STJ Approval Foreign Arbitration Sentence on International Franchise Contract

On May 3 of this year, the Special Court of the Superior Court of Justice unanimously ruled arbitration sentence issued by the New York International Arbitral Court, which discussed the validity of an international franchise contract. The decision has significant relevance to Brazilian companies that, within their business, conclude franchising contracts with foreign brands.

In this case, the applicant, Perlatop S.A., supported the breach of a subfranquia contract, in view of the absence of payment of franchise fees established therein. In the context of the arbitration procedure, the defendant, HRC Fortaleza Entertainment Ltda., Subframented responsible for the operation of Hard Rock Café in the city of Fortaleza/SC, was ordered to pay approximately US $ 1.4 million, as a way late rates.

Following, the applicant filed a request for approval of a foreign arbitration sentence before the STJ, competent cut to declare the production of foreign sentence effects in the country. The defendant, in turn, alleged offense to public order, since the franchise contract should be considered as an adhesion contract and the arbitration commitment, consequently, declared null and void, preventing the effectiveness of the foreign judgment in the national territory. >

The Special Court concluded that the requirements provided for in the Brazilian Arbitration Law (Law 9.307/1996), understood the existence of a fully valid arbitration agreement, which had already been ratified by the Arbitral Tribunal, and there was no room for the discussion. About the configuration of adhesion contract within the STJ, being granted the postulated approval.