The prosecution asks crossroads to put an end to certain practices towards its franchisees

First victory for the Association des franchisés de Carrefour. The Rennes prosecutor’s office asked this Tuesday at the local commercial court to put an end to certain practices of the Carrefour distributor vis-à-vis its franchisees.

Carrefour faces a multiplication of appeals against a vast program for the development of franchise and rental-management, driven since the arrival of its CEO Alexandre Bompard in 2017. More than 300 stores have been entrusted to third-party companies, franchisees or tenants-managers under its orders.

However, the association of crossroads of Carrefour (AFC), which claims 260 members, notably criticizes the distributor for imposing an over -balanced relationship for them. The CFDT believes that it is a disguised restructuring plan, “intended to reduce personnel costs and denounce business agreements”. Carrefour replies that this avoids closing stores.

The association had already recorded the support of the Ministry of the Economy, which had recommended that justice pronounces the nullity of a dozen clauses included in the franchise contracts passed with Carrefour. He also offered to inflict a fine of 200 million euros.

“Order the cessation of reproached practices”

During a hearing held last Thursday, the Rennes prosecutor’s office “took oral requisitions” to express its “intention to support the same requests as those already made by the Minister of the Economy,” said the prosecution on Tuesday.

He intends to “ask the jurisdiction seized to order the cessation of accused practices” to the various companies of the Carrefour group assigned to Rennes by the association of crossroads of Carrefour. The prosecution clarified “that he could not hear anything, in his requests, to the amount of the civil fine” requested by Bercy.

The Carrefour group reacted saying that it has “total confidence in its ability to demonstrate the perfect validity of its contracts as the balance of its relationship with its partners”, and “will continue to defend this model with confidence”.

The hearing held last Thursday was to “purge the subjects of vice of form”, according to the lawyer of the AFC association François-Xavier Awatar, who awaits a decision on this point on June 5, before possible examination of the file on the merits.