Know-how

Know-how is the essential element of the franchise agreement.

European Commission Regulation No.2790/99 of 22 December 1999 defines know-how as: “a secret, substantial and identified set of non-patented practical information, resulting from the experience of the supplier and tested by the latter”.

You can watch a video here explaining how to best protect know-how.

In this context, “secret” means that the know-how must include information indispensable to the buyer for the purpose of the use, sale or resale of the goods or contractual services; “identified” means that the know-how must be described in a sufficiently complete manner to make it possible to verify that it meets the conditions of secrecy and substantiality.

In the distribution franchise, know-how essentially lies in the provision of a selection of specific and original products, intended for a certain type of clientele (CA Versailles, 4 July 1996 )
The know-how is generally contained in a document, the “bible” or operating manual, given to the franchisee and which specifies the originality of the franchisee system and the terms of its implementation.

Subsequently, the know-how is transmitted during training courses, updating knowledge. Pilot experimentation and the practice of all franchisees is then put at the service of all.