Franchising

In the Republic of Belarus the number of franchise agreements (contracts of complex entrepreneurial licenses) progressively increases. Under a franchise agreement the rightholder (the franchisor) grants the user (the franchisee), for a definite or indefinite term, the right to use a complex of the licensed property owned by the franchisor, including the franchisor’s trade name and other contracted intellectual property rights, as well as undisclosed information related to the franchisee’s business. In return the franchisee pays the franchisor a consideration for the right to use a complex of the licensed property.

It may be specified in the franchise agreement that the franchisee will have the right to allow third parties to use the complex of the licensed property granted to the franchisee, or a part of such complex, according to the terms and conditions agreed with the franchisor or as set forth in the franchise agreement (complex entrepreneurial sublicense, subfranchise).

The franchise agreement, its amendments or early termination must be recorded with the patent authority. The parties to the franchise agreement, in their relations with third parties, may refer to any right under the amendment only from the date of its recordal.  The appropriate information is entered in the State Register of Contracts of the Complex Entrepreneurial License (Franchising) of the Republic of Belarus. In the absence of their recordal with the patent authority franchise agreements are held null and void.

Where under a contract of the complex entrepreneurial license (franchising) there are granted any rights related to inventions, utility models, industrial designs, plant varieties, topographies of integrated circuits, or trademarks, such contract must also be recorded in the State Register of License Agreements, Agreements on the Assignment of IPR and Agreements on the Pledge of IPR of the Republic of Belarus.