The Ratio of the Commercial Concession Agreement and Franchising Agreement

Abstract

In connection with the rapid development of economic relations, more and more new forms of entrepreneurial activity enter into circulation. The subject of this work are two agreements involving the transfer of exclusive rights to carry out business - a franchising agreement and a commercial concession agreement. The question of the ratio of the considered types of contractual relations is of particular relevance. To date, a unified approach to understanding the essence of a commercial concession agreement has not been developed. Many jurists identify commercial concession with franchising, talking only about the difference in terminology. This article provides a comparative analysis of a commercial concession agreement and a franchising agreement. The author examines the regulatory framework of the Russian Federation on commercial concessions and franchising (bill). The analysis allows us to conclude that the franchise agreement is broader in content in comparison with the contract of commercial concession. The author comes to the conclusion that it is necessary to form a legislative framework governing the conclusion of a franchising agreement. Particular emphasis is placed on the need to take into account generally accepted international provisions on franchising in the preparation of the regulatory framework.