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ARTICLE · 08 JUNE 2023

Franchise Framework In Kazakhstan

Franchising has been used as a route to the Kazakhstan market by overseas businesses since the 1990s when brands such as Coca-Cola, Adidas and InterContinental appeared...

KazakhstanCorporate/Commercial Law

INTRODUCTION

Franchising has been used as a route to the Kazakhstan market by overseas businesses since the 1990s when brands such as Coca-Cola, Adidas and InterContinental appeared on the market. Over the past years, the country's strong economic growth and rising household incomes have prompted other foreign franchisors to turn their sights on the country, quickly becoming a leading market in Central Asia. International brands such as Zara, Pizza Hut, Debenhams, Mothercare, H&M, KFC, CHARLES & KEITH, Ipekyol, Bobbi Brown and many others are currently represented in the market.

Foreign and domestic brands use franchising as a business system in nearly every industry that contains small and medium-sized businesses. However, as in other Central Asia markets, it is most common in the fast-food and casual dining, retail and leisure, and services sectors. Many foreign franchisors prefer to work based on subfranchising agreements with master franchisees in

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