Franchise Agreement Research Articles

CURRENT STATUS AND DEVELOPMENT PROSPECTS OF HOTEL NETWORKS IN UKRAINE

The article analyzes the essence and advantages of hotel chains. Management of hotel chains takes place on the basis of a franchise agreement, management contract or leasing (rent). The forms of payment according to the franchise agreement have been considered. It has been established that the following hotel chains occupy the leading positions in the world market: Indian OYO, Chinese Jin Jiang, Marriott International (USA). International hotel chains are also represented in Ukraine, but national ones prevail. Among the national chains, the leaders in Ukraine are the Reikartz Hotel Group, Premier Hotels and Resorts, Royal Hotels and SPA Resorts. The trends in the development of hotel chains in Ukraine are: the appearance in Ukraine of world and national economy class brands, the expansion of the list of brands that unite national hotel chains, the dominance of national chains over international ones, the spread of Asian corporations, uneven territorial distribution of enterprises included in chains, exit of national networks to the world level. The problems of the hotel sector of Ukraine are highlighted: due to military operations (suspension of hotels, destruction of establishments, decrease in the number of tourists, disruption of supply chains, inability to work effectively due to the introduction of a curfew, problems with power outages) and general problems (insufficient number of networks due to significant barriers entering the hotel market of Ukraine, low level of related infrastructure development, lack of state and local management bodies for the development of the hospitality sector, lack of guarantees for investment protection in the development of the infrastructure of hospitality enterprises, insufficient level of use of innovative technologies, discrepancy between the level of prices and the quality of hotel services). The main areas of network development are the introduction of innovations, digitalization of hospitality, diversification of services, combination of travel and hotel work, individual approach to the guest, care for the environment, introduction of package services.

What Drives Royalty Rates in International Franchising?

Royalty rates are an essential contractual provision to reduce the risk of opportunism in franchising partnerships, many of which are international. However, extant research provides limited insights into the factors that determine the level of royalty rates in international franchise agreements. To address this gap, the authors conceptualize and empirically test a model that treats country characteristics (economic potential, legal rights protection, and cultural distance) and contract characteristics (territorial exclusivity and contract duration) as drivers of royalty rates, accounting for product-market profile and service type as potential contextual factors. Using a unique data set comprising 125 international franchising contracts between franchisors and franchisees from 19 countries, the authors find that economic potential (but not territorial exclusivity) is associated with higher royalty rates, whereas legal rights protection, cultural distance, and contract duration are associated with lower royalty rates. Although these relationships are robust across business-to-consumer and business-to-business markets, the impact on royalty rates of economic potential is more pronounced, and that of legal rights protection is less pronounced, for services targeting people (e.g., hospitality) than for services targeting their possessions (e.g., financial services). This work extends the literature exploring the contracting stage of international franchising and provides insights that inform franchisors’ and franchisees’ decisions related to the design of such contracts.

The Institute of Commercial Concession in Russia and Franchising Abroad: Correlation, Problems of Legal Regulation and Options of their Solution

The successful development of entrepreneurial activity requires the availability of economic, industrial and organizational potential, it is associated with certain risks that can be minimized by concluding a commercial concession agreement. The ongoing political events have shown how changes can occur rapidly in all spheres of public life. These circumstances can become a springboard for development, in which a commercial concession agreement can act as an assistant. The article is devoted to the problems of regulation of a commercial concession contract in Russian law, a comparative analysis of Russian legislation and legislation of foreign countries concerning the regulation of the issues under consideration is carried out. The correlation of the concepts of "commercial concession agreement" and "franchising" is made. The etymology of the term "commercial concession" fixed in the Civil Code of the Russian Federation is investigated and its connection with the term "concession agreement" is analyzed. The necessity of presenting strict requirements inherent in the law of some foreign countries to the parties of the contract is denied. The amendments to the Russian civil legislation are reasoned. In order to set a balance between domestic and foreign norms, it is offered to replace the title of Chapter 54 of the Civil Code of the Russian Federation "Commercial Concession Agreement" with "Franchise Agreement". The obligations of the copyright holder to assist and control the quality of goods, works, and services under the contract should be formulated in the law in an imperative form. The necessity to supplement the Civil Code of the Russian Federation with a norm granting a user the right of the repudiation from the contract is justified. It also seems appropriate to supplement the articles regulating the obligations of the parties with provisions on disclosure of information by them at the pre-contractual stage of the agreement.

