romanian

Our attorneys provide integrated solutions for business development through franchise networks.
Franchising is a distribution method for products and services, as well as a financing method. During recent years, franchise distribution has become increasingly used by businesses in Romania, as well as in the other Eastern European countries.

Our consultants

The franchise is always the hallmark of success in business. Our team of consultants has joined together with the goal of providing complete services to ensure the economic and legal framework for a successful franchise.
Our specialists have varied professional backgrounds, vast practical experience and prestigious academic credentials. These elements coupled with our professional dedication, make us well equipped to meet the clients’ needs.
Monica Custură has been a lawyer since 1997, and is a registered Trademark Counselor with the Romanian State Office for Inventions and Trademarks, assisting clients in the trademark registration process.
Mihaela Mocanu is an attorney holding a PhD in franchise law and distribution contracts. Mihaela’s interest in these areas of law is reflected in many published articles and her treatise which provides a detailed analysis of the franchise contract.

Services for the franchisor

The franchisor is the business entity that distributes its products or services through a system called the franchise network. The initial steps for the potential franchisor are critical.
The franchisor needs to possess the know-how, as well as a trademark for its products or services.
Our attorneys assist the potential franchisor from the beginning of the process of establishing a franchise network for their business. The lawyer ensures that all legal requirements for know-how are met, verifies the existence of the trademark for the products or services, registers the trademark at the State Office for Trademarks and Inventions, assists the franchisor during the negotiation process, and drafts the franchise contract.
From the commercial perspective, the franchisor may request market entry studies, including among others: a current market evaluation (size, growth rate) and forecasts, competitive analysis, consumer trends and customer needs, distribution networks, industry value chain analysis, and key success factors. In case of a potential acquisition, a thorough analysis must be completed. That analysis, besides the market study, will also include a comprehensive overview of the financial and operational potential of the company, its market positioning and future outlook.
The consultancy agreement gives the franchisor specialized legal assistance such as the legal framework for sales promotions, geographical expansion, legal representation with franchisees (especially in potential conciliation procedures or in legal disputes between the franchisor and franchisee).
Once the effects of the franchise contract cease to exist, the franchisor may suffer damages due to the noncompliance of the franchisee regarding his post contractual obligations. A rigorous franchise contract will provide protection of the franchised concept, including the post contractual stage, especially regarding confidentiality and competition.

Services for the franchisee

The franchisee is the independent business owner who, once the franchise contract is signed, becomes the distributor of the franchisor’s products or services.
The potential franchisee receives legal counseling throughout the negotiations for the franchise agreement. This agreement is, contrary to popular belief, negotiable. The franchisor only proposes the first draft. The legal aspects in a franchise contract are complex. Specialized counseling will protect the future franchisee with regard to exclusivity, assignment of contract or resale prices for products or services.
Our team provides legal counseling to the franchisee throughout the entire contractual term, including the termination stage, which may need special attention (e.g. the remaining stock that cannot be sold by the franchisee after the termination of the franchise contract).
PUBLISHED ARTICLES

  1. The franchise contract (Definition, Legal aspects, The non-competition clause in the franchise contract), The Romanian Business Law Magazine, no 2/2008.
  2. The clause for exclusive purchase of products in a franchise, The Romanian Business Law Magazine, no 7/2007.
  3. The clause regarding the sale price for products in a franchise, The Romanian Business Law Magazine, no 6/2007.
  4. The know-how – the key to the franchise thesaurus II, The Romanian Business Law Magazine, no 4/2007
  5. The know-how – the key to the franchise thesaurus I, The Romanian Business Law Magazine, no 3/2007
  6. The franchise- the seal of success III (The territorial exclusivity clause in the franchise contract), The Commercial Law Magazine no.3/2006