Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 78: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she will introduce legislation to regulate franchises; if she is satisfied with the legal provisions to regulate this sector; and if she will make a statement on the matter. [22730/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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Franchise agreements are one type of distribution agreement and competition law applies to them as it does to all such distribution agreements. Such franchise arrangements are not considered to offend against competition law, provided that restrictive provisions in the franchise agreement are necessary to provide the franchisee with confidential know-how and/or to protect the identity and reputation of the franchised network.

In addition, under a franchise distribution arrangement, the franchisor (or supplier) provides a marketing system to the franchisee (or distributor). This introduces intellectual property issues into the arrangement, with the franchisor licensing the use of a common retail brand and marketing that brand. I have no plans to introduce legislation to regulate franchises.