8.—(1) This section applies to supplies of electricity, gas or fuel in relation to franchise agreements and varies the provisions under section 1 concerning to whom a supply is made.
(2) The variation applies only where provided under this Order.
9.—(1) A “franchise agreement” exists where one undertaking (“the franchisee”) and another undertaking (“the franchisor”) agree that—
(a)the franchisee carries on a business activity which is the sale or distribution of goods or the provision of services (“the franchise business”);
(b)the franchise business is carried on under a name which the franchisor provides to the franchisee;
(c)the premises where the franchise business is carried on are used exclusively for that business by the franchisee; and
(d)those premises have an internal or external appearance agreed by the franchisor and that appearance is similar to that of other premises in respect of which the franchisor has entered into a franchise agreement.
(2) Where a franchise agreement exists, “franchise premises” means—
(a)the premises described in sub-paragraph (1); and
(b)other premises used by the franchisee in relation to carrying on the franchise business.
10. A franchise agreement does not exist where—
(a)the franchisee and the franchisor are group undertakings in relation to each other; or
(b)in relation to franchise premises, the franchisee occupies those premises with the permission of the franchisor.
11.—(1) Sub-paragraphs (2) and (3) apply where—
(a)there is a franchise agreement; and
(b)the franchisee is supplied with electricity, gas or fuel under section 1 of this Schedule in relation to the franchise premises (“a franchise supply”).
(2) For the purposes of Part 2 of this Order, where—
(a)the franchise agreement exists on the qualification day; and
(b)during the qualification year there is a franchise supply of electricity which is qualifying electricity,
that franchise supply of electricity is a supply to the franchisor and not the franchisee.
(3) For the purposes of Parts 4 and 5 of this Order, where—
(a)the franchisor is a participant or is a member of a group which is a participant; and
(b)the franchise agreement exists during a year of a phase,
the franchise supply during that year is a supply to the franchisor and not the franchisee.