Franchising law and translation of contracts

The new franchising law became effective in Brazil in March this year. And, in addition to the demands it brings to franchisors and franchisees, there were significant changes in contract translation. All this was established in accordance to the Law no. 13.966/2019 by the new government.

            According to this new law, the translation services will have to involve the so-called Franchising Disclosure Document (Circular de Oferta de Franquia – COF). But, in case you haven’t understood it well, don’t worry. In today’s post, we will discuss this new franchise law and how it affects translation. Check it out!

What is the new franchise law?

            Sanctioned in December 2019, the franchise law established that, from now on, all contracts shall be written in Portuguese. But what does this mean in practice? Well, it means that Portuguese language has become important for business. That is why it is now mandatory.

            Business between foreign and Brazilian entities is not new. On the opposite, it is a very old interest. And it has been increasing every year. For this reason, the translation to Portuguese has become essential to close deals. Even when we refer to Franchising.

            Besides, the franchise law has important changes in regards to COF. Its function is to establish the most common situations that create conflict between franchisors and franchisees. However, the new law demands that COF is issued now by the franchisor.

How it impacts the translation of contracts

            After we know about franchise law, what we really want to know is how it impacts the translation of contracts. So, as we mentioned before, this new formulation demands that contracts shall be made in Portuguese language. But what is this change for?

Lei de franquia e a tradução de contratos

            The fact that translation is now made in Portuguese allows franchises to demand their rights. This way, they may request specific regulations for the economy in which they are inserted. And they don’t need to follow global laws, that do not relate to their reality.

From this moment, there won’t be a sovereignty of laws for decision making. For this reason, it is of utmost importance that contracts from now on are dealt with by experienced translation companies. With this, it will be possible to request clauses that meet their demands. Also, the agreement will be compliant to the country.

Where can I find translation services?

            Now that you already know how the franchise law may change business, it is time to know where to find translation services. After all, you will have to count on a good company to translate your contracts, right?

            In case you don’t know where to find this type of service, you can count on us here at Brazil Translations. We have qualified professionals capable of translating from different languages. Access our website to know more about our services.

            Did you like what you’ve read so far? So tell us what you think in our comments section! To keep receiving tips and news on the world of translation, follow our posts here on the blog.