Pengaruh tata letak gudang terhadap kelancaran distribusi barang ke konsumen di kantor cabang alfamart Kotabumi.

 PT. Sumber Alfaria Trijaya, Tbk (AMRT) is engaged in the retail distribution of consumer goods through the operation of the "Alfamart" minimarket network. The mini market network consists of mini markets, has direct ownership and is based on a franchise agreement. Special goods, namely domestic goods, several types of goods distributed by PT during the processing. Sumber Alfaria Trijaya, Tbk, namely cosmetics, food, non-food, daily necessities, etc. One way of distributing goods to consumers is warehouse management. This study uses a qualitative method. The population in this study were warehouse employees of PT. Sumber Alfaria Trijaya, Tbk Kotabumi branch. The data collection technique used was a questionnaire, which gave 10 questions to each respondent, then processed the data through SPSS statistical analysis. The result is that the layout of the warehouse has a positive and significant effect on the stability of the distribution of goods to consumers.. Â

Franchise Agreement and Its Concept, Significance, Historical Development: A Case Study in the United Arab Emirates

The study mainly aims to identify the nature of the franchise agreement by explaining its concept, significance, and historical development. The study also aims to show the extent to which the UAE legislator organizes the provisions of this agreement. The basic questions for the study are what is the franchise agreement, what is its significance, and how has the UAE legislator organized its provisions? The problem of the study is the ambiguity of the legal nature of this agreement and the lack of a specific law to be invoked in the event of a dispute between the parties to the agreement. The researcher uses the descriptive and analytical approach to achieve the study objectives and to find solutions to the study problem. The researcher also uses the historical approach to find out the origins of this agreement. The study concludes with several results, the most important of which are as follows. Unlike the countries of Europe, the franchise agreement has no legal regulation in the United Arab Emirates, nor in Arab countries. The study concludes that this type of contract has great significance, especially in light of the technological revolution and the accelerating global economic growth. The researcher concludes with a set of recommendations, the most important of which are as follows. The researcher urges the UAE legislator and Arab legislators to organize the provisions of the franchise agreement by issuing special legislation for this agreement due to its significance in commercial life. The researcher also recommends promoting the concept of the franchise agreement and awarding bids as part of the promotion campaign. The researcher recommends holding courses and conferences that would urge citizens, especially traders, to benefit from this type of contract.

Studying the essence and specifics of franchising managerial functions, identifying its tasks and substantiating its role in protecting and strengthening the enterprise’s brand

Businesses are looking for different methods of cooperation, ways of doing business, and forms of business models. Small or medium-sized businesses that do not have a steady large income are able to join as a franchisee in fulfilling certain obligations under the franchise agreement concluded with a large enterprise, i.e., the franchisor. Provided that the franchisor in the enterprise development strategy identifies a new direction, namely, protecting and strengthening the enterprise brand, and begins its implementation, it checks the relationship of this direction in the development strategy with the main actors, market factors, and development dynamics of the product or service life cycle. It also evaluates the connection of the direction of protecting and strengthening the brand with other directions of its strategy, the compliance of the management qualification with the requirements of new goals and objectives, and the validity of the expected indicators of implementing the new direction of the strategy. Besides, it justifies a possible positive result to the risks of losses from failure to implement the strategy, and negative risks. In case of unsatisfactory results, the management functions are adjusted to comply with the algorithm for implementing such a way of doing business as franchising. It will allow the franchisor to extend the life cycle of the enterprise and work effectively under a harsh market economy and unstable environment. The franchise agreement establishes clearly determined relations between the franchisor and the franchisee, giving the latter certain rights, functions, responsibilities and obligations, and setting goals, defining the work conditions over time including rights and restrictions on the use of the franchisor’s brand, trademark, rights in the territory and market segments, regulations, rights to production, sales, property, intellectual property rights. Having studied the essence of franchising and the specifics of its management functions, we can conclude that the franchisor and the franchisee receive certain profits and benefits under the franchise agreement. Franchising helps a large enterprise to expand markets, which act as a set of all objects with which the enterprise has a partnership and can improve its activities through the implementation of the appropriate policies avoiding high commercial risk.

