The DOs and DON’TS of franchising in Romania

• Published in: Lex et scientia 2022, Vol.XXIX (2), p.19-25
• Main Author: Catea, Roxana-Mihaela
• Format: Article
• Language: eng ; fre ; rum
• Subjects: Agreements; Business models; Commercial Law; Economic activity; EU-Legislation; Franchisees; Franchising; Intellectual property; Law; Law, Constitution, Jurisprudence; Success
• ISSN: 1583-039X; 2066-1886

The importance of the franchise agreement per se is one which cannot be denied, both by European investors and by Romanian ones, since each business strives to gain the market relevance which characterizes a franchise. Also, more prominent EU franchises are entering Romanian markets while initially obscure Romanian brands are bolding emerging from the minds of visionary entrepreneurs. While The European Union lacks a common legal framework on franchising, each Member State has established its own rules, which are similar to a certain extent. This article aims to point out the main rules applicable for franchises established under Romanian laws, which both franchisor and franchisees should be aware of when analysing the potential success of a franchise located in Romania. The study shall address what is mandatory for the franchisee to perform before setting up a franchise is Romania and while the franchise network is carrying out is business as well as what are the obligations which each franchisee must undertake, both pursuant to contractual norms and stemming from the legally mandatory framework. Also, another of the study’s objectives is to determine the most frequent misinterpretations of Romanian franchise legal framework and to propose adequate solutions in order for future investors to avoid them.