Legal Encyclopedia. Letter D

Franchise agreements

- A contract under which one party (the franchisor) undertakes to transfer to the other party (user) for a specified period or without his instructions for the use of the complex of exclusive rights award.

The exclusive rights include: the right to a firm name or commercial designation of the right holder, to protected commercial information, trademark, service mark, etc.

The contract is consensual, mutual and compensated. The goal - to promote the market of goods that are the means of production of other goods.

The right holder - the person who owns the complex of exclusive rights, the use of which it permits the user. They can be a legal entity or individual entrepreneur.

User - a person who transfers the exclusive rights holder

rights that belong to him. They may be a legal entity or individual entrepreneur.

It may not be parties to the contract-for-profit organizations and state and municipalities.

D. KK is in writing and registered with authorities who registered the copyright holder.

Failure to comply with the written form shall entail the invalidity of the contract. The contract is concluded by drawing up a document that is signed by both parties.

The contract may provide for commercial sub-contract. Subconcessions -dogovor on which the user is obliged to transfer the entire complex subpolzovatelyu received from the holder of the J. K. rights or part of them. As a result of the conclusion of the contract subconcessions user becomes the legal owner. The purpose of the contract - Anenii new business entities with the transcription of them part of the business market. Subconcessions term contract can not exceed the period of D. K. Termination of the main obligation does not automatically put additional

commitments.

The right holder has the right to require the user to obtain the property counter instead transferred the exclusive rights.

D. Payment by KK is made in the following forms, such as:

1) a fixed one-time payment;

2) a fixed periodic payment;

3) a fixed allocation of revenue from the user;

4) the mark-up on the wholesale price of goods transferred by the user to the copyright on an exclusive basis for resale.

The price of the contract can also include the cost of services in consulting, personnel training, registration of licenses.

The right holder is obliged to:

1) pass a whole set of exclusive rights;

2) transfer to the user technical and commercial documentation;

3) issue a license duly issued;

4) ensure the registration DK K .;

5) to provide the user constant technical and advisory services, which are not ad hoc and permanent.

Duties of the user:

1) To ensure the quality of manufactured goods, works and services the quality of similar goods, works and services;

2) comply with the instructions and directions of the rightholder, which are aimed at ensuring compliance with the nature, methods and conditions of use of the complex of exclusive rights in the same way as it is used the right holder.

3) to provide additional services to customers;

4) not to disclose the rightholder trade secrets and other commercial information;

5) Provide subconcessions if they are specified in DK K .;

6) inform customers on the use of exclusive rights by virtue D. K.

Contract may provide for restriction of rights:

1) the obligation not to provide the right holder other persons with similar complexes of exclusive rights;

2) the obligation of the user not to compete with the right holder on the territory of the spread of the contract;

3) the obligation of the user to agree to the copyright of the place of commercial premises.

Both sides are responsible for the inadequate quality of goods, works and services.

The user, duly perform their duties, shall have the right to enter into an agreement for a new term. The right holder shall have the right to refuse to conclude dogs ora for a new term, if within 3 years it will not conclude with other persons similar contracts.

DK K can vary by agreement of the parties.

termination conditions DK K .:

1) change of the corporate name or commercial designation of the right holder;

2) the death of the right holder;

3) termination of the exclusive right;

4) announcement of any of the parties bankrupt. If the agreement does not specify a term, then he can

canceled without the consent of the parties. Upon termination of the contract by one party to the other party shall be warned for 6 months. Termination shall be in writing and registered with the relevant authorities.