The Disproportionate Power Between the Parties in a Franchise Agreement

The Disproportionate Power Between the Parties in a Franchise Agreement

ANALISIS PENGEMBANGAN USAHA DENGAN SISTEM WARALABA PADA USAHA KULINER BEBEK MADURA BEMA

The growth of interest in business, especially in the culinary, opens up opportunities to develop a business with a franchise system. This study aims to analyze business development and the efforts of culinary business owner with a franchise system. A franchise or franchising is a method of distributing products or services involving a franchisor, who establishes the brand's trademark or trade name and a business system, and a franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor's name and system based on franchise agreements. The research was conducted on a culinary company named BeMa Bebek Madura which has applying franchise system. This study uses a qualitative descriptive method by conducting analysis through data reduction, data presentation and drawing conclusions. The results of the research show that there are two types of franchise systems, pure franchising and product distribution franchising. There is an analysis of business criteria that run a franchise system. Business owners in running a franchise system make various efforts since the franchise agreement will be implemented until the business runs to ensure the business runs well.

A Franchise Agreement as an Act of Unfair Competition

The article is devoted to the analysis of the commercial concession agreement and antitrust immunities provided for by the provisions of the Law on the Protection of Competition and allowing business entities to use the design of the commercial concession agreement in order to conceal their own violations. A legal assessment of the nature of a commercial concession agreement is given, the boundaries between the legitimate protection of the rights and legitimate interests of a cheating entity and a violation of the requirements of antimonopoly legislation are determined.

Growth Prospects of Franchising Under Current Business Scenario

The article aims to objectively examine the history of Franchising in Europe by focusing on ties between franchisors and franchisees. We also carried out a comprehensive study, interacted with numerous prospective European franchisors and franchisees, and have been in service since 2003. Our results suggest that Europe has a very difficult negotiating franchise agreement. Franchising, which promotes strengthening of mutual links between countries at this point in the history of world economic relations, penetrates virtually every field of economic activities, is thus one of the powerful instruments for the transition to the creative development of the States, thereby ensuring their sustainable development, franchising supports improving trade ties between countries at this point of their growth since, nowadays, this is one of the most efficient and democratic forms of transcending national economies, affecting almost all fields of economic operation. Because of this, it is essential for the research. Comprehensive research of the contradictions in perceptions and real commitments on all sides of the franchising arrangement helps one resolve misunderstandings and remove automated performance ambitions. This article aims to have real consequences for the growth of Franchising in Europe, which will boost the performance and reputation of franchise enterprises by offering a comparative review to a preliminary screening of subjective hypotheses about the advantages of franchising and to suggest incorporating additions and clarity to the partners.

