Franchise Contract

A franchise agreement is a business agreement of a licensed package, that provides an opportunity both for business entities to expand their business with the help of interested parties and for interested parties to conduct a ready-made business on certain conditions. So, under a franchise agreement, the owner of a licensed package, which may include rights to intellectual property, the right to use a company name, as well as undisclosed information, provides another entity with this package for a fee. Set of rights mentioned above will be the subject of a franchise agreement.

Key aspects to pay attention to:

•        An individual can't be one of the parties of franchise agreement. Franchise agreement can be concluded only by business entities - legal entities and individual entrepreneurs.

•        The fee should be set out in agreement. This obligation is established in Art. 910 of the Civil Code of the Republic of Belarus.

•        Set out a limitation of the licensed complex. Civil law allows you to specify only the limits (maximum or minimum). However, in order to protect the parties from misunderstandings, we recommend to define these boundaries in the agreement in detail and deliberately.

•        Set out the procedure for the provision of information regarding the provided complex by the copyright holder to the user. This applies to technical information, undisclosed and commercial information and so on.

•        Additionally, we recommend you to pay attention to confidentiality in the contract.

After drawing up the contract and signing it, it is necessary to go through the mandatory procedure for registering a franchise agreementт in the patent office. Without registration, the contract is considered invalid.

A business agreement of a licensed package is a rather voluminous document in which it is important to determine the parties, the subject, rights and obligations, nuances of use and confidentiality, the possibility or obligation to issue sublicenses and their number, as well as the responsibility of the parties and etc.

The specialists of Beliaevs & Partners have the necessary knowledge and sufficient experience in preparation and registration of franchising agreements. If you need an advice or assistance in drafting a contract, we will be happy to help.

The success of a business depends not only on big deals, but also their execution.