Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Franchising represents a successful and effective business model in the city of Tulcea, Romania. Under Romanian law, franchising is viewed as a contract between two businesses, where one party (the franchisor) allows the other party (the franchisee) to use their brand, knowledge, and system to create profits. Romanian legislation concerning franchising is consistent with the European Franchising Federation’s Code of Ethics. Franchising can offer numerous advantages but can also involve legal complications that require professional assistance.
Selecting a franchise, reviewing a Franchise Disclosure Document, and navigating initial negotiations can be both challenging and confusing. A lawyer well-versed in franchising law can explain the terms and conditions of the franchise agreement, identify any potential issues, and negotiate terms to ensure your interests are protected. Legal assistance can also be invaluable during disputes with the franchisor, such as disagreements over territory rights, advertising strategies, supply issues, or cases of contract termination. Furthermore, lawyers can assist you in maintaining compliance with local, national, and international laws and regulations.
Romanian franchise law stems from multiple sources including the Commercial Code, the Competition Law, and the Civil Code. Although there is no specific franchising law, these laws collectively shape the franchising business. Notably, the franchisor is obliged under the Competition Law to provide the franchisee with a draft of the contract and related documentation at least 14 days prior to contract finalization. The franchisor also has an obligation of continuous support towards the franchisee during the duration of the contract. Any restrictive clauses that go against the principles of competition can be regarded as null and void.
Typically, the franchise agreement in Romania lasts for a fixed period of 5 to 7 years. However, the exact duration can differ depending on the strategic goals and negotiation between the franchisor and franchisee.
Yes, the franchisee has a period of 14 days to withdraw from the franchise agreement without penalty. This provision ensures an informed decision-making process.
Early termination of a franchise agreement is possible but may lead to penalties. These can be avoided if termination is due to a breach of contract by the franchisor. A lawyer can provide specifics based on the terms of your agreement.
If a franchisor does not fulfil their contractual obligations, you should seek legal counsel immediately. Recurring negligence or breach of contract by the franchisor is grounds for termination or legal action.
Yes, franchising business can be sold. The terms and conditions for transfer will be outlined in the franchise agreement. Legal assistance is recommended to guide you through the process.
The Competition Council of Romania and the Chamber of Commerce and Industry of Romania (CCIR) are important organizations for understanding franchising in Romania. The Competition Council regulates antitrust issues, while the CCIR provides business-related information and resources. Legal sources such as the Romanian Commercial Code, the Civil Code, and the Intellectual Property Law can provide relevant legal information. Additionally, the European Franchise Federation’s website offers resources for ethical franchising practices.
If you are considering entering into a franchise agreement, or if you are experiencing issues with an existing franchise, it's important to consult with a legal professional familiar with franchising law in Romania. This could entail doing research through online platforms, contacting the local bar association for recommendations, or seeking guidance from the relevant trade bodies. Ensure you adequately prepare for your first meeting by gathering any applicable documents and outlining your concerns. Remember, the more prepared you are, the more effective the legal advice will be.
