Buying a franchise in Belgium: check your PID before you sign

Found a franchise that suits you? Your first step should be to review the pre-contractual information document, known in Belgium as the PID. This document helps you compare the franchisor’s promises with the commitments you will actually be making. A healthy relationship within a franchise network starts with clear information. This guide explains how to check your PID, document any uncertainties and avoid signing too soon.

1. Know which documents you must receive

Belgium has no standalone law governing franchise agreements as a whole. However, specific rules apply to the pre-contractual stage: Title 2 of Book X of the Belgian Code of Economic Law (WER), Articles X.26 to X.33. These apply to commercial cooperation agreements that fall within the statutory definition, including franchise agreements.

Under Article X.27 WER, you must receive two documents at least one month before entering into the agreement:

• A draft of the proposed agreement.
• A separate PID containing important contractual provisions and socio-economic information, as specified in Article X.28 WER.

The documents must be supplied in writing or on a durable medium that you can access. A sales brochure or presentation is not a substitute for the PID. If you are given access to an online portal, check that you can save the documents and consult them later in an unchanged form.

Article X.28 was amended by the Act of 9 February 2024. The amended provisions apply to PIDs relating to agreements entered into, amended or renewed from 1 September 2024. Have an adviser check that you have not been given an outdated template.

Alongside these disclosure obligations, general contract law and the rules on unfair terms between businesses remain relevant, among other provisions. A properly supplied PID does not automatically make every contractual clause valid.

2. Use the statutory month to carry out your checks

Keep the email delivering the documents, its attachments and a record of the date you were given access. Record separately when you received the draft agreement and the PID. If documents are incomplete or referenced appendices are missing, report this immediately in writing and seek advice on how it affects the statutory period.

The one-month period is not merely an administrative formality. Use it for legal and financial due diligence, not just to plan an opening date.

In principle, before the statutory period has expired, no commitment may be entered into and no fee, sum or security may be requested or paid. There is an exception for obligations under a confidentiality agreement. You should therefore also ask an adviser to review any proposed reservation agreement, letter of intent or advance payment arrangement: its name alone does not tell you what legal commitments it creates.

A practical set of records should include:

• The versions of the PID, draft agreement and appendices you have received.
• A list of missing information.
• Your questions and the written answers.
• The earliest permissible signing date, checked by your adviser.

Do not commit to irreversible expenditure simply because someone verbally assures you that you can sign “soon”.

3. Compare the PID with the agreement and the sales pitch

Do not read the PID in isolation from the agreement. Create a simple comparison table with four columns: topic, what the PID says, the contractual provision and the outstanding question.

Focus on the terms that determine your independence and profitability:

• Fees: do the initial fees, ongoing charges and calculation methods match?
• Purchasing obligations: who must you buy from, and who sets the terms?
• Territory: what does any promised exclusivity mean for other outlets and online sales?
• Support: what specific training and assistance have been promised?
• End of the relationship: what happens to stock, fixtures and fittings, and any restrictions on competing?

This is a practical checklist, not a complete list of the PID’s legally required contents.

For financial figures, always ask about their source, the period they cover and how comparable they are to your situation. Figures from an established outlet cannot necessarily be used for your start-up. Ask your accountant to assess which information is suitable for your own financial forecasts.

Is an important promise only recorded in an email or presentation? Ask how it will be incorporated into the agreement. A verbal reassurance does not resolve an unclear clause.

4. Resolve outstanding questions before signing

Send the franchisor a single, consolidated list of questions. Ask for specific answers and, where necessary, revised documents. Then keep track of which version replaces which. This helps prevent your lawyer from reviewing a different text from the one you are asked to sign.

Does the draft change during negotiations? Do not assume that the original signing date still stands. Seek advice on whether the changes require fresh disclosure or a new statutory period; the nature of the changes and the reasons for them may be relevant.

Missing, inaccurate or late information can have legal consequences, including, in certain circumstances, nullity. Not every breach carries the same sanction. Seek timely legal advice tailored to your situation.

Practical takeaway: sign only when your records are complete, important discrepancies have been resolved and your adviser has checked both the documents and the statutory period. A carefully reviewed PID is your first practical test of transparency within the franchise network.