Franchising Contract in Ukraine

In Ukraine, the franchising agreement has recently become part of commercial practices.

Pursuant to art. 1115 of the Ukrainian Civil Code by virtue of the franchising agreement one party ("pravovladelez" alias franchisee) grants the other party ("polsovatel" - franchisor), for a fee, the right of use in accordance with the precise indications of the whole of rights belonging to the former for production or sales purposes of goods or services.

The precise definition of the contractual case is provided for by art. 366 of the Ukrainian Code of Domestic Rules, where the franchise agreement presupposes that one party undertakes to grant the other, for a certain period, the right to use the rights belonging to the franchisee in the business activity of the franchisor, while the franchisor is obliged to observe and respect the conditions of use imposed and to pay the agreed amount to the franchisee.

The subject of the franchise agreement can consist of a trademark, company know-how, trade secrets, name, invention and other intangible assets.

Essential requirements of the Franchise Agreement

Art. 1118 of the Ukrainian Civil Code for the franchise agreement requires, under penalty of nullity, the written form. Furthermore, this contract must be registered with the same institution that registered the right franchising. If the franchisee is a foreign subject, the registration of the contract must be made at the institution where the franchisor was originally registered.

The rule places among the essential requirements of the franchise agreement the conclusion of the agreement concerning the right to use the identified assets, the transfer by the franchisor of the power to use the granted right and the equity of the use.

The Ukrainian Civil Code expressly defines the duties and obligations of the franchisor and the franchisee.It should be noted that the franchisee is liable on a subsidiary basis for any claims made against the franchisor.

In the event that the franchisor can qualify as a manufacturer, the franchisee is jointly and severally liable in the event of a defective product but retains the right of recourse towards the franchisor. However, the consumer or user of the service can bring a judgment directly against the franchisee only if the franchisor has refused to compensate for such damage.

Changes to the distribution agreement under Ukrainian law are permitted with the express consent of the parties. Any modification made to the franchise agreement requires a new registration of the modified agreement.

SERVICES OFFERED IN UKRAINE

» ESTABLISHMENT OF COMPANIES, BRANCHES AND REPRESENTATIVE OFFICES

» ACQUISITION OF INDUSTRIAL GROUPS AND DUE DILIGENCE

» DRAFTING OF CONTRACTS IN COMPLIANCE WITH LOCAL LAWS

» INTELLECTUAL PROPERTY PROTECTION AT ALL LEVELS

» OBTAINING LICENSES, AUTHORIZATIONS, PERMITS FROM LOCAL AUTHORITIES

» DUE DILIGENCE ON UKRAINIAN COMPANIES AND, IN GENERAL, ON NATURAL AND LEGAL PERSONS

» EXTRA-JUDICIAL ASSISTANCE IN NEGOTIATIONS WITH HIGH PROFILE LEGALS IN UKRAINE, RUSSIAN AND ITALIAN LANGUAGE

» CREDIT RECOVERY

» JUDICIAL PROCEEDINGS BEFORE THE UKRAINIAN COURTS

» WIDE RANGE OF SERVICES IN THE FIELD OF INTERNATIONAL PRIVATE LAW

Disclaimer

Note the following:
This website and the information contained therein have been developed and provided by the Studio Legale de Capoa for information purposes only.This website is not intended to be, and does not replace, legal assistance. Do not use any information contained in these pages as a source of legal advice.This website contains direct links to sites that have not been prepared by the Studio Legale de Capoa. These links are offered as a courtesy. Studio Legale de Capoa has no relationship with them, and their mention does not imply validation or approval. Studio Legale de Capoa is not responsible for the contents of all linked sites or for all links contained in linked sites.This website is not for advertising purposes. Studio Legale de Capoa does not intend to represent anyone seeking representation on the basis of the review of this website in any place where it does not comply with all laws and ethical rules. No lawyer-client relationship is established between the users of the site and the de Capoa Law Firm.

Studio Legale de Capoa & Partners - Via Petrarca 2, 40136 Bologna - P.IVA 03339051207

Log In

Change Language