It is not uncommon for franchisees disappointed by the transaction they have committed to contact the courts to obtain the nullity of the contract or, if not, its termination at the franchisor`s expense and/or compensation for non-compliance with its obligations by the franchisor. (…) If a franchise agreement contains one of the above restrictions, it is prevented from benefiting from the VBER. In this case, it is necessary to assess individually whether the restriction constitutes an infringement of competition law within the meaning of Article 101, paragraph 1 of the EUTF and whether the derogation from Article 101, paragraph 3, of the EUSF applies or not. In this regard, the Commission`s guidelines on vertical restrictions explicitly state that, under franchise agreements, “the greater the transfer of know-how, the more likely it is that the restrictions will create efficiency gains and/or are necessary to protect know-how and that vertical restrictions meet the requirements of Article 101, paragraph 3, of the EUF.” They are therefore almost always contrary to competition law, can be punished with fines and are null and void and therefore unenforceable. This is the most common contractual clause contained in a franchise agreement: the distributor is prohibited from “creating a competing network in the same area in all the cities where the franchisees are located, for one year after the end of that contract.” The clause is (…) Franchise agreements in Europe are subject to EU competition law, regardless of the choice of law and forum. This is because Article 101 of the TFUE is considered by the European Court of Justice (ECJ) to be a rule of public order. However, Article 101 of the EUTSP only applies if the agreement has a significant effect on trade between Member States. This does not mean that Article 101 of the TFUE cannot be applicable to a franchise agreement between a franchisor and a franchisee based in the same Member State. Agreements that were not in a single Member State can affect trade between Member States, for example, when the agreement is required to close a substantial part of a national market and the agreement makes it more difficult for companies from other Member States to enter the relevant domestic market, either through exports or through the administration of one establishment.6 In Hungary, there is no specific legislation on franchises, so franchisees are subject to the same rules as those governing other companies. There are no specific mandatory legal clauses to be included in franchise agreements, as franchisors and franchisees are not treated as agents or distributors.