THE CONTENT OF FRANCHISING. FEATURES OF THE COMMERCIAL CONCESSION AGREEMENT

Abstract

Today, the use of franchising is becoming increasingly widespread in business activities not only in Ukraine but also worldwide, since it can provide significant benefits to both the right holder and the user, as well as to consumers of products or services. The most experienced country in franchising is the United States, where, according to experts from the World Intellectual Property Organisation, franchise turnover accounts for more than a third of all retail trade. The franchise holder gets the most convenient way to scale their business, while the user gets access to a proven business model, gets a job without reinventing the wheel, and uses third-party experience and intellectual property. Franchising can also become one of the main methods for the recovery of small and medium-sized businesses in the post-war economy in Ukraine. Purpose. The purpose of the article is to examine franchising from the perspective of legal and commercial content, to compare the provisions of the Civil and Commercial Codes of Ukraine regulating commercial concession agreements and to identifie the specifics of the agreement. Methodology. The methodology includes a comprehensive analysis and a synthesis of available scientific and theoretical information. It is includes the formulation of relevant conclusions and recommendations. Such methods of scientific knowledge were used: methods of synthesis and induction, terminological, logical-semantic, functional. Results: a commercial concession (franchise) does not have a single separate legislative document that would regulate all the nuances in the relations between the right holder and the user when concluding the agreement. However, in many countries, including Ukraine, international federations and franchising associations are being established to regulate such relations by adopting codes of ethics and establishing rules. The article also examines such concepts as "franchise book" and "master franchise", which are also not specified in the laws of any country of the world, and justifies the expediency of their existence and the need for regulation. Originality. Gaps in the legislation give rise to an increase in the number of offences in this area, especially since Ukraine does not have an established case law that could serve as an example for resolving many issues. Therefore, the relevance of the study of the content of franchising and the specifics of a commercial concession agreement lies in the need to identify gaps in legislation and find out how to address them. Practical significance. The results of the research can be used in scientific and legislation.