Franchising has been gradually capturing the Ukrainian market.
According to the Franchising Association of Ukraine, as of today
about 400 franchising chains operate in the Ukrainian market and
this data demonstrates annual increase of about 20 per cent.
Notwithstanding the substantial Ukrainian market potential for
further franchising expansion, there are lots of pitfalls hindering
successful franchising development in Ukraine, for example: (i) the
equivocal legislative regulation; (ii) strict foreign currency
regulation; (iii) misunderstanding by the franchisees of the nature
of franchising; (iv) the franchisee's unwillingness to strictly
follow the franchisor's standards; (v) 'historical'
disrespect for the franchisor's intellectual property rights;
and (vi) commercial secrets. The absence of well-established, firm
practice in the ruling and interpretation of franchising related
issues by the Ukrainian courts also pours oil on the flames. In
view of the above, in this
