Drafting and Registration of Franchise Agreements
In many cases, the process of granting the right to use the trademark is accompanied by the transfer of a set of rights, including the right to a trade name, know-how, corporate identity, etc.
In such cases, the parties are encouraged to enter into a franchise agreement.
The franchise agreement provides that one party (the Franchisor) undertakes to provide the right to use a set of exclusive rights of the copyright owner in its business, including the trademark right and other contractual exclusive rights, to the other party (the Franchisee).
The franchise agreement shall be made in writing. Failure to made it in the written form results in invalidity of the franchise agreement.
As a prerequisite to enter into such agreement, it shall be registered in Rospatent’s Federal Institute of Industrial Property (FIPS). If the agreement is not registered, the transfer of rights under the agreement will be invalid.
The registration process in FIPS takes approximately two months from the date of filing the relevant materials. Upon its completion, the right holder is provided the corresponding documents certifying the granting of the related exclusive right to the franchisee.
Experts of Petukhov & Partners Patent Law Firm will help you to draft a franchise agreement based on your legal conditions and terms proposed by you, as well as secure the registration of granting a set of IP rights in Rospatent’s Federal Institute of Industrial Property (FIPS).
To get the advice or entrust us the franchise agreement registration process, you can contact us by email or telephone, including by requesting a call back and send a corresponding request through the online form on our website.
Benefits of doing business under the franchise agreement
● A proven business system. By entering into the franchise agreement, the businessman acquires a proven and mastered effective business model.
● The opportunity to start own business. Although the franchisor has a certain degree of control over the franchisee (mainly aimed at improving the efficiency of partner’s business by identifying potential problems of partner companies at their development stage), the franchisee is economically and legally independent.
● The opportunity to minimize risks. Opening a partnership venture with a well-designed franchising program, the franchisee becomes a part of the “family”, i.e., as opposed to establishing an independent company, the franchisor does not leave partners face to face with many challenges and risks related to start-ups.
● You may be sure in the successful market entry. One of the main requirements to a franchise-like business is the demand on goods or services provided by the franchisor. Therefore, buying a successful business idea and starting own business under the well-known brand, the franchisee already has a range of brand loyal consumers before establishing its own company.