Franchising is a method of sale, through which the goods, services or technologies are being sold. It is based on close and permanent cooperation of legally and financially independent enterprises – the franchisor (provider of the franchise) and his franchisees (the receivers). In franchising, the franchisor gives the franchisees (his contractual partners) the right and simultaneously the obligation to use his concept within agreed framework. It entitles but also obliges the franchisees to use the name of the concept, brand of goods or services, other copyrights, know-how, economic, technical and sales methods of franchise provider, usually for agreed renumeration. For this purpose, the parties conclude a contract.
In case you are considering starting your business in the form of franchising and you need advice, do no hesitate to contact us. In this regard, we provide mostly legal counselling relating to preparation of necessary contractual documentation. The preparation of contractual documentation requires due attention in order to ensure that future cooperation of the parties will be properly agreed. The rights and obligations of the parties should be precisely and accurately defined, so that contractual partners can avoid any potential misunderstandings and disputes.