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Franchising

As business gains rapid momentum in Ukraine need for new solutions is becoming more and more acute. In this context franchise schemes grow increasingly topical.

Franchising is a type of relationship between two independent companies and/or individuals in which one party (franchisor) who owns a developed business scheme, a renowned brand name, specific company style, know-how, trade and/or production secrets, knowledge, experience, reputation or other goodwill permits the other party (franchisee) to use the same for consideration and subject to franchisor's specific requirements.

Franchise agreement is used to intensify development of a franchisor's business with lower capital expenditure than in any conventional business practice. In its turn, franchisee gets the opportunity to start business at no major risk, using the established reputation and experience of franchisor.

In this light franchise arrangement is deemed to be the most promising and efficient form of business compared to other types of contractual relationships involving provision of exclusive rights to intellectual property.

Such contracts require appropriate safeguards to assure protection of intellectual property, particularly considering the specific nature of franchising in Ukraine: presence of a non-resident component, which causes certain difficulties.

Legal Alliance Law Company offers services in legal support for activity of international and domestic franchise operators in Ukraine and companies promoting chain schemes of their own in Ukraine.


Our carefully tailored service package in franchising includes:

  • Legal due diligence of documents related to acquisition and use of rights to intellectual property objects; due diligence of documents included in franchise packages;
  • Development of commercial concession/franchise and ubconcession/subfranchise contracts;
  • Adaptation of commercial concession/franchise contracts to Ukrainian laws;
  • Development and analysis of license and distribution agreements, assignment contracts, joint activity agreements, supply contracts and other relevant contractual instruments;
  • Registration of license agreements and concession/franchise contracts;
  • Support in execution of concession/franchise contracts; involvement in negotiations related to acquisition of rights to intellectual property objects;
  • Pre-trial and court resolution of disputes related to performance of concession/franchise contracts;
  • Support for pre-trial and forensic examination of intellectual property objects;
  • Consultancy in prevention of all types of unfair competition related to intellectual property rights;
  • Representation of clients before the State Department for Intellectual Property, Anti-Monopoly Committee of Ukraine, and other government agencies;
  • Representation of clients before general and economic courts of any jurisdiction at any phase of litigation, as well as before adjudication panels;
  • Consultancy in franchising schemes taxation;
  • Subscription services to franchise schemes.

 
 

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