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ARTICLE · 11 APRIL 2017

ICLG Franchise 2017

Franchise is defined as the system by which a franchisor grants to a franchisee the right of trademark or patent use, associated with the right to exclusive or semi-exclusive distribution of products or services and, optionally, ...

BrazilIntellectual Property

1 RELEVANT LEGISLATION AND RULES GOVERNING FRANCHISE TRANSACTIONS

1.1 What is the legal definition of a franchise?

Franchise is defined as the system by which a franchisor grants to a franchisee the right of trademark or patent use, associated with the right to exclusive or semi-exclusive distribution of products or services and, optionally, also the right of use of technology of implantation and administration of a business or operational system developed or owned by a franchisor against direct or indirect remuneration, however without being characterised as an employment relationship.

1.2 What laws regulate the offer and sale of franchises?

The main Brazilian regulation applicable to offer and sale of franchises is Law n. 8,955 of December 15, 1994 ("Brazilian Franchise Law"). The Brazilian Franchise Law governs all franchise chains established and operated in the Brazilian territory. Additionally, Normative Act 16/2013 issued by the Brazilian Patent and

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