Franchising in Romania
Economy
Romania has the eleventh largest economy in the EU with a GDP of
USD 264.0 billion.
Legislation
There are specific franchise laws in Romania.
Franchise Market
The Romanian franchise market is growing rapidly and expected to
reach 3 billion Euros by 2010.
Retail is the most developed franchise sector in Romania with brand
presence including Mango, Mexx and Zara. The services sector is the
least developed but in demand for franchise businesses.
Franchise Legislation
Franchising is regulated under Government Ordinance
52/1997 as modified by Law No. 79/1998. The statute
includes a number of obligations which include:
- pre-contractual disclosure of specified items to potential
franchisees
- incorporation of specific clauses in the franchise
agreement
However, statute does not regulate all aspects of franchising.
General principles of Romanian law, particularly Competition Law
No.21/1996, Trade Mark Law No 8/1996 Patent Law No. 6471991 and
Company Law 31/1991 impact of the franchise relationship.
There is also a requirement for franchise agreements to be
registered with the Romanian State Office for Inventions and
Trademarks and, in certain circumstances, depending on a party’s
turnover and market share, with the Romanian Competition
Council.
Conclusion
In order to ensure that legal documentation is enforceable in
Romania it is essential to obtain specialised legal advice to check
compliance with mandatory franchise and competition laws. A
suitably drafted disclosure document will also have to be
prepared.
For more information please contact Shelley Nadler.