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The master franchise includes a uniform presentation of the contractual services on the basis of the use of a common name, a considerable level of technical, commercial and administrative know-how in the provision of the services and continuous support by ServiceMaster. Franchisees are the owners of their transactions that they operate on their own account and at their own risk. In exchange for the right to operate a ServiceMaster franchise and certain Intellectual Property Rights of ServieMaster related to trademarks and copyrights, franchisees must make various financial contributions and are bound by obligations to preserve the uniformity and quality standards of the ServiceMaster system. Internal brand competition within the ServiceMaster network itself is also preserved: the limited territorial protection does not grant franchisees marketing or customer exclusivity. Franchisees are free to provide services to unsolicited customers residing outside their own territory. This results in some price competition between franchisees, who are free to determine their selling prices. (9) The obligation for the franchisee to stop using ServiceMaster`s know-how package after the termination of the contract, unless this know-how package as a whole has become available to the public other than in breach of its obligations. This retrospective prohibition of know-how is essential to protect the franchisee`s right to this know-how. As long as its know-how has not become available to the public, the franchisor has the right to limit its transfer to a specified period, in this case to the duration of the franchise agreement.

If, at the end of the franchise agreement, the franchisor loses the exclusive right to use its know-how, it cannot prevent its competitors from using its know-how. What are you waiting for? Read on to learn more about the fantastic opportunity of a franchise with ServiceMaster Clean. (23) Trade between Member States is affected by the prohibition on franchisees setting up sales outlets in other Member States and actively seeking customers in the territory of franchisees from other Member States. Those prohibitions lead to a sharing of the market between franchisees in the different Member States. These effects on intra-Community trade should be felt. ServiceMaster has notified a standard agreement that it will use to create a pan-European franchise network. Currently, ServiceMaster only develops this network. However, when assessing the significant effects on trade between Member States, the Commission must also take into account the likely future development of such a network.

In this regard, it should be taken into account that ServiceMaster is an important competitor in the market, capable of opening a large number of outlets throughout the EEC, as has been done previously in the United States and Canada, where ServiceMaster has more than 2,900 franchisees. ServiceMaster already has a market share of 6% in the UK and expects its EEC market share to exceed 5% in the near future. In view of the above, the Commission considers that there is a reasonable likelihood that the restrictions contained in the notified standard form agreement may at least significantly affect intra-Community trade. The notified standard franchise agreement therefore falls within the scope of Article 85(1). It is therefore necessary to examine whether the agreement is eligible for an exemption under Article 85(3). (5) The franchise network set up by ServiceMaster through the notified standard form contract is a franchise of services; it concerns the provision of household, cleaning and maintenance services to commercial and domestic customers, in accordance with ServiceMaster`s instructions and, incidentally, the supply of goods directly related to the provision of those services. . .

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