International Top 30 position: 4

Turkey: a new era on pre-contractual disclosure requirements of the franchisor?

Turkey has long been a relatively franchisor-friendly jurisdiction given that franchise agreements are not governed by a special law and that there are no statutory requirements on registration or pre-contractual disclosure.

Although the statutory framework remains the same, a recent decision of the Turkish Court of Appeals challenges the absence of disclosure requirements.

In a dispute on the termination of a franchise agreement, the Turkish Court of Appeals ruled: ‘The franchisor must provide all the information with respect to its registered marks, logos, symbols and names to the franchisee. If there are any problems on any aspect, that aspect must specifically be explained and the franchisor must notify the franchisee of all legal disputes it is a party to in relation to these matters.’ …

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