1E9Ct5D

The agent may also subcontract with other agents when subcontracting is allowed forin the principal contract and the subcontract is negotiated with the same terms and conditionsas the original.The expiration of the contract and the revocation or resignation of either the principalor the agent are the primary causes for termination of the agency contract. However, itis advisable to establish conditions in the contract for termination in case of revocationor resignation; for example, with advance notice of a certain period so that such terminationis not unanticipated or untimely and does not give rise to liability of the partyconcluding the contract in this manner.The contract can also establish certain justified causes for its termination, such as insolvencyof the agent, violation of the exclusivity agreement, failure to meet expected targets,subcontracting, etc.Finally, the statutory rules applicable to commission agency contracts or the mandatecan be applied in the absence of contractual provisions to this type of contract.1.3. FranchiseArticle 142 of the Industrial Property Law (Ley de la Propiedad Industrial, LPI) establishes:A franchise will exist when, with the licensing of a trademark, technical knowledge istransmitted or technical assistance is provided so that the person to whom the licenseis granted can produce or sell goods or provide services uniformly and with the operative,commercial, and administrative methods established by the trademark holder,thereby maintaining the quality, prestige, and image of the products or services thatthe mark represents [...].173Commercial RegulationGiven that the franchise agreement is regulated by the above-mentioned law, it cannotbe considered an unregulated contract. However, it should also be mentioned that theabove-cited article does not exhaustively regulate such a contract and, therefore, it isadvisable to establish clearly all the terms of the contract in order to avoid ambiguitieswith respect to its interpretation.Basically, the franchise is the means by which the holder of a trademark (the franchisor)or a specific known commercial designation of goods or services reaches thefinal consumer, through a series of commercial establishments (franchisees) that produceand distribute the product or service of the trademark according to the instructionsand requirements of the franchisor.In practice, there are primarily two types of franchising: product trademark franchising,which contemplates a relationship between supplier and distributor, the latter adoptingcertain characteristics of its supplier, and business format franchising, where the relationship