CLS presents expert comparative study of franchise regulation

CLS together with a group of law firms from other countries – Signum Law Firm (Kazakhstan), America CJSC (Armenia), Stepanovski, Papakul and Partners. Legal Services (Belarus), YUHONG IP LAW FIRM (China), Tasheel Law Firm (Saudi Arabia) – prepared a comparative legal analysis which will help businesses understand franchise regulation in jurisdictions popular for doing business.

In 2024, Russia, Belarus, Kazakhstan, Armenia and Uzbekistan signed an agreement on creating the Eurasian Franchise Council, aimed at international cooperation in this area. Since then, the significance of franchising as a cross-border business instrument has been steadily growing.

That said, there are significant differences between regulations governing franchising in different jurisdictions.

“In many jurisdictions, franchise regulations can differ significantly from those in Russia, so using standard templates and instructions does not always bring the expected result,” says Victor Kaluzhski, head of the Intellectual Practice group at CLS.

In the course of this study, the experts:

• Analyzed the key approaches to franchise regulation in these jurisdictions;
• Defined the essential terms and conditions of agreements;
• Examined special nuances of transferring IP rights;
• Studied registration and information disclosure requirements.

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