ПРАВОВИЙ АНАЛІЗ ДОГОВОРУ ФРАНЧАЙЗИНГУ В СФЕРІ ІНТЕЛЕКТУАЛЬНОЇ ВЛАСНОСТІ

Introduction. Despite the widespread franchising relations in the world, they still do not have sufficient legal regulation in the national legislation. This can be explained by the fact that franchising in Ukraine began to develop relatively recently, namely with the independence of our country in 1991. The regulatory legal act, which first enshrined the provisions of the franchise agreement, is the Civil Code of Ukraine, but it should be noted that the peculiarity of domestic legal regulation is the use of the category of "commercial concession agreement", which in essence fully corresponds to the franchise agreement. In this context, it is important to conduct a legal analysis of such an agreement and provide proposals for improving the national legislation in the field of regulation of franchising relations. Purpose. The purpose of the study is to conduct a legal analysis and develop proposals for improving the legal regulation of the franchise agreement at the legislative level, taking into account international experience that has already proven its effectiveness and can become the basis for developing amendments to the current legislation of Ukraine. Materials and methods. The materials of the study are: 1) regulatory and legal support of the peculiarities of the legal regulation of the franchise agreement; 2) works of domestic and foreign authors who conduct their scientific and practical research on the subject of the franchise agreement and its components, as well as analysis of proposals for the legal regulation of the franchise agreement. The methodological basis of the work is the following methods: in particular, in the process of studying the subject of the franchise agreement and its components, the methods of analysis and synthesis were used; the method of abstraction and generalization was used in defining the concept and legal nature of the franchise agreement; deduction method - in the development of some proposals for improving the current legislation of Ukraine in the field of legal regulation of the franchise agreement; comparative legal method was used in the process of studying the legal regulation of the franchise agreement in certain countries of the European Union; formal legal method - in the analysis of the norms of current and prospective legislation; system-functional method - in the study of the composition and forms of franchise relations, as well as the structure of the franchise agreement. Results. The process of formation of legal regulation of the franchise agreement in some countries is analyzed. A review of legislative acts was carried out and problems in the legal regulation and definition of the concepts of franchising and commercial concession were identified, and it was noted that differences in the interpretation of concepts in the course of entrepreneurial activity can lead to negative consequences in the form of litigation, loss of status of the organization, reduction of business development efficiency, financial costs, etc. The legal analysis of the transfer of rights under a franchise agreement to a commercial name and trademarks together with commercial information containing information about the experience of the right holder's business activity was carried out. Given the analysis of individual means of individualization of the right holder, attention is drawn to the fact that the individual terms of the commercial concession agreement include the term of its validity. Prospects. Based on the positive experience of the European Union Member States with regard to Ukraine's European integration policy, the author suggests that one of the possible proposals for improving national legislation on the legal regulation of the franchise agreement is the adoption of a separate regulatory act which would enshrine the specifics of legal relations under the commercial concession agreement, as well as revision of the provisions of the Civil and Commercial Codes of Ukraine relating to the legal regulation of pre- contractual liability and disclosure of information about the franchisor's activities. Taking into account Ukraine's choice of the European vector of development, it is proposed to replace the term "commercial concession" with the internationally recognized term "franchising" by amending Chapter 76 of the Civil Code of Ukraine, which, accordingly, should be renamed from "Commercial Concession" to "Franchising". Not only the name of the agreement itself, but also the names of its parties, the right holder and the user, which are currently defined by the current legislation, need to be changed. They should be changed to the franchisor and franchisee respectively, following the example of most foreign countries, including the member states of the European Union.

O konieczności regulacji prawnej umowy franczyzy – uwagi do raportu „Faktyczna nierówność stron umowy franczyzy w Polsce”

The aim of the paper is to find the answer to the question whether franchise agreement should be regulated under Polish law. At the moment franchise agreement is a so called unnamed contract not regulated by Polish law. Taking into account analysis of the case law and the court files concerning franchise agreement, one may say that the regulation of franchise agreement is needed due to the fact that franchisee is the weaker party to the contract and it should be protected in a far better way than it is done at the moment. The regulation however should be well balanced and should not inhibit entering into the franchise agreements in Poland.

Does arbitration clause prevent class-action lawsuits with respect to the franchising dispute resolution?

DOESARBITRATIONCLAUSEPREVENTCLASS-ACTIONLAWSUITSWITHRESPECTTOTHEFRANCHISING DISPUTERESOLUTION? This article discusses issues related to class action in franchise disputes with reference to the laws of a number of countries, such as the United States of America (the U. S.), Russian Federation, and Vietnam. The aim of this study is to provide a comprehensive analysis and evaluate of the use of arbitration clauses with/without class-action waivers that are included in franchise agreements to avoid class-action lawsuits and/or class-action arbitration. The study uses general scientific and special research methods such as analysis, synthesis, deduction, logical and comparative legal method. As a result of the study, the author came to the conclusion is that arbitration clause plays a sufficient role in preventing class-action lawsuits and even class-action arbitration, which is even though still new, rare, and prolematic, in franchising dispute resolution, but its degree of avoidance also depends on how obvious or ambiguous of the arbitration agreement as well as on the specific applicable law. It is because under some domestic laws the class action waivers that the franchisors, either expressly or implicitly, impose on their franchisees are considered unconscionable or inappropriate.

