Problems of Legal Regulation of Franchising in Russia

Abstract

The paper deals with some challenging issues of franchising development in Russia under the influence of modern factors on the functioning of this business model. The insufficient treatment of the issue addressed, as well as the existence of some gaps in regulating franchising relations could be confirmed by the lack of the consistent approach to the issue of differentiating the legal nature of the commercial concession (franchising) agreement with other similar contracts. This fact highlights the need for a comprehensive study and detailed regulation of the provisions of the commercial concession agreement. Building on the conducted research the author identifies some possible ways of improving civil legislation in terms of regulating franchise relations. In particular, the paper substantiates the need to introduce the mandatory provision on the pre-contractual stage, which would provide the opportunity to bring the commercial concession agreement closer to the franchising model, which has become quite common overseas.