Published in the Official Journal on December 31, 1989, the Doubin law is now included in Article L.330-3 of the Commercial Code. While the legal principle of franchising remained extremely vague until then, this text has clarified certain points. From now on, making a brand, a trade name, or a sign available to another person requires compliance with certain conditions. This includes providing the potential operator with clear information, materialized in a Preliminary Information Document (DIP), so that they can commit with full knowledge of the facts. Otherwise, non-compliance with the Doubin law would expose one to severe penalties.
What types of contracts are covered by the obligations of the Doubin law?
The Doubin law and its corollary, the obligation to provide a DIP before any contract signing, primarily target franchise contracts. In this way, a potential franchisee will have all the information necessary to invest in a healthy business and to anticipate turnover, operating conditions, and potential profits.
Related reading : What are the future careers in law?
However, the law also targets other lesser-known contracts, such as affiliation or concession. Therefore, consulting lawyers specialized in franchise law, such as the experts from the Gouache firm, will allow you to better understand your obligations and rights, depending on the role you will play in the association you are considering.
Further reading : What are the key steps to successfully defend yourself in criminal law?
The criminal fine, the least severe penalty incurred for non-compliance with the Doubin law
For the franchisor, failing to comply with the information obligation set out in Article L.330-3 of the Commercial Code may first result in a fine. This will be the case if the DIP is not provided at least 20 days before the scheduled contract signing date.
In this case, reference should be made to Article 131-13 of the Penal Code to understand the amount. It involves a 5th class fine, requiring the offender to pay the sum of 1500 euros to the Public Treasury. This amount will rise to 3000 euros in the event of a repeat offense.
A more serious penalty: the annulment of the franchise or business association contract
But beware, the penalties incurred in case of violation of the Doubin law will be more serious if the signing of a franchise contract occurs in the absence of communication of a DIP, or if the information it contains is found to be incorrect. In this case, legal action could be initiated before a judge.
And the latter would pronounce the outright annulment of the contract! This would lead to several probable consequences, including:
The obligation for the franchisor to pay damages to the franchisee;
The obligation for the franchisor to refund the entry fees paid by the franchisee at the signing of the contract.
Penalties incurred in case of conviction for false advertising or fraud
Finally, legal proceedings initiated for non-compliance with the Doubin law would be based on texts with serious consequences. These are Article 313-1 of the Penal Code and Article L. 121-6 of the Consumer Code.
These articles will be invoked if the information contained in the DIP is found to be false. In the event of proceedings initiated against you for such reasons, make sure to choose the right lawyer to handle your case.
Indeed, these texts aim to regulate the offenses of fraud and false advertising. They result in very heavy fines for legal entities, as well as prison sentences for individuals.