Franchise (commercial concession)

If you are a trademark owner and you want to find the partners - this service is for you.

If you want to promote your famous brand in Ukraine, and add to your existing profits, then this service is also for you.

Franchise, or also called Commercial Concession, is a special kind of relationship between a company and business people. One of the market participants, the franchiser, gives the rights on a particular type of business to another participant, the franchisee, in return for fees called royalties. The main condition is keeping to the successful business plan previously established by the franchiser. In other words, the franchising (commercial concession) can be characterized as leasing a tried and successful business plan.

The franchise (commercial concession) agreement is essentially a license contract, where the terms and conditions of using a franchiser's trademark, or patent, or technology, or recipe are described, and the business reputation, along with the commercial practice of the franchiser is taken into consideration.

The franchiser-franchisee contract is complicated, and includes various forms of intellectual property. If considering entering into a franchising contract you should definitely hire an attorney who specializes in business or patent law, so as to avoid expensive mistakes and/or problems down the road.

The general scheme of a franchise contract consists of:

Depending on the territory:

1. Unrestricted franchise territory contract (the geographical territory in the contract is defined)

2. Restricted franchise territory contract (the geographical territory in the contract defined. For example, Ukraine only).

Depending on the volume of using the reputation, exclusive rights or the commercial experience of the franchiser:

1. Minimal franchising agreement.

2. Maximum franchising agreement.

3. Combined franchising agreement.

Depending on form of the payment:

1. A fixed percentage of the franchisee's income to be paid regularly, usually monthly, to be paid to the franchiser.

2. Fixed one-time payment.

3. Fixed periodic payment. For example, monthly, quarterly or annually.

4. Extra charge to the wholesale price of goods required to be bought from the franchiser.

In order to be considered valid, a franchise contract must correspond with the numerous legal norms. The «IPSTYLE» Company offers a contract composing and alternation services. In order to save you time our specialists will prepare the franchising contract and elaborate the optimal scheme of franchise chain creation.

All you need is to call our specialist and clarify the details