Franchisor´s Pre-contractual Duty to Provide Information

Several countries - including Australia, Canada, France, Italy, Spain and the United States - have special legislation which protects franchisees by regulating the scope of the franchisor's pre-contractual duty to provide information. Although there is no such legislation in Germany, the general principle of liability for culpable acts performed during contractual negotiations (culpa in contrahendo) has evolved in German case law. In case law, it is assumed that an obligation is created simply by the commencement of contractual negotiations, which imposes on both sides a duty to take due care. Following the 2002 revision of the law of obligations in Germany, the relevant claim now arises on the basis of statutory provisions (Sections 280(1), 311(2) and 241(2) of the Civil Code).