Franchising in Latvia
Background
Latvia is in the Baltic region of Europe with area of 64589 km
and population of 2,270,700 (2007). It has a GDP of $ 29.214
billion. Latvia joined the European Union in 2004.
Franchising has become popular in this region and there is a
Latvian Franchise Association. There are franchises in many sectors
of business, in particular food & beverages and clothing
retail.
Franchise Legislation
There is no specific franchise legislation but franchise
agreements are governed by the Commercial Law of
2000 which deals with all forms of commercial activities
and transactions.
There is a registration requirement with the Latvian Commercial
Register.
There is a commercial agency law and it is necessary to take
advice and draft agreements in such a way as to avoid the agent and
principal relationship from applying to the franchise
agreement.
Latvian Law on Competition (2001) also applies
to franchise agreements.
Law on Trademarks and Indications of Geographical
Origin (1999) protects franchisor’s brands in Latvia.
Copyright Law (2000) protects the materials
such as publications or manual provided by the franchisor.
Patent Law (1995) protects registered
inventions.
Conclusion
Latvia is the Baltic State with least regulation in relation to
franchises. It is however, important to take advice to ensure that
any franchise agreement is enforceable and takes into account the
mandatory laws of the country.
For more information please contact Lisa Sen.