Liability of the Parties in Franchising Due to Pandemic Covid-19

The occurrence of Covid-19 in recent years provokes a great deal of issues all around the world including Indonesia. It influenced every aspect of life and the most prominent one falls within the economic field. Businesses were dealing with a lot of difficulties and one of them is encountered within the franchising business between the relationship of Indonesian franchisee and foreign franchisor in which a dispute arose within their franchise agreement. This is due to the fact that plenty of restrictions were imposed that cause the Franchisor incapable of importing raw materials for the Franchisee in Indonesia, hence, the Franchisee is unable to start their business here in Indonesia. The Indonesian franchisee has likewise paid a certain amount of the initial fee, thus, the Indonesian franchisee requested a full refund for the delay of the service. Normative legal research is applied in determining the liability of each party and the best possible solution in overcoming the issues within this franchising business. Furthermore, this issue shall be contemplated as hardship instead of force majeure and renegotiation shall be conducted by both parties.

Legal Protection Due to the Non-Competition Clause in Franchise Contract

This study aims to: 1) Knowing and analyzing the legal protection due to the non-competition clause in the franchise agreement, 2) Knowing and analyzing the non-competition clause that has fulfilled the elements of article 1320 of the Civil Code regarding the terms of the validity of the agreement, 3) Knowing the example of the deed franchise agreement. The research method used in this study is a normative juridical method with secondary data sources. The research specification used is descriptive analysis. Researchers used normative research specifications with secondary data sources. The secondary data used by the researcher was collected by conducting a literature study by reviewing, analyzing and then processing it into a descriptive narrative so that it was easy to read. The data analysis method used by the researcher consists of the stages that the secondary data obtained will be used for descriptive-qualitative analysis. Based on the research, it is concluded that the legal protection due to the non-competition clause in the franchise agreement of Serba Wenak Restaurant is explained that in Article 13 of the draft franchise contract regarding trade secrets that franchisees are required to keep the system, management and methods of restaurant management secret from the franchisor during their tenure. The term of the agreement lasts or has expired. One of the characteristics of the Versatile Restaurant franchise is that there must be a written agreement (contract), In this case, the Serba Wenak Restaurant franchise agreement is stated in the deed of agreement that has been agreed upon by the franchisor, represented by the company director, Mr. Drs. M. Adung Darmadung with the franchisee, Mrs. Leni Marleni.

Legal Protection Against Franchise Business In Maintaining Product Quality (Case study of Fremilt Pasar Kliwon Surakarta branch)

The government needs to develop a franchise business in order to expand job opportunities, for that the government creates efforts to protect franchisees and franchisors so that the government issues government regulation no. 42 of 2007 concerning franchise business (Franchise). However, the reality is that there are still many franchises that do not fulfill their obligations to franchisors, such as some franchises that do not carry out SOPs (Standard Operating Procedures) with initial provisions. The problems raised in this study are about how the legal protection for the parties concerned in the franchise agreement, namely the franchisor and the franchisee and the forms of rights and obligations between the franchisor and the Fremilt product franchise, <em>Pasar Kliwon</em> Surakarta branch. This type of research uses empirical research, namely individual research related to social life, in this study the researcher tries to uncover legal protection for franchisees and franchisors of Fremilt products, <em>Pasar Kliwon</em> Surakarta branch. This research is taken from many facts in society. Based on the research, it was found that there is legal protection for franchisees and franchisors so that the taste of the product will be maintained its authenticity and between the two parties can run the SOP in accordance with the provisions of the agreement at the beginning. In addition, the franchisee and the franchisor will feel protected and will get a guarantee of certainty if something goes wrong that harms both parties

