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