The Franchising Agreement

The franchising agreement is not firmly established in the Czech legal system. It is therefore an innominate contract, as it contains in principle elements of many other types of contracts. This contract can be very simply described as a relationship between a franchisor who has certain know-how, a trade name and a well-thought-out business plan and a franchisee who is interested in using these values for his own business for a certain fee.

Franchising agreements are very complex contractual arrangements which, in addition to the provisions on how to buy and sell certain products or services, also include provisions on the protection of know-how, trademarks, the appearance of the franchisee's premises or product labels, obligations in relation to competitors, a marketing support system, training of franchisees to ensure maximum network homogeneity, etc.

Thanks to our long-term cooperation with some of the leading Czech franchisors, our law firm has extensive experience in franchising agreements.