What impact do the new block exemptions and their respective guidance have on established market practice for the type of restrictions typically seen in franchising agreements?

Table of contents

• Non–compete provisions
• Restrictions on passive and active selling
• Dual distribution and information exchange
• Resale price maintenance
• The status of supporting guidance

Article summary

Commercial analysis: The Competition Act 1998 (Vertical Agreements Block Exemption) Order (UK VABEO) and EU Vertical Restraints Block Exemption, Regulation (EU) No 2022/720 (EU VBER), each in force 1 June 2022, have taken different positions on the treatment of the typical restrictions seen in franchise agreements which will mean that franchisors that operate in the UK and other European countries will need to tailor their agreements accordingly and consider having one specifically for the UK market and a separate agreement for the EU. Fiona Boswell, partner at Knights analyses the impact of the new block exemptions.