DIP (pre-contractual disclosure document)
Mandatory in France under the Loi Doubin, the DIP must be handed to the franchisee candidate at least 20 days before any contract is signed or any funds transferred. It covers the network, the market, the franchisor’s accounts and the contract terms. Omission can void the agreement.
In practice
The DIP includes the network overview and key figures, local and national market analysis, a list of current franchisees (allowing the candidate to contact them independently), two years of the franchisor’s accounts, and contract duration and renewal conditions. An incomplete DIP or one delivered fewer than 20 days ahead can trigger nullity. Contacting at least five existing franchisees before signing is a minimum baseline for any serious candidate.