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ARTICLE · 15 JUNE 2012

Franchise Agreements Under Turkish Law

Under Turkish law, franchise agreement, being a "sui generis" type of contract, contains features of various other agreements.

TurkeyCorporate/Commercial Law

Definition

Under Turkish law, franchise agreement, being a "sui generis" type of contract, contains features of various other agreements (e.g. sales & purchase agreement, agency agreement, service agreement, mandate agreement) and provisions of the Turkish Code of Obligation ("TCO") and Turkish Commercial Code ("TCC") that are relating to these contracts may also apply to franchise agreements by way of reference. Apart from that, franchise agreements are governed by the general principles of Turkish law, those related to contracts.

The franchise agreements are defined by the doctrine1 as well as Turkish Court of Appeals2 as follows:

"A franchise agreement is between two legally independent parties. It gives the franchisee (i) the right to market a product or service by using the franchisor's trademark or trade name, (ii) the right to market a product or service by using the franchisor's operation methods (know-how), (iii) the obligation to pay a royalty fee for

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