EVALUATION OF THE EFFICIENCY OF FRANCHISING IN THE HOTEL BUSINESS

The development of tourism is inextricably linked with the effective functioning of accommodation facilities, which in many countries form a significant share of gross domestic product. The hotel complex of Ukraine needs development and significant investment resources for reconstruction and bringing to international standards. Franchising can become an effective and efficient mechanism for conducting hotel business, which will reduce the risk of business activities, optimize investment, increase the level of hospitality services. The article analyzes the conceptual approaches to the organization of hotel business on a franchise basis in the Ukrainian market, explores the essence and mechanism of business processes on a franchise basis, outlines the economic relations between participants in such relations, identifies advantages and disadvantages of franchising for participants: franchisor and franchisees.
 In order to assess the effectiveness of opening hotels under franchise agreements, in addition to financial indicators based on discount estimates, it is necessary to take into account the additional benefits that franchisees will receive from consulting services of the franchisor, such as concessional lending, rent, transfer of contracts with suppliers and contractors. reduction of the period of reaching full capacity, transfer of the established business practice, etc. It is the transfer of an efficient business model that will reduce operational risks and guarantee high economic performance.
 The state and prospects of hotel activities in the conditions of activity restriction due to the COVID-19 pandemic are also considered. Crisis conditions of economic activity always give impetus to new ideas and development of new services. The vectors of further development are the informatization of most technological operations in the industry, and the optimization of operating costs, the formation of a new product, such as renting office space for business people who are ready to work and relax at the same time.

Localizing energy decision-making through community choice: The Utah community renewable energy act

City commitments to 100% renewable electricity (100RE) have been rapidly spreading across the US, with concentrations in a few states. Unexpectedly, Utah has the third most 100RE adopting cities of any state, and some of the most significant progress to date. This has been through the Utah Community Renewable Energy Act—a statute committing the major utility to fulfilling any city 100RE resolution passed through 2019. Now 23 diverse communities are eligible to join the program and reach 100RE by 2030.This paper uses case study analysis to examine this legislation and the involved communities. Process tracing methods identify causal factors in enacting this legislation at the state level and resolutions at the local level. Results show that utility support was leveraged through franchise agreement negotiations in major communities. Together, these cities and utility created a pathway to 100RE for communities of any size to join, functionally sharing their capacity. The Utah Community Renewable Energy Act serves as a replicable example to cities that wish to pursue renewable electricity without transferring control of energy sourcing or delivery. This policy is the first of its kind, exemplifying ground up institutional innovation, and a shift towards more localized energy decision making.

Perlindungan Hukum Terhadap Franchisee Akibat Pemutusan Sepihak dalam Perjanjian Franchise

In the implementation of a franchise agreement, it is not uncommon for the agreement not to be implemented due to a unilateral termination by the franchisor. Considering that the franchisee in the franchise agreement is in a weaker position, in the event of a unilateral termination, it will suffer a large loss. However, in the laws and regulations, there are no clear arrangements for the protection of franchisees who experience unilateral termination who actually experience losses. The purpose of this study is to analyze the franchise agreement may be terminated unilaterally by the franchisor and the legal protection of the franchisee against the unilateral termination of the franchise agreement by the franchisor. This study uses normative legal research methods using primary legal materials, with the types of approaches used are statutory approaches, case approaches and conceptual approaches. Legal sources are then analyzed systematically. Based on the results of the study, it can be concluded that basically the franchise agreement cannot be terminated unilaterally unless the void conditions stated in the contract have been fulfilled and legal protection for the franchisee against the losses he has suffered can be sued for compensation based on default.

Perlindungan Hukum Terhadap Penerima Hak dalam Perjanjian Waralaba di Indonesia

Franchising is a marketing concept in order to expand the business to support the economy, in this case there are often problems related to the agreement that has been set. Therefore, a legal protection is needed for the recipient of the right. The purpose of this study is to reveal the choice of agreement in the implementation of franchise agreements in Indonesia and the form of legal protection for franchisees in Indonesia. The research method in this study is normative research focusing on the behavior of the legal community and through legal science book references. Sources of data used are primary data by examining regulations related to franchises and secondary data by examining literature, books, papers and journals. Data collection techniques by classifying primary legal materials with secondary legal materials as a support. Analysis of Legal Materials obtained by qualitative analysis. The results of the study reveal that the franchise business in Indonesia has been regulated in the provisions of PP No. 42 of 2007 concerning franchising, for the legal requirements for the establishment of a franchise business, it must meet the provisions in Article 1320 of the Civil Code, and the form of legal protection for franchisees is contained in Article 7 of the Regulation of the Minister of Trade Number 12/ MDAG/Per/3/2006 so the franchisor cannot terminate the agreement at any time or at any time.