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ARTICLE · 21 SEPTEMBER 2017

Franchise 2018 (Chapter Russia)

Chapter 54 of the Russian Civil Code is dedicated to franchising. According to that law, the parties to a franchising contract may be any commercial entities or individual entrepreneurs.

RussiaCorporate/Commercial Law

OVERVIEW

1 What forms of business entities are relevant to the typical franchisor?

Chapter 54 of the Russian Civil Code is dedicated to franchising. According to that law, the parties to a franchising contract may be any commercial entities (limited liability companies, joint-stock companies, etc) or individual entrepreneurs. Most commonly, the parties are limited liability companies. In certain instances, joint-stock companies are used in complex franchising transactions (such as joint-venture franchises).

2 What laws and agencies govern the formation of business entities?

Chapter 54 of the Russian Civil Code contains 14 sections specifically dealing with franchising, but other sections of the Russian Civil Code also relate to franchising in that they regulate the formation of legal persons and individual entrepreneurs and the general principles of conduct of their business. There are also regulations issued by various government bodies regulating individual

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