Franchising is an unusually popular business model in the modern globalised economic environment. Essentially, it entails a cooperation agreement where the franchise provider transfers a system, within that the right to use intellectual work (particularly trademarks) and protected know-how, while a franchise receiver is required to use the transferred business model (to manufacture products or render services) and to pay a fee. Franchise law is therefore closely related to many different areas of law by virtue of its nature, including intellectual work and competition law in addition to contract law.

At the same time, despite the franchise model’s economic significance, and the numerous legal issues and risks arising in connection with creating franchise systems and concluding franchise contracts, the legal regulation of franchising in Hungary is still rather narrow in scope even in the new Civil Code. As a consequence, tending to franchising matters, particularly to drafting franchising agreements demands great circumspection, significant and specific experiences and expertise every time.

SBGK is at the disposal of both its franchisor and franchisee clients – should they have questions about any aspect of franchising law and franchising agreements – based on its extensive international relationships, its intellectual work and competition law related information and know-how, as well as its specialised experience obtained in numerous franchising cases.



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