of OHADA Law, V\u00b0 Goodwill), based on French case law, recognizes the franchisee&#8217;s ownership of his business if he proves a clientele of his own, attached to his location or his activity rather than to the brand (CA Paris, 6 Feb. 1996; Cass. fr., 27 Mar. 2002).<\/p>\n<p>The franchisor retains its brand and know-how. The franchisee retains its tangible assets. The handling of customer data is governed by the contract, in compliance with law no. 2008-12: their delivery to the franchisor or to a new franchisee is a communication to a third party, which requires a legal basis, the information of customers and, in the case of prospecting, their right to object (art. 33, 59 and 68).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What post-termination obligations are typically enforceable (e.g. de-branding, return of confidential information, non-compete, non-solicitation) and how readily are such post-term restrictions enforced in practice?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The contracts stipulate the cessation of trademark use, the return of confidential documents, and a post-contractual non-compete clause. These clauses are sometimes missing, particularly in franchises drafted as simple licenses, which deprives the franchisor of contractual protection upon termination.<\/p>\n<p>Use of the trademark after the termination of the contract constitutes infringement, which the trademark holder can have stopped by legal action (Appendix III, Articles 49 and 50). Post-contractual non-competition and non-solicitation clauses are permitted if they are limited in time, scope, and activity. The trademark holder may have a seizure order issued by the presiding judge of the court, and then bring a substantive action within ten working days (Annex III, Articles 51 and 52). Unlawful use of the trademark is punishable by three months to two years imprisonment and a fine of 5 to 30 million CFA francs (Article 57). The use of a similar registered trade name for the same activity is also unlawful if it creates confusion (Annex V, Article 5).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a national franchising association? Is membership required?  If not, is membership commercially advisable? What are the additional obligations of the national franchising association?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Two organizations represent the sector, and membership in either one is optional.<\/p>\n<ul>\n<li>The Senegalese Franchise Association (ASF) brings together franchisors, master franchisees, project developers, and international networks seeking to establish themselves in West Africa. It organizes the Franchise Expo Dakar. According to its estimates, reported in the press in June 2026, the market comprises approximately 420 franchisors and 1,540 franchised outlets.<\/li>\n<li>The Senegalese Franchise Federation (FSF), a member of the National Council of Employers (CNP), assists entrepreneurs in choosing a franchise brand and financing their projects. It has signed a technical assistance agreement with the French Franchise Federation.<\/li>\n<\/ul>\n<p>Membership offers visibility, networking opportunities with candidates, and access to funders. Membership does not entail any legal obligations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are foreign franchisors treated differently to domestic franchisors? Does national law\/regulation impose any debt\/equity restrictions?  Are there any restrictions on the capital structure of a company incorporated in your country with a foreign parent (thin capitalisation rules)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The new Investment Code (law no. 2025-16 of September 27, 2025) guarantees equal treatment between national and foreign investors, except for strategic sectors.<\/p>\n<p>Only tax law regulates debt. Interest paid to associates and to related companies born are deductible within the limit of rate advances of the BCEAO plus three points(CGI, art. 9, 2, a).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Must the franchise agreement be governed by local law?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The parties freely choose the applicable law, and foreign franchisors generally retain their own.<\/p>\n<p>However, certain rules of local law apply regardless of the law chosen: OAPI registration of the license, competition law, Law No. 2021-25 (Art. 2), exchange control, taxation, labor law, and personal data. The requirement for approval of exclusivity clauses (Art. 275 COCC) falls under general contract law. For personal data, Law No. 2008-12 applies to any processing carried out in Senegal, including by a controller established abroad who uses means of processing located in Senegal; the latter must then designate a local representative (art. 2).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What dispute resolution procedures are available to franchisors and franchisees?  Are there any advantages to out of court procedures such as arbitration versus litigation, in particular if the franchise agreement is subject to a foreign governing law?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Mediation, governed by the Uniform Act on Mediation, is increasingly being used as a preliminary step. Arbitration dominates international contracts, often with three arbitrators and a seat in the franchisor&#8217;s country.<\/p>\n<p>The Uniform Act on Arbitration Law (AUA) governs arbitrations whose seat is in an OHADA State (Art. 1). It then requires the State judge to declare himself incompetent (Art. 13; CCJA, No. 035\/2010, June 3, 2010).<\/p>\n<p>A judgment rendered outside the OHADA area is recognized under the New York Convention, to which Senegal acceded in 1994, and failing that, under the Uniform Act (Art. 34). The CCJA thus reviewed the refusal, by the Court of Appeal of Saint-Louis, to grant exequatur to a judgment rendered in London (CCJA, No. 135\/2021, June 24, 2021).<\/p>\n<p>For institutional arbitration in the region, the parties can choose the Common Court of Justice and Arbitration (CCJA), whose awards benefit from exequatur.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Must the franchise agreement and disclosure documents be in the local language?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No text mandates French, the official language, for the contract or pre-contractual information.<\/p>\n<p>In the event of a dispute, the documents produced before the Senegalese judge must be translated.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to sign the franchise agreement using an electronic signature (rather than a wet ink signature)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>An electronic signature is valid when it is based on a reliable identification process. It is equivalent to a handwritten signature if it is secure and certified (Law No. 2008-08, Articles 41 and 42). Electronic documents have the same probative value as paper documents (Article 37).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do you foresee any significant commercial or legal developments that might impact on franchise relationships over the next year or so?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The market is experiencing rapid growth, driven by fast food, supermarkets, and services, with the emergence of new local brands. This growth makes the adoption of a legal framework protecting both parties more urgent.<\/p>\n<p>A study by the Foundation for Continental Law, published in 2021, proposes inserting a book dedicated to franchising into the AUDCG (<a href=\"https:\/\/www.ohada.com\/actualite\/6133\/pour-un-droit-uniforme-de-la-franchise.html\">https:\/\/www.ohada.com\/actualite\/6133\/pour-un-droit-uniforme-de-la-franchise.html<\/a>Pre-contractual information and post-contractual non-compete regulations would apply regardless of the law chosen. The bill was not adopted. The ASF, for its part, advocates for a better legal framework for franchising within the OHADA zone.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">6495<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/152972","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=152972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}