On December 2-4, 2009, the Forum “Franchising – the formula of effective development for manufacturing and trading business at the time of crisis” was held in Kyiv.
Forum attendees, including investors, franchisers, franchisees, and professional consultants, discussed the development of franchising both in Ukraine and around the world and its prospects, especially under conditions of crisis, peculiarities of franchising relations in different spheres (e.g. retail, fast food, hotel etc.), legislative framework of franchising in Ukraine and possible developments thereof, financial and management aspects of rolling out franchise networks both domestic and foreign.
Anzhela Makhinova, an associate of Vasil Kisil & Partners Law Firm, in her presentation “Hidden Reefs of Franchising (Legal Aspects)”, described the basic principles of legal regulation of franchising in Ukraine, requirements to franchising agreements, and outlined intellectual property rights issues in franchising relations.
Mrs. Makhinova especially emphasized the problems that might surface in the process of entering into franchising agreements (e.g. pre-contractual disclosure of information and scope thereof, testing a franchise by a franchiser prior to offer thereof to potential franchises) and drew attention to the provisions requiring special focus (e.g. non-compete clause, payments and collateral, intellectual property rights issues, responsibility of a franchisor for franchisee’s activities, term of a franchising agreement etc.).