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ARTICLE · 23 OCTOBER 2017

Franchising Disclosure In Argentina

Castro Sammartino & Pierini
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Under Argentine Law, franchise agreements are governed by the Civil and Commercial Code of the Nation (Código Civil y Comercial de la Nación, or CCCN by its Spanish acronym).

ArgentinaCorporate/Commercial Law
Mario Eduardo Castro Sammartino
Mario Eduardo Castro Sammartino

Under Argentine Law, franchise agreements are governed by the Civil and Commercial Code of the Nation (Código Civil y Comercial de la Nación, or CCCN by its Spanish acronym).

The franchisor´s disclosure obligations are contained in a single provision: the Article Number 1,514, Subarticle a), of the CCCN. It reads that the franchisor must:

"a) provide, prior to the signature of the agreement, economic and financial information over the evolution of two years of units similar to the one offered in franchising, which have operated enough time, either in the country or abroad."

Constructing the above-quoted legal provision, together with the other relevant applicable provision of the CCCN, and in a way coherent with the legal system as a whole, franchising disclosure in Argentina presents the following characteristics:

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