A Ukrainian citizen has obtained a scope of rights from a global brand to distribute goods and materials of the global brand in Austria.

Drozdova & Partners Law Firm Director Ms Olena Drozdova secured the drafting of the franchising (commercial concession) agreement.

It is our reminder that under such an agreement one party (the right holder or franchiser) undertakes to transfer into the other party’s (the user or the franchisee) paid use the right to its scope of rights subject to such requirements as the franchiser may determine, for the purposes of manufacture and/or sale of certain goods and/or provision of services.

‘The Franchisee is entitled to purchase necessary materials and goods not only from suppliers provided by the franchiser, but also from other franchisees,’ Olena Drozdova points out. ‘Before the purchase of rights to the brand, the franchisee started its business in Austria in the form of a limited liability company. After that, the agreement was made in accordance with the following three principles:

– the use of intellectual property rights to the franchiser’s products and services;

– the franchisee being entitled to receive the franchiser’s assistance with the business; and

– the payment of royalties and the use of the franchiser’s business model.’