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Use of a Computer Inventory Control System Based on a Franchise Agreement - Franchise Law

The right to use a computer inventory control system depends in particular on the provisions of the franchise agreement and any amendments thereto.


Cologne, NRW -- (SBWIRE) -- 10/08/2013 -- GRP Rainer Lawyers and Tax Advisors in Cologne, Berlin, Bonn, Bremen, Dusseldorf, Essen, Frankfurt, Hamburg, Hanover, Munich, Nuremberg, Stuttgart and London – conclude: In its judgment of March 13, 2013 (File number VI-U (Kart) 13.12), the Superior Court (OLG) of Düsseldorf has ruled that the question whether the franchisee has the right to use a computer inventory control system depends in particular on the provisions of the franchise agreement and any amendments thereto.

In the case before the OLG, the parties had signed franchise agreements. Substantially they argued about the extent in which the petitioners, the franchisees, are entitled to use the franchisor’s computer inventory control system and the franchisor’s business data it contains.

In the opinion of the OLG, there is no entitlement to use the computer inventory control system under the general requirement of consideration. While a franchisor should be obligated in general to consider the interests of its franchisees, and while his actions must not be arbitrarily or without a good reason be directed against the other party in the franchise agreement, the franchisor is always free to make business decisions within the above limits. In the present case, the OLG saw no reasons why the interest of the franchisees in using the computer inventory control system should override the Interest of the franchisor.

There are franchises everywhere now. The franchisee distributes the goods or services of the franchisor. The franchisee manages an own independent enterprise and carries its economic risk. He may operate this business for a fee under the uniform market presence of the usually well-known franchisor. The franchisor determines not only the franchisee’s external appearance, but also his marketing structures.

However, the law regarding franchises suffers from the difficulty that there is no specific law covering franchises. The reason is that a franchise agreement is a hybrid type of contract, i.e. it includes elements from different contract types.

Since the law of franchise covers various fields of law, it is very important to have knowledge of adjudication in the franchising industry. Against this background, it is therefore advisable to have a franchise agreement examined by a lawyer beforehand.

When there are differences of opinion about an existing franchise agreement, it is also advisable to consult a lawyer.

GRP Rainer LLP is an international firm of lawyers and tax advisors who are specialists in commercial law. The firm counsels commercial and industrial companies and corporations, as well as associations, small- and mid-sized businesses, self-employed freelancers and private individuals worldwide from offices Cologne, Berlin, Bonn, Dusseldorf, Essen, Frankfurt, Hamburg, Hannover, Munich, Stuttgart, Bremen, Nuremberg and London UK.
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