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A Romanian company has several ways to expand its business, the most well-known being the signing of a franchise agreement in Romania.Business expansion through the establishment of franchises is regulated by Ordinance no. 52/1997 regarding the legal regime of franchises, which sets the legal framework for their operation. This article addresses topics such as the establishment of franchises, the signing of a franchise contract in Romania, the necessary documents for establishing a franchise in Romania, and the conditions required for a franchise business in Romania. The Romanian law firm Pavel, Mărgărit, and Associates recommends contacting a corporate lawyer in Romania or a franchise lawyer in Romania who can provide specialized assistance for concluding a franchise agreement in Romania, as well as for any other commercial law matters, such as company formation in Romania, assistance with documents for company incorporation in Romania, documents for opening an LLC in Romania, etc.
Franchise contract in Romania – Concept
As previously mentioned, a franchise agreement in Romania is a way for a Romanian company to expand its business. According to Ordinance no. 52/1997, a franchise in Romania represents a system for marketing products or services, involving continuous collaboration, through which a franchisor grants the franchisee the right and imposes the obligation to operate a business in accordance with the franchisor’s concept. In other words, as a franchisee, you will have a franchise business in Romania that already has market recognition, with the goal of expanding the business itself and maximizing profit. Through a franchise network, products and services are promoted, with the franchisee being supported by the franchisor through the continuous provision of commercial and/or technical assistance throughout the duration of a franchise contract in Romania. A commercial lawyer in Romania or franchise lawyer in Romania can assist in drafting or reviewing a franchise agreement in Romania, as well as with other services such as company formation in Romania, documents for opening an LLC in Romania, documents for company incorporation in Romania, or even registering mentions in the Trade Register.
Franchise in Romania – Conditions
A franchise contract in Romania, like any other type of contract, must reflect the intentions of the parties, defining their rights and obligations. Moreover, Ordinance no. 52/1997 on the legal regime of franchises sets out a series of requirements for both the franchisor and the franchisee to develop a franchise business in Romania. According to legal provisions, the franchisor must “own and operate a commercial activity for a certain period before launching the franchise network,” “hold intellectual and/or industrial property rights and provide its franchisees with assistance throughout the duration of a franchise agreement.” Regarding the franchisee, they must maintain the common identity of the franchise and its reputation, provide “any information that facilitates the understanding and analysis of performance and the actual financial situation to ensure effective management of the franchise in Romania,” and “not disclose to third parties the know-how provided by the franchisor, both during and after the franchise agreement.”
“As a way of expanding a business, it is essential that a franchise agreement in Romania is correctly drafted and includes all the clauses required by law. The legal regime of franchises is clearly defined, which is why assistance from a corporate lawyer in Romania or a franchise lawyer in Romania is recommended when setting up a franchise in Romania,” stated Dr. Radu Pavel, the Managing Partner of the Romanian law firm Pavel, Mărgărit, and Associates.
For specialized assistance in setting up a franchise in Romania or signing a franchise contract in Romania from a commercial lawyer in Romania from our team, we invite you to contact the Romanian Law Firm Pavel, Mărgărit, and Associates by accessing the form on our website: https://avocatpavel.ro/contact/ .
In conclusion, a franchise agreement in Romania is the legal instrument that governs the relationship between a franchisor and a franchisee, while also being a way to develop a business in the long term. A franchise in Romania brings mutual benefits, and the purpose of this contract is to maintain the quality of the brand in the market. The Romanian law firm Pavel, Mărgărit, and Associates recommends seeking the services of a corporate lawyer in Romania or a franchise lawyer in Romania when concluding a franchise contract in Romania. Additionally, a commercial lawyer in Romania can provide legal assistance regarding any commercial law matter, including company incorporation in Romania, assistance with documents for company formation in Romania, documents for opening an LLC in Romania, etc.